The company’s strategy of Google is “ broad differentiation”, which is differentiating the firm’s product offering from rivals’ with attributes that appeal to abroad spectrum of buyers. Google’s search-based ads were displayed near Google’s search results and generated advertising revenues of nearly 22.9 billion dollar in 2009. The company also generated revenues of 761,000 dollar in 2009 from licensing fees charged to businesses that wished to install Google’s search appliance on company intranets and from a variety of new ventures. New ventures were becoming a growing priority with Google management since the company dominated the market for search based ads and sought additional opportunities to sustain its extraordinary growth in revenues, earnings, and net cash provided by operations.
Google was the leading Internet search firm in 2010, with 60+ percent market shares in both searches performed on computers and searches performed on mobile devices. While Google’s growth initiatives seemed to take the company into new industries and thrust it into competition with companies ranging from At and T to Microsoft to Apple, its CEO, Eric Schmidt, saw the new ventures as natural extensions of the company’s mission to “organize the world’s information and make it universally accessible and useful”.
The key elements of the strategy
Google was the leading Internet search firm in 2010, with 60+percent market shares in both searches performed on computers and searches performed on mobile devices. And Google was the world’s most-visited Internet site, with nearly 147 million unique Internet users going to Google sites each month to search for information. Many users have loyalty index with the brand, and they will like to use the product or services for Google. 2. ventures
Google likes to develop new ventures. New ventures were becoming a growing priority with Google management since the company dominated the market for search based ads and sought additional opportunities to sustain its extraordinary growth in revenues, earnings, and net cash provided by operations. 3. technology
The development of Google’s search technology began in January 1996 when Stanford University computer science graduate students Larry Page and Sergey Bring collaborated to develop a new search engine. Google has many good workers, and they always update old things and set up new things. 4. management
Google had a good and only business model; it had evolved since the company’s inception to include revenue beyond the licensing fees charged to corporations needing search capabilities on company intranets of websites. They set 10 principles of Google’s corporate philosophy to remind their worker to be efficiency.
1. Significant brand image
It has established a brand name for itself and is considered to be the number one search engine on the web. It is considered to be among the top 10 brands in the U.S. It gets reputation by its popularity which proceeds by its word of mouth publicity, so it doesn’t need to put much effort in marketing its search engine. 2. strong infrastructure base and technology.
The speed and simplicity of its search engine is quite reliable and user friendly. It offers many products and services i-e; Desktop products, Mobile products, Web products, Hardware products. It has a low operation cost regarding its products and services. It has hired PhDs specially to work for enhancing the search engine algorithms which will render the search faster, relevant and more efficient. It provides its search engine interface to 88 languages which is quite helpful for the locals of the countries. It uses state-of-the-art technology to catalog the pages to give the most updated outcomes to its users 3. robust financials
Google’s business model allowed advertisers to bid on search terms that would describe their...