Google's Barriers In China

"Forces outside the industry are significant primarily in a relative sense; since outside forces usually affect all firms in the industry, the key is whether firms have differing abilities to deal with them," Porter five forces. Therefore, Google could not deal with outside forces that make it difficult for Google to overcome the Chinese companies. Google did not have competitive advantage in order to conquer the market and beat any company stands in its way.

Barrier to entry in China is increasingly high and especially in the internet industry where there are more than one company in this industry. All of them are perfect in the market and each one has a slice of the internet pie.

The ability of other internet Chinese companies and their free offered services have helped them to compete with Google in China. Many foreign companies failed to conquer the Chinese market and Local Chinese companies. Google is one of these companies that faced many problems in China for the huge competition of the Chinese companies such as, Sohu (SOHU), Sina (SINA), and Netease (NTES).

Ethnocentrism could be one aspect that prevents Google from sharing a slice of the internet pie in China . The Chinese people are sticky to their national products and services rather than foreign produtcs and services. Also local companies been able to offer its customers what been offered by foreign companies has hepled local compaines to be superior in the market.

Google being non-Chinese company has negatively effects its ability to be solid company in China. Although Google hired former Microsoft executive, Dr. Kai-Fu and other top people from Chinese companies, the company still lack the ability or strategy to adapt with the Chinese market and be truly "Chinese Internet company".