Google The name Googol was founded by a gentleman named Milton Sirotta. Mr. Sirotta was the nephew of an American mathematician named Edward K asner (Google, 2004, 1) The company name Google was created in reference to the actual number googol which is represented by a number followed by 100 zeroes. The meaning behind the company’s name was to reflect the companies mission to organize immense amounts of information available on the web (Google, 1).
In 1995 Google was created by two young men, Larry Page and Sergey Brin. Mr.
Page and Mr. Brin met while attending Stanford University as graduate students (Google, 1).
Google lure has it that Mr. Page and Mr.
Brin argued all the time about everything, but seemingly found that they had similar motives with respect to the information age and the Internet. As you will discover they went on to create the single largest search engine in the world. Today Google performs over 5 billion Internet searches a day and as a result of paid advertising and various pay forums generates revenues in excess of 3 billion dollars. In overview google’s mission is to organize the world’s information and make it universally accessible and useful (Google. com, 2004, 1).
Since its creation in 1995, Google has since evolved not only into the worlds largest Internet search engine, but is also one of the Internets largest advertisers. Strengths, Weaknesses, Opportunities, Threats and Trends (SCOTT) 1. Strengths. Google’s strengths are many, and they are getting stronger with each passing day. Competition from Yahoo and Microsoft in many ways, keeps the trio at Google on their toes and thinking of ways to improve an already invincible machine. In the past year alone so much has taken place with the company going public, its unique management structure, the acquisition of blogger.
The Business plan on Google Takes On The World
Question 1: Evaluate Google using the competitive forces and value chain models. Five forces affecting competitive strategy:Harvard Business School Professor Michael Porter identified five forces that drive competition within an industry:1.Threat of entry by new competitors -Many new entrants effectively decreases profitability2. Intensity of rivalry among existing competitors – Sometimes ...
com, the introduction of Gmail, local and mobile searches, a Marconi award, and on and on it goes. Eric Schmidt has made it very clear that the status quo is not, and never will be an option at Google. Diversity and innovation have been strengths from the very beginning. From the very first version of Google’s algorithmic search engine to the very last upgrade, others have tried to copy and imitate Google’s unique search engine and advertising machine.
Yahoo has narrowed the gap, spending over $2 billion to acquire commercial search pioneer Overture Services, Inktomi and Kelkoo. Microsoft has followed suit spending over a half billion dollars to develop a new and improved MSN search engine. Even still, Google accounts for 75% of external referrals to most websites. Webmasters are lining up to bid on search words and position on search hit lists.
Get on the wrong side of Google, Inc. and you may find yourself penalized by Google and traffic suddenly disappears. We certainly cannot talk strengths without addressing the financial successes the company has enjoyed in the last few years. When Google, Inc. filed to go public last year, speculation ended about the company’s profitability. They generated over $960 million in revenue in fiscal 2003 and posted $105 million in net profit.
That was the third consecutive year of profitability for Google. In the first quarter of this year, the company earned almost $390 million in revenue and posted a $64 million profit. Google generates 95 percent of its revenue from advertising, which it shares with its distribution partners such as America Online that use its search index. Advertisers buy keywords that launch small text ads next to search results. Advertisers pay the amount they bid for the terms but only if someone clicks on their ads. 2.
The Essay on Google Search
What are the company’s key resources and competitive capabilities? What competitive liabilities and resource weaknesses does it have? What opportunities exist? What threats to its continued success are present? The key resources and competitive capabilities of the search industry are due to the huge company’s success. For instance, Google gains the trust of users through reliable, accurate ...
Weaknesses. As is often the case with successful companies, it is easy to become enamored with what made you successful in the first place. In Google’s case, that would be search advertising. It was intense concentration on search ads that took them quickly to the top and the same focus on search ads could end up costing them dearly. Some feel Google relies too heavily on revenue from search ads and that the company should expand revenue streams from other forms of advertising as well as developing its other offering more fully.
