Free Essay

Google's Strategy

In:

Submitted By nandannandi
Words 1018
Pages 5
To understand Google’s strategy lets delve deep into the years since 1998 and look into the way google evolved from an innovative search engine to a way of life.

Google started initially with just Search, offering ways to find answers to user’s questions. This was during the period from 1998 to 2001. In 2001 google added tabs to offer users ways to search for other things online, including images. The tabs stayed on and “briefly crossed over Google’s Gmail and Calendar” to offer useful links atop those web apps. Starting with 2007, Google added a navigation bar atop Google.com, which included links to search items and Google apps. The navigation bar morphed into the Google menu in 2011, which offered a slicker, redesigned user interface ready to take users to their desired Google application and featuring a prominent placement for Google+.

Starting with 2012, Google brought a major new element to search, the Google Now virtual assistant that debuted on Android and expanded on iOS and the desktop to deliver even more personal search results to users.
Google has further refined Google.com in the following years, by offering a minimal navigation bar that doesn’t “steal” the user’s attention. The bar however still offers access to apps and Google’s Google+ social network. Google also added voice-based search support to Google.com, as well as quick access to favorite sites.
Helping people get around online is still Google’s main product and everything else it does is somehow related to search – in fact, search-related ad revenue is how Google is actually able to pay for all other projects. Today, the world’s most popular smartphone operating system, self-driving cars, smart robots, and balloons that can deliver an Internet connection to remote areas are some of Google’s most interesting projects, but they wouldn’t even exist without Search.
Almost all of Google's efforts are focused on improving Internet access and speed.
• Google Chrome has made browsing the Internet much faster and more efficient.
• The launch of the Android OS made it possible for people to access the Internet from their phones.
• Google Now stimulates more Internet activity by pushing content based on user’s search history and online behavior.
• Google Fiber brings broadband Internet that is 100x faster.
• "A self driving car unlocks a vast amount of time that could be spent on the Internet."
• Google Glass will allow you to jump out of an airplane and still be connected to the Internet.

Advertising transactions has contributed to the rapid growth of Google’s business since inception, resulting in substantially increased revenues.
However revenue growth rate has generally declined over time, and it could do so in the future as a result of a number of factors, including increasing competition, investments in new business strategies, products, services, and technologies, changes in product mix, shifts in the geographic mix of revenues, query growth rates and how users make queries, and the evolution of the online advertising market, including the increasing variety of online platforms for advertising, and other markets.
As revenue-per-click continues to drop, it is driving Google to not only try to increase the number of clicks, but also to ramp up their data and profile efforts, in an attempt to increase the value-per-click.
Users are increasingly connected to the internet and using multiple devices, a trend that has increased global search queries and changed platform mix. Revenue growth rate will continue to be affected by evolving consumer preferences, as well as by advertising trends. Thus google’s focus on advertising programs would be to help businesses reach people in the moments that matter across all devices with smarter ads that are relevant to their intent and context, reflecting googles commitment to constantly improve their overall web experience. As a result, google is expected to continue to take steps to improve the relevance of the ads displayed on websites and Google Network Members’ websites. These steps include not displaying ads that generate low click-through rates or that send users to irrelevant or otherwise low-quality websites, updating advertising policies and ensuring their compliance, and terminating relationships with those Google Network Members whose websites do not meet quality requirements.
From above I would like to conclude about Googles Strategy as follows :
1) Get people to use the internet more. The more time people spend on internet the more time they will engage in revenue generating activities i.e., viewing and clicking display ad and performing searches.
2) Improvements in ability to monetize increased traffic primarily relate to enhancing the end user experience, including providing end users with ads that are more relevant to their search queries or to the content on the Google Network Members’ websites they visit. For instance, these improvements include displaying advertiser-nominated images that are relevant to the user query and creating a more engaging user shopping experience by enhancing search ads to include richer product information, such as product image, price, and merchant name.
3) Innovation is the key. Google face intense competition. If google do not continue to innovate and provide products and services that are useful to users, they may not remain competitive, and revenues and operating results could be adversely affected. The markets for many of google products are characterized by rapidly changing technologies, frequent new product introductions, changing consumer trends, short product life cycles, consumer loyalty and evolving industry standards.
4) Google will continue to invest aggressively in areas of strategic focus, systems, data centers, real estate and facilities, information technology infrastructure, and employees.
5) Maintaining and enhancing the “Google” brand is critical to expanding base of users, advertisers, Google Network Members, and other partners. The importance of brand recognition will increase due to the relatively low barriers to entry in the internet market.
6) Google plan to grow internationally, international revenue account for 58% of consolidated revenue for the 6 month ended June 30, 2014.
7) Acquisitions are an important element of overall corporate strategy and use of capital. Google expect to continue to evaluate and enter into discussions regarding a wide array of potential strategic transactions.

