Google Case Study Essay

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Google was founded in 1999 and has been around in your mundane life of all time since. Ranging from hunt engines to books to e-mail. Google is someway incorporated in your lives everyday. Originally get downing with their focal point on hunt engines and algorithms. Google has since widened their handiness of merchandises.

In 1999. when Google foremost came approximately. the company’s mission was: Google’s mission is to form the world’s information and do it universally accessible and utile. 15 old ages subsequently. this is still the mission of the company. Harmonizing to the article. it will take upwards of 300 old ages to obtain and form all of the world’s information. That being said. it is safe to state Google has a long manner to travel but are they headed in the right way?

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Google. merely like any other company has ends and aims. Some of their ends include: Growth
Develop and keep the “perfect” hunt engine
Provide advanced merchandises early and frequently
To form information and do the web faster and better for everyone


( These will be discussed in schemes and throughout the instance analysis )

Schemes

Google is no different from Burger King or from LA Fitness. All companies portion a same end. regardless of the industry they are in: market portion and growing. Google’s chief end is to continuously turn and rule the market/industry and be a leader for old ages to come. Upon come ining the market in 1999. Yahoo and AOL were some of leaders in the industry. Google instantly changed that by going working at going a participant in the industry. As of 2009. Google had 65. 6 % portion of all US hunts and 90 % of all international hunts. Meanwhile. the closest challenger ( yokel ) had merely 17. 5 % . Since the really get downing. Google came about to alter hunt engines everyplace. They wanted to offer a faster hunt engine that provided more relevant consequences. integrating history of hunt. keyword frequence. and of import pages. Therefore began the creative activity of paid listings. At the really get downing. paid listings were advertizements all around the page: top. underside and in the borders.

Additionally. cost per chink ( CPC ) came approximately every bit good. Advertisers began to pay for clicked links by consumers to vie for place on hunt consequences pages. The higher their nexus was on the consequences page. the more likely it would be clicked. Google changed this facet into a cost per feeling. significance if the ad is viewed and nil clicked. so the client is still charged a fee. Google besides developed a CPC rate based on existent chinks to anticipate chinks forecasted by Google themselves. In 2003. Google began publicizing column content along with web logs. something that had non been done by any rival yet. AOL ended up giving Google the rights to publicize on their website bing Google $ 1 billion and giving AOL $ 330 million advertisement recognition. Over the old ages Google has encountered many challengers and rivals runing from Yahoo and Bing to Ebay and Amazon.

These challengers came approximately due to the advanced merchandises created at Google. Google purchased companies such as YouTube. DoubleClick and Channel Intelligence while coming up with merchandises such as cloud applications. Google Docs. Gmail. Google Finance and so much more. Google was go forthing their chief focal point of hunt engines and dabbled into other classs in the industry. To some. this could be seen as unsafe and lifelessly to the company itself. Not for Google. anything they touched turned into gold. Google Docs instantly challenged Microsoft Office while Gmail challenged any and all free electronic mail web sites. Google has besides come out with tablets and nomadic phones of late. leting them to vie in yet another industry.

Some might inquire what is so appealing about all of their merchandises? In my personal experience. I would state the easiness of usage is what entreaties to me. Anytime I have used a merchandise of Google. it is so easy to utilize and has tonss of capablenesss. Some might see this easiness of usage as a competitory advantage. When it all comes down to it. developing the “perfect” hunt engine is their chief focal point. Google has a doctrine that says. “Do one thing truly. truly good. ” That is why the chief focal point of the company is developing the perfect hunt engine and forming the world’s information. Through paid every bit good as free listings. Google has developed a faster and more accurate manner to screen hunt consequences. This will go on to be their focal point in the hereafter and Google hopes to get the hang the art of the hunt engine.

Google Culture and Values

During its being. Google has proven to be loyal to a certain set of values. rules and civilization. In my sentiment. this can be swayed as portion of their concern scheme every bit good. As portion of there civilization. they make these three things systematically known: 1. “Don’t be evil” – Do non compromise the unity of hunt. effectual advertisement without being brassy. and do non let ads on web pages that have no relevancy. At Google they have a house set of beliefs and this is an of import 1. Google makes certain to make things the right manner and follow their moral and ethic codification. They do non take advantage of publishing houses. clients or the clients. Google is here to supply a service every bit good as merchandises and they do so in an honorable manner. 2. “Technology Matters” – Technology regulations everything. Developing a faster and more accurate hunt question could merely be done so through new and progressing engineering. Google developed usage hardware to diminish costs and better velocity. 3. “We make our ain rules” – The laminitiss at Google ran the company in a different and unconventional manner.

