Category: Google

Google operates in a very competitive and technological industry. This firm has managed to maintain the market lead in the face of a stiff competition from other strong market leaders.

Google has a market share of about 62 percent. Its closest rival is Yahoo, with about 26 percent of the market share. Other strong competitors of this firm include Microsoft, Ask, and AOL.

In order to have a comprehensive understanding of this firm, the analysis tools such as SWOT and Porters Five Forces would be used.

SWOT Analysis of the Firm

To give a clear analysis of this firm as far as its suitability is concerned; a SWOT analysis would be helpful.

The strength of this firm comes from various factors. Google has a very strong band in the market that is trusted by a huge base of customers. This has helped it maintain its customers. The search engine is the strongest and broadest in coverage, making it the most preferred search engine in this industry.

The move by this firm to involve students and corporate bodies in the activities of this firm has increased the knowledge base and creativity of the firm. With a large capital base, this firm is able to conduct research on development of the firm.

However, some weaknesses are threatening to derail this firm. The first weakness is the ability to satisfy all its customers in equal measure. Google would allow an individual to search anything in the internet.

The problem is that some of the sites contain information that is not appropriate for certain individual or age group. Some parents are weary of Google, as they believe that their children would access some information that may be for adults only.

This lack of a technology that would enable it restricts some individuals from accessing certain sites may taint its image among some customers.

The firm has some opportunities that further put it into the best position of maintaining its market lead. The fact that the emerging technologies are pushing more people to rely on computers and the internet is increasing the size of the market.

Furthermore, there has been a steady increase in the number of leaning institutions, which have introduced electronic learning, which means that they would be prospective customers of Google.

Despite the above positivity, there are threats that this firm has to overcome in order to manage the competition posed by other firms that are also strategizing to win the market share. The first threat is the competition in the market.

There are various other firms, which have put spirited fight in order to win the market share. Some of these firms, like the yahoo, have the structure that would help them compete properly in the market.

A further analysis of this firm, and specifically its ability to maintain its market lead, can be done through PESTEL Analysis.

PESTEL Analysis

Google can be given a detailed analysis through PESTEL analysis. This analysis would help give a detailed analysis of the external environment within which this firm operates. These attributes would be very important in making the decision on how to confront this environment in coming up with policies of how to manage the market.

The PESTEL analysis technique has been used in an effort to analyze some of these factors. The PESTEL model usually covers the political, economic, social, technological, legal, and environmental factors that are likely to influence the decision-making processes.

When developing strategic plans for the firm, some of these factors might result in various changes being made in the planning process (Charantimath 2006, p. 85).

Political Factors

Googles main market is in the US. This country has the most stable governments in the world. The leadership of this country has encouraged development in various fronts, especially the infrastructure. The government has also been supportive towards creativity and innovation in the entire country.

The government has put much effort in making sure that the politically calm in order to sustain business in the local market. other major markets in Europe, south America and even Africa have enjoyed relatively calm political environment which have made them be able to work normally, and therefore be able to use this site.

Other than China that tempted to restrict operations of this firm in the country, other nations have not made any restrictions to this firm on their operations.

Economic Factors

The world economy has been witnessing instability in the recent past. The United States is one of the countries that were heavily affected by the recent world economic recession. This has put a lot of pressure on the countrys national budget, especially due to the subsequent inflation.

The inflation rates have been constantly rising across many nations. This has posed a challenge to the firm in its quest to increase its market share. Most of the customers would be locked out of the market, as they would consider accessing the internet a luxury.

They would prefer not access this site and use the resources in other activities, a fact that would be a blow to this firm. However, the recent economic recovery of economy in many is good news, as the market size would be expected to expand (Daft 2009, p. 67).

Social Factors

This society highly values entertainment as a form of leisure. The internet, especially the internet games and the social media form one of the most common leisure in the world today.

The popularity of social media has been growing at a very high rate across the globe especially among the young and middle-aged population.

Given that the world has very many young and middle age people, the firm is likely to become a great success, as more people would be using it to access various entertainments that would make them loyal customers of the firm (Evans 2010, p. 47).

The society also appreciates the rights of individuals and this makes expand its products without the fear of intimidation from some quarters of the society.

Technological Factors

The emerging technologies have redefined the way things are done in various facets. The United States, and the world at large, has generally embraced technological advancements in almost every sector.

This has been advantageous, as technology has made it easy for individuals to understand the importance of search engines like Google. In the hospitality industry for instance, hotel bookings have been made easier and less expensive as they can be done online.

Most of them have ultra-modern facilities high-speed internet connections and satellite dishes. All these have made service delivery effective, convenient, and even entertaining, as they also make Google and other search engines for that matter, very relevant in this market.

The increasing market for personal computers, especially the laptops, has increased the market share of the firm. Given the current trend in the increasing technologies in the global market, Google has the ability to increase its market share base.

Environmental Factors

Environmental factors may have both positive and negative effects on the firm. Various environmental conservation agents have criticized the computer age very heavily. They argue that computers have adverse effect on the environment, especially when it comes to the disposal of the old computers.

They have made efforts to ensure that production of the computers is closely regulated. However, the recent move by some companies and organization of collecting the electronic wastes and safely disposing them may be a ray of light, as this would eliminate the feeling that computers are harmful to the environment.

Legal Factors

Law and order is one of the most important aspects on the social welfare of a given society. Giddens (2009, p. 42) explains that the community that lacks clearly stated laws and regulations cannot make it through successfully on various fronts.

On the legal front, laws have been enacted to enhance environmental conservation and minimize pollution activities. There is also a clear law that helps in the regulation of market competition and how competitors should relate in the market.

The law protects firms in this industry from any form of external aggression or uneconomic competition that may jeopardize the position of one or more firms (Kabani 2009, p. 32).

The law is also very tough on those who breach the right of others either socially, economically or in whichever front.

Recommendations

Google operates in a highly competitive market. Kurtz (2008, p. 83) argues that this firm must take care of several technological factors in order to remain competitive in the market.

Being the market leader, this firm is faced with a number of challenges that it must address in order to retain its lead in the market. The biggest threats for this firm are emerging technologies and the competitors.

To the emerging technologies, this firm must be very keen to monitor how new technologies may have effect on its normal operations. It is a good move that the firm has made in creating a contest that brings together students, clients, and investors.

This would help the firm in being innovative in the market (Page 2010, p. 39). The employees of this firm should be encouraged to monitor keenly the changing technology in the environment, especially the social media. They should know the technologies to implement and those to avoid.

This is because not all emerging technologies are beneficial to the firm. In general, the employees should ensure that the firm remains enthusiastic about emerging technologies.

Google must also take into consideration the fact that it takes a lot of effort to remain the market leader in the industry.

Google should study the activities of other industry players and determine the possible consequences that it may undergo if these players change their approach in the market. It should also assess the effect that the social media has on its profitability.

If the research proves that the effect is negative, the management of Google should immediately consider the social media as a competitor. Consequently, measures should be taken to ensure that such competitors are put under check.

List of References

Charantimath, 2006, Total Quality Management, Pearson Education, New Delhi.

Daft, R 2009, Organization Theory and Design, Cengage Learning, New York.

Evans, D 2010, Social Media Marketing An Hour a Day, Wiley Publishing, Inc. Indianapolis.

Giddens, A 2009, The consequences of modernity, Blackwell Publishers, Malden.

Kabani, S 2009, the Zen of social media: An Easier Way to Build Credibility, Generate Buzz, and Increase Revenue, BenBella Books, Inc. Dallas.

Kurtz, D 2008, Contemporary Marketing: Designing Customer Oriented marketing Strategy, Cengage Learning.

Page, S 2010, The Power of Business Process Improvement: 10 Simple Steps to Increase Effectiveness, Efficiency and Adaptability, AMACOM, New York.

Executive summary

Google is a US international giant corporation that deals with Internet-based services and products. In the recent years, Google has been experiencing unprecedented growth and currently the corporation manages more than a million servers and attends to a billion plus search engine appeals in a day.

