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Case Study - Research Paper Example

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Current strategy of the Google Corporation Name: Institution: Abstract: Google started as a small search company over the websites, today the company has grown to become the number one search engine by adding new features. The history of Google can be traced back to research project by Stanford University graduates that entailed developing a search engine for ranking the search results…
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Case Study

Much of the revenues are derived from advertising thus AdSense and AdWords are clearly designed to display advertisements which are relevant to the content included in each web page. Google has utilized an innovative advertising strategy by placing advertisements on the websites which contain the related advertisements. Current strategy of the Google Corporation Introduction The company registered $ 10.6 billion in revenues in the financial year ending 2011 which was a 24 percent increase from the previous year. AdSense sales rose by 20 percent while the number of pay per clicks increased by 39 percent. Google + product registered 130 million users while the earnings before taxes were $ 3. 4 billion. The earnings per share also increased by $ 1.71 to $ 8.75 which was 24 percent growth while the taxation costs reduced by mere 6 percent. The company has high growth potential but needs to diversify revenue streams like the pending acquisition of Motorola at $ 12.5 billion (Hill & Jones, 2012). Current Google business strategy Google success can also be attributed to its superior search technology and e-mail service which contains massive storage space that has attracted many customers from Yahoo and Hotmail. The company which started as just a smart algorithm has developed an unique business model with winning applications such as Google video, Google maps, Gmail, and Google Earth which have challenged previous market leaders such as Yahoo, Excite, and Microsoft. At inception, the mission of Google was to organize the world’s information and make it universally acceptable and useful. The company is no doubt one of the fastest growing technology companies in the world. The company has gained success by providing relevant search results and also related advertisements on each webpage (Hill & Jones, 2012). Google IS supports the business strategic activities through innovations and allowing the customers to download and edit their software. Google has differentiated its search engine by utilizing a patented PageRank system. The company consistently restructures its PageRank algorithm in order to meet the changing customer needs. Google AdWords product is specialized for the advertisers who want to reach out to a certain market segment in an efficient manner. The advertisers have the opportunity of managing volumes of online advertising accounts which an upfront payment. Google emphasizes on creativity of employees whereby employees devote a certain percentage of their time in new and innovative projects. The company has partnered with Open Handset Alliance in the development of Android mobile software which many mobile device firms use to create applications. Google Chrome OS is also another open source software and Web browser which runs in several platforms like Windows, Linux and Mac (Hill & Jones, 2012). Google has also pursued a market niche targeting strategy. The company has segmented its market in to either middle sized businesses and large corporations. The company has diversified in to the mobile device industry by establishing alliances and partnerships with other companies to develop mobile device applications that increase customer traffic to its web pages (Hill & Jones, 2012). Another current generic strategy which Google is currently utilizing is ... Read More
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