They were really close to foreigners. merely unveiling things that they were required to and nil more. This leads into their unconventional administration construction as good. Administration at Google was an interesting state of affairs when it came to the IPO. They decided to offer double category equity. giving 10 ballots per portion of Class B and Class A receives 1 ballot per portion. Assuming that bulk of people will sell their portions anyways ; that left the CEO Schmidt and the laminitiss. Brin and Page. with 80 % control of the ballot. This allowed them to command the scheme and way of the company. They made it really good known the way the company was headed in and that anyone who invests is non merely puting in Google. but the thought and way that Brin. Page and Schmidt want to travel in. 4. “Do one thing truly. truly well” – This is fundamentally a quotation mark that Google has and will ever populate by.

When Google foremost came approximately. the chief focal point of the company was supplying a better hunt engine than what already existed. Google created algorithms that allowed for quicker and more relevant hunt consequences. Between these algorithms and the trades Google scored with companies. they rapidly jumped into bulk market portion. To this twenty-four hours. Google still acquires companies and has trades with clients to continuously better hunt quality on and daily footing. Do non anticipate this to of all time alter. There are other points that Google lives by but these four are the most of import and outline their every determination. their every move.

Situation Analysis

Swot

Strengths
1. Brand Recognition – Everyone knows and has heard of Google. Peoples have begun to utilize the company’s name as non merely a proper noun but besides a verb. “Googled it or Googling it” . To be so popular non merely in the signifier of a hunt engine. but with all the merchandises offered. that is a immense strength. Repute is everything. 2. Acquisitions – “If you can’t crush them. fall in them” . That is a popular quotation mark heard from clip to clip. Google has dominated the market since entry in 1999 and tonss of companies have fallen to this quotation mark. Google acquires rivals ( current and possible hereafter ) from clip to clip. such as YouTube. DoubleClick and Channel Intelligence.

This increases their range towards possible new mark markets. increasing gross and net income. Most significantly. it increases market portion. As a company absorbs competition. one would presume their market portion becomes absorbed as good. 3. Algorithms – Google created an algorithm to associate pages together that deserved attending. This allowed for faster and more relevant hunt consequences taking to Google going a true menace to rivals. Irrelevant consequences ever swamped and spammed clients. Google found a manner to pare this down and it besides became a competitory advantage. 4. Free Services – Google offered free package to optimise advertisement runs. Google Analytics allows companies to concentrate disbursement on specific keywords that are more popular so they are more likely to take to gross revenues.

Failings

1. Assortment of merchandises – I really good could hold considered this one of their strengths as good. I steadfastly believe when Google came approximately. their chief focal point was to better the quality of the hunt engine. Since so. Google has developed a broad assortment of merchandises runing from books. electronic mail and videos all the manner to mobile phones. runing package and Google physician. Offering a myriad of merchandises and services can do a company to lose their chief focal point. 2. Legal issues – Google seems to non be bothered by their legal issues. From copyright violation ( books ) to hunts by hallmarks. Google has faced legal issues throughout their being. There was a category action case in which Google ended up settling for $ 45 million with book authors/publishers for copyright violation. In add-on to that. puting rival ads when a company is searched did non sit good with companies such as Geico or American Airlines.

It created client confusion and led to possible loss in gross revenues for the clients of Google. These suits were besides confidentially settled. 3. International Reputation- These legal issues were non entirely domestic. Litigation for companies overseas ended in a different consequence. with the tribunals siding with multiple hallmark holders instead than Google. Book scanning was resolved domestically every bit good but the consequences were opposite one time once more abroad. It seems as though Google has a hapless repute as a consequence of these legal issues overseas.

Opportunities
1. Mobile Devices – Google has created an Android phone that is presently viing with top market nomadic devices. They besides have come up with Google Glass and tablets. There are more chances in this industry and big room for betterment on their existing merchandises. Apple may rule this portion of the industry but it is non implausible to believe a company like Google can non consume Apple’s market portion. 2. Full Service Portal – Yahoo presently offers a full service portal inclusive of athleticss. finance. electronic mail. calendar. undertakings. etc. Google already separately offers some of these merchandises.

