Google is one of the best examples of companies that have boomed owing to the eruption of the Internet at the beginning of the 21st century. The companies based their entire business model on the Internet and trust the growth potential of this emerging media. After a slump in the early 2000's, the Internet industry is on the rise. A number of Internet companies are among the wealthiest firms in the world. Through Innovative management, Google has managed to develop itself to become a stalwart in the Internet industry. We will see through this study how Google managed to reach the top and how it has been able to sustain at that level. Then we will analyze Google's perspectives for the future.
[...] To reach its current position, Google has to deal with several issues, to make good strategies and always look forward to remain competitive. Important steps in Google's development: Google grew with the Internet development. At the beginning of the Internet, a few search services were existing. Yahoo was one of the first companies who saw the interests of this new market. First it had its own search system based on human editors. This system was quickly replaced by AltaVista's automatic search. [...]
[...] Google's development strategy Table of contents Introduction I. Google's overview Google early success Google's organization II. Google development strategy Google's deal with AOL The competition with Microsoft for AOL III. Google's perspectives Technology and medias markets Is search a winner-take-all business? The future of the search business Google's plans for the future Introduction Google is one of the best examples of companies which have boomed thanks to the Internet at the beginning of the 21st century. These companies base their entire business model on the Internet, and trust the growth potential of this emerging media. [...]
[...] (See next part). Thanks to this, Google has always had an image of innovative brand. The efficiency of the algorithm system and the paid listing model are two perfect examples which shows the effectiveness of this method. • The Internet's boom Another factor for Google's growth is the explosion of the Internet at the beginning of the new century. Even if it is an indirect factor, Google growth is linked to the increase of the internet users (see graph below) The development of the high speed internet those last years permitted Google to develop new services. [...]
[...] In 2004, Google received 340 million dollars in advertisement revenue from AOL. That is why 1 billion dollars offer seems to be a lot. But Google cannot afford to lose this source of revenue. In 2004, advertisement revenue from AOL was 10% of Google's global revenue[5]. Moreover, this investment might be repaid within the next three years. The deal will last until the end of 2010. If we consider that advertisement revenue from AOL remained the same until then (which is not the case; Google should earn at least $ 1.7 billion. [...]
[...] Several new services were created this way. Those new services permit Google to attract new users on its search engine. The fact that company's decisions are taken only by three people, offers Google a stability which is precious in this industry. II. Google's development strategy Google's deal with AOL The billion dollars spent by Google in December 2005 might seem too much for Google's shareholders. But this investment is a good way for Google to secure its leader status. At the time, with more than 75 million subscribers, AOL was the first Internet provider in the world[4]. [...]
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