Similar Documents

Premium Essay

Google’s Strategy in 2008

...OVERVIEW The number of people worldwide accessing the Internet to read breaking news, conduct library research, make consumer e-commerce transactions, use web-based business applications, and perform other online tasks had grown at an astronomic rate since the 1994 introduction of the Netscape Navigator browser. The number of Internet users worldwide had increased from about 360 million in 2000 to nearly 1.5 billion in 2008. North America had the world’s highest Internet penetration rate with 73.6 percent of North America’s population having Internet access. About 220 million of the 248 million Internet users in North America resided in the United States. Even though only 15.3 percent of Asians had Internet access in 2008, Asia’s 578.5 million Internet users made it the world’s largest and fastest growing geographic region for Internet usage. The growth in the number of Internet users worldwide and in the United States had caused a shift in how advertisers communicated with consumers and had allowed Internet advertising to become the second most common form of advertising used in the United States in 2007. Only newspaper, with 2007 advertising revenues of $48.6 billion, controlled a larger share of United States advertising dollars. Cable television, radio, and network television each accounted for about $20 billion each in advertising revenues during 2007. The prospects for Internet advertisers looked strong in 2008 with Internet advertising expected to grow from $21 billion...

Words: 1803 - Pages: 8

Premium Essay

Google’s Competitive Strategy

...Google’s Competitive Strategy Tiffin University MGT622 Strategic Management Li Wang 2015.02.12 Google’s Competitive Strategy Google was the leading Internet search firm in 2012, with a nearly 67 percent market share in search from home and work computers and a 95 percent share in searches performed from mobile devices (Gamble, 2012). It started out as a search engine company but in the next few years it added various products such as Gmail, Maps, Earth, and YouTube that all of them has millions of users and become benchmarks in their own industry. In 2007, Google developed its operating system Android and released an open source browser Chrome that both had considerable market share. However, its social network product Google Plus released in 2011 faced a failure by competing with Facebook, Google believed it would finally grow to challenge Facebook though. Due to its target market and special product attributes, Google can be seen as a company that “concentrates on well-defined market niche keyed to a particular product”. So Google applies a focused differentiation strategy. “Successful competitive strategies are resource-based. For a company’s competitive strategy to succeed in delivering good performance and the intended competitive edge over rivals, it has to be well-matched to a company’s internal situation and underpinned by an appropriate set of resources, know-how, and competitive capabilities” (Thompson, 2012). To succeed in the focused differentiation strategy...

Words: 1000 - Pages: 4

Premium Essay

Google's Strategy in 2011

...Fall 13 Fall 13 Google’s Strategy in 2011 Zhengzheng Bao, Brian Haggard, Win Qin Google strives to “organize the world’s information … and make it universally accessible and useful”. The most effective and profitable way to accomplish this mission is to put the needs of Google’s users first. How will Google accomplish this immense goal in an ever-changing market? Google’s Strategy in 2011 Zhengzheng Bao, Brian Haggard, Win Qin Google strives to “organize the world’s information … and make it universally accessible and useful”. The most effective and profitable way to accomplish this mission is to put the needs of Google’s users first. How will Google accomplish this immense goal in an ever-changing market? 08 Fall 08 Fall BA5080-Business Strategy BA5080-Business Strategy Table of Contents 1 Executive Summary 3 2 Analysis 6 3 Appendix 14 4 Specific Strategic Statement 17 5 Functional Strategies 17 6 Critical Assumptions 17 7 Works Cited 19 Executive Summary In January of 1996 an Internet search engine company initially named BackRub soon grew into what is now Google Incorporated.  Partners Larry Page and Sergey Brin, along with a few investors lived on a shoestring budget.  By year-end 1998 Google Inc. was handling 10,000 search queries each day.  Google was also voted one of the top 100 Web Sites and Search Engines in 1998.  Google was recording successes at a lighting speed pace and embarked on their Initial Public...

