DISCUSSION

SUBJECT: E-commerce

1. Concept of business model

• Is a method of conducting business through which an enterprise obtains revenue, a basic

condition for survival and development in the market.

• A business model is the arrangement and arrangement of products, services, and information
flows, including a description of business activities and the roles of the actors involved in the
business model and model. describe profit and revenue.
2. Introduction to Google

Initial

The first (1996) Google was a research work of Larry Page and Sergey Brin, two graduate
students at Stanford University. They hypothesized that a search engine based on the analysis
of the relationships between websites would yield better results than the current approach
(1996). It was first called BackRub because the system used incoming links to estimate the
importance of a page.

Page and Brin believe that the pages with the most links from other relevant sites will be the
most relevant. They decided to test the hypothesis in their study, which forms the basis of
what is now the modern Google engine. The domain name was registered on September 15,
1997. They officially established Google, Inc. on September 7, 1998 at a garage of a friend's
family in Menlo Park, California.
In 2000, Google started using keyword advertising to use text rather than images to keep the
page simple and avoid clutter and at the same time make the page display faster.

In early 2004, when Google was at its peak, Google handled over 80% of all Internet searches
through its website and client sites such as Yahoo!, AOL, and CNN. After Yahoo! left Google
to use their own inventive technology in February 2004, this number has since dropped.
Issuing shares for the first time

Googleplex headquarters in January 2004, Google announced it had hired Morgan Stanley
and Goldman Sachs Group to organize an initial public offering. Google chooses to sell shares
by auction, a rarity. Since going public, Google's price has risen to nearly $200 per share from
an initial $85. Google's market value to date is over $100 billion.

Evolution

When the company was initially marketed on the web, Google began experimenting in several
other markets, such as Broadcasting or Publishing. On January 17, 2006, Google announced
that it had acquired radio advertising company dMarc, which used an automated system that
allowed companies to advertise on radio. This will help Google combine two media
advertising channels, radio and Internet, with Google's ability to target customers directly.
Google was included in the S&P 500 index on March 30, 2006, taking the place of Burlington
Resources, a major Houston-based oil producer.

Sales and partnerships

Since 2001, Google has acquired many small startups, often companies with many products
and good staff. One of the earliest companies that google acquired was Pyra Labs. They are
the creators of Blogger, a platform for weblog publishing, first introduced in 1999. The
product's technology was eventually used by Google to create Google Docs & Spreadsheets.
In February 2006, software company Adaptive sold Measure Map, an application of weblog
statistics, to Google.

In late 2006, Google acquired the online video sharing site Youtube for $1.65 billion in stock.
Not long after, on October 31, 2006, Google announced it had acquired Jotspot, a developer
of wiki technology for community websites.

April 13, 2007, Google reached an agreement to buy DoubleClick. Google has agreed to buy
this company for $3.2 billion

Collaboration

In 2007 Google and New Corp's Fox Interactive Media entered into a $900 million contract to
serve search and advertising on the popular social network, Myspace.

Product
Simple search front page of Google Vietnam on February 8, 2008. Google has now developed
many services and tools for the general public as well as in the business sector, including web
applications, ad networks and business solutions.

Advertisement

Most of Google's income comes from Online Advertising programs. Google AdWords allows
objects with advertising needs to post their ads on Google's search results and on the Google
Content Network through the cost-per-view method

Application

Google is famous for its search service, a key factor in Google's success.

In 2004, Google launched a web-based email service, called Gmail. Gmail supports spam
filtering technology and the ability to use Google Search Technology to search for messages.
This service generates income by displaying ads from the AdWords service that match the
content of the email displayed on the screen.

In early 2006, Google launched the Google Video service, which not only allows users to
search and watch available videos for free, but also gives users or publishers the ability to
publish the content they want including on CBS, NBA TV shows and music videos. But in
August 2007, Google closed the site in the face of competition from rival YouTube also
owned by the company.

Google has also developed a number of compact applications, including Google Earth, an
interactive program that uses satellite imagery. In addition, the company also develops many
open source office software packages to compete for market share with Microsoft.

