By Ronan CHARDONNEAU

Google Report contents

Company introduction Google in the world EPRG Google's

internationalisation Reasons of success

Weak points Asian market

Russia China Japan South Korea

Conclusion

Company presentation N°1 search engine in the world with more than

60% of the market No more than a simple Phd project Created ten years ago Real internationalisation 2 years after Large range of services: 149(from email, to

advertisement, to blogs...)

Crazy figures 3 employees in 1998...20123 in 2008 1 200 employees which are milionnars because of

their stock options(500 dozens of millions and 80 in hundreds of millions)

In 2006 more than 3500 CV were received...per day, need to speak at least 3 languages, in avg 9 to 20 interviews

Number 1 of online advertisement Advertisment represents 97% of Google turnover The biggest computer network in the world with more

than one million of computers

Internet market

Google leadership in the world

EPRG Geocentrism...Regionalism?

23 offices in the USA(but only one culture) 22 in Europe(but several cultures)

A service which is almost the same in all the countries

Managers of different nationalities within the offices(not only local people)

Regionalism? They opened in 2003 in Dublin a location for regional

operations outside the U.S. Designed to serve Google customers across multiple time zones and languages spanning Europe, the Middle East and Africa.

Individualize each country by country including islands, Green Land, different languages for the same country

Gathering minorities

Regiocentrism: by countries regionsGoogle Bretagnehttp://www.google.com/intl/br/

Google Langue d'oc http://www.google.com/intl/oc/

Google Corse http://www.google.com/intl/co/

Google Pays Basqueshttp://www.google.com/intl/eu/

Google Catalognehttp://www.google.com/intl/ca/

Google's Internationalisation A pro-active motivation ((offices in the world-offices in the USA)/Total

number of offices)*100= (48/68)*100= 70%.

In total: 1+3+11+1+5+14+1=36 offices could have been allocated better.

1+3+24=27 offices are lacking.

Google has then 41 offices which are well internationalized it equals to 68-27=41; 41/68= 60%.

Resons of a success We cannot deny it Google is a great success "Google's search engine has always had strong

global appeal," Easy service, easy to manage American impact Google dependence phenomenon(Gmail,

Blogger, Picasa, Youtube...)

Google has however some weak points

Asian market: reasons of a non success

Wrong strategy? Huge gap of cultural differences? Too many cultures to manage? Anti-globalization trends?

Google's International development

1

2

2

3

4

56

6

6

Asia was not Google's priority but it was for his competitor: Yahoo

Asian reluctant countries

Russia Nationalism A more animated home page? Just a matter of time: Ukraine

« We do not support Google because we have to help our local companies »

RussiaYandex: 47,61% Google 25,67%Rambler 12,17%

Mail.ru 5,53%Others: 9,02%

China

Interface available in Chinese since 2000 New interface some years ago because of

cultural differences Main brake is government Nationalism

« We do not support Google because we have to help our local companies »

China

Baidu: 60,9%Google: 27%Sogou: 3,1%Yahoo: 2,4%Others: 6,6%

Japan Interface available in Japanese in 2000 A customized interface Yahoo adopted a better strategy Main brakes are time and habits Good opportunity taken by Google with the

market of mobile Internet

« We do not support Google because Yahoo fits better our needs »

Japan

Yahoo: 64%Google: 29,6%Microsoft: 2,8%Others: 3,6%

South KoreaSouth KoreaNaver: 77%

Daum: 10,8%Yahoo: 4,4%Google: 1,7%Others: 6,1% Interface available in Korean in 2000

However it took 6 years to adapt their interface to the market

Main brakes are cultural differences and habits People are get used to use Naver(same

principle as Wikipedia) Naver dependency

« We do not support Google because our technology is better »

ConclusionGoogle is a great international company. However there are some reserves regarding the strategy it adopts toward Asia.

“We will take a long term view to win in China. The Chinese have 5,000 years of history. Google has 5,000 years of patience in China.”

Eric Schmidt, Google CEO

Although Google has made some progress in terms of market share, they may indeed need 5,000 years to pass Baidu.... and not only Baidu.