Words: 3975 - Pages: 16

Free Essay

Innovation from Google’s Free Food Strategy

...Innovation from Google’s Free Food Strategy Melany Eltz Professor Troy Hudgins BUS 302 Monday, May 4, 2015 Google aims to make the web accessible and useful to people from all backgrounds and experiences (Diversity), and their campus is a workplace that is both innovative and academic. Its environment is constructed to provide comfort and limitless opportunities for its employees. Google created a unique work environment that attracts, motivates, and retains the best players in the field (Organizational). There are altitudes of jobs for anyone and everyone in all kinds of areas of concentration, from, art and literature to engineering. They provide a broad range of employees and interns that work there. This provides the company to be more advanced then other companies due to the diversity of people and their experiences. Google’s mission is to organize the world’s information and make it universally accessible and useful (Company). There are three business models that can lead a company to great success and make the company worth millions. These three business models are, consumer devices, ad-supported consumer services, and business software-as-a-service. Google had just about maximized their potential in the ad-supported consumer services model (Google’s). This is what makes Google such a successful company for both employees and users around the world. Google is committed to bringing together people—in our workforce, our industry, and on the web—who have a broad range...

Words: 1324 - Pages: 6

Premium Essay

Innovation from Google’s Free Food Strategy

...Innovation from Google’s Free Food Strategy Victoria McGruder BUS 302- Management Dr. Andrea Brvenik November 1, 2015 Innovation from Google’s Free Food Strategy Have you ever found a business so big and popular, well google is the place to be. Google is a search engine that are specialized in internet-related services and products. Google has a lot of things they do worldwide. Including online advertising, technologies, search, cloud computing, and software. Google was placed MBA students as ideal place to work in 2006. Google is the top technology web search engine in the world. In 2007 and 2008 Fortune Magazine named Google the number 1 employer in their annual 100 best companies to work. Google mission is to organize the world’s information and make it universally accessible and useful. Google has served millions of people around the world. Google business model is to provide free services to the users to use the internet. Google also make the revenue for advertisers who like to reach out to online users. Google make money from advertising. You get all kind of people who work at Google, from different diverse back grounds, and different regions. Google has offices internationally in Africa, Asia, Europe and the Americas. You also have people in the United States that work for Google. You have all kinds of people who work at Google that are very creative and innovative. The people who work at google always happy, smart, and driven people who provide the best environment...

Words: 1163 - Pages: 5

Free Essay

Innovation from Google’s Free Food Strategy

...Assignment 1: Innovation from Google’s Free Food Strategy Management Concepts Professor: February 1, 2015   Google is a multinational search engine that reaches a vast amount of people. Google’s other business include Internet analytics, cloud computing, advertising technologies, Web app, browser and operating system development. Google was invented by two 1995 graduate students from Stanford University, Sergey Brin and Larry Page. Brin and Page submitted a research paper that eventually launched, BackRub. They were initially turned away because the CEO didn’t care about search engines. In 1998, the founders used their own funding and landed on Top 100 Web Sites and Search Engines for 1998 (Google, 16). Google’s Mission is "to organize the world's information and make it universally accessible and useful". Google has 8 billion Web pages that can return results as fast as you can query them¬¬. Google’s pace of innovation is breathtakingly fast. Its data warehouse stores and dissects personal information (Iyer & Davenport, 61). Google has a history of protecting the user’s information with respect. Just about every service can be disabled, if preferred. All companies’ policies are easy to read and to understand. Google has continued to become the one-stop online, multi-purpose warehouse of information (Garvin, 82). Google provides its services for free to the Internet users. Google makes their money from Advertisers, who use sometimes pesky...

Words: 1506 - Pages: 7

Premium Essay

Innovation from Google's Free Food Strategy

...year, in which close to 95% of that was from advertising. The platform used by Google connects people’s queries to the information they are looking for. That benefit along with the free services that Google has to offer is what attracts a wide variety of customers. Advertisement is at the top of the list when it comes to discussing the business model for Google. Adwords is one way that Google uses advertising to increase its revenue. Adwords came about in 2000, which is a self-service program for creating online ad campaigns. Based on the words that are used across Google’s platform, advertisers can reach you. Every click that you make, even if you did not choose one of the paid results in a search browser, its being watched by Google’s computers. Everything that you search and write is being watched. In the past, many users paid internet providers like AOL for use of their online service and email. Google’s founders used this as an opportunity to monetize on. When users sign up for Google, store, upload, receive content or upload, you give Google a license to use, modify, reproduce or host such content. There is not an actual person, but an automated system that is used to analyze content, and provide search results based on your information. Analyze the types of people that work at Google, with respect to the business culture of the organization....

