Google dominates the world (case study)Google founders are Sergey Brin and Larry Page. They met in 1995 as Stanford Iniversity graduate students. They created a search engiune that combined the technologies of Page’s PageRank system. Because Google was so effective, it quickly became the search engine of choice for Webusers. Today Google handles nearly 50 percent of Web searches.
Google’s source of power(Strength, Value proposition)
- All in one
Google offers not just search engine but also PDF, PostScript, text, Microsoft Office, Lotus, PowerPoint and so forth. Therefore users can do everything just using by google which has all-round capability.
- Competitive
Google only needs to spend 1dollar for every 3dollars its competitiors spend to deliver a comparable amount of computing power. In this point it is price competitive(low price and high quality and also it has everything) and so efficient if we work with google.
- Smart system
In 2002, AdWords Select introduced cost-per-click(CPC) pricing so that advertisers only pay for their ads when users actually click on them. In this way Google collects inbformation of customers what they need, prefer, tastes. It is helpful for their future product plan and also in the long run it will affect positive effect for their company profit.
- Keep their competitive advantage
Google’s IT infrastructure is a closely guarded secret because it is part of its competitive advantages. MapReduce, a programming model to simplify processing and create large data sets and Google File System, which keeps copies of data in several places so that the data will always be available even if a server fails. These two are good examples of Google’s competitive advantages that only google have.
Google offers not just search engine but also PDF, PostScript, text, Microsoft Office, Lotus, PowerPoint and so forth. Therefore users can do everything just using by google which has all-round capability.
- Competitive
Google only needs to spend 1dollar for every 3dollars its competitiors spend to deliver a comparable amount of computing power. In this point it is price competitive(low price and high quality and also it has everything) and so efficient if we work with google.
- Smart system
In 2002, AdWords Select introduced cost-per-click(CPC) pricing so that advertisers only pay for their ads when users actually click on them. In this way Google collects inbformation of customers what they need, prefer, tastes. It is helpful for their future product plan and also in the long run it will affect positive effect for their company profit.
- Keep their competitive advantage
Google’s IT infrastructure is a closely guarded secret because it is part of its competitive advantages. MapReduce, a programming model to simplify processing and create large data sets and Google File System, which keeps copies of data in several places so that the data will always be available even if a server fails. These two are good examples of Google’s competitive advantages that only google have.
Problems or challenges that Google face
- Side effects of CPC(cost-per-click): clic fraud
Companies who are advertising through Google should pay by the total number of customers click on their products or whatever the things that are related to the company. Therefore, there are huge chances that company members will abuse this kind of system in a bad way. They by themselves will click on other product to higher the hits.(click fraud)
- Rising other system which in on the same position
Microsoft’s MSN and another famous search engine Yahoo could be a threat of Google. Technology has been developing so fast as time goes by so Google should try work hard on what they are doing.
- Little experience
Google has less experience than Yahoo in negotiating with content providers, who are particularly concerned with piracy in the digital age. Therefore when they meet some huge problems or hardships, it will be difficult for them to overcome it. Because they might not have any kind of those experience before.
By the way, Google is still enlarging and dominant in the internet market. Profits continue to soar, and Google will continue to innovate. I think Google will spread its affection if they bring their area on the off-line world. Schmidt estimates that Google will need 300 years to organize all of the information in the world.
Companies who are advertising through Google should pay by the total number of customers click on their products or whatever the things that are related to the company. Therefore, there are huge chances that company members will abuse this kind of system in a bad way. They by themselves will click on other product to higher the hits.(click fraud)
- Rising other system which in on the same position
Microsoft’s MSN and another famous search engine Yahoo could be a threat of Google. Technology has been developing so fast as time goes by so Google should try work hard on what they are doing.
- Little experience
Google has less experience than Yahoo in negotiating with content providers, who are particularly concerned with piracy in the digital age. Therefore when they meet some huge problems or hardships, it will be difficult for them to overcome it. Because they might not have any kind of those experience before.
By the way, Google is still enlarging and dominant in the internet market. Profits continue to soar, and Google will continue to innovate. I think Google will spread its affection if they bring their area on the off-line world. Schmidt estimates that Google will need 300 years to organize all of the information in the world.
Reference:
Management Information Systems Pearson international edition
(P308-310)
http://ventureblog.com/articles/2003/05/4_keys_to_googl.php
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