As mentioned at the beginning of this research, the “portals” are the chosen field for this research because these companies start taking advantage of its channel function. For example, although it is a test for Google Video—one of the search giant Google’s Web portal-like service, Google Video provides 2000 free videos which are from professionals, not amateurs. Now Google Video is not only a service but also is trying to “act” like a content provider—in fact, it is still a bridge between content providers and content consumers. Therefore, it is important to understand this coming transformation of the industrial structure and so this field is the subject of this research. In addition, according to EContent 100177—the list of companies that matter most in the digital content industry, Google is on the list in the last four consecutive years. The “Google wave” is sweeping the world and now is a threat to Microsoft. Although the company reported strong results for the first quarter of 2006 –sales grew by 79 percent and earnings rose 60 percent from a year ago and that shows selling ads based on specific keyword searches is Google's wealth178, Google plan to expand into new markets, such as print and television advertising. Almost everyday non-stop news and reports show the impact of Google. However, none of these demonstrate how Google plan its roadmap or intellectual property but only the analyses of certain events or the stories of Google. Therefore, this research takes Google as the example to test the hypothesis of the model which is as described previously. 1. Company Overview179
177EContent (2004, December). Forth annual EContent 100 list. EContent Magazine, 27 (12). Retrieved September 2, 2005, form http://www.igroup.com.cn/printpage.asp?ArticleID=340 EContent reviews the companies’ activities over the past year and evaluate their current standing and impact on the digital content industry. 178Paul R. La Monica (2006, April 21). Google: On the road to $500. CNNMoney.com. Retrieved May 6, 2006, from http://money.cnn.com/2006/04/20/technology/google_analysis/index.htm 179For more information, see, Google (2006). 2005 Annual Report. Retrieved May 6, 2006, from http://www.sec.gov/Archives/edgar/data/1288776/000119312506056598/d10k.htm 87
Google, Inc. (Google) is a Delaware corporation with its headquarters located at Mountain View, California. Founded in 1998 by Larry Page and Sergey Brin, Google is an Internet search engine technology provider. Now Google is far more than a search website and it has grown to be a large collection of products and services. The company name “Google” is the misspelled word of “Googol180” which is the mathematical term for a 1 followed by 100 zeros181. Yet Google's play on the term reflects the company's mission to organize the world's information and make it universally accessible and useful. Now there are more than 1 billion search queries everyday using Google web search service. On April 29, 2004, Google filed a registration statement for an initial public offering of securities with the U.S. Securities and Exchange Commission, which became effective on August 19, 2004. The company's common stock is registered with the U.S. Securities and Exchange Commission pursuant to Section 12(g) of the Exchange Act, and is quoted on the Nasdaq Stock Market. 1.1 Profit
“Don't be evil182” which is the Google’s informal corporate slogan which means Google serve their users – as well they should – and establishes a baseline for decision making183. Google states that they generate revenue primarily by delivering relevant, cost-effective online advertising. Businesses (Advertisers) use AdWords program to promote their products and services with targeted advertising. Moreover, the thousands of third-party web sites (Web Publishers) that comprise the Google Network use AdSense program...