Google Alerts - How to Keep Up with Target Market - Report Example

1. Google products include a variety of things which includes “major desktops, mobiles and online products acquired and released by Google which is a gold release, beta development and Google Labs initiative”. (Krishan, 2007) The further development of product includes “Google advance search, Google suggests, Google trends, Google Blog search, Google web history and many more”. (Krishan, 2007) The target market for Google is “business advertisers who have designed a searchable database and matrix where the customer can find the product they are looking for, end users and partner web sites”. (Bidwell, 2010) This ensures that customers like students, buyers, suppliers and government agencies all find the relevant information. The company describes its product as “to deliver search results as fast as possible at the lowest cost”. (Google Business Model, 2006) 2. Google is performing in “a single product model where their business models deals with delivering the search results to the customer at the lowest cost”. (Google Business Model, 2006) The firm is competing in a market where there are different provides like yahoo who also deliver similar business for the customer. 3. The sales trend for Google and their comparison based on the revenue shows that The above graph shows growth in sales for Google due to innovation compared to its competitor. Google has higher sales as compared to its closest competitor making it a market leader. The growth in sales speaks about the popularity the search engine has been able to acquire over the years making it the most preferred search engines across the world. The market share shown below will better help to understand. The above figure shows Google has the largest market share and ranks first. Mozilla is the second next provider and is slowly covering the ground and is giving competition to Google in the search engine quarter. The profitability for Google based on the above looks as follows Source: Financial Table It shows the company expects the profits to soar up. Google based on the performance and growth expects to make more profits and convert itself into a much bigger search engine. The stock performance for the past years also shows revealing predictions as follows It shows that the share prices has increased over the past years and based on it can be estimated that with the world coming out of recession it is bound to grow. It also shows that Google due to its performance will be able to ensure that the share prices continuously soar and the shareholders are able to extract out of it. 4. The comparison of the performance with other competitor shows that Google has been able to build on its performance compared to the competitors. The sales looks as follows   2006 2007 2008 Google 10604 16593 21795 Yahoo 6425 6969 7208 Microsoft 1517 1800 2300 It shows that Google is well ahead of its competitor and has been the most widely used engine. This is making it easy for Google to develop and pursue its strategies. This will be further seen by the overall performance chart and the manner in which Google has been able to explore the opportunities the market poses. The overall performance based on different parameters looks as follows DIRECT COMPETITOR COMPARISON   5. 6.   GOOGLE AOL Private MSN Yahoo Industry Market Cap 164.67B 2.42B N/A 22.83B 97.54M Employees 19,835 6,700 N/A 13,900 160 Quarterly Rev Growth 23.00% -23.10% N/A 1.10% 28.50% Revenue 24.92B 3.06B N/A 6.48B 60.24M Gross Margin 63.10% 42.57% N/A 55.58% 69.43% EBITDA 10.37B 974.20M N/A 1.32B 6.13M Operating Margins 35.78% 19.49% N/A 9.27% 6.04% Net Income 7.05B 207.30M N/A 790.07M N/A EPS 21.971 1.893 N/A 0.558 N/A P/E 23.53 11.97 N/A 28.94 23.08 PEG (5 yr expected) 0.95 N/A N/A 1.74 1.69 P/S 6.3 0.76 N/A 3.34 2.2 7. 8. Source: (Yahoo Finance, 2010) Here we see that Google which is used as Google Chrome as a search engine is ranked number 1 when compared to others making it a leader. The gap between the leader and the other is substantial and companies to fill it need to work hard. We also see that Google has the highest gross margin matching the industry standards. Even the P/E ratio surpasses the industry standards which speak volume about the performance and the return the company has for the stakeholders. The expected PEG ratio also shows that Google is going to improve its performance and this will help them become a more favored company in the market. The above chart also helps to demonstrates that Google has the highest market cap and is the most widely searched engine. Google based on the service provided has ensured that the download time is lowest when compared to others. The financial performance also shows similar figure as seen by the usage as it contributes the maximum towards the revenue. Even the gross profit and net margins demonstrates similar features. It shows Google leads the market when we compare it to the industry showing efficiency. This has ensured that Google has the largest share in the market. This is helping Google to market and innovate with new search engines which are quicker and better. The comparison of performance on the basis of the time taken, to open a site shows that Google is a lot quicker compared to other search engines. Internet Explorer shows that it takes a lot of time thereby making it a non preferable one. Google needs to continuously ensure the same service remain at the top. 9. The mission statement for Google is “to make the information accessible worldwide and ensuring that the information is useful”. (Google Mission Statement, 2010) The vision statement for Google is “ensuring proper information is passed on to the customer at the lowest cost”. (Hummer, Jones, Wilde & Ellison, 2006) The strategic goal for Google is to “understand what the customer wants and deliver them the same ensuring faster response, greater scalability and lowest cost so that Google get a competitive