Possibly acquiring into the thought of a full service portal could be their following measure? 3. Bettering bing merchandises – After initial releases of merchandises. Google can weigh the popularity and success of each merchandise. They will cognize what is neglecting. what involvements society and what they can/should better on. Innovation is non merely making new merchandises but besides bettering bing 1s. 4. Advancing Technology – Google has acquired many companies throughout their being. which allowed them to utilize new and chartless engineering. There is ever new engineering and Google is a multibillion-dollar company leting them the possibility of buying if non making this engineering themselves. Adapting to new engineering allows Google to derive an advantage over others in the industry

Menaces
1. Replacement Advertising – Google began publicizing on hunt pages. Since the start of web advertisement. we have come a long manner. Now there are nomadic phone apps that include advertisement every bit good as societal media sites. This could get down to endanger the market portion and gross of Google 2. Privacy Laws – As we know. Google is no alien to legal issues. Privacy has begun to endanger Google in many different signifiers. One common for was through Gmail. Ads were chosen based on what the electronic mail said but no 1 was really looking ; there was merely an algorithm in topographic point to pull out that information and procedure it.

The hunt history can be accessed and people think this invades their privateness every bit good. Your hunt history is available for up to 18 months. 3. Substitution- With the assortment of merchandises offered. each one has one or more rivals. If legal issues continue to lift or monetary values go excessively high. it is possible that clients switch from Google to their rivals. The menace of permutation is high in the sense of merchandises other than hunt. Some would state they do non see a difference between Yahoo. Google and Bing BUT this is non a menace because as of 2009. Google had 65. 6 % of all US hunts. If there is no difference. so where is the menace of this figure to diminish? Why would anyone exchange from the current hunt engine that they use?

Competitive Advantage and Resources

Resources and competitory advantages seem to travel manus in manus here at Google. A cardinal resource is the employees. Google has about 48. 000 employees ; this calls for a broad assortment of cognition and endowment. Each employee brings something different to the tabular array. Google stresses individuality and personal undertakings. If 48. 000 people are endeavoring to better the company and make new possibilities. that would do employees a phenomenal resource. Another resource is their algorithms. As I have stated throughout this treatment. Google created algorithms to make a faster. more reliable and relevant hunt engine.

Developing these algorithms allowed them to prolong a competitory advantage. In fact. some rivals even wanted to buy the usage of these on their engines ( Yahoo and AOL ) ! Alternatively. Google went in front and created a hunt engine going a direct rival. Another resource. which might really look uneven. is the laminitiss and CEO of the company. They run Google in an unconventional manner but it has truly paid off. They developed a set of values and pounded this civilization into all caputs at Google. Technology is another resource used at Google. Technology in general is ever altering and people invariably have to accommodate. Google is a driver of engineering and invariably brings merchandises to the market. Google uses engineering to win every bit good as incur a net income.

The above resources can besides be considered competitory advantages for Google. The algorithm that was created set Google apart from rivals and allowed them to come in the market. They instantly began obtaining market portion and rivals could non vie with that type of hunt engine. Brand acknowledgment is another competitory advantage. If people were to give me the option to utilize Bing. Yahoo or Google. I would pass down ever utilize Google. Not that I can state a difference but merely because I am accustomed to it. It is good known and developed in so many aspects of the industry. Another competitory advantage that Google has is its free package. The rivals can non afford to offer free services to clients. which gives Google a leg up on the competition. It allows Google to tap into new markets. farther pat into current markets and delight current clients. Data scraping abilities ( which I have direct contact with ) is another competitory advantage. The information scraping capablenesss at Google are incredible. The resources they have here let them to analyse every spot of informations possible. This leads to better and more accurate services for clients. enhanced keywords. and an enhanced overall experience for clients.

Porters 5 Forces

Menace of new entrants – Some would see this high but I think it varies depending on which section you are discoursing. In the hunt engine section. I would state the menace is low but when you look at the battalion of merchandises offered elsewhere. there is ever a high menace. Costss to come in could be high in some sections while low in others. While net incomes are attractive and could ensue in new companies come ining the market. Google as a dominant house can turn these possible menaces off.

Menace of Substitutes – This has the same footing as menace of new entrants. Depending on the merchandise. the menace could be high or low. Cell phones and tablets have a ton of possible replacements out at that place and that can do clients to exchange trade names. Changing monetary values of merchandises or differences in quality can do a high menace of permutation as good.

Rivalry- High. There are challengers in every section of Google’s concern. Search engine has Yahoo as its biggest rival but non limited to merely them. There is besides Bing. AOL. and other little rivals. The being of invention and new merchandises keeps the competition intense amongst rivals in the industry. Similar merchandises and similar ends maintain the competition invariable

Dickering power of providers – Low. The chief providers of Google are applied scientists. Due to the figure of applied scientists. the provider has low dickering power. Google has 48. 000 employees and if applied scientists feel they can make better elsewhere. so Google will happen replacings. Bing such a big and successful company about has Google on a base. Who wouldn’t leap at the chance to work for them?

