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Google Pestle Analysis

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Submitted By agangoiti
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Google PESTLE Analysis
Political
Installation of sophisticated router switches blocked information flowing in and out of China
A blacklist of banned IP addresses and URLs featuring news about politically and culturally sensitive topics was given to the operators by the Government and wanted operators to block them.
All providers in china had to provide the customer’s account numbers, phone numbers and IP addresses to the Government
The providers were asked to track the websites the users accessed under the policy of Public Pledge of Self –regulation and Professional ethics.
Internet cafes were asked to install software that blocked sensitive content and the patrons who visited these sites had to present their identification under their real name.
Chinese Government launched a$800 million surveillance system called Golden Shield for monitoring Civilian use of internet
35000 internet police jobs were created to monitor and censor websites in China.
Two cartoon police officers JingJang and ChaCha appeared on the screens to remind users to refrain from accessing sensitive information.
The information about the dissidents were collected and prosecuted.
Economic
China does not have a full bloomed media like in US
Average age of internet users is about 25
Users in China use search engines to search for songs and entertainment
There is a gap on Internet connectivity in Urban and rural areas (Chiou, 2009)
Social
In China, Web access and usage is not distributed demographically and geographically.
In 2005, 60% of internet users were male and 40% were female
Most users were young with 18-24 age group
Internet users were the well-educated group.
Most of internet usage was concentrated around cities and coastal provinces
Chinese business people do not rely on email, as they feel leaving messages is socially awkward (Thompson, 2006)
Technical
The Government could monitor all foreign traffic by positioning routers at borders
China Telecom, the dominant internet service provider for China enabled the Great Firewall of China for filtering out sensitive information.
Legal
The Global Information Technology Report 2008-2009 showed a low judicial independence, intellectual property protection, efficiency of legal framework, property rights and quality of competition in the ISP sector.
Deployment of internet police for monitoring and censorship on Internet.
Environmental
The huge population of China makes it a potential market for Google
Conclusion
Google is continuing its talks with the Chinese government about easing censorship and the company (Google will not Quit China, 2010). Google can be a reason for social good in China, which may promote the freedom of expression. Withdrawal of Google from China can prevent from realisation of such benefits. Transparency can be considered as a greater method of resistance, even if it results in greater scrutinisation. The case of Google is that the national law has collided with the corporation’s ethics. Google should rethink its strategy and analyse the impact on overall business in the Chinese market.
Recommendations
Based on the research done, the following recommendations can be done
Google needs to clearly redefine its strategies when it comes to capturing and sustaining in the Chinese market. The organization should identify its strengths and weaknesses and the extent to which opportunities and threats affect Google by the changes in the Chinese internet market. Google should be able to identify them and adapt to them in a timely way.
The ongoing talks with Chinese Government to ease censorship are commendable.
The company should not be deviated from its goal because of the short term pressures like internet censorship and regulations
At the same time, it should also consider its Corporate Social Responsibility of freedom of access to information by the users and stakeholders.
Google should aim at building the best Chinese search to target the average Chinese user
Google should collaborate extensively with portal sites, wireless networks and ISPs in China.

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