Running Head: GOOGLE

Milestone 2: Introduction

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Supply and demand conditions for Google’s products

Search advertising is the Google’s most beneficial income strategy. Google is a

moderately young company that has been open since August 2004. Around then, a stock's share

sold for a negligible $85. By late 2007, the stock had come to a high of around $750, an

incredible 882% return in 3 years 3 (Annual Financials for Google Inc., 2009). The shares have

now dropped down to the high $300 territory three because of the recession the United States is

at present encountering. Most business use AdWords focused on showcasing, and outsiders in

the Google network use AdSense program so as to convey ads. Since it is never a smart thought

to depend on a single station, in 2011 Google propelled Play, a completely cloud-based,

computerized simulation destination with more than 700,000 apps and games plus music, movies

and books. Google Play could be straightforwardly coordinated into the portable, making it a go-

to destination for Android versatile users. Its gainfulness still pales in comparison to the

promotion advertising, however as more users swing to portable and tablets, this could change.

Google derives give or take 99% of its income from advertising 4. Most of its online

products are allowed to use and are supported by content ads that are displayed inside of the

interface. Google slowed around the end of the 2007 fiscal year. The growth ratios such as

Income Growth, Sales Growth, and Asset Growth were all down from 2006 (Annual Financials

for Google Inc., 2009). Likewise, the Activity ratios of Receivable Turnover and Fixed Asset

Turnover were also down slightly. Overall revenue and Return on Assets were also down, yet at

the same time at solid levels. These numbers don't imply that Google is in a bad position; all

things considered, they are still much higher than Yahoo's ratios. Google is moving out of its

exponential growth and it will in the long run settle at an all the more steady growth rate if their
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business model remains successful. No company can sustain a more prominent than the half

growth rate for an excess of years consecutively.

This figure shows that Google's spectacular growth is shown in the charts. In the past five

years, income has developed from $1.47 billion to $16.59 billion. In the Net Income Trend

Graph, the income growth is pleasantly followed by the net salary. There are diverse ways of

arranging and accessing data, and at this moment searching the web is seemingly the best to

retrieve data productively. Google does not limit itself to the search product it is most understood

for and has special applications for browsing various types of data such as its Shopping, Books,

and Music applications (Guynn, 2012). Google consistently delivers important results at blasting

speeds with the insignificant hassle. These three upper hands set its center search usefulness

separated from the competitors whose web portals simply can't keep up. Google should have the

capacity to sustain its upper hands through the foreseeable future, yet it should keep on

improving new ways to diversify its advertising business, so the company is not reliant on solely

the AdWords service (Annual Financials for Google Inc., 2009).

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Google's search products convey worth to their customers because they give applicable

websites immediately. Google has accomplished the top market share in the search industry

precisely because their product is uncommon. They find themselves able to give amazing links in

the first few results for both surely understood subjects such as "Dallas Cowboys" and

exceptional, "long-tail" searches like "cerebrospinal liquid". Google excels at coordinating a vast

amount of visitors to websites using its AdSense program. Numerous business are needy upon

the activity AdSense brings to their website to produce wage. For the advertisers, this increased

movement translates into increased sales and specifically helps the main issue.

Price elasticity of Google's products

With every search, Google refines its results so that the search motor gets "smarter" and

caters to individuals' individual preferences. Google owns the most extensive market share, their

search motor can adequately take in more rapidly than competitors' products. Google's operations

show way reliance because it takes time to gather the information to give results and much more

opportunity to break down both the substance and users reactions to the results. Without

experiencing a process of refinement over a significant timeframe, a contender couldn't recreate

Google's search results (Guynn, 2012). Google makes use of its analytics tools in understanding

the social many-sided quality of the importance of keywords to specific groups of users. For

instance, a single word like a mouse has a mixture of distinctive meanings with every

significance being essential to specific individuals.

Google's search offerings are uncommon because of the significance of the results.

Microsoft and Yahoo, Google's primary competitors, simply don't give links that are as useful as

Google's. The website of Google features a minimalistic design, which is exceptional. Most

websites highlight some pennant advertising and are covered with hundreds of words. The
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Google landing page can just contain 28 words as an arrangement established Sergey Brin and

Larry Page, the company's founders (Frenz, 2003). This keeps the disorder to a base that is a

stark contrast to Yahoo and Microsoft's search home pages. Google loyally adheres to the

provision in the mission statement that recognizes that "advertisements should not be an irritating

intrusion" 2. This uncommon service is a testimony to their charge to never "compromise… user

focus for short-term monetary increase.

Google may have the best search results on the planet, yet in the event that they don't

convey it rapidly or in a matter of a small amount of a second, their customers probably will go

elsewhere. Google do not use any computers from any maker on this planet, they design and

make their particular computers. They have the largest computers network ranch on the planet;

200,000 restrictive small computers associated with one another, using Google own exclusive

working system and software to give search results quickly to their customers.

Google make most of their Internet-related products free yet companies pay tons of cash

to Google appear first in the search results. So they profit with this way however mostly by

AdWords. On account of Android, prices are resolved by Samsung's consumption cost. The price

of Glass is obscure for the time being. However, the rumors are similar to that it will be around

$250. The personal computer market is growing, and the Google experiences the general

decrease in its desktop search motor market. On the off chance that Google won't push the

opposition back, it will lose the market share as well as the principle source of its salary as well.

Second, Google as numerous different firms, think that it’s difficult to adapt cell phone users,

who will represent the highest growing gathering in online advertising. Additionally, online

emerging so as to advertise growth is driven economies where a normal price for an

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advertisement that is lower than in the created economies, so the growth of online advertising

will just develop the wage of companies insignificantly.

References

Annual Financials for Google Inc. (2009). Retrieved from

http://www.marketwatch.com/investing/stock/goog/financials

Frenz, R. (2003). Google’s Organizational Structure. Retrieved from

http://www.ehow.com/about_6692920_google_s-organizational-structure.html

Guynn, J. (2012). Google CEO Larry Page discusses his year, vision for future. Retrieved from

http://articles.latimes.com/2012/apr/05/news/la-google-ceo-larry-page-update-20120405