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Company Analysis - Google - Essay Example

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Company Analysis Table of Contents Company Analysis 1 Table of Contents 2 Introduction 3 Diversification Strategy of Google 3 Strategic Evaluation of Google 6 Conclusion 7 References 7 Introduction One of the most prominent names in the present day civilisation is ‘Google’…
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Company Analysis - Google
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"Company Analysis - Google"

Download file to see previous pages After an initial humble beginning with a small start up capital the company grew by leaps and bounds to presently emerge as one of the leading brands of the world with financial strengths that matches the likes of industry players like Apple and Microsoft. The company’s stocks are listed on the bourses of the NASDAQ. Google has a diversified product portfolio that ranges from search engines to software applications, browsers and mails. The main reason for the success of the organization has been attributed to the highly innovative approach of the organization as well as the strategy of the company to keep its products as simple and highly efficient. In addition to this certain other strengths of the organization also includes a unique algorithm for its search engine operations that provides quick and accurate response to web users without any hassles (Google, n.d.). Diversification Strategy of Google Google has a wide array of product offering that range from web browsers to social networking sites and video sharing. The company has diversified into many segments in an attempt to leverage the benefits of the opportunities of the different product segments. The company began its operations with the search engine division. It diversified into the online video sharing and viewing segment by acquiring You Tube which was acquired by the company in 2006 for a whopping 1.8 billion US dollars. The company got a good response as it became the most popular video sharing site across the world with about 150 minutes of video added every hour. However the diversification strategy of Google of entering into this segment has been questioned by many researchers as they feel that the segment only increases the number of uses and adds to the popularity. However the fact that the segment generates only 240 million dollars as revenue towards an expenditure of about 500 million to 1 billion dollars raises serious question over the sustainability of this segment in the long run. This is mostly because of the fact that every video is free for viewing and there are very few advertisements on the site (Grant, 2009, p.827). The company went further ahead in its diversification plans and announced the launch of its new browser named ‘Chrome’. This browser was launched in 2008 and was increasingly seen as an attempt by Google to throw a competition to its main rival Microsoft which launched the internet web browser ‘internet explorer 8’. The company stated that this product would have the aspect of simplicity and would ensure a complete blend of innovation with simplicity. The company claims that this browser would allow faster access to information and would have better security features and would be compatible with the latest web platforms. Experts however state that the main reason behind this diversification strategy of Google was that the new version of the internet explorer launched by Microsoft had certain protective elements that would delete the cookies which in turn would not allow Google to track down the browsing habits of the users. This was a vital issue for Google as its entire advertising and search engine business model was based on the aspect of tracking users browsing habits. Google believed that the simple nature of the product and its appeal and brand image among the target audience would largely help in giving Microsoft a run for its money. Google also announced that it would launch an operating system that according to experts was a ...Download file to see next pagesRead More
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