Words: 1510 - Pages: 7

Premium Essay

Innovations from Google's Free Food Strategy

...which close to 95% of that was from advertising. The platform used by Google connects people’s queries to the information they are looking for. That benefit along with the free services that Google has to offer is what attracts a wide variety of customers. Advertisement is at the top of the list when it comes to discussing the business model for Google. Adwords is one way that Google uses advertising to increase its revenue. Adwords came about in 2000, which is a self-service program for creating online ad campaigns. Based on the words that are used across Google’s platform, advertisers can reach you. Every click that you make, even if you did not choose one of the paid results in a search browser, its being watched by Google’s computers. Everything that you search and write is being watched. In the past, many users paid internet providers like AOL for use of their online service and email. Google’s founders used this as an opportunity to monetize on. When users sign up for Google, store, upload, receive content or upload, you give Google a license to use, modify, reproduce or host such content. There is not an actual person,...

Words: 839 - Pages: 4

Premium Essay

Innovation from Google’s Free Food Strategy

...Industrialization after the Civil War Annie Payne Doria Johnson Contemporary U.S. History October 26, 2014 Industrialization after the Civil War City growth had a positive and negative effect on the United States during the industrialization period after the Civil War. I. Three aspects of industrialization A. Social B. Specialization C. Mechanization II. Five groups that were affected by Industrialization A. African Americans 1. African Americans tried to get Voting Rights 2. African Americans fought for segregation. B. Immigrants 1. More immigrants migrated to the United States to search for jobs. 2. Immigrants were a part of the low class community because of overcrowding. C. Women 1. Women started to leave the role of being a housewife and started to enter the workforce. 2. Women tried to get Voting Rights. D. Farmers 1. Farmers were introduced to new technology. 2. Farmers used new tools and methods to increased food production. E. Native Americans 1. Native Americans had to move out of their homelands for more factories can be built. 2. Native Americans had to move into smaller sections of lands some even had to move to slums that were for the low class community. III. Five ways that industrialization affected the life of the average working American. A. Average workers moved to larger cities and lived in slums. ...

Words: 254 - Pages: 2

Premium Essay

Executive Presentation

...You are now working for Google as part of a team charged with helping it navigate a chaotic business environment. Your team must both formulate a comprehensive strategic plan and propose specific actions to counter the threats posed by Apple, Amazon and Facebook to Google’s dominance of the world’s digital infrastructure as described in the assigned cases. Your team will present its strategic recommendations to senior executives at the Gideon Putnam Resort on Friday, April 25, 2014. Your presentation (not to exceed 25 minutes) will be followed by questions from the executives. These executives will evaluate your team based on your presentation’s substance, professionalism, effectiveness, and teamwork. A detailed copy of the evaluation form will be distributed at a later date. In order to complete this task, you must first get to know Google and its broad scale domestic (US) and international operations. Through extensive research, you’ll come to know more about Google’s mission and business model, which depends heavily on certain strategic vehicles as well as gathering comprehensive information about the needs, tastes and desires of businesses and individual consumers. This strategy ultimately depends on Google’s strategic positioning relative to its nearest competitor(s) in each of the major business arenas described in the assigned cases. We have selected two Harvard Business School cases that are critical reading for each student. They provide invaluable background, an overview...

Words: 1180 - Pages: 5

Premium Essay

International Management: Managing Across Borders and Cultures, Text and Cases, Seventh Edition

...on global strategic positioning, entry strategies and alliances, effective cross-cultural understanding and management, and develop- ing and retaining an effective global management cadre. The seventh edition has been revised to reflect current research, current events and global developments, and includes company examples from the popular press. In Chapter 1, we introduce trends and developments facing international managers and then expand those topics in the context of the subsequent chapters. For example, we discuss developments in globalization and its growing nationalist backlash— in particular resulting from the global financial crisis. We discuss the effects on global business of the rapidly growing economies of China and India and other emerging economies such as those in Africa, and the expansion of the EU; the globalization of human capital; and the esca- lating effects of Information Technology and the global spread of e-business. We follow these trends and their effects on the role of the international manager throughout the book. For exam- ple, in Chapter 6 we focus further on strategies for emerging markets, while also dealing with changing strategies to respond to economic decline around the world and an increasing level of nationalism in some industries; we have a section on “Using E-Business for Global Expansion” as well as discussing “born global” companies. In Chapter 7, we added a section on strategies for SMEs and a new section on “Value Creation...

