Google’s Business Model
Google generates the majority of its revenue by offering cost-effective highly relevant advertising. Google sites account for 66% of total revenues for the company. Google also networks and the networking brings in approximately 8.7 billion dollars which percentage wise is around 30%and last but not least the licensing and misc. ventures and projects account for the last 4% that’s left. In total the company sales were 29.3 billion dollars last year. The U.S. alone totals almost half of Google’s revenue at a whopping 48%.
Google uses tools like Ad-words in which advertisers and business owners bid for good keywords. Any advertiser that wants to be able to have their ad displayed on Google search must continuously monitor the price of the keyword and maintain a bid high enough to keep their ad active. As competition for the best keywords increases the price goes up. The customers are what drive the increase in ad revenues for Google. Strength about Google’s monetization plan is the fact that it’s one of the most brilliant plans in the world trying to be copied by companies across the globe. Its business plan has led Google to the top already. The only weakness I see is the fact that its business relies so hard on advertising. 66% to be exact and if a new search engine were to come around and captures the public eye more (highly doubt it anytime soon) then Google will see huge losses in their strongest capital generating sector.
Google’s Corporate Values
Google has three corporate values that play a big part in the dynamic environment in which the company operates. The values are: don’t be evil, technology matters, and we make our own rules. Each of the values sounds simple and basic; that i...
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...ling list” (Newsweek, 2006). This software allows employees to post ideas and then other employees have the opportunity to rate their ideas. This is similar to Google’s search ranking system; the more an idea is rated the higher it appears on the list. In addition to fostering a creative environment, the 70-20-10 rule also helps to increase the company’s bottom line.
Google’s corporate environment has always been groundbreaking and cutting edge since the company was founded. A significant portion of the company’s success must be given to the far out ways in which it develops it products and services, therefore, standard business practices probably will never work for Google.
Works Cited
Another reason Google’s business plan is brilliant.
www.Google.com
Hoover database.
Wikipedia.org
Web.nijt.edu
www.bing.com
www.wikipedia.com
www.google.com
The Johnson & Johnson Corporation have withstood various problems that would have crippled other firms which can only be accounted with the cohesiveness of the corporation members and the internal structure of the corporation. Despite the corporation’s problems over the years their statement of values is an integral part of their corporation culture and how the firm continues to conduct business. “For us, the credo is our expression of managing the multiple bottom lines of products, people, planet and profits” Larsen (as cited by Hartman et al., 2014, p. 165).
...as not only been reliable when it arises to offering a product of the highest and excellence, nonetheless is also continually developing, adjusting, but more meaningfully revolutionizing the industry. Also, what creates Google’s invention so matchless in assessment to its challengers is the attention that it offers to consumer requirements in order to offer a consistent and difficultly substituted the product rather than concentrating on exploiting its profit with each given chance which may cooperation the quality of its search consequence its product. Having examined the company’s internal and external environment it is obvious that Google earnings care and attentions even to the smallest detail to guarantee that it will be the leading company between many other online search engines and has been able to create loyal customers that are continually growing.
The leaders of Google have well understood the means to make Google’s company different to the other companies. They established since the beginning an original way of work, controlling the recruitment of the new members, and imposing their vision on the employees.
