Google Company Analysis

Company Analysis

Google Inc. was founded in 1999 by Sergey Brin and Larry Page, both graduate students at Stanford, after they tackled the search algorithms in 1998, called PageRank. Since its foundation, Google developed a unique business model that continues to set it apart from its competitors to this day. Similarly, Google brought innovation in the business model of the internet industry with a model that is built to provide free online services that matches internet users with advertiser through its popular search engine. As the web expanded across the globe and search services grew stronger, Google became the dominant search engine worldwide, surpassing Yahoo! the first company that actually developed the technology.

Google Inc. has strong brand name and is the leader in information collection. The company designs innovative technology that enable internet users to have quick and efficient access to information personalized to directly satisfy their individual needs. The way Google is able to apply its monetization strategy is by utilizing user-generated information on target advertising campaigns along with sponsored search results offerings. The combination of consumer data collection and target advertisement placed Google at the top of its industry.

Google's business model has been very similar to Apple - constant innovation in products and services which create high value to the end users and continue to drive them to Google's products, which in turn drives revenues from advertisers for Google due to its high usage. Google's business model is also bilateral in that they continue to innovate not only for the end user, but for their paid advertisers as well, so they continue to advance technological offerings to both of their major customer markets. Google's business model also shows a combination of both cost and differentiation strategies. Their constant technological innovations continue to differentiate the company's offerings from competitors, but they also are able to undercut competitors on advertising rates due to their advancements.

Google's primary competitors are Yahoo! Microsoft, EBay, and Amazon; and to a lesser extent Apple, Facebook, and Bing. These companies compete in the field of marketing, technology, finance, and it can be said that competition among them is very intense.