Dickering power of consumers – Besides varies based on what merchandise is being discussed. When you discuss touchable merchandises such as nomadic phones or tablets. power is high. When it comes to seek engines. Google Docs. Gmail. etc. power is low. Although there are other replacements to these points listed supra. the interface and package of Google sets it apart from the remainder. The menace of exchanging is non-existent.

Critical Success Factors – these are factors that are necessary for a company to accomplish its mission. For Google. the following are CSF: Speed and accuracy- The faster consequences can be displayed with truth so the more likely that people will utilize Google. This is how Google set themselves apart from the industry. New algorithms allowed for more relevant consequences at a quicker gait. Quality hunt consequences – As I stated supra. the algorithm allowed for relevant consequences. Peoples were being spammed by random links non relevant to what they were looking for. Innovation- Google is invariably conveying merchandises to the market and pulling new mark markets.

Not merely are they conveying new merchandises to visible radiation. they are altering and bettering bing merchandises Culture – This is a CSF for Google because it sets them apart from rivals. Google bases by their beliefs and their civilization 100 % . They do non discourage from these beliefs irrespective of the state of affairs. It allows them to believe outside the box and otherwise than rivals Ease of usage – Older coevalss are non wholly acquainted with the usage of engineering and likely ne’er will be. The easiness of usage could assist shut that spread enormously and let for Google to tap another market. The battalion of merchandises. package. hardware or touchable merchandises need to be easy to utilize. Even my coevals has problem with package and hardware. it is like a 2nd linguistic communication to some!

Options and Recommendations

A few possible options that Google can make are go a full entree portal. increase personal clip to 20 % ( doing it a 60-20-20 system ) and concentrate on bettering bing merchandises.

Becoming a full entree portal will let Google to take some extra market portion from Yahoo. Currently Yahoo offers finance. athleticss. mail. intelligence. etc. all in one topographic point. Google needs to set this into action. The pros of this are that Google already has these things but offers them individually. Google has the Gmail option. finance. intelligence. maps. books and much more. It already has the pieces and merely demands to unite them into one topographic point. This should non be difficult with all the gifted applied scientists on staff. Another pro is that the market portion is bound to increase. Google already has many loyal clients to different sections of the market. Some might utilize Yahoo for things non presently offered in the same topographic point. If Google offers athleticss where it has email and finance ( for illustration ) . it could take away clients from Yahoo.

A con is that this is a large hazard. If the interface is non easy to understand or follow. people might abandon these options wholly and travel straight to a rival. Increasing personal clip spent on undertakings to 20 % . altering the civilization to a 60-20-20. Currently Google encourages personal undertakings and emphasiss to work on a 70-20-10 footing. Google says they do non mind passing money now if it can take to possible wealth over clip. For this thought. there are a few cons. Employees could acquire caught up in their personal thoughts and undertakings go forthing the of import 1s assigned by directors past due. This could besides be seen as free clip and some might take advantage of it as a interruption from work in general. Another con is if 48. 000 employees are working on their ain undertakings 20 % of the clip. it might non be clip good exhausted amongst everyone. Even if everyone is working diligently on a undertaking. these undertakings might non pan out and that is a batch of otiose clip. One of the biggest pros is high hazard. high wages.

Google is willing to take a hazard after measuring undertakings developed by employees. Leting them to work on personal undertakings 20 % of the clip can make more chances to “hit big” for Google. Another pro is the encouragement of creativeness. Personal undertakings call for creativeness and this can so reassign over into the 60-20 clip spent elsewhere. My last suggestion is to concentrate on bing merchandises instead than go on to increase the sum of merchandises they have already. Google came approximately and was focused on hunt but since so hold brought multiple merchandises to the head of the market. While they have been largely successful. bing merchandises can still be tweaked to derive maximal exposure. The chief pro of this suggestion is that the cricks and jobs bing could be resolved. Google could hone already popular and bing merchandises with the possibility of taking demand from rivals.

Another pro is airting their focal point back to the original merchandise and the chief beginning of gross. Search was the first merchandise of Google and even today it makes up the bulk of the grosss ( including advertisement since they are
manus in manus ) . Some cons are that they could be losing out on the following large thing. Puting all focal point on bing merchandises might hold Google miss out on a hot new merchandise that could truly convey a large roar to the company. Another con is at that place might non be much more extra potency to concentrating on bing merchandises. They have acquired companies and rivals throughout their clip and this is one manner to concentrate on bing merchandises. Another recommendation is pretty simple and speedy to the point. Get rid of merchandises that do non hold high value to the company.

