Friday, April 24, 2009

Google Chapter 7


Google Case Study Questions

2. Google’s main source of competitive advantage is its unique IT infrastructure that allows it to evaluate a pages importance based on the external links to it and also scan websites and record a summary of their content very quickly and inexpensively. The way that this IT infrastructure has been put together and kept secret has allowed users to find exactly what they are looking for in an instant which keeps them coming back to the site and has grown the site to the enormous superpower that it is today holding nearly 50% of all Web searches. Since they are so big another advantage that Google has is gaining advertisers who pay to be on their site. The advertisers know how many hits Google gets each day and that their product will be seen which keeps making Google the majority of its revenues.

3. Google does face some challenges that are brought up in this case. After introducing cost-per-click (CPC) advertising pricing in 2002 Google had problems with hackers who were committing click fraud in order to raise the price of a companies marketing. The CPC technology charges a company for every time its ad is clicked. Management is mostly responsible for this problem because they are refusing to take full responsibility for business’ under this sort of attack however they are taking technological steps in order to track the click fraud and stop it before it gets out of control. Another challenge that Google faces is the looming threat of Microsoft. Microsoft may be able to jump ahead Google with ability to facilitate context-aware searches and “deep Web” searches. I think the solution to this problem is for Google to continue to expand their applications to do more things that Microsoft now offers. The only way to gain this context-aware search advantage is to get on everyone’s computer as their main processor. This will be up to the technology department as well as marketing to get people to switch over some of their processes to Google instead of traditionally Microsoft by providing newer and more user friendly applications.

5. In the future I think Google will still be very successful and hold about the same
Amount of Web searches it does now, if no changes are made. If changes are made and new applications come out then I think it is safe to say that they will continue to gain users and increase in size and searches. Google has the very crucial competitive advantage called brand recognition. Google has become part of our culture and is even used as a verb, “I Googled her”. With that kind of recognition in our culture I think it will be hard to Google to be easily forgotten or pushed out of the market it started.

No comments:

Post a Comment