Google and the Government of China: Essay

1804 Words Oct 25th, 2008 8 Pages
Google and the Government of China:
A case study in Cross-Cultural Negotiations

Develop a negotiations planning document using the Kellogg format in Exhibit 11

Issue Google Chinese government
Purpose of negotiation Priority: 1 Position: focuses on profit and brand management Priority: 2 Position: technological, economic gaining Interests: A population of 1.3 billion along with a growing economy makes Chinese market extremely important for Google to enter Interests: It wants Google to provide its citizens and companies with the access to the very best technology, eventually, an achievement of technological parity with the US. Also, China knows the nation’s economy will be improved by internet access and use.
Level of
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By compromising with the Chinese government, Google’s philosophy of “Don’t be evil” will be unavoidably damaged. Even though protecting the company’s image and its philosophy is definitely very important for Google, I think it is less important than failing to entering Chinese market and losing potential profit. All above factors give the Chinese government enormous bargaining power over the negotiation with Google.

BATNA for China would be to continue to rely on local search engine alternatives such as Baidu. Baidu is already one of the most visited sites in the world (number 4) with increasing market share, and very similar to Google in substance and style. By just choosing its BATNA, China may lose some of potential economic and technological advantages, but will have much fewer domestic repercussions. On the other hand, BATNA for Google is far less attractive. Instead of acquiring Chinese domain, Google could just lobby China for access to a larger stake in Baidu, maintain its philosophical integrity. However, Google will lose market share of Chinese users due to user frustration coming from still slow access, and Google’s revenue from China would be seriously limited because it will not be able to have a complete control over Baidu whatsoever.

What ethical dilemmas do you foresee for Google? Is there

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