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Google Case Study

Better Essays

● What were the key factors behind Google's early success?
● Do you expect the search business to become more concentrated (i.e.: dominated by fewer firms)?
● Is search 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?
● How did Microsoft's maximum affordable bid for AOL's search traffic compare to Google's?
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;
● Targeting Microsoft's desktop hegemony; and / or
● Becoming an e-commerce intermediary like eBay?

Presentation of the company
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Google is a well known company and many people use to talk about it, a book « The Google story » has been written and many websites are talking about this company.

The most important period of Google was between 2001 and 2002, during this period Google has seen its activity increase on the internet to become the first website regarding search business. This is why it is very important to understand the real reasons of its success.

The « Page Rank », is the first successful explanation. The mechanism of the Page rank is globally the following, the most linked the website is, and the most popular it is, the highest the Page rank is. With those tools, the results are the most useful on the web.

The Google's search engine is also well known due to its speed and accessibility. Inspired from the Yahoo portal, the search engine website does not have any advertisement on it.The sobriety of the site is actually one key of its success. When Google started, the home page was fully of ads, very slow to load and difficult to read.

« Everybody knows that Google, Inc's innovations in search technology made it number #1 Search Engine. »

But, we have to know that, as many high-tech companies, Google didn't make money until they changed the way they advertised. (the ads vertically alongside the web page are auctioned.) In 2006, Ads represent more than 99% of the company's revenues. (Market capitalization $ 100 billion)

« Now,

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