Google Case
Google Inc.
Study Questions
1. What were the key factors behind Google’s early success?
1. Better search algorithm (PageRank).
2. More indexed web pages (over one billion in the first year)
3. Fast, and user-friendly interface and search experience.
4. Effectively being able to monetize searches
2. Do you expect the search business to become more concentrated (i.e., dominated by fewer firms)? Is search a winner-take-all business?
I do expect that the search business will become more concentrated. As Google is the leader in the search engine industry with a market share of 66.7%, it is a powerhouse that has made it extremely difficult to enter into the search engine industry. The search business has grown into a “winner-take-all business” because with the enormous amount of resources it has and the size of its market share, Google has become extremely efficient in coming out with new innovations to propel the company forward and increase its share in the market. Any company that tries to compete with Google has to find the gaps that Google has within its service, and be able to effectively implement a strategy to take market share away from the industry leader.
3. In reviewing its deal with AOL, could Google afford to pay AOL more than 100% of the revenue generated from AOL searches? How did Microsoft’s maximum affordable bid for AOL’s search traffic compare to Google’s?
4. In addition to enhancing its core search businesses, should Google also branch out into new arenas? Which of the following would you recommend: 1) building a full-fledged portal like Yahoo’s; 2) targeting Microsoft’s desktop software hegemony; and / or 3) becoming an e-commerce intermediary like eBay?
5. Do you view Google’s distinctive governance structure, corporate culture, and organizational processes as strengths or potential
Study Questions
1. What were the key factors behind Google’s early success?
1. Better search algorithm (PageRank).
2. More indexed web pages (over one billion in the first year)
3. Fast, and user-friendly interface and search experience.
4. Effectively being able to monetize searches
2. Do you expect the search business to become more concentrated (i.e., dominated by fewer firms)? Is search a winner-take-all business?
I do expect that the search business will become more concentrated. As Google is the leader in the search engine industry with a market share of 66.7%, it is a powerhouse that has made it extremely difficult to enter into the search engine industry. The search business has grown into a “winner-take-all business” because with the enormous amount of resources it has and the size of its market share, Google has become extremely efficient in coming out with new innovations to propel the company forward and increase its share in the market. Any company that tries to compete with Google has to find the gaps that Google has within its service, and be able to effectively implement a strategy to take market share away from the industry leader.
3. In reviewing its deal with AOL, could Google afford to pay AOL more than 100% of the revenue generated from AOL searches? How did Microsoft’s maximum affordable bid for AOL’s search traffic compare to Google’s?
4. In addition to enhancing its core search businesses, should Google also branch out into new arenas? Which of the following would you recommend: 1) building a full-fledged portal like Yahoo’s; 2) targeting Microsoft’s desktop software hegemony; and / or 3) becoming an e-commerce intermediary like eBay?
5. Do you view Google’s distinctive governance structure, corporate culture, and organizational processes as strengths or potential