Google Value Creation Case Study

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Google was founded by Stanford students Larry Page and Sergey Brin who named the search engine they built “Google,” which is a variation on the word “googol,” the mathematical term for a 1 followed by 100 zeros1. The name reflects the immense volume of information that exists, and the scope of Google’s mission: to organize the world’s information and make it universally accessible and useful. Google is a very familiar name to everyone nowadays. Most of us must have experienced its powerful search engine in today’s Internet world. But how much do we know about Google? Google’s mission is “to organize the world’s information and make it universally accessible and useful”2. The philosophy of “putting the needs of the users first” enables Google to offer a high-quality experience which leads to increased traffic and word-of-mouth promotion. Revenue in which 97% is made up of Advertising Revenue has increased from US $21.8 billion to US$23.7 billion from 2008 to 20092. In this paper and the accompanying presentation, we will analyse Google’s current situation and how the dynamics of internet and presence of new enterants in the internet ecosystem are providing challenges to Google in terms of changing nature of business environment and mantaining the bigger share of market and also how google is navigating these new challenges. As we will cover in detail in the proceeding sections,Google is swamped in the various operational and ethical dilemmas. Would Google be able to overcome these challenges and continue to be a ubiquitous leader in the pack?

Google Value System
Google’s value system is very different from that of the manufacturing industry. Google’s core business is to provide internet search engine service to web users and advertising services to advertisers. The higher the number of web users Google has, the higher the revenue it can generate, since 97%2 of revenues in 2008 and 2009 were made up of advertising revenue. As a result, the...
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