The initial operations of Google servers were constructed with cheap hardware. However, 2004 was the turning point of the company after the initial public offer, which saw the floating of 19,605,052 shares each going for $ 85. The capital raise through the IPO gave Google the much needed market muscle to face its competitors.

Googles management has continuously adopted good management practices, which have seen the introduction of employee motivation programs like swimming, gaming, and bodybuilding practices in a gym among others.

Google has also embraced dynamic supply chain strategies that accommodate the ever-changing market demands. Conclusively, the operations and supply chain strategies, adopted by Larry Page and Brin, have evidently played an enormous task in enabling Google be an excellent company for its employees.

Introduction

Google is a US international corporation that offers Internet-associated services and products, comprising Internet search as well as advertising expertise. Google is a fortune 500 company. As the founders of the company, Sergey Brin and Larry Page jointly own 16 per cent of the total shares of the company. Google shifted to its present headquarters in California in the year 2006.

Fast growth has prompted a string of the companys achievements and products (Clemons & Madhani 2010). Google has progressively turned into a hardware corporation having its collaboration with key electronics producers on its upper-end.

Roughly, Google manages more than one million servers in information centres all over the globe, and attends to more than a billion search appeals, as well as enormous user-created information daily. Google provides online software comprising social systems and email. The products of the company also include appliances for managing and editing pictures, Internet browsing, and online messaging.

Nevertheless, the prevailing market situation of the services of Google has brought denigration of the company regarding concerns of copyright, confidentiality, and control (Eko, Kumar & Qingjiang 2012). The success of the company undoubtedly translates to excellent environment for its employees.

This paper seeks to answer the question on the operations and supply chain strategy implemented by Larry Page in making Google an excellent area to work. The operations and supply chain strategy employed by Larry Page have led to the success of Google.

Funding and early public contribution

The initial operations of Google servers were constructed with cheap hardware. At this time, the working environment for employees was yet to be established. The initial financing was a contribution by co-establisher of Sun Microsystems, Bechtolsheim Andy, in the year 1998 (even prior to incorporation of Google).

A year later, in 1999, Larry Page and Brin attempted to sell the search engine, but the proposed bid failed to reach their expectations. In mid the same year, they got a $25 million financing with chief investors comprising the Kleiner Perkins Caufield & Byers. The initial public offering (IPO) of Google happened in the year 2004.

A total of nineteen million, six hundred and five thousand, and fifty-two (19,605,052) shares were offered at $ 85 each (Finkle 2012a, p.869). The shares were traded in a distinctive online auction system. The contribution from the sale of the shares granted the company a market capitalization.

Yahoo, which is a business rival of Google, as well benefited from the sale of shares since it owned around eight million shares of Google prior to the IPO. During this period, Page, Brin, plus Schmidt Eric decided to work jointly for twenty years (until 2024).

Many people thought that the IPO of Google could bring modifications in the culture of Google, thus affect the working environment of its employees. Explanations extended from the force by shareholders to have worker benefits cut down to the reality that a vast majority of the company administrators could immediately become millionaires.

In response to this concern, Larry Page and Brin assured, in a statement to prospective financiers, that the IPO could in no way alter the culture of the company (Finkle 2012b). In an attempt to uphold the distinctive culture of Google, Larry Page and Brin created the office of a Chief Culture Officer.

The role of the Chief Culture Officer is to build up and uphold the culture. This officer as well functions as the Director of Human Resources. Nevertheless, there are claims of ageism and discrimination that the company has received from former workers (Finkle 2012b).

Operations and supply chain strategy

Larry Page adopted numerous operations and supply chain strategy to make Google an excellent place to work. In the working environment of Google, employees have an opportunity of spending off their calories in a gym filled with the necessary equipment.

For employees that are aquatically leaning, there are swimming pools where electric pumps are used to pump water in a single direction and thus create a current in that one direction, which ameliorates the swimming experience (Finkle 2012b). To keep them safe, lifeguards are provided.

Employees can as well play against one another in a fast game of billiards, football, or ping-pong. Game tables are found in numerous of the constructions on campus. Video games are as well available for those who love the games and this diversifies the options that employees have for relaxation (Finkle 2012b).

The healthcare plan of Google at the working environment allows employees to make appointment with a physician if they experience an injury or feel unwell when at work. In spite of the decent pay coupled with numerous perquisites, working at Googleplex comes with its challenges (Hagiu & Yoffie 2009). Luckily, for Google staff, they can make the most of a massage programme that is subsidized.

The twenty per cent time programme is another eminent advantage of working at Google. Google permits its workers to utilize up to 20% of their job week at Google to perform individual projects (Finkle 2012b).

Therefore, employees have one full workday to engage in activities outside the formal tasks. There are declarations that several of the creations in Google Labs initiated as pet schemes in the 20 % time programme. Since Google provides a comfortable work environment for its employees, the majority of them use approximately 20 hours at work because they have all they require (Finkle 2012b).

Larry Page and Brin have kept on making changes and moving past the search engine. Their operations and supply chain strategy directly works to better the working environment within Google for its employees. The company presents e-mail, immediate messaging, in addition to services of cell phone text messaging.

Further Google services comprise a computerized news spot, a network blogging spot, imaging software at no cost, and a spot for programmers concerned with forming fresh applications (Hagiu & Yoffie 2009). In the year 2006, the company was poised to confront PayPal in the online account dealing, and offer eBay a return for its efforts in the Internet auction dealing.

The e-mail service of Google is distinctive, similar to the company itself. Started in the year 2004 as Gmail (Google mail), it was accessible to beginners just on request from somebody who had the service already. Gmail includes e-mail as well as instantaneous messaging so that customers can e-mail in the habitual way and visit in actual instant.

The AdSense programme of Google is its main revenue producer. This programme permits every Web site to issue advertisements on every one of its pages. There is a reward to the issuer of the Web site each time somebody selects on an advertisement derived from that page.

Using this programme, it is also possible for Web site publishers to verify the number of people that log on to the site, the charge per selection, and click-through charges just to mention but a few (Hayes & Bodhani 2011).

This programme as well can modify the kind of advertisements put on a Web site, to be precise, publishers can obstruct adverts they do not need to come into view, for example, opponent ads, advertisements regarding death or hostilities, and advertisements for material for adults only.

Another service of the company popular with clients is Froogle that employs Google search expertise to let users hunt for and evaluate products by kind, cost, value, and other qualities. The company has evidently become a noteworthy existence on the Internet and in everyday lives of its users. This plays a key role in bettering the working environment for employees (Schmidt 2010).

Conclusion

It is frequently difficult to visualize life exclusive of computers; nevertheless, the progress in the computer world has been vast and unbelievably fast (Boyer & Verma 2009). This aspect has given room to services like those of Google, thanks to its founders, Larry Page and Sergey Brin.

As outlined in this paper, Google has played a leading role in improving expertise such as information technologies through its various services. Indubitably, technological developments in Google have brought about reduction in costs to the user, better capabilities, pleasant environment for its employees, and excellent quality in every type of business making use of its products and services.

At times, it appears as if new experts of the company are arising every day. The operations and supply chain strategies, adopted by Larry Page and Brin, have evidently played an enormous task in enabling Google be an excellent company for its employees.

Reference List

Boyer, K & Verma, R 2009, Operations and Supply Chain Management for the 21^st Century, South-Western College Pub., Nashville.

Clemons, E & Madhani, N 2010, Regulation of Digital Businesses with Natural Monopolies or Third-Party Payment Business Models: Antitrust Lessons from the Analysis of Google, Journal of Management Information Systems, vol. 27 no. 3, pp. 43-80.

Eko, L, Kumar, A & Qingjiang, Y 2012, To Google or Not To Google: The Google Digital Books Initiative and the Exceptionalist Intellectual Property Law Regimes Of The United States and France, Journal of Internet Law, vol. 15 no. 7, pp. 12-30.

