GOOGLE CASE.

1. * It's obviously, that the most important factor behind Google's success is their effort concentrated on developing search engine. They managed to turn the problem with the key word spam on the web into the attractive opportunity being solving it, when PageRank algorithm were created by Sergey Brin and Larry Page. The new system works like this: there were created reliable searches through the amount of websites, which than link to a certain page, or otherwise «votes» to weight the relevance of the search result.

* Another crucial factor is Google's orientation specifically on user. Customers were attracted by simplicity of interface – simple one-tone white search page and bright catchy logo. Moreover there were no ads or any content with editorial carater, which led to easy and fast search.

* As it was said earlier, a huge accent was maid on delivering to customers the informaton they was really looking for. That means that Google didn't sell search result placement to any advetisers, and if Goodle did it, all the sponsored links were umbral to the keywords of a search, so users in any case found information that was somehow useful for them.

* It was highly effective paid search that made Google very successful economically. Firstly «cost per impression» was adopted in 1999, which helped to earn independently of people clicking on an ad. After the successful experience they turned to “cost per click”, which helped to do the ratio of “cost per click” and “expected click through rate”, to make certain that users during the search get relevant information. Trying to give customers exactly what they need – rapid search and relevant useful information, they managed to maximize their revenues.

2.
To my mind, search business can be characterized as concentrated and in future domination of few firms will be constantly increasing. Google with it’s 85% market share will continue to attract new and new customers and Yahoo! can count on retaining of it’s 6% market share while placing huge percentage of editorial content, which can help to “fool” some users and force them view pages that are not connected with the key words in their search. It’s necessary to take into consideration that users are becoming more and more experienced, sophisticated and capable to find out data in more “complicated” and tricky pages, and with Google’s democratic search style in conjunction with huge amount of index sites, which leads to delivering highly relevant information to customers, all of the above makes the possibility of emergence of a new player in the market void. With its market share of 85%, we can definitely say that this is a winner-take-all. Keeping in mind that Google has a big lead and enormous resources; it would be necessary much more than a great idea and willingness to defeat this “monster”. Only absolutely new, disruptive technology not available to Google can make it possible Google’s displacement from its current position.

3.
It’s seems like such a huge company can afford to pay AOL more than 100%of the revenue generated from AOL searches. Even at first sight it might seem very risky and dangerous, finally it will turn out as an advantage. There are big chances that this operation will be profitable. In case of refusal decrease of ad income for both companies will take place. Moreover this is a good tool against Google’s competitors, preventing them from getting more power. That’s obvious that Microsoft will gain more from the partnership with AOL, and as for me it’s very strange that they didn’t set higher price. But I think here were more questions from AOL, which was looking for long-term benefits, that’s way they chose Google with its enormous market share, and which can offer very advantageous and attractive contract. 4.
In my opinion the best alternative is creating a portal or something like social network. Because if analyze the activity of users using their computers we can than divide it in 4 huge blocks: activity that is not connected with WWW, searching for the necessary information, usage of this data and communication with other users.
So, if we can say for sure that Google is already are doing their best to optimize and simplify the process of search, trying to satisfy customers with relevant information and rapid search, another huge part of users’ activity – is communication. That’s why the creation of communication portal/social network will touch another very important block of customers’ activity, which will provide other great possibilities of placement commercial content.

5.
I’m sure that looking at what Google is producing day after day we can say that governance structure, corporate culture, and organizational processes are key factors to their success. I am delighted with people leading this amazing company and I’m sure that they will continue to develop the company and strengthen its positions in the market. The creative and friendly corporate culture attracts all the brilliant minds, which after coming into the company get the possibility to bring all their ideas to life in the perfectly organized laboratory. Organizational system also provides all the necessary to help workers generate new bright ideas.