Google's Business Strategy
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Google is one of the largest search engine owned by the corporation Google Inc. According to the recent statistic, Google takes the 1st place among the internet users. It handles 41 billion 345 million queries per month. Thus, its market share is 62.4%. In addition, it indexes more than 25 billion web pages, where the information can be found on 191 languages of the world.
Competition in Search Industry
Even being one of the largest search system, Google has a lot of competitors. The searching industry is very attractive for several reasons. Firstly, more and more people are using internet today, this allows the companies to have the constant flow of customers. Secondly, the advertisement system uses the internet as the source of influence, thus the searching systems gain a lot of profit from them. Thirdly, searching industry is based on the information, and who owns the information, those controls the world.
There are five main Google competitors: Yahoo, Bauidu, Bing, Yandex, Naver.
Yahoo had appeared before Google. Its main users were located in the US. However, today the popularity of this searching system is decreasing. According to the Cosmore statistic, its world’s searching share was 7.8% in the 2009 year. At the same time, in the US this number was 16.8% and it continues to fall. Nevertheless, the position of Yahoo is still very strong in the Southeast Asia. In Japan (45% of total searching share), Taiwan (65% of total searching share) and Hongkong (59% of total searching share) the company is the market leader. However, soon the situation can be changed, due to Chinese Google search.
As a result of Google`s exit from Chinese searching system in 2009, another Google`s competitor became Bauidu. When Google announced about the forthcoming departure, the Bauidu`s shares jumped to 47%.
Another searching system Bing had 2.9% of the world`s share in 2009 year (Brodklyn, 2011).It is the searching system that was introduced by Microsoft Company. In January-February 2010, the share, launched a year ago company Bing, in the U.S. market grew by 0.2%, however now it is 11.5%. In addition, Microsoft soon will be effectively disposing Yahoo (Pigdon, 2010). This will influence the current internet searching industry a lot.
Yandex is the internet searching system that had 1.1% of the world`s searching shares in the 2009 year, however, it was growing very rapidly. Thus, by the summer 2009, Yandex has got the 7th place in the list of the major search engines. Since summer 2009, its level of developing has been increasing every year per 94%.
The last Google’s competitor is Naver with its searching share 1.3% in the 2009 year. It is used in the South Korea and has the rapid growth, however is far ahead Google.
Search Industry Changing`s
With the development of the new technologies and improving the searching industry, lots of changes have appeared. Firstly, the number of users has increased. Searching industry is the source of information, that is why its necessity is rising. Secondly, more sources in different formants are introduced. For example, Google Company have gained much customers because it supports searching of the documents in PDF, RTF, PostScript, Microsoft Word, Microsoft Excel, Microsoft PowerPoint and other formats. Thirdly, the searching companies try to create new possibilities in the searching systems. Thus, in some searching system the information is divided into subjects that, the system allows to find the information among already found and others. It is hard to imagine what changes are going to be in the future, because the variety of services is increasing every day. However, the main key to success in searching industry is the available information. It doesn`t matter how many services would be provided if there is no the needed information. That is why; the searching companies are working on increasing the amount of information in their systems.
Google`s Business Model
Google Search is just the way it is, thanks to one of the Google`s principle: “to focus on the user and the rest will follow”. Google has never done something that may interfere its customers, in order to increase its profits. Its interface is simple and straightforward, it does not trade places in the rankings. In addition, the search is very fast and the pages load instantly. Enough is to enter one or more search terms into the search box and press “Enter” or click the “Search in Google”. In response, Google displays the results page: list of Web pages related to your search terms.
Analysts have different opinions about the Google`s strategies. However, there is one aspect on which all the experts are unanimous. Despite all efforts of competing companies, Google takes a leading position in online advertising. Google's strategy is simple: its experts try to put online advertising wherever it possible. This brings huge profit for the company.
What is more, Google has many strategic actions. One of them was the introduction of the new service “Map”. Google's new free feature influenced on the shares manufacturers of GPS-navigators like a hurricane: Garmin shares fell to 16%, TomTom – to 21%. According to the statistics, during last year Google profit increased to 18% and jumped in revenue to 28% (The Wall Street Journal, 2011). The Wall Street Journal gives the following numbers: “In terms of costs, Google's operating expenses in the quarter were $2.84 billion, up from $1.84 billion a year ago”.
Google`s business Strategies
As it is shown from the recent statistics, Google`s strategies are proven to be successful, however are not perfect. They bring much profit and new customers. What is more, the investors should really be impressed of the rapid growth of Google`s popularity and influence in the searching industry.
In order to judge about the success of the implemented strategies, three main searching companies should be compared: Google, Yahoo and Microsoft. As it was already mentioned, the main strategies, that bring the profit, are orientated on the advertisements. According to eMarketer forecast, this year, the leader, in terms of revenue from display banner ads, is Facebook. Its net income has exceeded to $ 2 billion. On the second place is Yahoo with revenue of $ 1.62 billion, in the third - Google with revenue of $ 1.15 billion and in the fourth - Microsoft, with revenue of $ 602 million. As a result, Facebook will take 16.3% of the market banner advertising, Yahoo - 13,1%, Google - 9,3% and Microsoft – 4% (Brodklyn, 2011).
To conclude, in general Google strategies are successful, however Yahoo searching company is little bit ahead Google in banner advertisement.
In order to keep the level of development, Google needs to have the constant flow of new and the loyalty of the old customers. This can be reached by several steps:
- pages should be targeted primarily at users, not search engines;
- pages must be unique and relevant (very important point for successful website promotion);
- the usage of hidden text and links should be avoided;
- the new techniques and technologies should be developing and implying;
- advertisements should not been irritating;
- more information should be available.
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