Finkle, T 2012a, Corporate Entrepreneurship and Innovation in Silicon Valley: The Case of Google, Inc., Entrepreneurship: Theory & Practice, vol. 36 no. 4, pp. 863- 884.

Finkle, T 2012b, Note to Instructors for Corporate Entrepreneurship and Innovation In Silicon Valley: The Case of Google, Inc., Entrepreneurship: Theory & Practice, vol. 36 no. 4, pp. 885-887.

Hagiu, A & Yoffie, D 2009, Whats Your Google Strategy?, Harvard Business Review, vol. 87 no. 4, pp. 74-81.

Hayes, J & Bodhani, A 2011, Google, Engineering & Technology (17509637), vol. 6 no. 10, pp. 33-39.

Schmidt, E 2010, Googles CEO on the Enduring Lessons of a Quirky IPO, Harvard Business Review, vol. 88 no. 5, pp. 108-112.

Introduction

From the onset it would seem that Google was destined for success and to do great things from the moment of its inception; there is no doubt that Google tackled and solved a critical issue in the information technology sector that has persisted for long in very ingenious ways.

It is this Googles first ingenious innovation that would set the stage for its future successes in the years to come, which is an expectation that it has not failed to deliver. It is no doubt that the technological innovation of its revolutionary search algorithm is what provided it with the lucky break that it so much needed (Gladwell).

It is on this backdrop that we can best analyze the Companys most influential motto and its business strategy in general that has positioned Google to become the present day multibillion Company that it is.

Googles Motto: Dont be Evil

Googles motto of dont be evil is best expounded in its corporate values that have greatly shaped the business ethics of the company and significantly driven its success in the industry. From the onset the founders of the company adopted and instilled strong and distinctive corporate values in every aspect of its business processes.

These values which formed Google philosophy have been integral to its success and this motto is one of the most integral corporate values tenets that drives the company which are i) do no evil, ii) technology matters and iii) we make our own rules (Edelman and Eisenmann).

These three rules amongst others have had a profound effect on the companys actions and contributed immensely to its performance.

The principle of do no evil, which has consequently becomes the Companys motto guides all the companys core business activities which are mainly in advertising and search business; as a result of this motto Google for instance forbids the advertising of guns, hard liquor and pornography content on its sites (Google.com).

In addition, because of its motto, Google insists on ethics in its advertising business and does not engage in manipulating results to make a quick profit or misconstrue facts to gain a competitive edge which has served to maintain its integrity.

Its search engine is designed to show only relevant results that have not been manipulated; as a result of its integrity, Google searches are respected by users as the results are reliable, dependable and trustworthy.

It is no wonder then that Googles share of the search business was approximated in 2010 to be at 65% in US and 90% in the rest of the world (Edelman and Eisenmann).

Googles unique motto and corporate values are also seen in other varied ways such as in the way that it claims to make its own rules and does not allow itself to be controlled by limitations placed by the industry (Edelman and Eisenmann).

Just recently in 2009 it would be remembered that Google opted to pull out of Chinese market rather than bend to pressure of government dictatorial laws that demanded that Google hand over personal data for some of its customers so that the government can monitor their communications.

Choices such as this and others where US federal government was also at one time demanding the same had only served to assert how Google takes seriously its motto of do no evil.

Google Success Factors

In general Googles success factors can be comprehensively summarized in a range of four factors even though they are many and varied, these are; first rate technology, business innovation, core competence & integrity (Google.com).

More importantly is the fact that Google has complimented its business model with an effective corporate and governance structure and sought the best human resource skills that it nurtured as the Company continued to grow.

Googles unique organization and corporate structure is what enabled it to perform effectively because employees are not bogged down by the organizations red tape (Edelman and Eisenmann). Googles CEO Eric Schmidt has developed a unique and unconventional approach of managing the employees.

He developed the 70/20/10 rule of managing innovation in employees which stated that 70% of all their time and effort should be spent on the organizations core activity which was search business and advertisement while the rest of the time could be used in designing personal projects (Edelman and Eisenmann).

This rule has not only been unique to most mainstream organizations, but is also the strategy behind Googles success in producing very innovative products.

The 20% time spent by engineers on related projects has been the source of virtually all new and major innovations that the company has developed which include Gmail, Google Earth, amongst others (Edelman and Eisenmann).

The company acknowledges that most of its innovations come from engineers personal projects rather than from the companys top management (Edelman and Eisenmann).

The company also operates small work teams as opposed to wide departments as is the tradition in large organization in the industry.

This is because of what the CEO describes as focused energy because few people working together offer several advantages which he cites as being more productive and allow the company to pursue several hundred projects simultaneously (Google.com).

Googles has also done away with middle level management personnel which has served to cut bureaucracy and increases efficiency which is integral to its success of its projects (Google.com).

Googles Challenges

While it is clear that Googles unique organization and governance structure as well as its corporate values have been a source of its distinctive competitive advantage, it also places severe limitation on the organization success.

The absolute control that has been placed on the three top executives demonstrates lack of an oversight body such as a board of directors in controlling and managing risk. Though the company has not undertaken any project that has resulted in a major loss, we cannot foretell if its smooth run will continue into the future.

A board of director that is especially skilled and independent is useful in advising and managing risk in a company but which Google has none, courtesy of its unique organizational structure.

Googles unique corporate and management strategy is valuable in attracting brilliant engineers that aspire to work in an environment where they can pursue projects that they desire independently.

However, as the company grows and matures, its current management naturally becomes more engaged in social and family activities which mean they have less time to commit to the Company.

Thus, there is need to inject new management which is unlikely to happen under the present governance system that the organization has.

Works Cited

Edelman, B. & Eisenmann. Google Inc. Boston: Harvard Business School. 2010. Print

Gladwell, J. Factors behind Googles Early Success, 2011. Web. <http://theideapost.blogspot.com/2011/03/what-are-factors-behind-googles-early.html>.

Google.com. Play it safe, family-safe, 2011. Web.

Principles Google followed in developing Google.cn

There was a need for increased market share in the society; therefore, Google change its website to google.cn in an attempt to suite the demands for Chinese. Initially, Google entered the Chinese market as google.com that was maintained in Chinese language.

The website was based in United States; as such, it was not based on censorship from Chinese government. This ensured that the Chinese government filtered information that was received in the country. Some of the keywords were blocked, thus, giving a competitive advantage to the rival site Baidu.

Google incorporated google.cn to the Chinese economy by differentiating its product from that of the competitors. The main principles that enhanced its superiority included privacy, disclosure of filtered information to the users, and use of Chinese language when searching for information. Personal information was not revealed to a third party outside Chinese territory.

Yahoo, Gmail, and Blogger were used by Chinese as it enhanced their privacy (Boatright, 2009). As the Chinese government ensured that some of the information was filtered, Google provided the users with the information of sites that were filtered. As such, the users were guaranteed of convenient and reliable information.

Finally, Chinese appreciated the use of Chinese-language when accessing information from the internet. It was, therefore, vital for Google to use Chinese language when accessing google.cn.

Measures undertaken to protect Chinese Rights

Each person has a right to privacy. Google has undertaken measures to ensure that Chinese rights are upheld. When it maintains Blogger and Gmail outside China, it minimizes the governments retrieval of personal information of the Chinese. Most of the information available in Gmail accounts are confidential and should be accorded with the highest degree of privacy.

The Chinese have the right to understand why the information they are searching for cannot be displayed. Google.cn provides a statement below the search results informing the user that the search is restricted. Indeed, the government needs to filter information and material that may be harmful to the Chinese economy (Boatright, 2009).

However, the measures have been criticized citing that the blocked information could not be revealed by the new google.cn. The system hides the censors hand, and one cannot have access to the information that is blocked.