The company prides itself (or so it seems), on its triad in management. Co-founders Larry Page and Sergey Brin, along with CEO Eric Schmidt manage the company together. Many feel there is no distinct leadership at Google and this too may be their downfall. The three men earned over $2 billion a piece when the IPO was filed and some might question whether they can maintain their focus on anything with that amount of cash in hand. Another Achilles heel may be the sheer numbers that make the search engine the best in the world.
Millions of bytes of data on everyone who ever performed a Google search, have been multiplying over the years. At what point can Google no longer protect the privacy of this information? Are they protecting it now? Are they selling it to spooks from Washington D. C. ? These questions are being asked by consumer watch dog groups such as Google Watch, a web site which tracks everything Google does. Scrutinizing everything from the immortal Google cookies eternally placed on users PC’s to the hiring of former National Security Agents and operatives seems to be what the web site does best. Then, of course, there is the interview Brin and Page recently did for Playboy magazine in which they were a little bit too frank with confidential information about the IPO filing.
This kept their lawyers busy for some time. 3. Opportunities. There are several opportunities for Google in the near future that they will be focusing on.
Their new Gmail accounts, local searches and mobile searches will be developed over the next year. Using either the web or a cell phone anyone with text messaging can search for a phone number, address or location of a specific person or place, or even an Italian restaurant or map maker. The company is also about to release a version of Ebay’s Paypal accounts in the very near future. Google is also testing software for making web pages load more quickly by routing requests through their own servers.
The Essay on Google Searching
Searching for information on Google is like trying to find a needle in a haystack. Is that true? Google was founded by Larry Page and Sergey Brin in 1998. They got its name from the mathematical term googol (a number that has a one followed by a hundred zeros. The intention of Goggle was to help control the all the information on the web. That being said they have made searching for information ...
Developing these revenue opportunities is critical if Google is to diversify their revenue stream. They have never had a problem developing any new geeky programming ideas, only in making them profitable. With Yahoo and Microsoft on their heels (but not too close), the key for Google is to stay focused on the big, diverse picture. 4.
Threats. You certainly have to call Yahoo and Microsoft threats, as far as the competition goes. Both spent millions to enhance their own search engines and emulate what Google does so well with search advertising. They are going right after Google’s strength and have shown they are not afraid to throw money at the endeavor. Another very serious threat is information security and privacy issues. If hackers can get into top security sites like NASA and the Pentagon, with the ultimate in encryption software, what’s to stop them from hacking into the scads of information Google has on its users.
With identity theft so commonplace these days, what would be the result of a hack into Google’s database? What if the intruder were the CIA? Could Google be subpoenaed for information contained in their databases? These are very possible scenarios and the results could be disastrous to Google’s business. 5. Trends. Current trends in the search engine industry lead us to believe there will be fierce and innovative competition amongst the big three in the very near future. We will see Yahoo and Microsoft close the gap and certainly Google will continue to do what they do so well. With the newest innovations by the company in mobile and web speed enhancements which are right around the corner, Google will keep the pressure on the others to innovate, imitate or evacuate.
Google is also enhancing video searches and will almost certainly dive into the music arena as well at some point. Advertising has been expanded to much more than the pay-per-click variety with webmasters bidding on keywords, placement and pecking order. Financially speaking, the trend is continued revenue growth with no sign of slowing in the near future. Revenue in the first quarter of 2005 was nearly double that of Q 1 2004, at $1. 26 billion versus last years $652 million figure. It is easy to see why Google Inc.
The Business plan on A Case Study About Google
... Search, news on Google News, videos on Google Video (YouTube) and maps on Google Maps Google has changed the way people look at and share information. ... threats Google face. In addition, users are demanding more and better services for free to be loyal to Google. Advertisement revenues ... be a negative aspect for Google. Google always strive to keep up with the social trends and lifestyle changes of ...
is so optimistic about their future and possibly a bit arrogant.
