MIS 2 - Assignment 7

Google’s business model

When we say business model, it describes how a company bring about value. It includes the strategies, infrastructure and what the company could offer to their clients.

To give an overview which according to what I’ve read on my researches on the internet Google’s business model primary focuses on advertising and innovation. Google have marked its popularity on the internet world. I think most of us are all familiar that Google enables us to search for information from all over the world online. They rely on the people who put their advertisements on them and allow other to rate these ads. Google offers advertisers a system called Google AdWords. Advertisers get text-based advertisements that appear alongside search results which include a link to the advertiser's own site.This is the primary source of Google’s profit but they just don’t stop there. Google continues to develop other services for their company. On my personal view as a student Google for me is really reliable and useful. Aside fro its search engine which displays reliable sources of information it also has a lot more services like Google earth, e-mails, and other more. Because of its easy usability and fast service Google became more and more popular around the world. Talking about Google's search technology, it matches a user's search criteria with an advertiser's text to increase significance. The really clever bit is that advertisers pay when a user clicks on their advertisement. This makes sure the user is a sees good quality in the eyes of the advertiser but also allows the advertiser to control its costs. It can set a daily budget for how much it wants to spend. Once it reaches its limit the advert no longer appears. It is the sort of one-to-one advertising that mass market mediums such as television can only dream of.

As they grow, they continue to find strategies and develop other services for customers to provide more quality service. This could be a reason why there have a lot of competitors. It cannot happen that there are no competitors for such functions. Talking about competitors some of them that I know are yahoo which is also a popular search engine, MSN, AOL, Ask and Microsoft as well. Google and Yahoo have the most popularity. They have been battling over the same Web visitors and advertising dollar according to Morgan Botella on his work about Google’s business model. As what I’ve read on an article Microsoft is threatened by Google because of its possible dominance on the IT industry.

Google makes it to a point that they have the best service to the people or to us which most of their competitors and other company does. They use new technologies to develop great services for people. Services that are of great help of the customers and answer their needs. Google does not only give quality services to people but they let them earn through advertising. They also manage to give the best experience to their users. Unlike some of its competitors, Google provides addition and frequent updating in their sites for free. Which means anybody’s website could be in the search results if their website is related to what the user typed in the search box. And this is great because it makes the search results complete and accurate.With the tight competition on the web Google just continues to make new innovation for their customers.

References:
http://cseweb.ucsd.edu/~paturi/cse91/Presents/mbotella.pdf
http://technology.globalthoughtz.com/index.php/10-toughest-competitors-of-google-in-2010/