Case Study on Google.com - Essay Example

Case study on Google.com(Harvard-5) Introduction: Google is an innovative search engine which connects millions of people around the world with information and connectivity. It was founded in 1998 by Stanford PH.D students Larry Page and Sergey Brin. The main operational business in which Google is focused is online search. The company maintains a website which is one of the most visited websites in the world. Google is public and profitable company which targets and focuses on search engines and is named after a mathematical term "googol" , which to 10100, the number represented by a 1 followed by one-hundred zeros.(Koller,2004) "Google is widely recognized as the "world's best search engine" because it is fast, accurate and easy to use. The company also serves corporate clients, including advertisers, content publishers and site managers with cost-effective advertising and a wide range of revenue generating search services. Google's breakthrough technology and continued innovation serve the company's mission of "organizing the world's information and making it universally accessible and useful.""( http://www.google.com.au/profile.html) As a company Google holds the reputation of the pioneer company in website maintenance, and maintains a website which is one of the most popular in demand. It serves the need of a five year old as well as fifty year old. The search engine has attracted interest of great number of internet users because of its simple design and user-friendly interface. Google has been able to achieve this by maintaining an index of more than 8 million web pages on the web. The versatility of the search engine has appeal to wide range of customers and any one with an Internet connection can use this website to search for information. Google has achieved the status of brand name search engine because of its popularity, ease of use and the wide indexing of categories. The user interface is user-friendly and has versatility and appeal to hundreds of languages worldwide. It is also a very popular advertising medium for other sources, and this is the main source of revenue. "The company generates revenue through the advertising programs. The advertising program consists of advertisers advertising with Google and then Google uses its search technology selecting which web page should host the ad. Every time someone clicks the ad revenue is shared between Google and the publisher of page where the ad is being hosted." (http://www.19.5degs.com/element/19344.php) Revenue is also accumulated through Google Search Appliance, which is hardware and software solution that companies can use to implement Google search technology to their internal and external information. Google maintains a very efficient network of support in 14 countries with 25 sales offices spread out in major locations.. Apart from providing support to existing users there exists direct sales teams. These teams target advertisers with large advertising budgets and are more in a role of relationship building than one off sales. (http://www.19.5degs.com/element/19344.php) Google has been primarily recognized as company with primary interest and focus in the area of web content. Google had made attempts to diversify its umbrella with experimenting interest in other markets like radio and print publications. This is confirmed by the fact that in 2006, Google announced its first purchase of a radio advertising company "dMarc", which provides an automated system that allows companies to advertise on radio. (Levingston, 2006) Google is making strides to combine tow niche advertising media-the internet and radio. This strategic union of the two synergistic media streams combined with Google's ability to penetrate and focus on the tastes of the consumers, is an invincible attribute of the company. In the process of diversification Google has also focused on selling advertisements from his advertisers in offline newspapers and magazines. They have been filling unsold space in the newspaper that would normally have been used in for in-house advertisement.(Gonsalves, 2006) "Google has persistently pursued innovation and pushed the limits of existing technology to provide a fast, accurate and easy-to-use search service that can be accessed from anywhere. To fully understand Google, it's helpful to understand all the ways in which the company has helped to redefine how individuals, businesses and technologists view the Internet".( http://www.google.com/corporate/tenthings.htm Operations strategy: The Business and Operations strategy at Google has been aimed at teamwork which is directed to think strategically and globally about entire industry. Under its operational strategy and team leadership Google defines its operational initiatives that contribute to company's growth. "Green Business Strategy and Operations is a subset of the larger business strategy group that's responsible for developing and expanding the environmental strategy for Google's global offices and employees." http://www.google.com/support/jobs/bin/answer.pyanswer=69888 this can be seen in the wide range of their projects which are aimed at environmental considerations; one such project includes installation of the largest corporate solar array in the United States; developing investment strategies for emerging clean technologies and developing products to monitor renewable energy production. Under its strategy they measure effectiveness by monitoring the concrete impact it has on the revenue, cost and operational efficiency. It also provides the leadership, decision-making frameworks, analytic guidance and business judgments to drive projects that are centred in various environmental areas of the company. Environmental strategy is critically important for the company, and the Director will help this group achieve its full potential. His responsibilities include researching and identifying emerging renewable technologies for pilot installations, working with facilities to execute on energy-efficient measures and conduct executive reporting on the performance of current and future environmental initiatives. Additionally, he has to evaluate emerging clean technologies and serve as a liaison with other environmental agents within the company. Optimistic yet pragmatic, the Director brings an entrepreneurial nature and strong technical background to this position. http://www.google.com/support/jobs/bin/answer.pyanswer=69888 Operations competitive dimensions: Google faces intense competition from some of the other well established primary search business. Microsoft and Yahoo are its two main competitors. The areas and groups in which the company competes can be classified in three main groups: Users for the search engines; Advertisers who register for the AdWords program and Web sites to attract and retain websites to become member of the Google network. In light of its competition Google has created a wide range of services and tools for general public and business environment including Web applications, advertising networks and solutions for businesses. Google's utility and ease of use have made it one of the world's best known brands almost entirely through word of mouth from satisfied users. As a business, Google generates revenue by providing advertisers with the opportunity to deliver measurable, cost-effective online advertising that is relevant to the