In my opinion, the measures taken were not adequate. Although Google provided the exact nature of information that is filtered, Chinese rights were not fully catered for by the website. For them to be effective, the critics and users complain need to be considered, and individuals need to access the nature of information that is blocked.

Censorship on Internet

Imposing Great Firewall in the site ensured that Google was effective in enabling censorship on the internet. This was undertaken by Google, Microsoft, Cisco, and other companies. Initially, Chinese were able to access delicate information from the internet, which compromised the security of the region (Cross et al., 2011).

Following this, the website operators decided to censor the internet by filtering information that was insecure. Although, individuals need to access information that they deem to be vital in their research, censorship minimizes access of information that requires high security detail.

The objective of Google.cn was not to be evil. Allowing individuals to access information that will infringe the nations security will be against their goals and objectives in accessing the Chinese market. Therefore, I believe censorship on the internet was vital for Google and other companies.

References

Boatright, J. (2009). Ethics and the conduct of business (6th ed.). Upper Saddle River, NJ: Prentice Hall

Cross, F. & Miller, R. (2011). The Legal Environment of Business: Text and Cases: Ethical, Regulatory, Global, and Corporate Issues. London: Cengage Learning

Introduction

Issues raised by Machiavelli in his The Prince are applicable to Google business as portrayed by its successful brand and profitability. Machiavelli elaborates that nothing makes a prince more popular than innovation. Google has proven to be very reliable and user-friendly to those who carry out their searches using its search engine.

Competitors can only be driven off in disgrace for failing to meet the standards that Google has developed for about a decade. Google has to maintain high profit margins to finance innovation. Machiavelli states that the prince needs to make large profits to gain the ability to venture into greater enterprises. Machiavelli states that a firm must appear humane.

Google holds the first position, with other three firms, on having the best reputation for CSR. In the study, consider the subjects as the customers, an attack as a competition, and the armies as the strategies. Machiavelli described that is better to be loved by the people than to build fortresses, and Google has achieved this requirement.

Googles history

Googles history fits Machiavellis description of a man who becomes a prince. Sergey Brin and Lawrence E. Page gained experience in running BackRub, which gave them an advantage in developing a better search engine. Machiavelli explains, in regard to Hiero the Syracusan, that whilst he had endured much trouble in acquiring, he had but little in keeping (26).

Machiavelli (26) discusses how Hiero had to build new alliances and armies to sustain his reign. Google built its reputation and expertise for many years, but afterwards it has dominated the industry. It is an advantage to Google because it has gained experience dealing with problems as they arise.

Innovation and reputation

Machiavelli (107) considers that nothing makes a prince more popular than innovation. Google selects a few of the best products to develop. Its products, such as YouTube, provide the user with a wonderful experience.

Machiavelli explains that innovations need to keep the minds of the people in suspense and admiration, and occupied with the issues of them (108). It means that a prince ought to venture into activities that bring him glory. Googles products have been warmly received by the masses. It is an advantage to Google because it will always surpass consumer expectation.

Sforza upgraded his rank from a private man to a prince. Machiavelli (67) elaborates that a firm ought to be competitive at all times, through the story of Francesco Sforza. Sforzas sons became private men by neglecting martial arts (competitive strategies). Google has remained dominant through commitment to continuous improvement.

Machiavelli discusses that Ferdinand of Aragons (Spain) inventions were done in such a way that men have never been given time to work steadily against him (108). Machiavelli (108) describes a successful prince, who dominated the others through innovation. The prince created a technology gap between himself and his competitors. It is advantage to Google because it will take competitors time to develop similar abilities.

Customer experience

Google cares a lot about customer experience, even though it would like to maximize profits by posting as many advertisements as possible. Machiavelli (87) points out that a prince ought to avoid being hated and despised at the same time.

Google has avoided to be hated by customers due to being strategic rather than aggressive on posting advertisements. It is a disadvantage to Google because it cannot maximize profits, according to the available space.

Google has been able to compete successfully against Yahoo and Bing by focusing on the user preferences. Provided that the prince is an excellent man, and revered by his people, he can only be attacked with difficulty (Machiavelli 88). It will remain difficult to cut Googles market share because it is highly preferred by the customers.

Machiavelli (10) elaborates that a disease is difficult to detect during the early stages, but easy to cure. Google uses CPC (cost per click) model to receive benefits (Kim par. 1). It may be considered as an early treatment for a disease that may favor Google against competitive pricing.

Machiavelli (106) implies that is better to be loved by the people than to fortify the city against external factors. It is better to impress the customer than to rely only on unique products. Unique products can be considered as fortresses.

Machiavelli, when referring to Germany, explains that a prince who has a strong city, and not made himself odious, will not be attacked, or if any one should attack, he will only be driven off with disgrace (49). In Googles case, new entrants are discouraged because of the investment needed to capture part of the market share.

Machiavelli (49) discusses that Germans had a habit of keeping enough food supplies to last a whole year. Attacking the Germans would take a lot of time because the lack of supplies is usually what drives people out of besieged cities.

Consequently, Google has kept its system updated to offer everything that the customer may need at an affordable rate. Competitors can only be driven off the market for failing to meet Googles standards, which is an advantage to the firm.

Googles products

Gmail grew rapidly because it filled a gap that Yahoo lacked. Machiavelli describes that the one having come up with new methods has for enemies all who have done well under the old conditions and the lukewarm defenders in those who may do well under the new (24). The popularity of Gmail is an advantage because it appears attractive as a marketing agent.

Machiavelli (24) explains that the difficulty in acquiring a new territory comes from the application of new methods and their security. It is difficult and costly to create new technology, but it provides a lasting competitive advantage. Google filled a gap in consumer demand that Yahoo failed to address. Machiavelli (24) uses different stories to show that it is necessary to meet consumer preferences.

In the story of Cyrus, Machiavelli claims that it was necessary that Cyrus should find the Persians discontented with the government of the Medes for him to give them relief (24). Satisfying the discontent of people gave the great rulers ease in leading the people. It is advantageous to Google to foresee emerging trends, and satisfy them before competitors.

Google in China

Google.com would have been more successful in China if there were no interference by the authorities to control the content accessible to the Chinese. Machiavelli explains that for although one may be very strong in armed forces, yet in entering a new province, one will always need the goodwill of the natives (4).

Google entered China when it already had a good reputation. The censorship in China worked against Google, which made Google to apply the Machiavellis concept in governing cities by their own laws.

Machiavelli provides three options. The first is to ruin that country, which Google applied by operating from Hong Kong. However, it failed because the Chinese authorities slowed the pace of the searches, making it less preferred by users. The second is to reside there in person, which Google applied (Machiavelli 20).

Google applied the third concept as well, which states that the prince is to permit them to live under their own laws (Machiavelli 20). Google permitted China to live by its own laws by forming Google.cn specifically for China. It is different from Google.com.

The people in China can have a fast speed search engine similar to the one found in other countries due to Google.cn, which withdraws information that the Chinese authorities may consider offensive (Fox News par. 4). It is a disadvantage to Google because it cannot standardize its products in China.

Reliance on other firms

The Android system may appear like the kingdom of France from Machiavellis point of view. Machiavelli (18) contrasts the Turkish kingdom with France. France had lords under the king, which made it easier to access power once one had made deals with the lords, and eliminated the king. The Turks had only a king, and no other hierarchy below him.

In the Turkish system, it was difficult to access power. Once accessed, one would have a stable kingdom. Examples of a Turkish system include Gmail and Google Search. Their operations do not rely on other firms. The advantage they offer Google is reliability during intense rivalry.

The French kingdom involves using the lords to access power. The prince will have an easy access because he only needs to eliminate the king (Machiavelli 18). Google using the Android system and other firms fits the description of the French kingdom. It offers an advantage to Google because it creates easy access to new markets.

Google relying on other firms to use the Android system creates an easy access to more smartphone and tablet users. The firms are compelled through contracts to set Google as their default search engine. Machiavelli explains that such men can open the way into the state and render the victory easy, but if you wish to keep it afterwards, you meet with infinite difficulties (18).

