Google has been successful because it provides great value to users and advertisers. Users like Google because its search results are thorough, accurate, and seem objective. The paid listings are not obtrusive and they are relevant to users’ search needs. Many of the services provided by Google, including search, email, and document management systems have been free to use and includes a high level of online storage.
Google subsidizes the free services by charging advertisers a premium to access Google’s millions of users with targeted advertising. Advertisers (most anyway) liked Google because the majority of their customers use Google and market research shows that search engine leads are more effective because these users are often searching for something they are looking to purchase soon and paid listings are therefore more relevant. Google has been successful because it has improved on CPC and considers relevance. Furthermore, Google’s products and services have attracted 2-3 times more advertisers than Yahoo; Google’s network offers more search traffic. Therefore, Google increases its value to advertisers by providing more space and more contextual/targeted ads.
Additionally, Google's culture and emphasis on innovation has helped it pursue many successful initiatives. It utilizes a mixture of small team work and individual time to pursue new projects outside of Google's current core business. Google's golden rules and philosophy help establish a framework for innovation and creative constraints, yet it still gives its employees the freedom and flexibility to pursue and try new ideas. The result is a plethora of projects and products that extend its core business and its online presence.
Google has been able to use the momentum from its early successes and has continued growth by expanding into several different industries. Moving forward though, Google needs to articulate a long-term strategy that supports this growth and yet is still consistent with its mission of making the world’s information accessible and useful.
I know this post isn't about phones, but I'm going to comment based on the case. I agree with your final statements about how Google needs to grow with a consistant strategy. I don't think that the cell phone idea is such a good idea, and doesn't seem to fit in with their current strategy. Like you said they have an emphasis on advertising but also have products that users enjoy using. I'm not sure a phone would be a product that Google users would enjoy, however their Android software would.
ReplyDelete-Chris Comerford