Nowadays, Google is considered more as a daily useful tool than a large worldwide company. This Google website is so essential for all the IT users that we have the tendency to forget the men, the women and the know-how behind this wonderful and rapid search tool. But behind this webpage, a huge company exists. Google is defined by Fortune as the first company where people want to working and of course as well for the results. In less than ten years, Google's results and profits did not stop to increase, to reach $8 billion in 2005 and the share price increased more than six times from the IPO start price. The development of Google inc. comes from different reasons that we will analyze. Firstly, we will see the reasons of the early success, then the concentration strategy assumption, the relation between AOL, Google and Microsoft. To finish with a personal point of view about the future internal policies in a goal to continue the growth.
[...] Over this financial fact, the willing to work for Google is proved by the application forms (1000 application daily).That shows the brand image and identity of the company. In the same time, Google provides for its employees free-foods, a spa, a 6 weeks' vacation each 6 years of experiences and moreover 10% of the employees are millionaires. Concerning the services, Google owns 70% of the internet search traffic. That shows the efficiency of the website and the well-established situation. So we can say that the management skills from the two company's founders are excellent and they were able to see the niche and create this service. [...]
[...] The concentration of a core domain means in this case that Google has to be the only search provider, but of course it is not the case because the internet users can search on the Yahoo, the Microsoft, Ask Jives, Ail or others WebPages. By the way, data coming from a survey (see Exhibit Google supposes to have more than 50% of the share market and the users said that they preferred to use Google as others search website. So the leadership from Google makes it to be the first, of course in a legal and ethical situation or in others terms in a competitive situation Anyway we do not have to forget that in the near future the number of internet users will continue to increase (more and more internet connection in the Asia and Africa, especially countries like China and India).And others cultures means others ways to think and to search on internet. [...]
[...] A study shows that most of the users are going to Google website but as well if we add a Google trademark in a Yahoo page, the users will find the service more efficient. The Google trademark's effect show the notoriety of the company and the brand image gap between the leader (Google), the challenger (Yahoo) and the followers. Through the Google example, we can easily show that the search business is very lucrative and that is a winner-take-all business In renewing its deal with AOL, could Google afford to pay AOL more than 100% of the revenue generated from AOL searches? [...]
[...] The business concentration in the internet business supposes that Google will be the only search website's provider. In a competition world and in the goal to develop itself, the business concentration will be not possible because high profits mean strong competition as well Search as Winner-take-all business When we see the strong growth of Google, we can easily ask if the search A winner-take-all business. Of course, Google is a large company with its vision, its strategies, and its resources and of courses its profits. [...]
[...] The deal between Google and AOL shows that Microsoft was threatened by Google's ad-supported software. But in reaction of that, Microsoft established a joint-venture with AOL for developing a jointly search- related advertising. Concerning the AOL-Microsoft's joint venture that proves the failure of Google in this deal. In addition to enhancing its core search business, should Google also branch out into new arenas? Which of the follow would you recommend? Building a full-fledged portal like Yahoo's Yahoo is a pre-defined search portal with different categories where the users can drive his search by theme for example, Finance, News, Jobs, Real Estate, Google is something else it is more general and the user knows that and after the market analysis we can easily see that the customer prefers this kind of search because Google generated 70% of the search traffic. [...]
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