Company Assessment- Google

Company Assessment- Google

To better analyze a company’s goals, strategy, and revenue outlook, it is necessary to understand its history. Google is a search engine company founded in 1998 in the United States of America, by Sergey Brin and Larry Page (Reed, 2018). According to Reed (2018), the company handles more than 70% of the world’s online searches, making it the most used search engine by internet users. Its headquarters are in Mountain View, California. It began as an online search engine but now gives various services and products, ranging from e-mail to tablets and mobile phones. Its vast size and portfolio make it among the top four high-tech influential companies in the market. Despite its variety of products, its search tool is still the primary source of its success. Our assignment help will hone your writing prowess for papers that will awe your professors.

The company uses market penetration as its primary growth strategy, especially in markets outside the United States (Graham, 2017). Its strategic goal is to acquire more market share using the current markets, and it is in a leadership position in the United States. In countries such as China, the company competes against other online advertising firms and search engines, and as such, using the market penetration strategy, it strives for a more significant market share in the global advertising market. In addition to that, the generic strategy of differentiation ensures the competitiveness of the products, increasing its market share, especially for online platforms used for advertising.

Additionally, considering its technological nature, Google has innovation at its core and aims to develop products to increase its returns (Fesharaki, 2021). Due to this, the company uses a product development strategy, which entails new product lines like mobile apps. Also, it uses this strategy to increase revenues by introducing new products like laptops and smartphones. The product development strategy creates more channels to generate income, while the product differentiation strategy gives the company a competitive advantage against its competitors.

Also, the company employs a market development strategy to enhance its growth. Here, the goal is to attract new customers in new market segments by using current products (Reed, 2018). For instance, the strategy is applied by offering new uses of current services like cloud services by application programmers and the current services offered. This strategy enhances the company’s growth, as it aims to widen the market for its services worldwide.

Besides, the company uses a diversification strategy to enhance its growth. The strategy’s primary goal is to achieve growth in new industries, especially in market segments where it has insignificant operations. A case in point is its acquisition of YouTube in 2006 to gain a presence in hosting videos and enhance its significance in online advertising (Fesharaki, 2021). The differentiation strategy supports the diversification strategy, which entails establishing new businesses and ensuring a competitive advantage against its key competitors.

Lastly, the company’s primary source of revenue is advertising through its sites and networks. The revenues generated from its website include revenues from ads served via advertising programs like Adsense. Other revenues stream from apps and digital content products sold through Google Play and hardware like smartphones. The digital platform is a crucial contributor towards the company’s revenues, significantly as the market share of its Android devices widens. Geographically, the company’s most significant revenue is generated from the United States, and 30% of its returns are from the EMEA region (Rasmussen, Antenioli & Tippenhauer, 2019). In the second quarter of 2021, the company’s revenue amounted to 61.7 billion USD, and in the first quarter of 2020, it generated 38 billion USD.

References

Fesharaki, F. (2021). Memetic mapping and genealogy of Google’s organizational culture. International Journal of Organizational Analysis.

Graham, R. (2017). Google and advertising: digital capitalism in the context of Post-Fordism, the reification of language, and the rise of fake news. Palgrave Communications, 3(1), 1-19.

Rasmussen, K., Antonioli, D., & Tippenhauer, N. O. (2019). Nearby threats: Reversing, analyzing, and attacking Google’s ‘nearby connections’ on Android.

Reed, D. P. (2018). Prospects for Gigabit Broadband: Examining whether Google’s fibre strategy portends a new round of investment and competition in local access networks.

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Component 1 – Part 1

For this part of the assignment, write a 500-word analysis of your chosen company (Google) based on the first two steps of the nine-step assessment process.

Step 1: Analysis of Fundamentals: Goals and Strategy

Company Assessment- Google

Step 2: Analysis of Fundamentals: Revenue Outlook

Prepare this part of the assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.