Executive Summary / Introduction
Google Inc (Google) is the world leader in internet searches. By 2007 63% of internet searches were through Google, surpassing other search engines such as Yahoo and Microsoft MSN. Goggle has also developed web based tools such maps, toolbars, G-Mail and acquired the popular you Tube. After dominating the web search industry since its search engine was introduction in 1998, however, Google has attracted many competitors who try to provide millions of users worldwide with similar services. Many believe that there is room for competition and as a result, Yahoo!, Amazon.com and Microsoft MSN are fostering partnerships with smaller technology companies and making significant capital investments in order to unseat Google. The Internet fodders lucrative business opportunities and the technology advances such as i-Pads, e-books and cell phones provide the hardware to house web based tools. While Google is still the number one search engine and a developer of popular applications, historically the rise and fall of internet organizations can be rapid. The repeat of a dot.com failure similar to 2000 and another economic collapse can leave even the most innovative internet company vulnerable, particularly when revenue relies on a healthy economy and the ability to give value for time and money. Google cannot become complacent. Google will not prosper in a world where innovation and monetary success can be stifled by outdated and irrelevant management philosophy , inefficient economies of scale and the pure desire to be innovative without envisioning a broad applications and monetary value . Public loyalty is fickle by nature and relationships with customers can be acrimonious. The history of Google Inc and its competitors is a story of success and failure. This report begins with a brief history of Google, Inc. It is followed the mandate of the organization. This is followed by an analysis of the external and internal factors that influence the organization. This paper will not discuss the strategic operations nor provide recommendations and implementations. The course study to date has not included these elements. The document is based on information provided in Case Study 6 Internet Search and the Rise of Google as well as Case 7 Yahoo (Integrated Management – An Integrated Approach – Eighth Edition). The author has also reviewed information on the Internet and has supplemented the original readings with this information. Company Overview
Founders Sergey Brin and Larry Page met in 1995 as Stanford University graduate students. They created a search engine that combined the technologies of Page’s PageRank system, which evaluates a page’s importance based on the external links to it, and Brin’s Web crawler, which visits Web sites and records a summary of their content. Because Google was so effective, it quickly became the search engine of choice for Web users. Today, Google handles nearly 50 percent of Web searches. By the end of 1998, Google had an index of about 60 million pages and search results were better than those of competitors like Excite and more technologically innovative than the portal sites like Yahoo!, Excite.com, Lycos, Go.com and MSN.com. The Google search engine attracted a loyal following among the growing number of Internet users, who liked its simple design. In 2000 and armed with a business model in a larger location, Google began selling advertisements associated with search keywords (AdWords). The ads were text-based to maintain an uncluttered page design and to maximize page loading speed. Keywords were sold based on a combination of price bid and click-through, with bidding starting at $.05 per click. This model of selling keyword advertising was pioneered by Goto.com (later renamed Overture Services, before being acquired by Yahoo! and rebranded as Yahoo! Search Marketing). While many of its dot-com rivals failed in the new Internet...
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