Machiavelli seems to state that a firm should learn to win the customer directly, instead of relying on other firms to access the market. Google has been compelled to attack the French kingdom with the smartphones segment, while the PCs segment is attributed to a Turkish kingdom. The French Kingdom, to Google, has the disadvantage of being unreliable in times of intense rivalry.

Profitability

Google has to maintain high profit margins if it has to remain dominant. Machiavelli (76) discusses that a company needs to make large profits if it is to venture into greater enterprises. The prince would not be able to carry out new developments without increased liquidity. Increased liquidity is an advantage to Googles operations.

Googles net income, between 2004 and 2013, increased 32 times when its revenues increased 18 times (Google Inc. tables). Net income increased at a higher rate than revenues. Machiavelli (76) claimed that without high profits it would be easy for the prince to be despised. Machiavelli (76) examines two stories. Pope Julius II was known for liberality, only before he ascended into power.

The King of Spain was known for meanness. Liberality refers to the action of a prince to tax his subjects at a lower rate, in order not to offend them. Meanness refers to the aggressiveness of a prince in collecting taxes.

The King of Spain was able to carry out new enterprises as a result of higher tax revenues his men collected (Machiavelli 76). On the other hand, Pope Julius II changed from liberality to meanness, soon after becoming the most powerful man in the Roman kingdom.

The vast tax revenues enabled the pope to wage war without reviewing tax rates, which may have caused people to rebel in the times of war (rivalry). Higher profits have allowed Google to invest more in R&D and develop new products. Google has been able to make acquisitions that have strengthened its strategies.

Low prices can make it difficult for a firm to survive in an industry. Lower prices may be used for entry into a new market. As Pope Julius II used liberality to access power, but changed once he began to rule (Machiavelli 76). A company has to develop superior products, so that it can charge higher prices.

A business that depends on low prices is likely to have low profit margins, unless it relies on the economies of scale by selling large quantities of its product. Machiavelli explained that nothing wastes so rapidly as liberality, for even whilst you exercise it you lose the power to do so, and so become poor and despised (76).

It means that when a prince has not acquired wealth, he will lose his ability to remain liberal. A firm that has supernormal profits has greater ability to invest in other new projects. Googles profits have grown at a rapid rate. It is an advantage to Google because the firm may fortify itself through product differentiation.

Corporate Social Responsibility

Google has to appear caring by spending some of its earnings on a few selected community programs. Machiavelli mentions that the prince ought to appear to the public as altogether merciful, faithful, humane, upright, and religious (85). Google is ranked first among the companies that treat their employees well. It is also at the top of companies that care for the communities (Smith par. 20).

Machiavelli (38) gives examples of kings who reigned without glory because they used a lot of cruelty to be rulers. Giovanni and Oliveretto da Fermo were strangled one year after gaining leadership through cruelty (Machiavelli 41).

A good CSR reputation is advantageous to Google because customers would like to be associated with a firm that cares about humanity. Machiavelli (42) elaborates that a cruel leader is vulnerable to both internal and external attacks.

Conclusion

Google will remain dominant, provided that it is admired for its innovation. Machiavelli suggests that innovation can be more successful if competitors require a lot of time to reach the same level. Reliance on mercenaries can weaken a princes position in times of war. Mercenaries are unreliable during intense rivalry.

The high profitability of the firm is sustainable if the firm uses it to venture into new enterprises that provide fortresses. Google recognizes that customer experience is more important than relying on individual products. It is good to be loved by the people. Google recognizes that CSR is just as important as religion. Machiavelli emphasizes the importance of appearing religious.

Works Cited

Fox News. Google Challenges China Censorship with New Tool. 2012. Web.

Google, Inc. n.d. Investor Relations. n.d. Web.

Kim, Larry. The War on Free Clicks: Think Nobody Clicks on Google Ads? Think Again! 2012 Web.

Machiavelli, Nicolo. n.d. The Prince. n.d. PDF file. 2014. Web.

Smith, Jacquelyn. The Companies with the Best CSR Reputations. 2013. Web.

With the recent and quite radical changes in the IT sphere, major companies specializing in providing the related services were forced to reconsider a range of their strategies and shift to new and improved techniques of expansion into the world market. Among such publicly traded organizations, Google, Inc and Twitter, Inc must be mentioned.

Both companies seem to have embraced the changes, managed to admit their mistakes and considered the creation of mergers and acquisitions as a viable strategy to adopt. As a result, both companies are currently growing by acquiring less competitive firms and expanding into the world market.

Indeed, a single look at Googles policy will reveal its expansion plans: the organization has acquired BlackBerry, Boston Dynamics, Nest Labs, Inc. and Dropcam, and created a range of mergers, including the one with Motorola Mobility. It is clear that Google is planning to grow further and exploring new opportunities by creating new mergers.

Such an intense struggle for the dominance in the global market can be explained by the fact that Google has recently had to refuse from a range of ideas, which seemed quite promising a few years ago.

As the recent announcement on Google explained, the company had to abandon a number of the projects that it used to view as promising several years ago; for example, Picasa, Google Docs and Orkut were shut down, since similar and more successful services were created by other companies (Siganos, 2013).

As the representatives of the Google, Inc. explained, the services that were closed down had been created before new opportunities for communication and data exchange emerged; therefore, being ahead of its time, Google finally had to yield to more advanced companies.

Consequently, to regain its status, the company had to conjure a different strategy. As a result, the idea of merging with the companies that have designed more advanced services appeared to be the solution.

Twitter, Inc., however, had other reasons for choosing the policy of mergers and acquisitions. It is remarkable that, unlike Google, which was initially targeted at providing a variety of services, twitter was designed solely as a social network from the very creation of its concept (Sprangler, 2013).

Hence, the reasons for the leader of Twitter to adopt the strategy of mergers and acquisitions, shifting to the idea of corporate governance, have a different line of reasoning to be based on. Unlike Google, which does not seem to have very strong rivals except the apple, Inc., Twitter has to deal with a lot of competition, primarily, the rivalry with Facebook.

Though each of the companies bases its philosophy on a unique concept and includes original options for its users to enjoy, both fall under the category of social networks and perform the same function, i.e., facilitate the process of users communication by transferring information from one user to another.

Therefore, twitter clearly needed to revamp its reputation by growing larger and more influential, which resulted in a range of acquisitions and mergers with various companies, primarily, the ones dealing with analysis and advertisement.

Though each of the organizations has its own reasons for choosing the strategy of mergers and acquisitions, both Twitter and Google seem to be going in the same direction. The results of these steps, however, are bound to be quite different as well.

Reference List

Siganos, A. (2013). Google attention and target price run ups. International Review of Financial Analysis, 29(3), 219226.

Sprangler, T. (2013). Twitter nets social-TV startup blue fin. Multichannel News, 34(6), 22.

In most locations, the term Google it is synonymous with searching. Such has been the widespread popularity of Google that the term Google has become a verb (Ferrell & Hartline, 2008). However, despite the success of the search engine in various locations, entry into certain Asian markets has been unsuccessful.

Local search engines are still the dominant players in these countries (Kennedy & Hauksson, 2012). China, South Korea, and Japan are some of the Asian countries where Google is a minor player in the industry. In South Korea, Naver is the dominant search engine. The company accounts for 76% of internet searches.

On the other hand,s Google and Yahoo each account for a mere 3% of the internet searches. Naver has several features that make it more popular with South Koreans than Google. Unlike Google, Naver is a portal that incorporates news, e-mail, discussion groups, stock market information, videos, restaurant reviews among other features (Peng, 2011, p. 347).

Naver also caters for the interests of South Koreans. The search engine produces results that are relevant in the South Korea. In addition, Navers Knowledge Search has a database that enables users to ask questions to each other and provide answers. If the answer is not correct, users can change the answer Wikipedia-style. Knowledge Search has a system that rewards points to people who submit questions and rates the answers provides by other users (Peng, 2011).

