Using appropriate theory or frameworks to guide your analysis critically analyse the opportunities and challenges facing Google.
...na also depends heavily on the quality and sometimes the quantity of personal relationship. (Efendioglu and Yip, 2004) Chinese prefers face to face transaction which can develop a physical relationship between buyer and seller. Therefore, in the process of searching product and services, Chinese would prefer have a virtual conversation with vendor. This will also overcome the ．tough and feel・ concern. The objective of ．Premium Sponsorship・ and ．AdWords・ may not be achieved and this would be a challenge faced by Google. Transactional and institutional trust Confucianism may have left a strong mark on much of the Chinese social life but it also left a business system more in tune with rule by an unpredictable authority rather than dependence on a system of laws and obligations. (Davies and Howard, 1995) As web search services had been developed in China in recent years, most customers do not know well and not fully understand its functions. They may mistrust the information of products and services provided in web search. This would be a challenge to Google now because more time is needed for Chinese to adapt to a new form of searching behavior. Moreover, Chinese businesspeople, for example, rarely rely on e-mail, because they find the idea of leaving messages to be socially awkward. They prefer live exchanges, which mean they gravitate to mobile phones and short text messages instead. (Thompson, 2006) This is a challenge for Google that launch Gmail in Chinese market. Attitude towards debt Chinese still exhibits the characteristics of a cash society. (Efendioglu and Yip, 2004) They rarely use credit cards to pay in internet. This would be a challenge to online purchasing of ecommerce, which is an obstacle for ecommerce development in China. Social issues Social economic issues include infrastructure, economic growth, government intervention and the local competitors. These are external factors influencing buyers and sellers behaviors. Infrastructure There are three primary infrastructure related elements that impact consumer participation in ecommerce. They are access to technology, payment systems for enabling transfer of funds, and distribution systems for physical transfer of goods. (Efendioglu and Yip, 2004) The first element is access to technology. According to the market research IDC, China・s PC sales of 11.3 million in 2002 will increase to 21.1 million in 2006. (Clendenin, 2003), making China the world third largest market. This dramatic increase of PC sales enriches Chinese familiarities with ecommerce, which offers an opportunity to Google in its ecommerce development in China. The second element is payment systems. In China, there is no universal agreement on the wide availability of credit cards or electronic payment systems. (Efendioglu and Yip, 2004) It challenges online purchases and ecommerce development. This would be a challenge to Google to launch more services in China. The last related element of infrastructure is physical distribution system. There are multiple private courier companies that have been established in major cities and China・s postal service has signed contracts with dozens of online merchants for regular or express delivery. (Efendioglu and Yip, 2004) This gives an opportunity to Google to offer more services to Chinese market such as Froogle or Google Base. Economic growth According to World Bank, the Chinese have the highest percentage of disposable household income in the world. (Efendioglu and Yip, 2004) The Chinese economy is exploding and it is increasingly becoming an attractive new place for both on and offline firms to do business. (BBC NEWS, 2005) This provides an opportunity for Google as there is an increasing number of people searching products and participating in e-commerce. More firms may pay for more on advertising their products and services in search engine. For the past few years, number of Internet users in China has been increasing in dramatic rate, especially access from home. In 2002, China is at the second place with 57 million people having web access at home. (Juliussen, 2002) The number of internet search users in China is predicted to increase from about 100 million currently to 187 million. (BBC NEWS, 2005) This is an opportunity for Google to increase its market share of usage of its search engine, as Google had built its reputation. This reputation would attract more firms to pay for advertising on Google; hence it is an opportunity to increase profitability. Government intervention Another social economic issue is about the unique law and regulation in China. The Chinese government keeps a tight rein on the internet and what users can access. (BBC NEWS, 2006) To obey China's censorship laws, Google's representatives explained, the company had agreed to purge its search results of any Web sites disapproved of by the Chinese government. (Thompson, 2006) This is a challeng...