Google Strategy

Identification Google’s search expertise began back in 1969 when two graduate students from Stanford University collaborated to invent a new search engine. Larry Page and Sergey Brin named their new search engine BackRub because its purpose was designed to determine the amount of back links leading to the websites. David Filo, a prior user of BackRub convinced Page and Brin to leave Stanford in 1998 and focus on making their search engine the best internet company of all time.

BackRub was then renamed Google which was inspired from the number 1 followed by 100 zeros. In 1998 a Stanford professor arranged a meeting for Brin and Page to meet with an investor, who was the founder of Sun Microsystems. The investor was impressed with Brin and Page’s Google search capabilities and although the investor was pressed for time, he left them with a check for $100, 000. After setting up a corporation name for Google Inc. and a corporate bank account, the pair went on to raise 1 million dollars by the end of September 1998.

Google Inc. , progressed at a rapid pace and by the year 2004, the company’s growth consisted of wireless search technology, 10 language search capabilities, Google toolbar, Google News, Google Product Search, Google Scholar, and Google Local. Google’s expansion continued over the years from 2005 through 2010 (Gamble, Peteraf, Strickland III, & Thompson, 2012). Analysis and Evaluation Google’s expansion initiatives led the company into various industries and they soon began a competition with AT&T, Microsoft, and Apple.

The foundation of Google’s business model was centered on The 10 Principles of Google’s Corporate Philosophy. These principles included: 1. Concentrating on the customer and all else will come 2. It is better to do one thing really well. 3. Rapid is better than slow and customers need answers quickly. 4. Democracy works well on the web and Google chooses the best voted sources. 5. You can earn profits without being wicked. 6. You do not have to be at your desk to answer a question; the technology world is mobile. 7. There are endless amounts of information in the world. . Google crosses all boundaries. 9. You can be taken serious while wearing causal attire. 10. Everyone is expected to deliver excellence and great is not good enough (Gamble, et al, 2012). Google expanded its business model and focused it target on ads exclusively for users based on their browsing history. This allowed Google to increase their revenue from $220,000 to more than $86 million in 2001. Based on the chart below it shows how Google’s revenue and stockholders equity has increased over the years (Gamble, et al, 2012).

Financial Summary for Google, 2005-2009 ($thousands, except per share amounts) | |2005 |2006 |2007 |2008 |2009 | |Revenues |$6,138,560 |$10,604,917 |$16,593,986 |$21,795,550 |$23,650,563 | |Total Stockholders |$9,418,957 |$17,039,840 |$22,689,679 |$28,238,862 |$36,004,224 | |Equity | | | | | | (Gamble, et al, 2012). Google has incorporated the niche differentiator (high technology) strategy within their organization.

The organization has gained a competitive edge over other organizations because they have distinguished its products with exceptional design, elevated consciousness, user-friendliness, and innovative products. Google has also implemented cutting edge products (www. capsim. com). Recommendation My recommendation to this organization would be to continue to focus on their niche differentiator strategy in an effort to sustain their growth and stock performance. They will also need to be mindful not to push the boundaries of lofty stock prices that could lead to jeopardizing the company’s corporate philosophy and culture. One of Google’s CEO’s Eric Schmidt stated that Google’s mission was to “organize the world’s information and make it universally accessible and useful” (Gamble, et al, 2012).

When viewing Google’s corporate philosophy from a Christian worldview standpoint I am reminded of Proverbs 13:4 for it states “The soul of the sluggard craves and gets nothing, while the soul of the diligent is richly supplied. ” Habakkuk 2:2 also states for us to “Write the vision; make it plain on tablets, so he may run who reads it” (The King James Version). Reference Gamble, J. E. , Peteraf, M. A. , Strickland III, A. J. , & Thompson, A. A. (2012). Crafting and executing strategy: The quest for competitive advantage, 18th edition. New York, NY: McGraw-Hill. Capism Business Simulations Team Member Guide. Retrieved from. www. capism. com The Holy Bible

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