Mood's In Control


Thursday, March 18, 2010
Google is a highly successful Internet business. Recently they have broadened their scope with a multitude of new tools. Research Google’s business model and answer the following questions below. You may add additional information not included in these questions.

Questions:

Questions :
Explain Google’s business model.
1. Who are their competitors?
2. How have they used information technology to their advantage?
3. How competitive are they in the market?
4. What new services do they offer?
5. What makes them so unique?
6. How competitive are they in the international market?

Google is by far the biggest search engine destination, content provider and advertising destination in the world. Google’s primary business is advertising revenue. It is expanding into areas that it believes are important to maintaining that revenue stream.

Google's primarily advertising-based business model which is highly profitable can over time position itself to be immune from commoditization and price competition by ensuring there is a consistent stream of new services introduced globally. This is consistent with the concept of continually pursuing new capabilities to deliver increased customer value, thereby strengthening and extending the advertising business model Google is based on.


Question
Who are their competitors?

Google is one such name in the Technology arena that is well poised to rule. Talking of past decade, it’s been all the way up for Google and undoubtedly they have been ruling the internet economy. Google have had its impact in the industry with more than 150 products and will continue to grow with its ever increasing portfolio of products. This is likely to happen but for these 10 companies which have poised some serious competition to Google.

1. Apple
Being from partners to rivals, Apple is one of the stringent opponents for Google in the year 2010. Today, Apple and Google have been locking their horns in the field of Smartphone, Mobile App Store, OS, Mobile Ad, and Online Music and so on.

2. Microsoft
Microsoft is a company that has had one of the most dominant impacts in the IT industry. So without a doubt it is Google’s biggest adversary in 2010 and these two giants will be locking their horns for market supremacy in areas such as search, collaboration tools and browsers.

3. Amazon
There claims of opening up Google Editions, an e-book store, has opened up new rivalry with Amazon. The other area where Google is taking on Amazon is in cloud computing.

4. Facebook
In 2010, Google and Facebook rivalry is likely to heat up based on question that where will people find there information in future in Search or Social Network? With ever increasing use of social networking and the rise of Facebook, Google’s worry seems to a viable one. So, in 2010 Google with its ORKUT (offers Google Friend Connect) will be in battle with Facebook.

5. Twitter
No doubt if Facebook is in rise, than it’s no difference with Twitter. If social networking is the way to go, then Google will certainly find Twitter in its way. Twitter, a micro-blogging site, has in a way revolutionized the way we communicate these days.

6. Mozilla
With release of Google Chrome, Google has stepped into ever so popular browse battle. Mozilla has been in the markets for years and now this step from Google is likely to create the conflict of interest between these two.

7. Yahoo
When it comes to search, one of Google’s biggest competitors besides Microsoft is Yahoo. Yahoo has been in the market with variety of products in areas of email, Messenger, News, Search and Analytics services. So without doubt it will be a fearsome competitor for Google.

8. Cisco
Google definitely has a tough challenge against Cisco. With years of experience on web based collaborative platfomr, WebEx, and superior VOIP service, Cisco poses a threat to Google’s Wave and Voice.

9. IBM
2010 is likely to reopen Google’s rivalry with IBM with the release of new collaboration tools such as Google Wave.

10. Nokia
Today, Nokia has had grab hold of the mobile phone market with 4 out of 10 mobiles sold. With increase in use of smart phones, means the IT giants Google will be in rivalry with Nokia in periphery of operating systems for Smartphones. Symbian Open source operating system will be competing with Google’s Android.


Question
How have they used information technology to their advantage?

I’ve read an article about IT’s Competitive Advantage by Brian P. Watson in where the Google CIO Ben Fried shares his thoughts on how IT leaders can influence corporate culture and differentiation via innovative technology choices. Ben Fried believes that IT plays a pivotal role in building a great culture—and subsequently a great company—and he puts it into practice in a number of ways.

One part of that is making technology accessible and open. By giving users what they want—instead of what the company believes is best—Fried believes CIOs can empower employees to do more. “It’s almost insulting to people when they hear, ‘We know better than you how it’s best for you to work,’” he says. And the company benefits not only from the increased productivity and morale, but also when recruiting talented support professionals. But it also puts a good face on IT. In an era in which business users believe their IT organizations take too long and spend too much for products and services that don’t meet their needs, CIOs and their teams need to make smarter decisions, he says.