The above features are non-existent in Google. Therefore, the features provide Naver with a competitive edge over Google. In Japan, Google and Yahoo! Japan are the major search engines. Google has a market share of slightly less than 40%, whereas Yahoo! Japan has a market share of slightly more than 50%.

The Japanese economic system is the major factor that has led to the success of the foreign companies in the market. The Japanese market promotes the development of free enterprises. This has led to the success of the American search engines in the country. On the other hand, the Chinese market has several restrictions. These reduce the likelihood of success of foreign companies in the market.

In fact, in 2010, government censorship of Google made the company threaten to withdraw from the Chinese market (Herold & Marolt, 2011). On the other hand, the inability of Google to provide services that would enable it compete effectively with Naver is the main reason for the companys failure in South Korea. Naver provides information that is relevant to the South Korean society.

In addition, Naver pioneered the presentation of search results from different categories on the same page (Peng, 2011). Naver competes with Google using the basis of quality of products. Naver displays search results that are relevant to the South Korean society. The launch of Naver in other countries would be a success if it follows a similar path.

Naver should provide results that are relevant in these countries. Relevance of search results would lead to the gradual increase in the popularity of the search engine. This would enable it to rival the dominance of existing search engines. However, understanding the needs of a foreign society would be a hard task for Naver to achieve.

The addition products of the search engine would help in attracting and retaining users. Naver can effectively compete with Google since its competition is based on quality (Hoskisson, Hitt & Ireland, 2008). Relevance of search results determines the popularity of a search engine.

Googles rise to become the worlds leading search engine is due to the ability of the search engine to display relevant results. However, Google has been unable to replicate its global success in South Korea. The added features of Naver and its ability to display relevant results is the main factor that has led to Googles failure in South Korea.

References

Ferrell, O.C. & Hartline, M.D. (2008). Marketing strategy, 4th Ed. Mason, OH: Cengage Learning.

Herold, D.K. & Marolt, P. (2011). Online society in China. Oxon: Taylor & Francis.

Hoskisson, R.E., Hitt, M.A. & Ireland, R.D. (2008). Competing for advantage. Mason, OH: Cengage Learning.

Kennedy, A.F. & Hauksson, K.M. (2012). Global search engine marketing: Fine-tuning your international search engine results. Indianapolis, IN: Que Publishing.

Peng, Mike, W. (2011). Global business. Mason, OH: South Western Cengage Learning.

Business Model

Core Business

Google has ads, search and apps as the main core businesses, search is the main core technology of Google; ads are their essential business proposition; while apps are their umbrella over their web-based software, which can be assessed anywhere and at anytime (Google.com, 2011). Google search produces index of web pages that can be found and returns most applicable outcomes by assessing at least 200 quality aspects.

The search and ads are separated in that when searching ads appear where they are applicable, the ads offer helpful information for commercial enquiry. While apps are online set of collaboration and communication tools that enable all the users data and applications to be stored online (Google.com, 2011).

Microsoft core business on the other hand, include: Server and Tools, Microsoft Business Division, Windows and Windows Live Division, Entertainment and Devises Division and Online Services Division (Microsoft.com, 2011). The companys segments offer management with complete financial outlook of the key businesses.

These segments facilitate alignment of objectives and strategies across sales, development, marketing as well as services organizations, they also offer a structure for rational and timely allocation of sales, development, marketing as well as services resources in the businesses (Microsoft.com, 2011).

Plant and/or services

Googles products and services include; first, search that has items like Rich Snippets, Music Search, Google Suggest, Real-Time Search, Integrated tools, video, Finance, Images, News, Book, Groups Information, and Blogs among others (Google.com, 2011).

Secondly, advertising that includes Google Search, Google Display (Google-owned Sites, and DoubleClick ad Exchange), AdSense, Google Mobile, and Google Local. Finally, applications products like Google Docs, Google calendar, Gmail, Google Groups, Google Reader, Google Sites, YouTube, and Blogger among others (Google.com, 2011).

On the other hand, services and products of Microsoft includes; phones, servers, intelligent devices and PCs operating systems; server applications meant for the disseminated computing environments; solution applications for business; productivity applications; server and desktop management tools; online advertising; video games; and tools for software development (Microsoft.com, 2011).

Besides the firm designs and also sells hardware together with accessories for Xbox 360, hardware products for Microsoft PC, Xbox 360s Kinect, and Xbox 360 entertainment and gaming console (Microsoft.com, 2011). The firm also offers product, solution and consulting support services as well as training and certifying computer system developers and integrators.

Microsoft provides cloud-based solutions, which offer clients with services, software and content via the internet through pooled computing resources situated in centralized data hubs (Microsoft.com, 2011).

Management style

Gates has managed Microsoft from its establishment up to now as a software giant through the use of rather unorthodox leadership style. The achievement of Microsoft and Google is attached to philosophy as well as practice of the servant leadership. The most popular advice is it is all about surrounding yourself with intelligent people and getting out of the way, as stated by Bill Gates, Microsofts Co-founder (Brown, 2007).

It appears that Sergey Brin and Larry Page, Google founders, have also implemented this management strategy for Google, which has made it to be successful by launch new services and products as discussed above, making the Googles stock to increase from its IPOs price of around $85 to the most current of about $588.19 (Elmer, 2011). Microsoft is also doing well.

Innovation track record

Google is perceived as the biggest search engine in the world, since it offers an easy-to-use, and free services, which repeatedly returns applicable outcomes at a very high speed. But the heart of it is advertising which is highly profitable, highly successful as well as highly innovative business model for improving advertising industry.

Along with an ever growing range of numerous new service and product establishments at the centre, Googles main concentration is to utilize many of these in order to drive improved traffic to Google ever-increasing mobile, online, and soon-to-be offline, income flows from advertising.

Google commands almost 32% of the market share through AdWords and AdSense in the online advertising. As a result the firms stock prices have significantly increased (Innovationleaders.net, 2010).

Given the Microsofts scale, size as well as its success level, it is predictable for Microsoft to draw criticism.

For instance, the year 2007 was a bad year for the firm since European Commission and US Justice Department took action opposing the firms monopolistic practices as well as the media giggling about Zune, music offering, along with malfunctions in Vista whilst all together making threatening noises on the rise in unsettling rivalry from Google (Innovationleaders.net, 2010).

In spite of this, Microsoft earned $51 billion as revenue and carried on with innovation, remaining among the top 10 companies investing in Research and Development internationally.

Microsoft has a leading track record in the sector in acquisition of patents, keeps continued organic growth, provides work for about 79,000 individuals in 102 nations and is currently exploiting expertise as well as transformation through acquisition (Innovationleaders.net, 2010).

Financial ratio analysis

The liquidity ratio as measured by current ratio shows an increase in Googles liquidity position from the year 2008 to 2009 but in 2010 the liquidity position declined implying that the firm was using more of the current liabilities.

On the other hand, Microsofts liquidity position improved throughout the three years (2008 to 2010) implying that the firms liquidity position was improving as it was using less of its current liabilities. In 2010, both firms liquidity positions were satisfactory since the ratio was more than one but Google was more liquid.

The profitability ratio as measured by Return on Assets shows that Googles profitability position improved in 2009 by a margin of 2.79% to 16.10% while in 2010 the profitability declined to 14.70%. This means that in 2009, Googles efficiency in the use of the firms asset to generate returns to the owners had improved but in 2010, Google was less efficient in generating returns to the providers of funds as shown by the drop in the ROA.

While as measured by Return on Equity, Googles profitability increased from 14.97% to 18.11% in 2009, thus the firms ability to generate returns to equity shareholders from owners supplied funds had increased. The increase in profitability also increased in 2010 to 18.39% thus the firms efficiency with which it used the shareholders funds to generate returns had improved.

