Google 's Largest Internet Search Engine

1. Google earns revenue in a variety of different ways, using advertising as the driving force behind most of its profits. Google’s original business model was licensing its

Today, Google, Inc. is worth more than General Motors, McDonald's and Disney combined, and the company continues to model the way in the global technology industry in which it competes. In fact, the company's name has become a verb and it is common practice for consumers to "Google" what they want to find online. To determine how Google, Inc. reached this dazzling level of performance in a relatively short period of time, this paper provides an analysis of the three external environments in which Google competes, the general environment, the industry environment and the competitor environment. Next, a discussion of two specific strategic issues as well as opportunities and threats that are facing Google, Inc. is followed by a summary of the research and important findings in the conclusion.

In the original days of Google, it was "ad-free", yet now, up to half of the computer screen is filled with ads when one uses Google. Google even has a seventy-five percent monopoly over all external referrals to most websites online. The "good ol' days" of the Internet are over, and now, "...the Internet is getting spammed to death" (Brandt). The majority of these ads cluttering the computer screen are from Google; in fact, ads by search engines like Ask are rarely seen at

Due to the increased competition from Yahoo and Microsoft, it has posed a great threat to Google Company. Entry of such like companies in the market has been relatively easy and even offering similar services to the consumers is no longer a problem as unlike a while back, technology has greatly improved. With an improvement in technology, creating sites that help people access information from the internet has been quite cheap and all it calls for is the creativity of a company. Google, however, has been able to remain at the top of the chart. They have been able to come up with a user-friendly search engine for their clients, one that is easy to understand as well as easy to use. Also, Google has been able to cut on cost as they are able to create web pages using UNIX web servers which are relatively cheap. This makes it possible for them to minimize the cost of input and hence maximizing their profit margins. This makes it possible for them to hire qualified personnel, offer quality services, advertise their products, and even offer promotions, helping them overcome the competition in the market structure.

Those advertisers also decide how much they'll pay for placing the ads by coming up with a price per click—a process called pay per click advertising. For instance, you might say you'll pay Google ten cents whenever someone clicks on your ad. But let's say six other advertisers have ads similar to yours that will appear on the same search results pages. You and the six other businesses are then competing for placement. The one who bids the highest gets placed at the top of search results, which is the most desirable spot. If someone bids $11 per click, their ad will be placed atop

And their achievements include more than 370 million ads served in Google per month, 9,265 ads written per year, they receive 83 client calls per week and they spend more than $88 million annually on their digital marketing processes.

AdWords is Google's advertising product and main source of revenue. AdWords offers pay-per-click advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution. Advertisements are short, consisting of one title line and two content text lines and/or image. The "content network" shows AdWords ads on sites that are not search engines. These content network sites are those that use AdSense, the other side of the Google advertising model. AdSense is used by website owners who wish to make money by displaying ads on their websites. User’s click on ad displayed on a Web page means that advertiser pays Google and Google give percentage of that amount to the webpage. The third way in which they make money is through its Google Search Appliance, which they sell to their customers. This Google’s search technology can be integrated into a third party’s Web page or intranet. This appliance delivers accurate search results throughout a number of documents. Meaning your company would have its own search engine and it would work just as well as google.com. Licensing fees ranged from $30,000 to $600,000. There is also Google MiniSearch Appliance designed for small businesses. Some of the most important strengths of the Google’s business model are: Reliable pricing system, scalable architecture, disruptive business model, and efficient ad system and relevant ads.

Revenue is generated by delivering relevant, cost-effective online advertising. Businesses use the Google AdWords program to promote their products and services with targeted advertising. Furthermore, Google maintains advertising on thousands of third-party web sites using the Google Network and Google AdSense.

Google’s total assets have steadily increased dating back from 2008 to 2012. Some key figures to point out in their assets are the slow growth between the second half of 2008

Google’s competitive advantage was that it used a cost-per-click approach with advertisers. Google’s philosophy with ad technology is what gave them the advantage. They did not allow an advertiser to

It is a fact that in the current stage of technological development technology gets mixed up with business strategy, and it has become more important to figure out what are the technological foundations that support competitive advantages. The evolution of Google’s business model was leveraged by a more sophisticated search technology, which distinguished the company from other competitors. Google’s first strategic move was guided by the assumption that Internet users were more interested in natural results than in advertisement results. Such a clue allowed the company to create new value for its customers: Internet users and companies interested in online advertising. Moreover, Google’s business model also contributed to the company appropriating value at a first moment through AdWords (inside Google’s Web page) and at a second moment through AdSense distribution channels (AdWords service inside third parties‟ Web pages).

Google is the most successful information technology and web search company in the world. It was founded in 1998 by two Stanford Ph.D. students, Larry Page and Sergey Brin. The company name, Google, is a play on the word “googol” which is a mathematical term for the number 1 followed by 100 zeros. Larry Page and Sergey Brin chose this name to reflect the large amount of information on the web. The two created this search engine so that people can find anything on the web all in one place. The company’s mission is “to organize the world’s information and make it universally accessible and useful.” Now, the company is far more than a search engine website, it has grown to be a substantial collection of products and services that are

In 2007, Baidu earned about $86 million net income and $239 million in revenue (Ireland, Hoskisson, Hitt, p266). Majority of the revenue is contributed by an enlarged active online marketing customer base. We will elaborate details of the marketing activities under intangible resources. The accounts published show that Baidu is performing well financially.

In 1998, Stanford University graduates Larry Page and Sergey Brin combined their ingenuity and built a search engine called “BackRub” that evolved into what is now known as Google. Google, with over 150 domains, now functions as a search engine that offers many different products and services including web applications, advertising, sports scores, stock quotes, headlines, addresses, videos, etc. Google’s focus is “to provide useful and relevant information to the millions of people around the world as they rely on us (Google) to provide the answers they are seeking.”

Professionally, Google is known as a company based in California that is labeled as an internet company which is multi-national. It provides online searching, as well as cloud computing, software, and advertising. The company actually didn 't start off as a company, but rather as a research project back in 1996. The project was being conducted by Sergey Brin and Larry Page who at the time were studying at Standford University as PhD students. At the time, in internet-land, the search engines that existed operated where they ranked the results by counting the number of times keywords results were on a page. The two students came with a better idea (called PageRank at the time), that looked at relationship between websites. It would rank websites by determining it 's relevance, which was based on the importance of pages, and the number of pages, and how it linked back to the main website. After the idea 's creation, the two founders made the project into a business, and changed the name to "Google", which is a neat miss-spelling of the word "googol" which had significance because it stands for the number one followed by one hundred zeros, and it related to their goal because they wanted to create a search engine that offered a large quantity of information.