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Google's Strategy

In: Business and Management

Submitted By nandannandi
Words 1018
Pages 5
To understand Google’s strategy lets delve deep into the years since 1998 and look into the way google evolved from an innovative search engine to a way of life.

Google started initially with just Search, offering ways to find answers to user’s questions. This was during the period from 1998 to 2001. In 2001 google added tabs to offer users ways to search for other things online, including images. The tabs stayed on and “briefly crossed over Google’s Gmail and Calendar” to offer useful links atop those web apps. Starting with 2007, Google added a navigation bar atop Google.com, which included links to search items and Google apps. The navigation bar morphed into the Google menu in 2011, which offered a slicker, redesigned user interface ready to take users to their desired Google application and featuring a prominent placement for Google+.

Starting with 2012, Google brought a major new element to search, the Google Now virtual assistant that debuted on Android and expanded on iOS and the desktop to deliver even more personal search results to users.
Google has further refined Google.com in the following years, by offering a minimal navigation bar that doesn’t “steal” the user’s attention. The bar however still offers access to apps and Google’s Google+ social network. Google also added voice-based search support to Google.com, as well as quick access to favorite sites.
Helping people get around online is still Google’s main product and everything else it does is somehow related to search – in fact, search-related ad revenue is how Google is actually able to pay for all other projects. Today, the world’s most popular smartphone operating system, self-driving cars, smart robots, and balloons that can deliver an Internet connection to remote areas are some of Google’s most interesting projects, but they wouldn’t even exist without Search.
Almost all of Google's efforts are focused on improving Internet access and speed.
• Google Chrome has made browsing the Internet much faster and more efficient.
• The launch of the Android OS made it possible for people to access the Internet from their phones.
• Google Now stimulates more Internet activity by pushing content based on user’s search history and online behavior.
• Google Fiber brings broadband Internet that is 100x faster.
• "A self driving car unlocks a vast amount of time that could be spent on the Internet."
• Google Glass will allow you to jump out of an airplane and still be connected to the Internet.

Advertising transactions has contributed to the rapid growth of Google’s business since inception, resulting in substantially increased revenues.
However revenue growth rate has generally declined over time, and it could do so in the future as a result of a number of factors, including increasing competition, investments in new business strategies, products, services, and technologies, changes in product mix, shifts in the geographic mix of revenues, query growth rates and how users make queries, and the evolution of the online advertising market, including the increasing variety of online platforms for advertising, and other markets.
As revenue-per-click continues to drop, it is driving Google to not only try to increase the number of clicks, but also to ramp up their data and profile efforts, in an attempt to increase the value-per-click.
Users are increasingly connected to the internet and using multiple devices, a trend that has increased global search queries and changed platform mix. Revenue growth rate will continue to be affected by evolving consumer preferences, as well as by advertising trends. Thus google’s focus on advertising programs would be to help businesses reach people in the moments that matter across all devices with smarter ads that are relevant to their intent and context, reflecting googles commitment to constantly improve their overall web experience. As a result, google is expected to continue to take steps to improve the relevance of the ads displayed on websites and Google Network Members’ websites. These steps include not displaying ads that generate low click-through rates or that send users to irrelevant or otherwise low-quality websites, updating advertising policies and ensuring their compliance, and terminating relationships with those Google Network Members whose websites do not meet quality requirements.
From above I would like to conclude about Googles Strategy as follows :
1) Get people to use the internet more. The more time people spend on internet the more time they will engage in revenue generating activities i.e., viewing and clicking display ad and performing searches.
2) Improvements in ability to monetize increased traffic primarily relate to enhancing the end user experience, including providing end users with ads that are more relevant to their search queries or to the content on the Google Network Members’ websites they visit. For instance, these improvements include displaying advertiser-nominated images that are relevant to the user query and creating a more engaging user shopping experience by enhancing search ads to include richer product information, such as product image, price, and merchant name.
3) Innovation is the key. Google face intense competition. If google do not continue to innovate and provide products and services that are useful to users, they may not remain competitive, and revenues and operating results could be adversely affected. The markets for many of google products are characterized by rapidly changing technologies, frequent new product introductions, changing consumer trends, short product life cycles, consumer loyalty and evolving industry standards.
4) Google will continue to invest aggressively in areas of strategic focus, systems, data centers, real estate and facilities, information technology infrastructure, and employees.
5) Maintaining and enhancing the “Google” brand is critical to expanding base of users, advertisers, Google Network Members, and other partners. The importance of brand recognition will increase due to the relatively low barriers to entry in the internet market.
6) Google plan to grow internationally, international revenue account for 58% of consolidated revenue for the 6 month ended June 30, 2014.
7) Acquisitions are an important element of overall corporate strategy and use of capital. Google expect to continue to evaluate and enter into discussions regarding a wide array of potential strategic transactions.…...

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