Google Inc. 4
GoogleIncorporation is one of the world’s most popular companies. Acompany with assets in excess of $110 billion as compared to totalrevenue of $ 59 billion and net income of close to $13 billion in2013, Google is one of the most successful companies ever formed. Inaddition, the company has more than 49,000 employees around theworld managing its assets and processes that include more thanmillion servers and more than a billion searches daily as of year2007 (Holden, 2008). A household name the world over, Google hasdominated internet services for close to 16 years, as well asdiversified into numerous other areas with minimal effort orcompetition. Today, Google’s search engine of the same name is theleading search engine universally, beating Microsoft’s Bing andBaidu, which has dominance in the populous Chinese internet domain(Kuntzeand Matulich, 2010).This paper will explore why Google has experienced such numeroussuccessful endeavors, made such dominant inventions, and remainedahead of competition in the internet services market.
GoogleMultinational Corporation was established in 1996 by its CEO LarryPage together with Sergey Brin. Google search engine was establishedin 1998 as the first Google Brand. The original selling strategy forthe Google search service was to provide page ranking as anintegrated automatic capability (Holden, 2008). This strategy used awebsite’s number of pages as a relevance factor, coupled with thequantity of links these pages had with the main website. This,essentially, started the contemporary method of ranking a websiteusing the frequency of visits by clicks, whereby the number of clicksis correlated with the number of relevant pages within a website.Google conducted its first Initial Public Offering (IPO) in 2004,offering more than 19 million shares at the price of $85 per share.The sale was largely successful, gaining the company upward of $23billion in market capitalization. From its onset, Google has seen arise in value, with its shares rising to $700 each in year 2007(Holden, 2008). Online advertisement has driven a significantpercentage of Google’s profits, a factor that has raised its shareprice over the last one decade. Today, the Google share is listed inboth NASDAQ and Frankfurt Stock Exchange under different symbols. Thesale of advertisements by Google started in year 2000, when Googledecided to complement its search engine income with a more innovativeproduct. The adverts were mainly text based and offered littlegraphics or animation. This helped to reduce the physical sizeassociated with web pages, and thus enhanced search speed andfunctionality of Google, which was its primary product (Holden,2008).
Overthe years, Google has diversified into various market segments withsuch innovative products as Google Earth, a comprehensive globalmapping system used today by billions of devices includingSmartphone, GPS installed devices, laptops among others. Google hasalso invented Gmail, an emailing service that competes with otheremail companies such as YahooMail and the Microsoft Outlook emailservice. Such innovativeness, diversity, and brand developmentstrategies have made Google a global giant, which is in addition toother internal and external strengths that the company possesses(Holden, 2008). The section below will focus in detail on thestrengths that Google has banked on in order to remain competitiveand continually rank among the best companies in the world. Inaddition to being among the most successful, Google is also a mostsecretive company. The sections below will explore Google’s ways inwhich the company has remained one of the most secretiveorganizations across the world.
WhyGoogle is one of the World’s best Companies
Contraryto most other IT companies, Google lacks a rigid top-down structureof command with workers lower down obeying commands withoutindependent thought and free assessment. At Google, teams arecomposed almost entirely of same level team mates, eliminating theneed for constant, multi-level supervision (Holden, 2008). Thecompany has a greatly reduced middle-level management, preferring tohelp employees work by incentive, and develop products they like witha feel of personalized need for productivity. As a result, workersare grouped in teams each made up of members having the sameauthority, hence maintaining certain levels of autonomy resulting toimproved performances (Kuntzeand Matulich, 2010). Karen Godwin, a company’s sales manager, emphasizes that thecompany favors creation of a highly collaborative culture in place ofa structured top-down chain of command. This, as Karen explains, is acomplicated environment management wise, and a thorough mechanism ofemployee- employer relations is essential (Holden, 2008). To createsuch a rapport and help management realize its objective of growthand productivity without compromising on employee motivation, Googlehas created a very unique work environment that has a psychologicalaspect to employee satisfaction and motivation. As noted by Faille(2014),these aspects have made the company to maintain democratic and casualworking atmosphere, hence being regarded by other competitors as‘Flat’ company.
Googlehas always been at the first lane of innovation, and this is notlimited to its staffs, but also from the users and other stakeholdersas well. This has enabled Google to be ahead of other rivals, as newbusiness ideas are generated, while at the same time improving theexisting ones. For instance, the company started the Google BookProject, which has in turn digitized more than 130 million books,which has in turn improved access to information (Faille,2014).
Theother factor which has led to the growth of is theefficient leadership which has been offered by Sergey and Page sincethe creation of this company. This has played a critical role as theduo plays active role in the day-to-day operation of the company, afactor which has created the culture of delegation. It is also worthnoting that, individual employees are highly encouraged to givesuggestions on ways they can improve performance from the day ofemployment (Kuntzeand Matulich, 2010).For instance, hiring, which is in most cases reserved for the topmanagement for most companies, is carried out through collaborativeprocess. Consequently, this has made Google to turn to be aLoose-Tight firm, where the employees’ posses’ autonomy, while atthe same time being governed by a one unifying philosophy (Faille,2014).
Thisis an aspect whereby, a company allows groups of stakeholders toshare risks and rewards that is associated with the exploitation anddiscovery of new and innovative business opportunities. Forinstance, the availability of Google’s Blogger platform enables thebloggers to come up with individual blogs, which significantlypromotes products and ideas. On the other hand, viewers are able toaccess the ideas and products, thus enabling the advertisers to puttheir services and products to the viewers.In this regard, thecollective entrepreneurship with these parties such as the viewers,advertisers and bloggers among others, are thus able to share therisks as well as the rewards resulting from their exploitation anddiscovery of all the business opportunities (Kuntzeand Matulich, 2010). Successfulblocks attract high levels of reward to all the parties, that is,viewers are able to get the much needed information on services orproducts they search for, advertisers thus get their services orproducts to the required audiences, and Google and bloggers get therevenue obtained. On the contrary, if the bloggers are unsuccessfulblogs which do not attract traffic, there is wastage of time by theviewers, advertisers lack the much needed audience, while bloggersand the company fails to get revenue. The company also wastes itscyber space, which can be used for other important purposes (Faille,2014).
