Strategy of Google - Essay Example

Its search engine also offers services to advertisers to run large campaigns through its search engine, which contributes tremendously to its bottom line.

How would you know? How does it relate to Google's other business segments from a customer point of view?

Google’s AdSense and the ability of its search engine appliance to be integrated into a company’s intranet for a charge, synergizes with its basic search engine facility, thus, enhancing the revenue potential of the engine.  Its acquisition of YouTube in 2006 also allowed it to receive advertising revenues for ads displayed during internet videos, while its 2008 acquisition of DoubleClick allowed the company to generate advertising revenues through banner ads.  Its other business segments such as Gmail, Google Maps, Google Scholar, and several other products and services add to its search engine with each segment complementing the other services.  Google’s introduction of the Android operating system also allowed the company to penetrate the growing market of the mobile internet industry.

All these capabilities of Google products and services, which work in synergy and complement each other in terms of increased traffic and market reach, illuminate its success.  While Google’s basic services, such as its search engine and mail, are free, it can derive revenue from other revenue-generating services attached to the free ones such as AdSense.

Google synergy from a revenue point-of-view

The synergy of Google’s products and services increases the traffic and usage of its services, which allows it to reach and penetrate the market deeper.  Google’s deeper market reach and penetration translate to its wider market base, which ultimately redounds to enhanced revenue for the company.

• From internal skills and capabilities point-of-view

All these innovative products and services were a product of Google’s talented workforce and its unorthodox corporate set-up.  To maintain its innovativeness, Google always deliberately strove to ward off the conservatism that was seen as the sign of the company’s growing old. “We are actively trying to prevent middle-apedom,” explains Eric Schmidt, Google’s current chief executive (The Economist).  And this youthfulness, which had brought in innovative products such as Google Maps, is best reflected in its corporate culture to reinforce the mindset that made it what it is today.

How does this fit with Google's business model?

It is accurate to contend that Google’s business model is one of the most creative business models in the modern market.  As a business model, it does not make money on its core service, which is its search engine, but instead on the services attached to it, such as AdSense and other advertising capabilities that generate revenue for the company.

This kind of creativity merely spawns on an already talented workforce that is nurtured by an enabling corporate culture under the environment of support.