Google: Should “Dragonfly” Fly? (Simplified Chinese version)
(5 pages of text)
Case (Pub Mat)
In 2018, China was the biggest market for Internet services in the world. Along with the country's huge market size, its comparatively low penetration made it an immensely attractive market for search engine services. To capture this market, Google was planning to re-enter the Chinese market—after leaving in 2010—with a censored search engine codenamed “Dragonfly.” The move was opposed by human rights activists, Google’s own employees, and the U.S. government. Google had the opportunity to improve its share in the global search-engine segment if it could somehow tap into the vast Chinese market. But the tight control over Internet services by the Chinese government on one hand, and the protests by various interest groups on the other, had put Google in a tight spot. Google had to decide if it should go ahead with the plan to offer Dragonfly in China. Should Google instead explore other market and non-market strategies to re-enter the Chinese market?
This case is suitable for business environment and strategy courses in a post-graduate management program that covers topics such as market and non-market environments, the 4Is framework, market and non-market strategies, integrated strategies, and country analysis. The case discusses the importance of non-market environments for business decisions. The case also covers formulating, screening, analyzing, and selecting market and non-market strategies that can be used to address the challenges that emerge from non-market environments, without violating legal and ethical norms or the values and principles of the company. After completion of this case, students will be able to
- understand the 4Is framework suggested by David Baron;
- analyze market and non-market environments using the 4Is framework;
- understand the influence of non-market environment on market environment and vice-versa;
- suggest market and non-market strategies to approach a business problem;
- understand the importance of integrated strategies for addressing business problems; and
- carry out a country analysis and identify potential risks to the entrant into the country’s markets.
Information, Media & Telecommunications
China, Large, 2018
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