advantage”. (Hummer, Jones, Wilde & Ellison, 2006) 10. Google has been able to get a dominant position in the market. Google is having a competitive advantage as “it has built a search engine differentiation compared to others”. (Hummer, Jones, Wilde & Ellison, 2006) Google to ensure growth ate looking forward to “innovation and concentric diversification”. (Hummer, Jones, Wilde & Ellison, 2006) Google to ensure that they dominate the position has built good relations with the employees and employer. This has ensured that Google has employees who are retained back. To ensure that similar position remains Google is looking forward to innovation and diversification. This is ensured by developing more products and gradually moving up the growth path. 11. The stakeholders for Google are “content creator, customers, suppliers, site members, bloggers, mainstream media, topical experts, publicity sources, high authority link sources and search engines”. (Stakeholders, 2010) The company cares after each stakeholder. It includes everyone associated with the company. The stakeholder can further be divided into the internal and external stakeholders. The internal stakeholders are “content creator, suppliers, employees, site members, publicity sources, site developer, and people who help Google to deliver quality service”. The external stakeholders are “the society, environment, government agencies and others who directly or indirectly get influenced by the working”. The stakeholders are very critical for Google as “they are the key success factor for project delivery in the organization”. (Viney, 2010) When Google identifies a new project and is looking for developing one it needs the support of the stakeholders. This will ensure that the project is funded properly and build reputation. Google has been able to maintain a very good relation with the stakeholder. This is ensuring that Google dominates the industry. Google has maintained good relation with customer and supplier. This has ensured that customers get the best search at the lowest price. It ensures that the supplier also get a good price whenever customer have a search corresponding to the company. Google has also built good relation with all other like the content creator to ensure that the page is simple and customer gets what he wants. 12. Google has created a team which looks into the governance issue. Google also has the top management along with different departments like compensation, human resource and the corporate governance board which will ensure that the governance factor is well managed and the company goes well with the society. Google has been able to manage the governance issue well until recently when Google was ranked poorly on it. “Google recently was given a low corporate governance rating as the company floundered in certain important areas like vote for corporate elections, board make up; anti takeover provisions and factors that is having a bearing on the stock holders”. (Pender, 2004) Google to ensure proper governance has ensured that proper search is delivered to the user which will help to build relation. Google also is considering that the stock holders gain due to the policy of the company and ensure that their vision and mission statement matches with the governance policy. The special ethical issues surrounding Google is “dual share class structure which ahs given the founders and insiders 10 times more voting rights compared to the outside shareholders; considering less that two third of their director as independent; and one or more related party transaction”. (Pender, 2004) This is an issue which Google needs to address and ensure that it is able to resolve it and earn high on corporate governance. 13. Google overall performance has shown improvement. The company has been able to build on its vision and mission which has enabled Google to follow the trajectory growth path the company had created for it. References Bidwell K, 2010, “Google Alerts: How to keep up with your target market”, retrieved on April 21, 2010 from http://ezinearticles.com/?Google-Alerts:-How-to-Keep-Up-with-Your-Target-Market&id=226445 Financial Table, 2010, “financial Predictions”, retrieved on April 21, 2010 from http://investor.google.com/financial/tables.html Forester Research, 2010, “Market share of search engines based on usage”, Forrester Research Inc Google Business Model, 2006, “Google Business Model”, retrieved on April 21, 2010 from http://googlesystem.blogspot.com/2006/10/googles-business-model.html Google Mission Statement, 2010, “Google Mission Statement”, retrieved on April 21, 2010 from http://www.samples-help.org.uk/mission-statements/google-mission-statement.htm Google, 2010, “Financial Performance”, retrieved on April 21, 2010 from http://www.wikinvest.com/stock/Google_%28GOOG%29 Gube J, 2009, “Performance comparison of major web browser”, retrieved on April 21, 2010 from http://sixrevisions.com/infographics/performance-comparison-of-major-web-browsers/ Krishan, 2007, “Google Services and Google Products”, retrieved on April 21, 2010 from http://geekiest.net/post/List-of-Google-services-and-Google-products.aspx Hummer B, Jones G, Wilde A & Ellison S, 2006, “Google Strategic Plan”, retrieved on April 21, 2010 from http://www.dailyspeculations.com/google-paper-ellison.html Pender K, 2004, “Google’s weak governance rating”, retrieved on April 21, 2010 from http://articles.sfgate.com/2004-08-24/business/17438220_1_iss-google-corporate-governance Stakeholders, 2010, “How many stakeholders does your site have”, retrieved on April 21, 2010 from http://www.seobook.com/archives/001984.shtml Viney, 2010, “Stakeholder Analysis and Stakeholder Management”, retrieved on April 21, 2010 from http://ezinearticles.com/?Stakeholder-Analysis-and-Stakeholder-Management&id=6783 Yahoo Finance, 2010, “Google Competitor Comparison”, retrieved on April 21, 2010 from http://finance.yahoo.com/q/co?s=GOOG Read More

 

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