Products for business

In 2007, Google introduced Google Apps Premium Edition, a software suitable for business,
providing email, messaging, calendar, etc., as a spreadsheet program. This product is mainly
aimed at business customers, with a price of only $50 a year for users, compared to $500 for a
Microsoft Office user. Google has a large number of Google App users with 38,000 at
Lakehead University in Thunder Bay, Ontario, Canada.
Also in 2007, google bought the company Postini and will continue to develop the technology
it acquired from this company and name it Google Security Services.

Google services and products

Service

Google Gmail: Email Service

Google Reader: online news reader.

Google Personalized :customized personal Google homepage

Google Docs & Spreadsheets: an online spreadsheet and word processor.

Google Code: source code development.

Google Web Creator : upload, store files, create websites online for free.

Google Blogger : service

BlogGoogle Calendar : work schedule

Google Alerts: receive news and search results by email

Google Answers: paid answering service

Google Directory : directory taken from Open Directory Project

Froogle: find goods to buy

Google Groups: forums

Google Images: image search

Google Labs: testing new tools.

Google Maps: worldwide map, direction, satellite image

Google mobile: use Google on mobile phone

Google News: newsGoogle Print

Google Scholar

Tools

Blogger (Google's free blogging service, now available in Vietnamese)

Gmail (with Vietnamese interface)

Google Language Tools

Google Web Accelerator: access websites faster

Webmaster Tools: an indispensable tool for webmasters

ProgramAdwords: advertising program, with Vietnamese part

Product

Google Deskbar

Google Desktop Search

Google Earth

Orkut

Picasa (with Vietnamese interface)

Hello

Google Toolbar

Google Chrome

3. Business model structure

3.1Targeted customer:
Internet users
Advertisers, Ad Affiliates
Programmers
Enterprises

3.2Value goal:
Google is calmly going up in the market according to the motto «best technology» without
facing any problems. Simply, Google is just a corporation specializing in technology, their
main goal is to calculate to come up with breakthrough technologies, typically features such
as Google Search, gmail, chat, and soon. Yahoo is in a much weaker position than its biggest
competitor, Google. If product quality is taken as a measure, Google is taking the lead in their
main field of search service . Last year, 52% of all searches on US networks were done
through Google, while only 25% through Yahoo.

The crisis of the nature of Yahoo once again shows the importance of recognizing the
transformation of the consumer market in the traditional business strategy.
The Google site can be a huge money-making machine, but the company says it has higher
goals than just being a trusted internet tool.

A corporate statement affirmed that Google's mission is to organize the world's information
store and make it useful and globally accessible.
3.3Google AdWords ad space (pink)
Every search we do, every tool we use helps Google crawl and create an information
society. At the heart of Google's business model lies its value proposition. Through a service
called Adwords, advertisers can post ads and pay for links on Google's search pages. The
value Google offers to advertisers depends on the number of customers the site
attracts. Therefore, Google serves its second group of consumer customers with an efficient
search engine and more and more other tools such as Gmail, Google maps, Picasa... compared
to other online application providers. A valuable solution for these third parties, the owners of
these websites, who are also Google's third customer segment, allowing the company to
increase revenue from its content. Operating on a multilateral platform, Google has a very
distinctive revenue model.

This makes sense because the more ads Google shows to Internet users, the more money it
makes from advertisers. The three main activities of Google can be identified as follows:

(1) Build and maintain search infrastructure

(2) manage three main services

(3) promote the platform to new users, information owners and advertisers.

3.4 Products and services

• Products: are search engines

Google search

iGoogle

Gmail

Google Groups

VOIP

Google chrome

• Advertising strategy: based on two programs Adwords and Adsense

3.5Business subject

Customers: businesses and production organizations participating in advertising and all

customers around the world who have needs to use google services

Google: helps them find information and enables advertisers to promote their products to the
right audience

3.6 Revenue, cost and profit

Even though the world economy is struggling, Google still expects revenue to continue to
grow, because its advertising service is highly centralized and almost certain to succeed. They
argue that only the old-fashioned media, with a large but "thin" audience, should be worried.

According to Google, the more people use the web, the more they will benefit.