Friday, January 29, 2010

Google’s business model

Google is a highly successful Internet business. Recently they have broadened their scope with a multitude of new tools. Research Google’s business model and answer the following questions below. You may add additional information not included in these questions.

Questions:
Explain Google’s business model.



1. Who are their competitors?

Yahoo and Google are battling over the same Web visitors and advertising dollars. These two companies are using very different approaches while going after the same advertising dollars. Yahoo uses human editors or “surfers” to organize web sites into categories. However humans cannot index everything so they are partnered up with a third party search engine to provide answers when its human – powered listing do not suffice. Google is about its search engine, done only with PageRank. There is no human indexing involved. Yahoo has been using a program called the “Idea factory” to promote inventive thinking in their company, staffers are supposed to improve everything from the company’s products to its campus. On the other hand, Google assumes inventive thinking. Yahoo owns the world’s most popular website and believes in a multidimensional approach as it tries its best to be all things for all people. Google on the other hand owns the world’s leading online search engine, its mission is to transform the way today’s world is storing and finding information.

Microsoft is also competing with Google because Google is now a major threat to their dominance. While Google was launching all of its products for free, Microsoft was trying to catch up in search doing a project which they spent $150 million on but Google and Yahoo keep on getting ahead with new innovations such as complete maps and satellite photos.



2. How have they used information technology to their advantage?

Google uses a technique called PageRank to rank every page. PageRank keeps on improving as the web becomes bigger, since each new website is another set of information which leans to another vote. It is the top search engine in the world, representing eighty percent of all European search page views and forty one percent of all US search page views.



3. How competitive are they in the market?

Both companies are currently prospering but Yahoo’s market capitalization is $51 billion while Google’s is $76 billion.
A good way to get many users interested in the search engine is making it really easy to use. Not only is Google easy to use and fair to the public but it is also very fast. It only takes a fraction of a second to get the information that you need. Google has worked very hard on getting rid of excess bit and byte from their pages to make it go as fast as it possibly can, it has been breaking its own speed records. While other companies thought large servers would be the quickest way to deal with huge amounts of data Google realized that networked PCs were faster. While other search engines stuck with the speed limits for the search algorithms Google developed new algorithms which proved there was no limit as to how fast you could go. Google still is trying to make it faster.



4. What new services do they offer?

Alerts where you receive news and search results by e mail, Blog Search which finds blogs on people’s favorite topics, Book Search to find text of any books, Images where you can find images on the web, Maps where you find maps and directions, and News where you can find many news stories. Some of Google’s tools include Blogger where you can express yourself online, Earth where you can explore the world from your PC, Translate where you can view web pages in other languages, and Talk where you can IM and call friends from your PC. Google is global, besides its main Google.com it includes one hundred and two other international domains such as Google.de, Googdle.fr, and Google.co.uk. One hundred different languages are available.



5. What makes them so unique?

The interface clear and simple, and the pages load instantly,
Unlike some of its competitors, Google provides inclusion and frequent updating in their sites for free. Meaning anybody’s website could be in the search results if their website is related to what the user typed in the search box. And this is great because it makes the search results completely accurate.



6. How competitive are they in the international market?

It is the top search engine in the world, representing eighty percent of all European search page views and forty one percent of all US search page views. Its net income has been increasing, $6,985,000 in 2001, $99,656,000 in 2002, $105,648,000 in 2003, and $399,199,000 in 2004. This company must have done a great job in order to be so successful. When it was first started their web index contained about thirty million documents, and now they index more than eight billion web pages which translates to two hundred and fifty times as much information.



References:
http://www.google.com/corporate/index.html
http://searchenginewatch.com/sereport/article.php/2165081
http://www.fortune.com/fortune/technology/articles/0,15114,1050065-6,00.html
http://news-01.rankforsales.com/news-bh/941-seo-dec-21-04.html
Google’s business model by:Morgane Botella

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