Words: 1340 - Pages: 6

Free Essay

Nintendo Case

...Stance •They focus on executing shaping strategy and using technology changes to create new business ecosystems Example : Google’s Ad Sense WHAT IS A SHAPING STRATEGY? • A shaping strategy is no less than an effort to broadly redefine the terms of competition for a market sector through a positive, galvanizing message that promises benefits to all who adopt the new terms • Example: Bill Gates in early 1980s. (mainframes to desktop machines). • Strategies can be of two forms: – – Disruptive innovation Mergers & Acquisition driven DISRUPTIVE INNOVATION • In simple terms disruptive innovation helps – create a new market – goes on to disrupt an existing market – displaces an earlier technology • Innovations that improve a product or service in ways that the market does not expect, by designing for a different set of consumers in the new market and later by lowering prices in the existing market. – Example: Dell and Southwest Airlines DIGITAL INFRASTRUCTURE • Unlike the other technical (disruptive) innovations like steam engine, electricity which stabilized after businesses harnessed their potential, digital infrastructure is constantly improving • New powerful enabling infrastructure. • Provides potential for small actions and investments to make an impact disproportionate to their size. • Favors new entrants over incumbents RETHINKING THE SUBSTANCE OF STRATEGY • Convention wisdom holds adaptation as the best strategy in case of absence of equilibrium • Success...

Words: 1544 - Pages: 7

Premium Essay

Environmental Scan Paper

...Environmental Scan Paper MGT/498 July 22, 2015 Environmental Scan Paper The evaluating, monitoring, and disseminating of information from internal and external environments to key people within the corporation is called environmental scanning. (Wheelen and Hunger. 2010) Environmental scanning helps an organization identify relevant factors and use those factors to obtain a competitive advantage within the environment. The author will discuss how an organization creates value and sustains a competitive advantage through strategies. How an organization measures success to identify the effectiveness of a strategy. The author will identify the strategies of various companies and identify tactics that make the company successful. Competitive Advantage An organization that has a strategic advantage over its competitors that enables the organization to have greater sales and retain more customers is believed to have a competitive advantage. Many organizations have a competitive advantage within technological industries to include: Google, Apple, and Amazon. Each organization creates value in its products and services to stay ahead of the competition. Google is considered the industry leader when it comes to search and has 65% of the search market, according to Hit Wise. The company maintains its competitive advantage by developing a diversified infrastructure that gives them the ability to provide high-speed searches and branch out into other industries. Goggles infrastructure...

Words: 1539 - Pages: 7

Premium Essay

Strategy Chapter 1

...WHAT IS STRATEGY AND WHY IS IT IMPORTANT? 1. Understand why every company needs a sound strategy to compete successfully, manage the conduct of its business, and strengthen its prospects for long-term success. 2. Develop an awareness of the four most dependable strategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage. 3. Understand that a company’s strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. 4. Learn why it is important for a company to have a viable business model that outlines the company’s customer value proposition and its profit formula. 5. Learn the three tests of a winning strategy. Copyright ®2012 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin 1–2 WHAT DO WE MEAN BY STRATEGY ? ♦ What is our present situation? ● ● WHAT IS STRATEGY ABOUT? ♦ Strategy is all about How: ● ● ● ● Business environment and industry conditions Firm’s financial and competitive capabilities Creating a vision for the firm’s future direction How to outcompete rivals. How to respond to economic and market conditions and growth opportunities. How to manage functional pieces of the business. How to improve the firm’s financial and market performance. ♦ Where do we want to go from here? ● ♦ How are we going to get there? ● Crafting an action plan that will get us there 1–3 1–4 WHY DO STRATEGY ? ♦ A firm does strategy: ● ●...

Words: 1224 - Pages: 5

Premium Essay

Transnational Chapter 1

...presence-through modes such as exports, licensing, joint ventures, wholly-owned subsidiaries, or some other means? 3. How will the management mentalities – their embedded attitudes, assumptions, and beliefs- that they bring to their international ventures affect their chances of success? Operating in an international rather than a domestic arena presents managers with many new opportunities. Having worldwide operations not only gives a company access to new markets and low-cost resources, it also opens up new sources of information and knowledge and broadens the options for strategic moves that the company might make to compete with its domestic and international rivals. However, with all these new opportunities come the challenges of managing strategy, organization, and operations that are innately more complex, diverse, and uncertain. What is multinational enterprise? * Multinational enterprise has substantial direct investment in foreign countries (Not just the trading relationships of an import-export business), and actively manage and regard those operations as integral parts of the company, both strategically and organizationally. (They are engaged in the active management of these offshore assets rather than simply holding them in a passive investment portfolio. ) What’s different about MNE management? 1. Multiple operating environment * Diverse patterns of consumer preferences, channels, legal frameworks, etc. 2. Political demand and risks * Need to mesh corporate...

Words: 1350 - Pages: 6