anjalicutek
Anjali Khurana
Google Inc. is a multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products,[6] and generates profit primarily from advertising through its AdWords program.[3][7] The company was founded by Larry Page and Sergey Brin, often dubbed the "Google Guys",[8][9][10] while the two were attending Stanford University as Ph.D. candidates. It was first incorporated as a privately held company on September 4, 1998, and its initial public offering followed on August 19, 2004. The company's stated mission from the outset was "to organize the world's information and make it universally accessible and useful",[11] and the company's unofficial slogan – coined by Google engineer Paul Buchheit – is "Don't be evil".[12][13] In 2006, the company moved to their current headquarters in Mountain View, California.
Google runs over one million servers in data centers around the world,[14] and processes over one billion search requests[15] and about twenty-four petabytes of user-generated data every day.[16][17][18][19] Google's rapid growth since its incorporation has triggered a chain of products, acquisitions, and partnerships beyond the company's core search engine. The company offers online productivity software, such as its Gmail e-mail software, and social networking tools, including Orkut and, more recently, Google Buzz. Google's products extend to the desktop as well, with applications such as the web browser Google Chrome, the Picasa photo organization and editing software, and the Google Talk instant messaging application. Notably, Google leads the development of the Android mobile phone operating system, used on a number of phones such as the Nexus One and Motorola Droid. Alexa lists the main U.S.-focused google.com site as the Internet's most visited website, and numerous international google sites (google.co.in, google.co.uk etc.) are in the top hundred, as are several other Google-owned sites such as Youtube, Blogger, and Orkut.[20] Google is also BrandZ's most powerful brand in the world.[21] The dominant market position of Google's services has led to criticism of the company over issues including privacy, copyright, and censorship
Google Marketing Strategy.
Google Inc., starting from just a smart algorithm, has developed a totally new business model, has become in a few years the world leading search engine, has developed winning applications as Google Earth, Google Video, Google Maps, Gmail, and is enjoying a huge success. Google, starting from scratch, has won the challenge against a giant like Microsoft and against the previous search engine market leaders Yahoo, Lycos, Altavista, Excite.
Google Market Capitalization.
In nov 2007 Google Inc. was the 5th biggest US company, considering stock market capitalization. In nov. 2007 Google shares had topped $700.
Google stock market capitalization in nov 2007 was $230 billion, in July 2008 was $170 billion.
By comparison in July 2008 Microsoft stock market capitalization was $240 billion, General Electric market cap was $270 billion, Exxon stock market capitalization was $450 billion.
The key question is:
why the Google Business Model is a winning Business Model?
The answer is a complex one, and involves more factors. It's a mix of smart decisions, excellent marketing strategy, great advisors, highly innovative and risky business model, and great products.
These are the key resons why the Google Business Model won:
1.- Google had - and still has - a simple, clean, clear, minimalistic user interface. no frills, just the logo and the search box - easy and fast to load. And this was a key feature with the slow internet connections of the early years 1999 -2001 - while Yahoo and most of the other search engines were more like generalistic portals, full of confusion, full of useless features and useless links, full of annoying banner ads, heavy and slow to load.
Google had a clear understanding on psychology of perception, and how the interaction eye/brain works, while the bigger competitors didn't.
Bottom line is: If the user visits a search engine, what he wants to get is simply that: just a search engine.
A search engine which is fast and reliable. If the user wants a generalistic portal, he goes to a portal, not to a search engine.
Larry Page and Sergey Brin, the Google Executives, understood this, and this was what they delivered. And made their users happy.
2.- Google had - and has - reliable search results (not always, but most of the time). Page and Brin's PageRank algorithm worked well.
3.- Google got good advice from VC's and from Wilson Sonsini Goodrich & Rosati. Larry Page and Sergey Brin have been advised and assisted since the beginning by John Doerr, VC Partner of Kleiner Perkins and by Wilson Sonsini Goodrich & Rosati, the leading law firm of Silicon Valley.
Insight on Google Business Model
4.- Google introduced a smart, innovative and quite risky business model - Adwords - and the pay per click concept. The risk proved winning, and the innovative business model worked. Still today Adwords is the main source of revenues of Google Inc.
5.- In the following years, Google became a powerhouse with an impressive pipeline of new great products - Google Maps, Google Earth, Google Video, Gmail. And slim revenues.
6.- Google worked very hard on Brand Building. It seems that brand building was much more important to them than just revenues and profits. The strategy worked. And it was a key asset in the subsequent IPO at the Nasdaq.
7 - Google was an innovator of the Business Model. Google delivered all these great new products basically for free, enticing and luring million of users worldwide, with the result of building the Brand in an outstanding, quite unbelievable way - and did it so fast.