Focusingon the User
Itis clear that, unlike its competitors such as Yahoo, Google’s mainmission is to improve on users’ experience, which in turn resultsto improved profitability. For instance, the company hassignificantly improved on the search engine capabilities havingpredictive analysis. The instant searching feature saves time for theusers, hence high loyalty to the company. Initially, the company’ssales representatives feared that this feature would result toreduced time for viewing the ads, but on the contrary resulted tohigh sales over the years (Faille,2014).
WiseExpansion Strategies and Subtle Marketing
Itis worth noting that, the company has made several new acquisitionsand ventures that are outside the search engine markets. Theseacquisitions and ventures have in turn generated high levels ofsynergies on its core business, thus improved sustainability. Forinstance, in 2002, the company created a Google News platform, whichmade it possible for its users to draw information and news from morethan 4000 source. In 2004, the firm acquired Keyhole Inc., a firmwhich was founded in 2001 and specialized in geospatial datavisualization applications, which has after years been transformed toGoogle Maps and Google Earth. In 2006, the company acquired You Tubefor $1.65 billion, and Apture in 2011 for $4.6 million, thus enablingits’ users to search for information without the need of leavingthe Web page. The feature has also led to improvements on GoogleChrome browser. The company has also highly invested in marketingits brand name, although most users have failed to realize thisaspect. For instance, there was the establishment of Google doodle,which acts as under the radar marketing strategies (Faille,2014).The figure below indicates some of the valued brands across theworld.
(Kuntzeand Matulich, 2010)
GoogleInc. as the World’smost Secretive organization
Despitethe achievements made by the company, it is clear that has remained as one of the most secretive organization in the world.
Oneof the notable areas where the company has remained secretive is itsdata center.As indicated by Metz(2014),the company views its data center as the most significant advantagesover the other online competitors such as Yahoo, and still aim tokeep secrets held by the data centers from its rivals going forward. According to UrsHölzle, the head of Google infrastructure, the company has madeattempts to be as open as possible, while ensuring that competitiveadvantage is not offered to the rivals. One of the biggest questionswhich have remained a secret to many is Google’s networking setup.Over the years, the firm has acknowledged that it is developingnetworking gear aimed at moving information from various datacenters. In this regard, the company is taking the advantage ofOpenFlow, an open source protocol. According to critiques, Google maybe using new type of optical networking switch across the variousdata centers. However, this has been nullified due to the fact that,optical switches are expensive method of sending between serverracks. It is also not clear whether this firm is using OpenFlowacross its data centers, thus been regarded as a part of its internaloperation.
Thecompany has also been secretly been designing their own servers(Metz, 2014). These servers are known to be equipped with atomicclocks and GPS devices to help in running Spanner, a worldwidedatabase. As a result of designing their own serves as well asrunning cloud services which can be used by other firms, Google hasbeen able to drive massive markets in regard to the hardware marketacross various parts of the globe (Metz, 2014). As indicated by DianeBryant, an Intel bigwig, Google has become the number five serverchip customer to Intel, a clear indication that the firm has become anotable hardware maker, thus competing with other firms such as HPand Dell. In order to remain secretive when acquiring its machines,the company contacts outside manufacturers, one of the main companybeing the Asian ODMs as indicated by Hölzle (Rushkoff,2014). It is worth noting that, although Google allows anyone topeer in its data centers, the number of people entering its buildingsis highly limited, thus very little is known in regard to the exactoperation of its data centers (Metz, 2014).
SearchResults and Privacy Policies
Fromthe aforementioned, it is clear that, is one of the mostsuccessful IT companies in the 21stcentury. The company has assets in excess of $110 billion as comparedto total revenue of $ 59 billion and net income of close to $13billion in 2013. The firm has dominated internet services for closeto 16 years, as well as diversified into numerous other areas withminimal effort or competition. It is worth noting that, the originalselling strategy for the Google search service was to provide pageranking as an integrated automatic capability. This strategy used awebsite’s number of pages as a relevance factor, coupled with thequantity of links these pages had with the main website. Onlineadvertisement has driven a significant percentage of Google’sprofits, a factor that has raised its share price over the last onedecade. Currently, the Google share is listed in both NASDAQ andFrankfurt Stock Exchange under different symbols. There are variousreasons why Google is one of the World’s best companies.
Oneof the reasons is its organizational culture. Google lacks a rigidtop-down structure of command with workers lower down obeyingcommands without independent thought and free assessment. Google hascreated a very unique work environment that has a psychologicalaspect to employee satisfaction and motivation. Google has alwaysbeen on the forefront of innovation, and this is not limited to itsstaffs, but also from the users and other stakeholders as well. Theother factor which has led to the growth of is theefficient leadership which has been offered by Sergey and Page sincethe creation of this company. The company has also embracedcollaborative entrepreneurship, where groups of stakeholders to sharerisks and rewards that is associated with the exploitation anddiscovery of new and innovative business opportunities. This includesthe advertisers, bloggers and the users. There are various reasonswhy the company has been regarded as the world’s most secretiveorganization. The way in which the firm handles its data center andthe information obtained from the search results is of the mainreasons.
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MostValued Brand as at 2009