Hint to Google: Review the road rivals traveled

Opinion

Hint to Google: Review the road rivals traveled

By Wang Xing (皇冠体育app Daily)
Updated: 2010-03-19 10:32

Google's announcement that it was contemplating shutting up shop in 皇冠体育app seems to have been caused by moral considerations, as the world's largest Internet company has claimed.

But there might be other practical reasons here too. As many have pointed out, Google has not been doing as well in 皇冠体育app as it does in other countries. Its 皇冠体育app business has trailed badly behind Chinese domestic search company Baidu, which claims nearly 70 percent of the market share. Hint to Google: Review the road rivals traveled

Surely, it is not just that Google has failed. Before it, America Online, eBay and Yahoo also failed to establish themselves in 皇冠体育app.

However, there are also success stories - Western companies that have adopted a more patient and pragmatic approach to running their businesses in 皇冠体育app. Though suffering some setbacks in the early days in the country, they have managed to not only survive, but succeed as well.

Microsoft is obviously a case in point. During the past two decades, Microsoft has joined hands with the Chinese side to protect its intellectual property rights (IPR).

While the Chinese government has intensified its crackdown on rampant use of counterfeit software, Microsoft has given up its high-pricing policy in 皇冠体育app and reduced prices of its Windows and Office software from over 2,000 yuan to as low as 300 yuan.

Craig Mundie, the top Microsoft executive who has guided the company's 皇冠体育app strategy since 1998, contended in a recent interview that although his company was still struggling to get fully paid for the use of its software in 皇冠体育app, he believes that 皇冠体育app's plan to become a knowledge-based economy will spur demand for a better IPR protection.

And when that day comes, all of Microsoft's investments will be rewarded as long as the company's products are still being used by Chinese users, he noted. To be honest, in the first few years after Google's 皇冠体育app entry, 皇冠体育app has learned a lot from the Internet giant. That could be seen from the statement Google made in its filtered search request and in its practice of separating advertising from natural search results.

However, the firm's announcement seems to have mustered little support from domestic users. For many Chinese, Google's method of dealing with problems in the country demonstrates the spirit of antagonism instead of cooperation.

At the same time, the experiences of hundreds of foreign firms in 皇冠体育app have demonstrated that patience, pragmatism and foresight are the keys to their success stories in a country as large and complicated as 皇冠体育app.

It is important for Google to understand that pulling back is by no means a solution to the difficulties it faces in 皇冠体育app. By doing that, it will only lose the opportunity to participate in the world's largest online population.

The author is a senior business reporter of 皇冠体育app Daily.