On the other hand, ROA ratio shows that Microsofts profitability position declined in 2009 by a margin of 5.58% to 18.71% this means that the firms efficiency of utilizing the owners assets to generate returns had declined.

But in 2010, the ratio improved implying that the firms efficiency with which it utilized its assets to generate returns to the providers of funds had improved. Similarly, ROE indicates the same trend of decline in 2009 and an improvement in 2010.

This means that there was a decline in profitability of the firm in 2009 and the firms inability to generate returns to shareholders from the owners supplied funds and vice versa for 2010. In general, Microsoft is more profitable than Google considering that the higher the ratio the higher the profitability of the firm.

The leverage ratio as measured by debt ratio indicates that Googles gearing had increased throughout the three years. In 2008, 2009 and 2010 the firm raised 11.11%, 11.09% and 20.07% of debt from the total capital employed respectively. Google gearing level was satisfactory since the ratio in the three years was less than 50%. Its increase throughout the period was as a result of increase in liabilities.

Conversely, Microsoft was highly geared in 2008 as the ratio was more than 50% but the gearing level reduced in 2009 and further in 2010. Thus, in 2009 and 2010 the firm was not highly geared and the gearing level was satisfactory in the two years since it was less than 50%. Therefore, Microsoft is more geared compared to Google, implying that Microsoft has a higher financial risk.

Googles efficiency with which it used its assets to generate sales increased in 2009 and declined in 2010 as measured by Fixed Asset Turnover ratio. This implies that in 2008, 2009 and 2010 the firm generated $1.88, $2.09 and $1.80 of sales from every dollar invested in fixed asset (see Appendix).

Conversely, Microsoft utilization of the assets to generate sales remained constant in 2008 and 2009 at $2.04 of sales for every dollar invested in fixed asset but in 2010 it increased to $2.05, indicating an improvement in efficiency with which the firm was converting assets into sales.

Thus, based on the higher the ratio the more efficient the firm is this means that Microsoft is more efficient in managing its assets than Google.

The evaluation ratio as measured by Dividend Payout ratio indicates that Google does not pay dividend this may be due to the reason that it is in the growth stage in its Life Cycle and it needs more cash to finance growth particularly in innovation.

While as measured by Price/Earnings ratio, Googles investors in 2008, 2009 and 2010 would take 22.86, 30.07 and 22.25 years to recoup their initial investment in shares from the earnings generated by that investment in Google.

Conversely, Microsoft paid 23.16%, 31.90% and 24.41% of the earnings attributable to equity shareholders inform of dividends in 2008, 2009 and 2010 and retained 76.84%, 68.1% and 75.59% respectively. P/E ratio indicates that Microsofts investors in 2008, 2009 and 2010 will take 9.54, 17.85 and 12.77 years respectively, to recoup back their initial investment in the Microsofts shares from the firms earnings.

In general, Microsoft will withstand a major recession considering that interests are reduced at this time by the government, thus the firm will benefit from the use of more debt and its profitability and efficiency of managing assets will strengthen it during recession than Google.

Profitability

As discussed above Microsoft is more profitable than Google, this means that Microsofts management is more effective in generating returns from the assets employed as well as from the owners supplied funds. This means that it is able to meet its short term obligations and shareholders will obtain reasonable returns on their investments in form of dividends as well as capital gains.

On the other hand, Google is less profitable than Microsoft but it is able to meet its short term obligations; however, Googles shareholders will not obtain reasonable returns on their investments in form of dividends, since Google is in its growth stage and its share price is very high with high volatility implying that the investors can benefit from the capital gains.

Therefore, this information can influence investors decisions in that those investors seeking long-term investments in order to earn dividends will go for Microsoft while those who are speculators and are not interested in dividends will go for Google in order to benefit from capital gains as a result of taking advantage of arbitrage pricing.

Financial-based guidelines

To select which of the two firms to invest in the investor should carry out a fundamental and technical analysis. Fundamental analysis considers factors like foreign and domestic economic and political events, government policies, weather and change of trade prospects as well as companys financial statements. While technical analysis considers the share price movement and utilizes this data to forecast price movements in the future.

Investor should also consider own financial objectives, these objectives describe the investors expected returns and investment timeline (long-term or short-term). Finally, investor should consider risk-reward tolerance by determining their risk level and whether to diversify the risk by investing in both firms (Maxinvest.com, 2010).

References

Brown, K. (2007). Servant Leadership- A new model for the 21^st century. Web.

Elmer, V. (2011). What would Larry Page do? Leadership lessons from Googles doyen. Web.

Google.com. (2011). Business overview. Web.

Innovationleaders.net. (2010). Innovation leaders. Web.

Maxinvest.com. (2010). How do I choose a company to invest in? Web.

Microsoft.com. (2011). Company information. Web.

Appendix

Running a business effectively is connected to estimating the environment of operation. In fact, environment appraisal is the foundation of crafting a productive business strategy and achieving set objectives and desired levels of operational performance. It is motivated by the necessity to remain competitive and outperforms rivals in a constantly changing environment. Nevertheless, not all companies are equally efficient in conducting business environment analysis and recognizing the significance of this process for maintaining a competitive edge.

What Is Business Environment?

Before conducting environmental analysis, it is imperative to understand the very essence of this concept and its elements. That said, the business environment is, in fact, an operational surrounding of a company or organization  a combination of factors and forces, which have a direct influence on business performance and operational outcomes. Some elements of this surrounding include technologies, developments in the industry and international economic environment, political and governmental changes, natural factors, and socio-cultural issues (Subba, 2010).

What Is Environmental Analysis?

Once a company recognizes that it is significantly affected by the external business environment, senior managers acknowledge that they should conduct an environmental analysis. This appraisal is defined as the investigation of all factors mentioned above to determine threats and opportunities for the companys further development and drawing strategies for overcoming potential difficulties to achieve success (Subba, 2010). There are three dimensions of environmental analysis  macro analysis, assessment of the industry, and appraisal of the organization itself. Macro analysis is the evaluation of the general business environment both in a country of operation and at a wider scale, e.g., regional or global economy. The scope is determined by the companys size and its involvement in economic relations. Macro analysis is paramount for identifying external opportunities for further development. Industry appraisal is connected to understanding outer threats. As for the organization analysis, it is necessary for obtaining apprehension of internal strengths and weaknesses (Harrison, 2014). Altogether, they contribute to developing a strategy for maintaining a competitive edge.

Google: Maintaining a Competitive Edge?

Google is building operational capacities to win the Indian market. The focus is made on powerful enterprises as the foundation for success. The core of the strategy is making Gmail, Google Docs, Google Drive, Google Cloud platform, and similar applications popular among the biggest companies in India. The objective of this initiative is to outperform competitors such as Microsoft and IBM and turn enterprise customers into the driving force of the companys future development (Mendonca, 2016).

The proposed change is connected to environmental analysis in several ways. First of all, Google realizes its primary weakness: lacking experience working with this market and addressing its peculiar needs. That is why it involves local professionals for filling positions of sales executives at middle and senior levels. They are responsible for developing effective sales strategies, promoting Googles products, and targeting necessary consumers. Moreover, the company recognizes major threats, i.e., the operation of competitors such as IBM and Microsoft. Here, it addresses the challenge with its significant strengths  the power of the brand and diversified products, which are applicable to satisfying business needs and solving business matters at all levels. Because rivals focus on small and medium enterprises, Google decided to target the most influential Indian firms and offer a wide scope of products and services to them. This decision is wise because there is no intersection of operations with competitors, as they work in different sectors. Finally, Google managed to take advantage of opportunities because of the size of the Indian market, which is related to the potential for boosting sales and development (Mendonca, 2016).

