Analysis of the Google Business Model

Paper Summary:

This paper provides an analysis of the business model used by Google, starting with a description of the company and followed by a look at how it developed from being a search engine to the most profitable advertising model online.

Outline:
Synopsis
The Business Models of Google
Google's Future
Summary

From the Paper:

"From this standpoint, Google's progression as a business model from purely being a search engine to the most profitable advertising model online is analyzed in this paper. Many scholars including Castelluccio (51), Falcioni (4), Sloan Management Review Editors (49) and Wolcott & Lipptiz (83) content that Google's primarily advertising-based business model which is highly profitable can over time position itself to be immune from commoditization and price competition by ensuring there is a consistent stream of new services introduced globally. This is consistent with the concept of continually pursuing new capabilities to deliver increased customer value, thereby strengthening and extending the advertising business model Google is based on.
The research completed by S G Thompson, M Cioffi, H Gharib, N Giles, Y Li, T D Nguyen (29, 30, 31) illustrate that the fundamental technologies that Google is based on also serve as a strong foundation for further advertising-based services to compliment AdWords and AdSense, Google's two dominant advertising-related businesses today. Ozmutlu (656) discusses in his research the technological side of Google and how advancements and developments in search clarity and ranking have a direct and immediate contribution to advertising sales. From this standpoint of the technology side of Google contributing to advertising business model validation including advertising rates, fees, cost structures, and value to customers, it becomes clear that the company has defined processes that quickly turn technological advantage into competitive and financial gain."

Sample of Sources Used:

• Michael Castelluccio 2003. Google -an index for the world. Strategic Finance 84, no. 11 (May 1): 51; (Accessed December 7, 2007).
• Craig Henry 2007. Periscopic media tour. Strategy & Leadership 35, no. 3 (May 1): 56-62; (Accessed December 7, 2007).
• John G Falcioni. "Innovation (and Google)." Mechanical Engineering 128.12 (2006): 4. ABI/INFORM Global. ProQuest; December 7, 2007 http://www.proquest.com
• Google Labs, Research papers on Natural Language Processing. Indicates focus of Latent Semantic Indexing. Accessed from the Internet on December 7, 2007 from location: http://labs.google.com/papers.html#category9
• Ben Murray 2007. Brands must listen to Web Chatter. Strategic Communication Management 11, no. 5 (August 1): 9. (Accessed December 7, 2007).

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