Google in 2008

1015 Words Dec 3rd, 2014 5 Pages
Case Study ­ GOOGLE in 2008 1. Why has the pay­per­click search business grow so rapidly? The reason have to start with Gross’ way thinking, as GoTo.com broke down in to two strategies to attract advertisers: First, they charge advertisers only when somebody clicked on a link and was directed to the website, this is the launching point of pay­per­click, which would make advertisers easier to evaluate their performance of the ads, rather than spending lots of money without knowing the real ROI. Second, the GoTo.com priced the keywords low ($0.01 per click), therefore attracting many audience to join the network, and being the affiliates. Once this efficient business model be used by more advertisers, it will definitely …show more content…
In addition, Google subsequently updated it’s database and make the research faster, even expanded the service like desktop search and Gmail search. Since the product takes the most important role when entering an industry, Google takes fully advantage to compete with established enterprises. From the aspect of business strategy, Google goes with a long­term strategy, locking itself as dominant design preferred by customer and firms who would incur switching cost if they change search engine. Google put lots of efforts in business model by earning lucrative advertising fees and reducing cost with a strong network with affiliates. 4. What explains Google’s success in the pay searched marketplace? How sustainable is its competitive advantage? Why Google not GoTo.com? Brin and Page, founders of Google, knew what Google was lack of that they made a determining decision to ask Schmidt to join Google, who created a successful business model. Google has special business models and strategies including: 1. Hire the right 1

people for the job, 2. Facilitating efficient team dynamics and communication, 3. Encourage creativity, 4. Make decisions based on data, 5. “Don’t be evil.”, which differentiate google from other search engines. Compared to the strategies that Google, Microsoft, and Yahoo

More about Google in 2008