Eric Schmidt was made CEO of the company, David Drummond, an attorney of Wilson Sonsini Goodrich & Rosati who had advised Google founders since the early days, joined Google as Chief Legal Officer, Wilson Sonsini Goodrich & Rosati took care of the IPO at Nasdaq.
Google runs over one million servers in data centers around the world,[14] and processes over one billion search requests[15] and about twenty-four petabytes of user-generated data every day.[16][17][18][19] Google's rapid growth since its incorporation has triggered a chain of products, acquisitions, and partnerships beyond the company's core search engine. The company offers online productivity software, such as its Gmail e-mail software, and social networking tools, including Orkut and, more recently, Google Buzz. Google's products extend to the desktop as well, with applications such as the web browser Google Chrome, the Picasa photo organization and editing software, and the Google Talk instant messaging application. Notably, Google leads the development of the Android mobile phone operating system, used on a number of phones such as the Nexus One and Motorola Droid. Alexa lists the main U.S.-focused google.com site as the Internet's most visited website, and numerous international google sites (google.co.in, google.co.uk etc.) are in the top hundred, as are several other Google-owned sites such as Youtube, Blogger, and Orkut.[20] Google is also BrandZ's most powerful brand in the world.[21] The dominant market position of Google's services has led to criticism of the company over issues including privacy, copyright, and censorship
Google Marketing Strategy.
Google Inc., starting from just a smart algorithm, has developed a totally new business model, has become in a few years the world leading search engine, has developed winning applications as Google Earth, Google Video, Google Maps, Gmail, and is enjoying a huge success. Google, starting from scratch, has won the challenge against a giant like Microsoft and against the previous search engine market leaders Yahoo, Lycos, Altavista, Excite.
Google Market Capitalization.
In nov 2007 Google Inc. was the 5th biggest US company, considering stock market capitalization. In nov. 2007 Google shares had topped $700.
Google stock market capitalization in nov 2007 was $230 billion, in July 2008 was $170 billion.
By comparison in July 2008 Microsoft stock market capitalization was $240 billion, General Electric market cap was $270 billion, Exxon stock market capitalization was $450 billion.
The key question is:
why the Google Business Model is a winning Business Model?
The answer is a complex one, and involves more factors. It's a mix of smart decisions, excellent marketing strategy, great advisors, highly innovative and risky business model, and great products.
These are the key resons why the Google Business Model won:
1.- Google had - and still has - a simple, clean, clear, minimalistic user interface. no frills, just the logo and the search box - easy and fast to load. And this was a key feature with the slow internet connections of the early years 1999 -2001 - while Yahoo and most of the other search engines were more like generalistic portals, full of confusion, full of useless features and useless links, full of annoying banner ads, heavy and slow to load.
Google had a clear understanding on psychology of perception, and how the interaction eye/brain works, while the bigger competitors didn't.
Bottom line is: If the user visits a search engine, what he wants to get is simply that: just a search engine.
A search engine which is fast and reliable. If the user wants a generalistic portal, he goes to a portal, not to a search engine.
Larry Page and Sergey Brin, the Google Executives, understood this, and this was what they delivered. And made their users happy.
2.- Google had - and has - reliable search results (not always, but most of the time). Page and Brin's PageRank algorithm worked well.
3.- Google got good advice from VC's and from Wilson Sonsini Goodrich & Rosati. Larry Page and Sergey Brin have been advised and assisted since the beginning by John Doerr, VC Partner of Kleiner Perkins and by Wilson Sonsini Goodrich & Rosati, the leading law firm of Silicon Valley.
Insight on Google Business Model
4.- Google introduced a smart, innovative and quite risky business model - Adwords - and the pay per click concept. The risk proved winning, and the innovative business model worked. Still today Adwords is the main source of revenues of Google Inc.
5.- In the following years, Google became a powerhouse with an impressive pipeline of new great products - Google Maps, Google Earth, Google Video, Gmail. And slim revenues.
6.- Google worked very hard on Brand Building. It seems that brand building was much more important to them than just revenues and profits. The strategy worked. And it was a key asset in the subsequent IPO at the Nasdaq.
7 - Google was an innovator of the Business Model. Google delivered all these great new products basically for free, enticing and luring million of users worldwide, with the result of building the Brand in an outstanding, quite unbelievable way - and did it so fast.
Eric Schmidt was made CEO of the company, David Drummond, an attorney of Wilson Sonsini Goodrich & Rosati who had advised Google founders since the early days, joined Google as Chief Legal Officer, Wilson Sonsini Goodrich & Rosati took care of the IPO at Nasdaq.