Using the Growth Theories Critically Evaluate the Growth of Smaller Firms in Relation to the Influence of Larger Firms and Identify Specifically How Google’s Strategy Constitutes Entrepreneurial Growth

Topics: Google, Mergers and acquisitions, Google Earth Pages: 12 (4057 words) Published: March 26, 2011
Module Leader: Dr. Ping Zheng

Course: Masters in International Business & Entrepreneurship Prepared by: -Mr. Soumyodiptha Saha
Student I.D - 0949159

Qs. Google, the widely popular Internet search-engine, has been on a buying spree in recent years and has acquired a number of smaller companies for the development of technology and new products, e.g. DoubleClick in 2008; acquisition of Postini in 2007 and dMarc Broadcasting in 2006. Why would those innovative smaller firms have agreed such acquisitions or merger with Google? Using the growth theories critically evaluate the growth of smaller firms in relation to the influence of larger firms and identify specifically how Google’s strategy constitutes entrepreneurial growth.

In the recent years Google, the most popular internet search engine has acquired a number of small companies named as DoubleClick, Postini, dMarc Broadcasting, Feedburner, AdMob etc. in order to develop the technology and new products. Google’s acquisitions have helped her to grow and spread her activities in all the related fields of World Wide Web. However, the smaller companies whom Google has acquired in the recent years have their own and different aspects of growth and these aspects have been critically dealt with in this essay. The analysis of the growth of these small enterprises leads to the discussion of the various growth models proposed by Greiner, Churchill & Lewis and Storey. On the other hand, an attempt has been made to identify the different aspects and specifically the strategic aspect of Google’s growth. In this essay, I have tried to put forward a detailed study of growth attained by the small firms as well as by Google through its acquisitions and have therefore, segmented the analysis and discussions in different parts. GOOGLE’S HISTORY & HER ACTIVITIES

Google, the most popular internet search engine of today’s date began as a research project by Larry Page and Sergey Brin, PhD. students of Stanford in 1996 while working on the Stanford Digital Library Project (SDLP). The search engine at first used the Stanford website with the domain while the domain got registered on September 15, 1997. The company got finally incorporated as Google Inc. on September 4, 1998. Since then, the company has grown in leaps and bounds with the incorporation of several small businesses like Deja, Outride, Pyralabs, Neotonic Software etc.. All these businesses have helped Google in building the sphere of her activities and in turn, in her growth. Few remarkable acquisitions which have been discussed in detail in this essay are DoubleClick, dMarc Broacasting, Youtube, Postini and AdMob. In this essay I have tried to point out the reason for these small companies going for merger with big companies, when they are successful in their respective fields and are enjoying their own share of growth and profit. While the analysis, I felt the urge of knowing the growth theories and the growth models which will let me know the different stages of growth and the factors leading to growth. GROWTH & Her different aspects

According to Bridge, O’Neill & Cromie (2003), Growth can be defined as “the movement of the business into bigger premises, taking on more staff, significant increases of turnover, taking on a new product line or lines, buying another business, and so on”. Though growth is the most important aspect of a business, all the business firms do not aim at achieving the growth. For instance, lifestyle business does not aim at achieving growth, only the entrepreneurial firm looks for growth. Entrepreneurial firms are those which aims/owns more than one firms. Therefore, minority can be termed as entrepreneurial with the strategic objective of growth. However, there is no specific criterion as such to measure the growth of an enterprise. As a...
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