Google Case: Factors Behind Google's Success

What were the key factors behind Google’s early success?

Thanks to the Corporate Values, Google became a very successful company In the world. Google’s integrally In providing search result helps Google to succeed. There is great potential revenue can be generated from their search service. However Google corporate value “Don’t be evil” refuses to compromise the integrity of search results. The quality search result is important to secure user’s usability of search engine and the confidence in Google.

Google’s emphasis on technologies helps Google to excel its competitors.

Google lives “Technology matters” and invested heavily In the infrastructure that supported lightning-fast returns on search queries. Providing accurate results wealth a shorter time Is the primary task of a search engine and It Is not an easy task. Google did well in this and it becomes one of the key competitive advantages of Google products. Google ‘s diverse businesses contribute to its success significantly. “Since its PIP, Google had launched a flurry of products that expanded its domain beyond web search.

” After 2000, the IT market is growing at a very fast speed and lots of Leeds are untouched.

Google provide its products to an Immature market so that It can capture a large market share, With Its strength In technologies, Google can ensure the quality of product and service to keep its competitiveness in the various markets. Google is innovative and adopted unconventional approaches for managing innovation. Some innovative products may require longer development time. Google is willing to invest in promising long shots and Google believe they can be high- reward projects.

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Do you expect the search business to become more concentrated? Is search a winner-take-all business?

Most of revenue is generated with Google’s search business and related products. Lots of its products like Google Decadence and Google Analytics relies on the search business. So focusing on search business seems critical to Google’ future and I expect the search business to become more concentrated. In the next few years, people will be overwhelmed by Information on the Internet and people will Increase their reliance on search engine to provide them desirable results. Google Is the leading search engine provider and dominates the market. Google can potentially gain more revenue if it is the single player in the market.

In addition, Google is experienced in providing search service and concentrate on providing search service is less risky than expanding to other market. The network effect can be applied here as well. With the focusing on search service, Google can gain more users and cumulate more knowledge about user preference and searching behaviors. With the knowledge, Google can enhance Its search service and acquire more users. The search service has great potential to become winner-take-all business. Facts about market share of search service providers tell winner-take-all business is possible.

Google shares the great market in the world. Being and Yahoo share a very insignificant market in the world. We may pick another example like China; Baud Is the largest player in the searching service market without the participation of Google. Providing quality-searching service has high entry barrier boundaries, so that it can serve every segment of market. There is no significant UN- tap market for other search engine providers to enter. In addition, the network effect n search market is quite strong, when more users user the service, the search providers are able to gather more information and provide better search results.

In addition to enhancing its core search business, should Google also branch out into new arenas?

Which of the following would you recommend: 1) Building a full-fledged portal like Yahoo! ‘s; Not recommended. Although there is demand for full-fledged portal like Yahoo! , the demand is not increasing significantly. There are already 2 big players in the portal business, namely Yahoo! And MANS. Due to high market commonality and high sources similarities, Google should not compete head to head with them. ) Targeting Microsoft’s desktop software hegemony; and/or Recommended. With the extensions functionalities of Google Chrome, Google stepped into desktop software industry already. With the help of notification center of ass and windows system, various Google products can bring similar experience via Google Chrome.

In addition, there is some UN-tapped market. Google can extent search service to desktop search, migrate the online Google Doc to desktop, provide support to development of open resource initiatives like open office and provide interfaces compatible with Linux users. ) Becoming an e-commerce intermediary like eBay? Not recommended. EBay and Amazon are two big players in the market. The rivalry is already quite intensive. Becoming another big player in the market not only requires Google to deal with products suppliers but also the delivery service. Both of them are labor-intensive tasks and Google has litter experience with it. There are other specialized new entrants entering the market to gain the market niche and customers have high bargaining power due to information transparency.

So the industry is not very attracting.

Do you view Google’s distinctive governance structure, corporate culture, and organizational processes as strengths or potential limitations?

Google’s distinctive governance structure, corporate culture and organizational processes are a great strength of the company. Google is attracting the best talents from all over the world. These talents look forwards to Join Google because of the flat governance structure and corporate culture. Their potentials can be best explored at Google.

Google’s corporate structure encourages creativity among heir staff, which leads to employee satisfaction and a low employee turnover rate. Google’s organizational processes ensure sufficient freedom to its employees to test new technologies, new business models, new products, new ideas etc. This is very essential for company to put innovation into actions. In addition, the Company is administered by the expounders and the Chief Executive Officer. Both of them are concerning the long-term growth of Google instead of short-term gain. This facilitates the restoration of confidence of its investors and clients.