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Case Google (0)

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Case Google
  • What were the key factors behind Google’s early success ?
    There were 4 main key factors behind Google’s early success:
    • Perfecting an innovative search engine - clearly the most important factor for Google’s success. Google stopped counting keywords like old search engines and started using famous Page Rank algorithm. A reliable searches through the number of websites that link to a page to weight search result relevance.
    • Google focusing on the user - Focus on the user and all else will follow . Attraction for users were the no- nonsense simple white search pages and distractive colorful logo with no ads or editorial content on the page lead to easy and fast search that Yahoo couldn’t imitate.
    • Google delivered search results people really wanted - trustworthy for users. The promised not to sell placement in search results to advertisers and instead rely on the true natural search to deliver users the content they really are looking for.
    • Effectively monetizing paid search-made Google economically successful as a business. They adopted a “ cost per impression ” in 1999 and then in 2002 they adopted “ cost per click” paid listing model that was popularized by Overture by doing a ratio of actual CPC(“cost-per-click”) and expected CTR(“click trough rate ”) to ensure users saw ads that were closer to what they actually searching for. Google Analytics is a good example of how advertisers could track advertising keywords were most likely to yield sale.

  • What were the reasons for being a last-mover and what were the advantages?
    While it’s true that Microsoft and Google eventually came to dominate their industries, it wasn’t necessarily because they were last. Of course , there were operating system companies and search engines that followed for example. Instead, Microsoft and Google’s market power , their ability to keep their advantage in the market over time by anticipating discontinuities has enabled them to remain top dog — at least for now.
  • Do you expect search business to become more concentrated (i.e. dominated by fewer firms )? Is search a winner –take-all business?
    The search business will continue to become more concentrated as Google has clearly dominated this industry and Yahoo can hope to retain market share by offering editorial content that some users may be “tricked” into viewing. Google’s democratic style of search combined with its enormous scale of indexed web pages leads to results more fitting to users. This scale of indexing presents a head start for Google that makes market entry near impossible. With Google’s large lead and gargantuan resources to throw at any new innovation, it decides to take on , it would take more than a good idea to beat this giant. What would be needed is another disruptive technology that connects future users in ways that Google hasn’t addressed.
  • What should Google do next? Should Google build a full -fledged portal like Yahoo!’s, target further into Microsoft’s desktop software hegemony, become an e-commerce intermediary like eBay or something else?
    Google have been experimenting with a variety of online software that drives travel to their site and provides opportunities for in contextual Sponsored Links related to the content the user is engaged in creating such as in Gmail and Google Groups. By providing ad funded web services , Google could solve one of the fundamental contradictions of its business model, to generate revenue users have to click a sponsored link in a search a search results and leave Google, in other words they want people to leave as possible by dishing up the most relevant ads as possible to the user’s search. By moving people online to use Google’s communication and productivity tools, they are creating numerous new opportunities. Scanning users mails, messages, documents and to-do’s, Google gains insights about what sort of services or products that their advertisers offer which the users might be interested in. By channeling people into their own services rather than making other sites visible , Google could be reducing the democratic nature of web. Google will have to think further about how to both maximize ad revenue and provide useful experiences that change the way people use computers and mobiles. Yahoo!’s management had recognizing the competitive threat from Google and the growth potential for paid listing, in part because Yahoo! was an early investor in Google and had a privileged view of start-up’s success. As a full-ledged portal, Yahoo! offered easy access to a board range of third- party content and related services, organized into “ channels ” such as Autos, Finance, Games , Health, Kids , Movies, Music, Shopping , Sports and Travels. Yahoo! is also known as the third largest online recruitment sites. Even though Yahoo! has many amazing examples , they still are loosing the shear of search. The difference between Yahoo! and Google is that Yahoo! is more like a portal and Google just collects all the information and post’s it on its web page.
    Microsoft’s vision of cloud computing repeatedly changed both in name and conception but, by 2010, plans were increasingly firm . Windows Azure let developers run applications on Microsoft-hosted platforms, while Microsoft Office 2010 was slated to include an “Office Web” version accessible through a web browser. Whereas most cloud- based applications were run in public clouds, Microsoft promised to let companies install web apps on their own web servers, potentially improving privacy and security .
    Google’s initiatives were a threat to eBay because of the first step in many e-commerce transactions. Customers shopping for a product could visit eBay’s marketplace to find a qualified sellers, or they could find a vendor through Google. In fact many of Google’s advertisers were also eBay sellers. eBay’s PayPal services faced similar competition from Google Checkout. Both services should offer checkout services to third-party retailers.
    Yahoo!- Actively upgrading their search engines by allowing users to customize their searches by blocking certain sites and highlighting others and by creating their own home pages.
    eBay- feels threatened by Google’s AdWords
    Microsoft- introduced MSN search beta which proved less accurate than Google in a test by the Washington Post.
  • Is Google’s unique organization strength or a liability ?
    Google’s unique organization strength comes from the fact that the Google’s top management trio would own roughly one-third of the shares but control over 80% of the votes. This immunized Brin, Page and Schmidt from replacement by investors second- guessing the company’s strategy.
    The engineers were encouraged to spend 20% of their time working projects of their own choosing. This flexibility had spawned many initiatives, including Google News and Orkut . The way of thinking is that they can do better that it had been done already before.
    When it comes to trustworthy Google for sure has proved themselves by their policy: “Don’t be evil ! “ – they never manipulate rankings to put their own products/services on the first page. No one can buy better Page Rank.
    A huge information flow weekly- questions, answers, ideas, food, drinks. This allows management to stay in touch with what their knowledge workers are thinking and doing. Google has remarkably few information leaks during the existence period - a trusted work force is a loyal work force.
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