Sunday, October 20, 2019
Business Essays – Google Online Internet
Business Essays Google Online Internet Google Online Internet Google, Inc. is the worldÃ¢â¬â¢s leading online search engine company founded by Larry Page and Sergey Brin while they were students at Stanford University and the company was first incorporated as a privately held company on September 7, 1998. GoogleÃ¢â¬â¢s business is related to Internet Search, web-based emailing, online mapping, office productivity, social networking and video sharing as well as advertising services like Adwords and Adsence. Founded at Menlo Park, CA on September 7, 1998 and now has head quarters at Mountain View, CA (Ã¢â¬Å"The Rise of GoogleÃ¢â¬ . USA Today). It is the largest American company (by market capitalization) that is not part of the Dow Jones Industrial Average (as of October 31st, 2007). Google currently has16,805 full-time employees and Eric E. Schmidt, is the current CEO/Director of the company. Google is now traded on both NASDAQ and LSE. The first GoogleÃ¢â¬â¢s IPO took place on August 19, 2004. 19,605,052 shares were offered at a price of US$85 per share. The Google is the largest trading company on NASDAQ index with a revenue of US$16.593 billion, net income of US$4.203 billion, total assets of US$25.335 billion and total equity of US$22.689 billion (Financial Data Quest, 2007). Google is listed as top 5 companies traded on NASDAQ with total volume as 6,557,543. Google gets its name from the word Ã¢â¬Å"GoogolÃ¢â¬ which is the mathematical term for a 1 followed by 100 zeros. Google is the most used search engine on the web with a 53.6% market share, ahead of Yahoo! (19.9%) and Live Search (12.9%) making Google has a market leader. The main revenue for Google, Inc. is the advertising application launched by Google called Adwords, where thousands of advertisers advertise there products and services. Started in the year 2000 Google Adwords is treated as flagship advertising product and main source of revenue. It offers Pay Per Click (PPC) advertising, and site-targeted advertising for both text and banner ads. Google has tremendous competition in the industry with Yahoo, Inc., MSN, AOL and others. Google, Inc. is vaulted to more than 6 Billion $ sales last year (Business Week, Estimation 2007). Google also faced a number of Law suits for Violation of trademark law and Click fraud. Google settled a click fraud lawsuit for US$90 million. In April 2002 a company called Overtune Services, Inc.(A Yahoo Company) sued Google for patent infringement for launching Adwords. Google agreeing to issue 2.7 million shares of common stock to Yahoo! in exchange for a perpetual license under the patent. (Google, Yahoo bury the legal hatchet, Stefanie Olsen, CNET News.com, August 9, 2004). II. FirmÃ¢â¬â¢s Current Situation Ã¢â¬â Internal Analysis Strengths of Google, Inc: Google is the current market leader with more than 53% share in the Search Engine and advertising industry, the factors that made possible to acquire this position are: Technology: Google uses high defined user e nd technology such as open source search, which enables easy and sharp search to customers. Google uses high speed servers which can tackle millions of searches a minute. The technology used by Google is also used by NASA and US Defense. This type of technology help customers to find relevant answers for there enquiries online, making Google the most trusted reliable search engine in the world.