Table of Contents
History and Nature of Google
Business Strategy and Model
Macro Environmental Analysis
Five Forces Model
History and Nature of Google
Google Inc. is a technology company focusing on the following key areas: search, advertising, operating systems and platforms, and enterprise. Google has an index of websites and other online content, and make it available through its Google search engine to anyone with an internet connection. Larry Page (Co-founder and CEO of Google Inc.) and Sergey Brim (Co-founder of Google Inc.) met in 1995 at Stanford University in Palo Alto California. Page was a 22 year old University of Michigan graduate considering the school and Sergey was tasked with showing him around. In 1996, Larry and Sergey now both computer science graduate students, begin their collaboration on a search engine originally given the name BackRub. The search engine operated on Stanford University Servers for over a year until it took up more bandwidth than the university’s likings. In 1997 the duo determined that the search engine needed a new name. After some collaboration they established the name Google. Google was a play on the word “googol”, which is a mathematical term represented by the number 1 proceeded by 100 zeros. Google defined Larry and Sergey’s mission to organize what seemed to be an infinite amount of information on the web for public access. In 1998, Sun Microsystems Co-founder Andy Bechtolsheim invested $100,000 into the non-existent enterprise Google Inc. Google filed for incorporation in California on September 4 of this same year. In March of 2001 Erich Schmidt was named chairman of the Board of directors. In the same year, Google goes international and opens their first overseas office, in Tokyo. Google goes public on August 2004 with an Initial Public Offering of 19,605,052 shares of Class A common stock which took place on Wall Street on August 18. Their opening price was $85 per share. In January 2011 Google announces that co-founder Larry Page will become CEO in April 2011 and Eric Schmidt would become Executive Chairman. Over its existence Google Inc. has established a number of advertising products and operating systems to include Google Search, Google Dsiplay, and Google Mobile, Android, Google Chrome Operating System, Google TV, as well as Google Books. Google’s enterprise products provide Google technology for business settings.
In terms of the nature or “culture” of Google Inc., they are a diverse institution that thrive on creative freedom and endless possibilities. They believe that the people make the company and they encourage free flow of information and ideas across all levels of the company. There are ten principals that Google Inc. stands by that have proven them successful over the years. They include the following: 1. Focus on the user and all else will follow 2. It’s best to do one thing really well 3. Fast is better than slow 4. Democracy on the web works 5.You don’t need to be at your desk to need an answer 6.You can make money without doing evil 7. There’s always more information out there 8. The need for information crosses all borders 9.You can be serious without a suit. 10. Great just isn’t good enough.
Business Model and Strategy
“It is very interesting that Google is quite different from different points of views. From the viewpoint of vision and mission, Google is a searching company. From the viewpoint of profiting model, Google is an advertising company. From the viewpoint of essence, Google is a technology-oriented company.” (Tsai, Lin, & Su, Sep 2011) Through most of the 1990s, there was a huge and disorderly increase in the content of the World Wide Web. This developed as a result of the growing popularity of personal computers. From this a strong need for organizing vast content emerged in order to assist Internet users. The search...
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