Wednesday, February 01, 2006
Google is Destined to fail in China
International Business, like the one Google -the world famous search engine, is implementing could encounter severe problems in the future or present. Going global, or international, requires companies to adapt to changes in the host-country environment that assures success. One of the things worth mentioning in here is the difference between cultures in this world. Google, according to the article, is not welling to adapt to changes in the environment of the host-country.
Culture is one of the important success factors. This drives us to talk about one of the most famous culture-studies Gurus, if we can call him- Geert Hofstede. According to Hofstede: "Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster." http://www.geert-hofstede.com
Google is operating in a Western culture- the United States of America, which is characterized by high rates of "Individualism", defined according to Hofstede as "A High Individualism ranking indicates that individuality and individual rights are paramount within the society. Individuals in these societies may tend to form a larger number of looser relationships." This kind of bahavior is totally not acceptable and not implemented by the citizens and the society of the host country- China.
Another important thing is the "Wealth Potential" or how is your business concept going to make money- which makes us wonder if Google has a concept that is unique enough to enter this market and gain a competitive advantage.
The rivals of Google can do better if they implement the strategies that retains the culture's values and norms, not other culture's; along with the concept and strategy.
MGT 406- Section 1
Humaid Al-Shamsi
ID # 2987
Culture is one of the important success factors. This drives us to talk about one of the most famous culture-studies Gurus, if we can call him- Geert Hofstede. According to Hofstede: "Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster." http://www.geert-hofstede.com
Google is operating in a Western culture- the United States of America, which is characterized by high rates of "Individualism", defined according to Hofstede as "A High Individualism ranking indicates that individuality and individual rights are paramount within the society. Individuals in these societies may tend to form a larger number of looser relationships." This kind of bahavior is totally not acceptable and not implemented by the citizens and the society of the host country- China.
Another important thing is the "Wealth Potential" or how is your business concept going to make money- which makes us wonder if Google has a concept that is unique enough to enter this market and gain a competitive advantage.
The rivals of Google can do better if they implement the strategies that retains the culture's values and norms, not other culture's; along with the concept and strategy.
MGT 406- Section 1
Humaid Al-Shamsi
ID # 2987