Example Of Goggle Diversification Essay
Type of paper: Essay
Topic: Google, Advertising, Money, Strategy, Life, Sphere, Innovation, Company
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1) Goggle is one of the most diversified companies in the world. It operates in different fields from advertising to self-driving cars. The main question is how it became possible to Goggle to take under control all the spheres we deal with in our everyday life. According to CNNMoney, more than 90% of its revenues Goggle gets from the advertising. This is what made this company so successful 15 years ago: Goggle was the first to understand that online ad is a key that opens all the doors. Todd Weiss (2014) says, that Goggle is making so much money that they are to try hard to spend them. This is the reason why Goggle always tries new things- they do not afraid to lose their money, they have enough to spend them on innovations and risky ideas. Moreover, if you ask Goggle in what sphere do they work they will answer “information”. So they want to control every step between a user and information he gets. After understanding this fact, Goggle’s diversification seems not so extensive - they operate in the sphere of information. Everything can be related to this sphere: a mobile phone, a searching system and Goggle glasses.
2) How can it be understood that a company’s strategy meets shareholders’ interests? The answer is obvious: shareholders want to get more dividends from their shares; mostly they do not care how. Goggle does not pay dividends to their shareholders. They prefer to reinvest profits in innovations and raise the price of shares. At one hand this approach seems unfair, because shareholders do not get real money benefits. But from the other hand, Goggle’s shareholders get
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the confidence in the future. According to Forbes (2013), Goggle’s strategy looks like this
On the first place there is Earn. This is what shareholders what from their company. We have mentioned that 90% of Goggle’s revenue comes from advertising. Goggle just try to expand the scope of advertising with the help of innovations.
Second step Entice&Defend. Every new Goggle product entices new audience because it makes their life easier and more productive. This is the way to expand the market and ways to deliver ads.
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Expand the pie can be paraphrase as make more leisure time for customers. More free time they have, more frequently they will use internet and see ads and earn money for Goggle. A good example of this purpose is a free-driving cars.
And finally Experiment. Goggle spend billions of dollars on crazy ideas that one day will improve our life.
3) According to Larisa Lambert ( 2011), Goggle’s strategy is discussed all over the world. There are those who stand for and those who stand against it. But there are no indifferent. This is the indicator that Goggle moves in the right direction. To my mind, Goggle activity is a unique example of how making money out of thin air. The fact that its name appears in everyday hi-tech news, one more time proves the effectiveness of its strategy. Moreover, this essay was made with the help of Goggle search.
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Google's ad revenue continues to struggle (2013). CNNMoney. Retrieved from http://money.cnn.com/2015/01/29/technology/google-earnings/
Factor, S. (2013). Deconstructing Google's Strategy: Will Google Eat Your Business Next? Forbes. Retrieved from http://www.forbes.com/sites/stevefaktor/2013/05/23/featuredeconstructing-googlersquos-strategy-will-google-eat-your-business-next/
Weiss, T.R. (2014). Google's Wealth Brings Diversification, Public Scrutiny. Eweek. Retrieved from http://www.eweek.com/cloud/eweek-at-30-googles-wealth-brings-diversification-public-scrutiny.html
Lambert, L. (2011). The Complete Guide to Google AdWords: Secrets, Techniques, and Strategies. Atlantic Publishing Group.