The range of the merchandise line is broad and I do non believe it is possible that all are value-adding merchandises to Google. While some might be making big audiences and conveying high net incomes to the company. there are ever some that are non making so good. While they still might be doing a net income. the work force could be used elsewhere and that might hold a higher value than the non-core merchandise. Resources and clip could be used elsewhere to hone other merchandises or to make new and advanced 1s. The con is that while it might non be adding “value” . the merchandise is still conveying in a net income. Google is really successful and would non hold a merchandise bing that presently has costs outweighing benefits. They are excessively smart for that. Giving up on a merchandise might non be the right determination merely because it is non conveying in expected sums of money.

My recommendation would be to unite the 60-20-20 option with the focal point on bing merchandises option. While the 60-20-20 thought can do a deficiency of focal point. entwining it with the bing merchandises thought allows that focal point to still be at that place. Employees can integrate work on bing merchandises in that extra 10 % of clip as good. Leting companies to work in private on anything could turn out to be a bad thought but partner offing it with bing merchandises will profit the company. Imagine 48. 000 employees concentrating on bing merchandises. The sky is the bound and Google can truly blow rivals out of the H2O. I decided the full service portal is non a good suggestion. The hazard of it non being easy to entree and manoeuvre about does non outweigh the benefits. Customers already use a assortment of merchandises irrespective if they are all in one location. If seting theses merchandise in one topographic point blowbacks due to trouble of usage. clients may travel to Yahoo and get down utilizing their portal. Google already has a sense of client trueness so why attempt and alteration something that is working.

Execution

The recommendation at manus here is to increase personal clip to 20 % . doing the civilization at Google 60-20-20 while keeping focal point on bing merchandises. To get down this recommendation. Google should choose a per centum of employees to prove this out. Of 48. 000 employees. they can non hold everyone working on personal undertakings right off the chiropteran. It might take to laziness and miss of attempt across the board. Google should choose possibly 5 % of the work force and let them to apportion extra clip towards personal undertakings. Google can so compare it to anterior months focus on nucleus concern and see if they still maintained focal point. If this was successful. so small by small introduce the work force to this new construct. Another portion of this execution would be to hold different displacements. Everyone can non work on personal undertakings at the same clip.

Puting aside different displacements for the personal clip could turn out polar to the success of this thought. Google likes the thought of these originative constructs and have used them before. Gmail is an illustration of the “personal project” and now that has flourished into a taking electronic mail in the industry. Google has no job puting in long shootings and widening to 20 % would make merely that. Another portion of the recommendation was to set concentrate on bing merchandises and pinch or hone them. To get down execution. analysts at Google need to execute an industry analysis and supply some informations on the rivals that exist with similar merchandises. Google needs to hold Numberss and informations comparings so that they know how their merchandises are making in comparing to possible replacements. After analysing the industry. Google would direct out client studies.

All clients are in a database and have their electronic mails. references. phone Numberss. etc. on file. Google will happen a manner to make the client. direct them a short study on what they like. what they don’t like. what needs betterment and other good inquiries. To calculate out what needs betterment. you MUST speak to the users of the merchandise. Upon happening out what is liked. what needs repairing. Google must delegate a undertaking force to undertake the occupation. This can now be intertwined with the 60-20-20 alteration stated above. While it may be a nucleus concern undertaking. the thought of how to repair a job or tweak a merchandise can be completed during the 20 % personal clip. Once the undertaking force has been assigned. the merchandise will be evaluated by everyone on the undertaking force. They will be encouraged to give blunt honest sentiments on the merchandise every bit good. These employees are more knowing than the mundane user so they might hold different thoughts that could be acknowledged every bit good.

Once the study period has ended for both clients and employees. brainstorming must get down. Individualism is encouraged but working in squads can assist brainstorming run more swimmingly. Ideas will be bounced around and once they can settle on what needs to be done. the “how” portion takes topographic point. Schemes on altering. selling. and advancing the new merchandise demand to be derived and approved by directors. Once the schemes are derived. merchandises will get down to travel through the makeover procedure. Throughout this makeover procedure. Google will get down marketing and advancing the alterations that are coming. The populace will go cognizant. eliciting wonder as to what Google did to do this astonishing merchandise even better. This will take to some ballyhoo and Google. like usual. will delight the clients and the populace.

Google’s mission is to form the world’s information and do it universally accessible and utile. They have been making this since 1999 and hold a long manner to travel. Concentrating on bing merchandises by polishing them will assist alter the universe forever. Leting new and great thoughts to develop internally and so perchance taking a hazard is what makes Google great. Google is an advanced company. altering many sections of many industries of all time since Day 1. Merely as the article says. everyone frights Google…as they should.

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