At the same time, Google introduced new products, which would attract ordinary users. They are Google Assistant in Hindi, YouTube Go, Google Station (free Wi-Fi stations in trains), and new options for using Google Play and Google Chrome (Chandran, 2016). This strategy is an appropriate example of business environment analysis due to the rate of Indias economic development and enormous economic potential. Because most influential companies are interested in increasing their share in this market, offering new products is a critical strategic decision. However, the Indian market is a turbulent environment because of the inability to guarantee that its growth potential will be sustainable in the future, especially keeping in mind the recent slowdown in China that was a success story and the unpredictable influence of Brexit on Indias further development due to trade ties with the United Kingdom (Anand, 2016).

Why Does It Matter?

Googles experience is significant because it proves that adequate reaction to market changes and environmental analysis is the foundation for increasing influence in the global economy and improving economic performance. It is an appropriate example, which illustrates that a companys strengths and weaknesses can overcome threats and maintain a competitive edge. Still, it is important to remember that Googles practice can be carried over to a smaller scope. It means that just like the company recognized the potential of transmitting operations to India and launching new products in this market, smaller companies might become industry leaders by finding gaps in local economies or areas of potential growth and take immediate steps to operate in these spheres.

References

Anand, K. (2016). Four global challenges for Indian market are listed by finance minister Arun Jaitley.The Economic Times. Web.

Chandran, N. (2016). Google unveils 5 products for India market  including one that could go global.CNBC. Web.

Harrison, A. (2014). Business environment in a global context. Oxford, UK: Oxford University Press.

Mendonca, J. (2015). Google to take on Microsoft, IBM as it looks at enterprise business.The Economic Times. Web.

Subba, P. R. (2010). Strategic management [Including skill development]. Mumbai, India: Himalaya Publishing House.

Introduction

This is an all too famous American corporation that is both public and multinational. This company makes people concerned earn a living through hosting of various products and services that are internet based. Also through development of some products that run on the internet, it enhances their visibility. Therefore, this company basically makes money through advertising especially via its program of Ad Words. The two founders of this company are Brin Sergey and Page Larry. They are known to have first started Google way back while candidates for a P.H.D Program in the University of Sanford. With a mission of organizing information in this globe so as to eventually make it worldly useful and freely accessible, they set forth to incorporating this company on the 4^th of September in the year 1998. As of now, this company is based in California Mountain View (Abt, 2007).

Google Marketing

This giant company boasts of having servers running into 1, 000,000. Therefore, this company has been able to process requests from clients for various searched items in bulk. These requests run into millions and it is estimated that up to 1 billion requests are processed on a day to day basis by the search giant Google. This company also has an equivalent number of data centers world wide. The most interesting thing about this company is its average rate of growth. The growth has been quite rapid and has been coupled with partnerships along with other acquisitions. Additionally, there has been development of products that seem to be quite adapted to a various platforms. This has led to growth of a huge community internationally and also creation of some customers who have time and again proved their loyalty.

Market Size

The size for the Google market is enormous and this size is growing with each passing day. This is from the fact that everyday, more people around the world are gaining access to cheaper internet access (Ghemawat, 2003). This would literally translate to more people getting involved and sucked up into the web. With this huge interaction, therefore many people would want to find something on this wide web. Since they have had so much about Google the free search engine, it would be most likely be the first place that they would visit. Moreover, who knows, these first timers might end up loving the search optimization provided and would make Google their default search engine.

Market Trend

Currently a huge percentage of the number of searches by clients world over is directed towards Google. Up to 65% of all internet search is directed to Google with it closest competitor Yahoo getting only 17 %. Microsoft is 3^rd with 10 % of all search requests being directed to it. With ads on the banner getting clicked at a disappointing rate of approximately 1 Percent, the search engines have all turned into putting ads on result page of search requests. This has on the other hand led to an increase in total revenues. However, Google still leads in the total revenue collection and as much as a low of 20 Percent of all ads get clicked, it seems to be the better option of making money than the conventional banners.

Alternative Use of Google

Google could alternatively be used as s dictionary by individuals. This is from the fact that it occasionally returns the definition of the search word that you have carried out. Additionally, it could be used as a calculator for computing right from simple calculations to some complex ones. The search engine could also be employed as a convertor e.g. from mile to kilometers or from any other unit of measurement to another. To the jobless fellows, Google stands out as a place offering freelance work. This is through writing and publishing of articles online to be read later. These have been some of the marketing strategies that the company uses to ensure more revenues are generated. Additionally, there is the diversification part in which the company

Human Resources

World over, Google is known for its marvelous efforts towards archiving a culture that is informal in its corporate governance. This has led to the company being listed as one of the best in terms of a good work environment. It is no wonder that in the year 2007 and the following one of 2008, it was ranked as the best company for anyone to work for. Between the years of 2009 and last year (2010), it was also ranked as the 4^th best company (Milian, 2010). Additionally, it has received nominations in the index of attraction of talents. It is actually known to be the highest attractor and eventual employer of students that have just graduated. This phenomenon does seem not only acting to ensure that it receives the best fresh minds, but that it also captures the interests of most of its customers who are the same young graduates. However, what seems to be attracting these graduates other than the relatively good pay seems to be the kind of casual philosophical corporate principles. One such principle which also forms part of the companys mission evolves around a belief that wealth and money can be created without any necessity for evil. Also included is one implying that although working is quite challenging, such challenges could be very fantastic.

The company seems to be highly motivated towards ensuring that its employees are coached in some kind of way to develop new talents. This is through their policy that is famously known as ITO (Innovation Time Off). In this policy, all employees in the engineering department are highly encouraged to take up to 20 % of the companys time on other projects. The company only insists that these projects should be interesting to them and not some one else i.e. they ought to follow their heart. It is such kind of encouragement to its employees that has seen the corporation unveil some of its new fascinating services. Some of these new inventions include Orkut, Google News, Ad Sense and the now most captivating Gmail email account. This has even lead to a new trend in the launch of new products in which half of their innovations is always attributed to ITO. This to some sense could be viewed as an agile process (Desouza, 2007).

Founders Awards is some form of reward. It is usually given in stocks. To Google, it is a way of appreciating achievements that are entrepreneurial and also quite out of the ordinary and that are as a result of its ITO project. Through this project that first started in the year 2004, Google has seen the retaining of some of its best minds. With such outstanding system of rewarding innovations, there has been an upsurge in the number of new applicants for job at Google (Samji, 2008).

The strength of Google actually lies in its data center. This is a box that is between 20 to about 40 feet. In this box, there are approximately up to 5 thousand processors of Opteron. Additionally, there is a 3.5 pet bytes value of free storage. However, the most fascinating fact is that due to the size of this container, it could literally be transported and dropped anywhere Google wishes in just overnight. In the long run, by installing any one such box in any place that Google has access to fiber optic connection, the internet would be instantly turned into this huge grid offering storage and powerful processing. Therefore, this translates into various applications being delivered to you like the TV alongside with the internet as compared to a router that might be the best in the offering by some. Additionally, the data center being close to the consumer ensures a reduction in the average latency. On the other hand, the major disadvantage with Google is the fact that it faces stiff competitions from its rivals like Microsoft. This is in essence that while Microsoft benefit from vending its softwares, Googles major income stream is through advertising on its search engine (Moore, 2010).

Conclusion

From the look of things, Google is set to become the dominant player in multimedia, internet, industries of telecommunication and search. This is from their continuous efforts towards enhancing experience with several of their products like mail, chatting and many others. Although it seems to be attracting some copyright issues especially in the U.S.A, this problem ought to decline with time as they make clear their intentions to the general public i.e. make sure that information is freely accessed by everyone everywhere without any restrictions.

References

Abt, L. (2007). Google Inc Marketing Case Study Analysis. California: Riviera College.

Desouza, K.C. (2007). Agile Information Systems: Conceptualization, Construction, and Management. New York: Butterworth-Heinemann.

Ghemawat, S. et al. (2003). The Google File System. Operating Systems Review, 37(5): 12-15.

Milian, M. (2010). Some Google Employees Defect, Then Rebel. Web.

Moore, R. (2010). Introducing Google Earth Engine. Web.

Samji, S. (2008). An Award for ASER. Web.