Why Google Should Spend Profits Somewhere?

1143 Words Oct 19th, 2014 5 Pages
‘Google’ profits better spent elsewhere, Shiyuan Chen, z3416168, Wed 4-5, Maverick

In 1997, Sergey Brin and Larry Page registered Google.com as a domain (Google.com, 2014) and conquered the market share of search engines, however Google was not earning profit. In order to continue growth and maintain the vision of ‘providing vast information to users without charging’ at the same time Brin and Page finally considered associations with marketing and advertising. Google started to offer entertainment and news for free while charging for standardized advertising (Hartley, 2014). Up to 2014, Google has become the label of a multinational cooperation with more than $500 per share price (NASDAQ.com, 2014), providing a variety of splendid internet-related services and technologies. Google’s rapid rise depends mainly on elements including carefully chosen target audiences at initial stage, talent management structure and most importantly continuous innovations. This research will address a few reasons why Google should spend profits somewhere else rather than on philanthropic investments, starting with an analysis of its recent declining trend of net profit. Instead of nonprofit, Google may reserve its capital for downtime or spend on innovations, employees or problems with existing services.

Few evidences in recent years encourage Google to reserve its profits. Despite Google’s vast expansion, mature and dominating position within the technology industry, its major revenue (more…
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