The first and more important implication was downsizing the workforce trying to keep the most skilled workers and relocate them in the areas of need. Some of the threats for Google were trying to keep up with the competition, which it was aggressive. Many companies were trying to the same road of connecting people with information on the web. The biggest competitor for Google was Microsoft Corporation with its search engine Yahoo. Moreover, other companies were competing against Google from start-ups to well formed companies that were trying to develop search technologies. Also, had high competition in the advertising area where pay for performance was a great way to acquire new customers. However, the best service that Google launched was the language service offering fifty foreign
As defined in the textbook, functional strategy is the approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity. (Wheelen and Hunger, P. 238) There are four levels of functional strategy, Marketing, Finance, Research and Development, and Operations. The Two that I have analyzed for Google are Marketing and research and development. Marketing Strategy deals with pricing, selling, and distributing a product. Research and development s strategy deals with product process innovation and improvement. It also deals with the appropriate mix of different types of research and development and with the questions of how new technology should be accessed. (Wheelen and Hunger, P. 239)
Google does not document a Vision or Values on the Google website. They do state a philosophy on the Google website, some are listed below:
Google and Apple. You know, the companies that teenagers adore, adults love, and children enjoy. Google is your best friend for homework, and their phone operating system, Android, has a plethora of apps, not to mention numerous OEM's. Apple is the company that creates high end, easy to learn products. They make you pay a premium for their products ($2,000 for a MacBook Pro, everyone!). Apple is one of the few companies that doesn't have to do anything to be cool, they just are cool. Lots of people think of Apple as the cool one, while Google is considered your best friend for homework. What about Microsoft?
Google Inc. is a company that started in 2002 and has gradually grown to become an international technology company. Google’s business is mainly focused around vital areas, like advertising, search, operating platforms and systems and platforms, hardware products and enterprise. The company produces its revenue mainly by distributing online advertising. Google also produces revenues from Motorola through selling products. The company offers its services and products in over 100 languages and in over 50 regions, territories and countries. The company assimilates various features in its search service and gives dedicated search services to aid users modify their search. Google also gives product-listing advertisements, which comprise of product information, like price, merchant information and product image without needing ad text or extra keywords.
Interests: The image of Google in the media and among investors will be seriously damaged if it act antithetically to its philosophy of “Don’t’ be evil” It might affect negatively to the future prosperity of the company.
Google continues to grow and innovate. Google focuses on the user and all else will follow. Since the beginning, they have focused on providing the best user experience possible, and take great care to ensure that they will ultimately serve their customers(Google.com n.d.). In relation to market development and product development the core values “Its best to do one thing really, really well (Google.com n.d.),” fits in with these strategies. “You don’t need to be at your desk to need an answer (Google.com n.d.),” describes Goggle’s innovation to mobile platforms. “The need for information crosses all borders (Google.com n.d.).” Google company has grown and has offices in more then 60 countries, maintaining more then 180 internet domains, and serve more then half of their results to people outside of the United States, and this relates to concentrated growth strategy. “Great just isn’t good enough(Google.com n.d.).” Google continues to strive to reach for better ways of doing things, through innovation and integration, continue to improve things in unexpected ways (Google.com n.d.).
Google is an example of a business that employs an intrapreneurship approach, giving staff time for personal projects. As a result, Gmail was created and launched in 2004. Currently Gmail is one of the world’s most popular webmail
Google’s approach towards their employees is also obvious in CEO Sundar Pichai’s leadership style of ‘Letting others succeed’, by empowering people at all levels of the organization and trusting them to doing the right thing. He said,
Google is a multi-billionaire company that was founded by Larry Paige and Sergey Brinn in September 1998. Google housed more than 40,000 employees and it is now still increasing. In 2014, the company has 53,600 employees. There are several products created by Google, some of the well-known are Google Search, Google Scholar and Google App.
“Values are the beliefs of an individual, group, or organization, in which they are emotionally invested” (Carpenter, Bauer, & Erdogan, 2015). Many organizations consider corporate values strategically import for building their company’s reputation and keeping the customers’ confidence and allegiance. That, however, is only a tiny portion of the strategic benefits that organizational values can offer. “Further benefits include:guidance for decision-making on all levels, selection criterion for new employees, driver for individual and corporate behavior on all levels supporting the vision, mission, and goals of the company, and effective definition and implementation of core values” (Gupta, 2015). Values within a company need to be more than just a few words that sound nice to ensure overall acceptance within an organization. “Effective core values need to be emotionally appealing and workable” (Gupta,
...services and Google should strive to remain ethical and committed to the privacy agreements made between the company and the users