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Google report - Book Report/Review Example

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The business strategy of Google fundamentally relies on free access to information from credible sources at the shortest possible…
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Incorporated in 1998, Google is one of the most popular search engines that collates and makes information accessible to people across the globe. Thebusiness strategy of Google fundamentally relies on free access to information from credible sources at the shortest possible time and from anywhere in the world. The internet and computer had redefined communication that was exploited by the Google which innovated ways and means to ensure that world’s information was organized and made available to people universally so as to improve their lives. It has changed lives of billions of people through its expanding activities that facilitate people to increase the earning capabilities. Its main source of revenue is through online advertising that enhance user experience. It has also expanded its business activities by producing and marketing its products like Nexus 7 tablets and Motorola mobiles with which it had forged alliances.
Google’s international activities have considerably increased. It now provides its products and services in more than 50 countries and in more than 100 languages worldwide. Nearly 53% of its revenue comes from its international business activities. Its advertisers and business partners come from different countries and region. Working in highly competitive environment of online business, it faces huge competition. Its major rivals in online search engine are Microsoft Bing and Yahoo. Amazon.com, eBay, Monster.com, WebMD etc. are its key rivals in e-commerce area (ar, 2012). Google’s social networking sites like Youtube and Google+ compete intensely with Facebook and twitter. Its Android platform is giving competition to traditional mobile based system. Its advertising field directly competes with other formats of advertising vis-à-vis television, radio, magazines etc.
The company’s global format uses international suppliers as per the demands from its ecommerce sites. It has developed wide network of business associates to provide products and services to its users and clients. It has recently entered in the area of mobile technology through its own in-house product, Nexus7, a tablet that would provide unique user experience to mobile users. Moreover, Motorola has manufacturing units in China, Taiwan and Brazil. The suppliers of raw materials for production of mobiles form critical linkages and therefore become very important issue for maintaining competitive advantage.
Google’s international operations are key ingredients of its success and competitive advantage within the industry. Google’s business alliance with Salesforce.com has greatly facilitated sales and helped increase revenue by combining its power of on-demand applications with the Google AdWords platform (Columbus, 2005). It attracts and retains small and big businesses across the world at lower cost. 52% of its consolidated revenue comes from its international operations and activities. While 11% comes from United Kingdom, 41% is from rest of the world (ar, 2012). Interestingly, 10.5% of its revenue has come from its recent acquisition of Motorola while 89.5% is from advertising and others (ibid). The expenses from sales and marketing have increased to $1,554 million from 2011 to 2012, which includes $678 million related to Motorola Mobile (ibid). Due to its global business, its sales revenues are significantly impacted by the currency fluctuations and therefore, the company needs to be highly creative in its business strategy and expansion of business through new products and services.
(words: 527)
Reference
Columbus, Louis. (25 November, 2005). Google’s Trojan House CRM Strategy. 25 Nov. 2005. Web. 9 Feb. 2013. Google Inc. Annual Report. 2012. Web 9 Feb. 2013. Read More
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