information displayed on any given page. This makes the advertising a useful tool for consumer as well as advertiser. They are effective in their advertising and make sure when this information is presented it makes an impact and does not interfere with the search engine, and thus they distinguish ads from the search results or other content page. They are professional in how they handle their targeted audience without interfering with their main purpose or objective. http://www.google.com/corporate/ Google AdWords program is used by thousands of advertisers to promote their products and services on the web with targeted advertising. Additionally, thousands of website managers take advantage of the Google AdSense program to deliver ads relevant to the content on their sites, improving their ability to generate revenue and enhance the experience of their users. Competitive advantages: Porter's Five Forces: Google as a company has a strategic advantage, the company's strategic advantage in the industrial field when evaluated in terms of workers relation and middle management, strategic advantage in the area of location, labour, land, natural resources is very sound and progressive. These basic advantages have to be boosted by sustained industrial growth as "clusters" which is a group of interconnected firms, suppliers, related industries, and institutions that arise in a particular location. The four "clusters" which influence the success of industry to an advantageous position are: "Firm Strategy, Structure and Rivalry which points out that the world is dominated by dynamic conditions, and it is direct competition that impels firms to work for increases in productivity and innovation. Demand Conditions which emphasizes that the more demanding the customers in an economy, the greater the pressure facing firms to constantly improve their competitiveness via innovative products, through high quality, etc. Related Supporting Industries indicates that spatial proximity of upstream or downstream industries facilitates the exchange of information and promotes a continuous exchange of ideas and innovations and Factor Conditions indicates that the "key" factors of production (or specialized factors) are created, not inherited. Specialized factors of production are skilled labour, capital and infrastructure. "Non-key" factors or general use factors, such as unskilled labour and raw materials, can be obtained by any company and, hence, do not generate sustained competitive advantage. However, specialized factors involve heavy, sustained investment. They are more difficult to duplicate. This leads to a competitive advantage, because if other firms cannot easily duplicate these factors, they are valuable"(Porter,1990) The Diamond Model of Michael Porter for the Competitive Advantage of Nations offers a model that can help understand the competitive position of the company. Traditionally, the five factors determine the comparative advantage. The role of the Operations Manager in Porter's Diamond Model is " acting as a catalyst and challenger; it is to encourage or even push companies to raise their aspirations and move to higher levels of competitive performance" They must encourage companies to raise their performance, stimulate early demand for advanced products, focus on specialized factor creation and to stimulate local rivalry by limiting direct cooperation and enforcing anti trust regulation. Porter introduced this model in his book "The Competitive Advantage of Nations", after having done research ten leading trading nations. This book was the first theory of competitiveness based on the causes of the productivity with which companies compete instead of traditional comparative advantages such as natural resources and pools of labour. This book is considered required reading for government economic strategists and is also highly recommended for corporate strategist taking an interest in the macro-economic environment of corporations. (Porter,1990) According to Michael Porter, competition is but one of the several forces determining the attractiveness or appeal of an industry or a company. These five forces which determine the competitive success of the company are degree of rivalry(competitiveness); threat of entry(Competition); threat of substitutes(products); buying power(price) and Supplier power(quality and availability).(Porter,1990) Corporate affairs and culture: Google is particularly known for its relaxed corporate culture which is in great harmony with its playful logo and the image of Googleplex. Googles work environment and ethics has placed Google at the topmost ladder of being one of the most desired places to work. Their motto is to match work with flexibility and fun. Google's corporate philosophy embodies such casual principles as "you can make money without doing evil," "you can be serious without a suit," and "work should be challenging and the challenge should be fun."(http://www.google.com/intl/en/corporate/history.html) Googleplex is a symbol of an unique company culture evolving, which is aimed at flexibility, innovative and open. This same innovation and spirit can be seen in their features and performance. The company has motivated and acquired a cornerstone of intellectual culture, which has great impact on the services and international audience. It is place where you see people from around the world with ever widening circle of friends and partners. One of the marked features of Google as accompany has been "The love affair between Google and the technology community - engineers, programmers, webmasters, and early adopters of all shapes and sizes - went back to the days when word-of-mouth from tech-savvy users spread the budding search engine's reputation far beyond the Stanford campus." ."(http://www.google.com/intl/en/corporate/history.html) Expanding Horizons: Google has grown, evolved into a dynamic company which has marked continuing international expansion. Google aims to find the right people who can work under the brand name of the company to create and expand strategic partnerships in international European, Asian and other markets. Google has been involved in opening up R&D centres in Tokyo to attract the best and brightest among Japanese and other Asian engineers. Google's innovative thinking has left its mark on businesses, people and the educational institutions which all feel the growth and enhancement of the service as it expands to larger markets and fields.. Google is headquartered in Silicon Valley with offices throughout North America, Europe, and Asia. Google's innovative search technologies connect millions of people around the world everyday. Work Cited Levingston, Steven.(2006) "Google Buys Company To Expand Into Radio." Washington Post. January 18, 2006. Koller, David.(2004) "Origin of the name, "Google." Stanford University. January, 2004. Gonsalves, Antone. "Google Confirms Testing Ads in Sun-Times Newspaper." Information Week. " February 16, 2008. Porter, Michael (1990). porter's five forces model. Retrieved February 16 , 2008, from Michael E Porter's five forces of competitive position model and diagrams Web site: www.alanchapman.com/portersfiveforcesofcompetition.htm (Porter, 1990) http://www.google.com/corporate/tenthings.html http://www.google.com/support/jobs/bin/answer.pyanswer=69888 http://www.google.com/corporate/ http://www.google.com/intl/en/corporate/history.html Read More