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INTERNAL ASSIGNMENT

Name of the candidate: Ashish kumar Enrollment no. : Course: Batch: Subject: Subject code: 03115903911 MBA 2011-2013 BUISNESS AND LEGAL ENVIRONMENT 113

Topic of assignment: GOOGLE PROBLEM IN CHINA Subject Teachers name: MS. MEENAKSHI SINGH

CONTENT

INTRODUCTION INTERNET SEARCH IN CHINA FORBIDDEN SEARCH IN CHINA GOOGLE IN CHINA MARKET SHARE LAUNCH PF GOOGLE .CN CONCLUSION

CERTIFICATION

I ASHISH KUMAR STUDENT OF RDIAS MBA SEMESTER 1 ENROLLMENT NO03115903911 CERTIFY THAT THE REPORT SUMMITED BY ME IS DONE BY ME ONLY.

SIGNATURE OF STUDENT

SIGNATURE OF TEACHER

DATE

INTRODUCTION
Founded by : Larry Page and Sergey Brin students of Stanford University, California, USA. introduced an algorithm known as PageRank Realized that the search result given by BackRub were superior than search engine. search engine was named as Google and introduced the first version on Stanford University website in August 1996. David Filo,co-founder of yahoo encouraged them to start a search engine company. He was very much impressed and give a check of US$100,000 in favor of Google Inc. Google opened its first corporate office in Menlo Park, California in September1998. In 1998 they come up in the top 100 search engines. By 2000 Google proposed a self service advertisement program called Adwords. In 2002 google has an agreement with AOL in which Google will provide search results and AOL placed banner advertisements from Google on its website. By the end of February 2004, Google expanded its web index to around six billion.On 29 April 2004 google filed an application letter with US Securities exchange Commission (SEC) for initial public offering & raise US$1.2 billion by August 2004.

INTERNET IN CHINA (REGULATING BODIES)

Internet in China isunder complex laws and regulations. Ministry of Information Industry (MII) operates networks to connect to the global internet. The legal regulation comprises prohibitions issued by multiple bodies: Central Propaganda Department, Department of Commerce Department of Telecommunication

General Administration of Press and Publication (GAP) Ministry of Culture, Ministry of Information Industry Ministry of Public Security Public Security Bureau State Administration of Radio, Film and Television State Council Information Agency State Secrets Bureau

FORBIDDEN SEARCHS IN CHINA

Chinese government was very syrict and does not allow the free access to various sites Like: Tiananmen Square Tibet Independence/ Dalai Lama Falun Gong Political Status of Taiwan Human Rights

GOOGLE in CHINA
Started its service in September2000 by offering 24 million web pages in Chinese language. By the end of 2002 google gained a lot of popularity among people in china By 2003 Google ranked no-1 with share of 34.8% in chinese global network. In September 2002 government was taking an initiative and ask for a new software containing specified words.They installed this software in four public access network and blocked GOOGLE services in china.

REASON: Users of Google was accessing the restricted pages which was not accessible by the chinese government hence blocked google. Search speed drastically goes down and sometimes not even accessible. In September 2004 Google launched a new serviceGoogle News. By the end of November 2004 Chinese authorities blocked the news in English. Thereafter Google was unreachable 10% of the times and its service was interupted. Elliot Scharge, Vice-president of Google communucation and Public Affairs said Google was seven times slower than its competitor Baidu.

MARKET SHARE
Google was continuously loosing its market share. In 2003 Baidus share was only 2.5% of the internet search market. By 2005 Googles share was below 30% while Baidus share in the market was 46%. MARKET SHARE (%) BEIJING IN JUNE 2005

IN JUNE 2005
MARKET SHARE (%) SHANGHAI

GUANGZHOU IN JUNE 2005 MARKET SHARE (%)

GOOGLE COME BACK

Because of lucrative market size Google wanted its major presence in China. Google felt that its presence in China could provide a better and more reliable service and for that they try toget an Internet Content Provider license. In April 2005 google got the license and Google announces its representative office, R&D and started new registered URL-www.google.com.cn

FILTERING & GOOGLE

Filtering search result was against Googles policy but in order to capitalize market they have done that.

ANALYST POINTS OUT:

They pointed that its not only in China but Google had done in other countries also: GERMANY : Google followed the orders of government in restricting references to site that denied the Holocaust. FRANCE : sites that encouraged racial hatred were prohibited. UNITED STATES : US practiced censorship to Digital Millennium Copyright Act and Google assisted the authorities in checking copyright infringements. Whats important to users is access of information, were giving them that, and we think thats the most information. Wed like to give to give all the information, but we just cant. -Peter Norvig (Director of Research, Google)

LAUNCH OF GOOGLE.CN
In January 2006 google.cn was officially launched in china. Google maintained its stand on protecting user policy to withstand in china. Thus modifying its search capabilities according to Chinese government gives Google to access one of the most lucrative market in the world. After the downfall of market share it will be very tough for the google to regain market share

WEBSITES NOT LISTED IN GOOGLE.CN

Website Type Bacardi.com Alcohol News Bignews.org Chinesenewsweek.com Dating Falunasia.com Collegehumor.com HumorDate.com Advocacy HumorHightimes.com Drug Use Hrw.orgAdvocacy Libertytimes.com.tw News Mm52.com Entertainment Netfirms.com Webhosting