Talking about IT as a competitive advantage, Fried said that creating competitive advantage is incredibly important, but he thinks we need to be aware that differentiation doesn’t necessarily have to limit itself to competitive advantage. Competitive advantage is one important way in which a company can differentiate itself. But more and more, people need to understand the way IT becomes part of corporate culture. Part of establishing a great company is establishing a unique culture. It’s critical to find what defines your company and makes it different. It might not necessarily be making the product better or cheaper that creates competitive advantage. Technology has a unique opportunity to make your company different, and that’s what CIOs just like him need to focus on.


Question
What new services do they offer?

Today, Google is a huge company with several dozen outstanding products, yet it always strives hard for better future plans. Past year – 2009 has been exciting for the giant with couple of interesting release such as Google wave, preview of Google voice, introduced Chrome OS and Google Public DNS to name a few. So what does Google has in mind for 2010? Of course one interesting release waiting is the Google Phone – Nexus one, but then there is lot more to come from the entire team that can make our lives easy and exhilarating. Here is the Top 5 product that Google may plans to launch in 2010.

1. Google Phone – Nexus One -
By now you already know that Nexus One is the upcoming Google Phone and the great news is that it would be debuted anytime now in the Android Press Meeting. Nexus One is expected to display the latest generation of Linux-based open sourceAndroid operating system. In fact, this is also first phone that will be marketed directly by Google, in turn setting up extremely higher expectations for the product. Engadget has already reviewed the phone before the launch and it beings some interesting set of information you might link to know. The phone is also said to bring tough competition for Apple iPhone.

2. Google’s Caffeine Search Engine -
Caffeine is the next version of Google’s search-engine infrastructure and will soon be available to the wider audience. Caffeine engine is expected to offer technology to deliver faster and more accurate results. This version was available for test and there is no specific date for launch given yet, but Google is sure to develop it fully in early 2010. The reason for not releasing it in 2009 was thoroughly explained by Matt cuts. As soon as the search engine release the first threat will directly be on Microsoft’s Bing.

3. Google’s Ebook Store -
Google has always been fond of books and have encouraged it reader to take part often. With that love Google now plans to launch an online store for ebooks, which is expected to come in the first half of 2010. Google Ebook store will have half a million books initially in partner will few publishers. On the launch it is expected to have more than 500,000 books ready to be purchased from online stores such as Amazon.com and Barnesandnoble.com. This interesting ebook store will be a strong completion to Amazon’s Kindle, which is today the most popular ereader.

4. Google Chrome OS -
Google Chrome Brower was a great hit and recently it also moved ahead of Apple Safari. And next in store we have Google Chrome OS – an open source, lightweight operating system that will initially be targeted only at netbooks. Google has planned to open-source its code, and will make Google Chrome OS available to users in the second half of 2010. According the giant, speed, simplicity and security are the key aspects of Google Chrome OS. This OS is being created for people who spend most of their time on the web, and is being designed to power computers ranging from small netbooks to full-size desktop systems.

5. Google Drive – GDrive
Users usually have complained of not having enough space for them to store emails, photos, and files. With that in mind, Google came up the idea of Gdrive included in Google pack – online file backup and storage service from Google that integrated with Google services like Gmail, Picasa Web Albums, Google Calendars, and many others. GDrive allows you to access your files from anywhere, anytime, and from any device – be it from your desktop, web browser or cellular phone. Google Drive is highly anticipated and expected to be released in 2010 but it will only be an extended version of Google Docs. Instead of sending attachments, you’ll be able to upload files to Google Drive from Gmail.


Question
What makes them so unique?

Google differs from most other businesses in that it costs the company practically nothing to give away informational products. This means that Google can readily engage in prolific product development experiments at low risk—not a situation enjoyed by many other companies.


Question
How competitive are they in the international market?

Google remains the number one search engine throughout the world because of its company’s internationalist approach to business. Let’s face it – Google means big business for a lot of people. In fact, Google is big business, with many revenues streaming in from all parts of the world.

Google has had success in the international environment, including greater market share than in the domestic market, that every Internet company would covet. Google has enormous international market share. Google is dominant in most countries. Google has been remarkably successful internationally in large part due to the international word-of-mouth generated by their product and feature set.




References:
http://www.google.com.ph/
http://technology.globalthoughtz.com/index.php/10-toughest-competitors-of-google-in-2010/
http://www.honeytechblog.com/top-5-product-google-will-launch-in-2010/

Posted by ♪_TARIZTA_♪ at 2:46 AM |

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