Scribd
Upload
61 views5 pages

Business Model of GOOGLE

Google Inc, founded in 1995, is a leader in technology and advertising, offering services like search, maps, and video to enhance user experience. Its business model focuses on creating value through a robust advertising platform, with 96% of revenue generated from ads. To maintain its market position, Google should explore new income sources, streamline operations, and invest in talent while addressing concerns about monopolistic practices.

Uploaded by

sankarmamellapalli
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
61 views5 pages

Business Model of GOOGLE

Google Inc, founded in 1995, is a leader in technology and advertising, offering services like search, maps, and video to enhance user experience. Its business model focuses on creating value through a robust advertising platform, with 96% of revenue generated from ads. To maintain its market position, Google should explore new income sources, streamline operations, and invest in talent while addressing concerns about monopolistic practices.

Uploaded by

sankarmamellapalli
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Business Model of GOOGLE

Introduction
Google Inc is a market leader in global technology emphasising mainly Advertising. Google
has substantially changed the way internet users look and share information. Thanks to its
first most popular search engine in the world, coupled with other services that enormously
respond to customers ‘needs. Founded in 1995 by Larry Page and Sergey Brin, who created
this search engine to allow users to find any website or document on the web based on
keywords or exact searches. Google provides free services for their users. Other than the
search engine, they can also search books on Google Book Search, news on Google News,
videos on Google Video (YouTube) and maps on Google Maps.

Mission
Our mission is to organize the world’s information and make it universally accessible and
useful.

Vision
Make life easier with a little help from our products

Growth
Google’s sturdy financial position is portrayed in its yearly growth in revenues and cash flow.
This strengthens Google due to the healthy revenue generation. In addition, the company
possesses many products that are also considered a robust asset.

Business model
Although there is a lack of consensus regarding the definition and construct of the business
model the BM could be seen as an abstract representation of an organisation, be it conceptual,
textual, and/or graphical, of all core interrelated architectural, co-operational, and financial
arrangement designed and developed by an organisation presently and in the future, as well
as core products and/or services that the organisation offers, or will offer based on these
arrangements that are needed to achieve its strategic goals and objectives. Business models
are seen to bridge the gap between strategy and business processes. There often exists “quite
a substantial gap between these two worlds”

Value Proposition
The value proposition represents Google’s offering, the company aims to create value for its
customers through an internet search, advertising, operating systems and platforms and
enterprise. This is supported through the overreaching principle drawn from the mission
statement which is ‘to manage the world’s information and make it universally accessible and
useful.
Customers
Customer Segment Google customers are segmented into three categories. The Users
segment can organise information in convenient ways using Google products and services,
the Advertisers who have a cost-effective way to display online and offline ads to customers,
and Google Network Members and Other Content Providers who use the AdSense service.
Another extended segment may include mobile device users and makers along with
developers.

Customer Relationships
Channels to build customer relationships can include sales and support services as well as
dedicated teams for larger customers.

Channels
Channels to reach customers include google.com, google affiliate websites and google
AdWords. Channels to reach advertisers and network members include sales and support
teams

Finances
Cost Structure
Primary costs for Google include the IT infrastructure, people, R&D costs and marketing
costs.
Revenue Streams
The primary revenue stream for the company remains its ad-powered search engine. This
totals as much as 96% of all Google revenue.
Canvas Business Model
Google Value Chain Model
The business value chain model serves to identify areas where Google’s information
systems improve its business processes leading to generating profitable margins.
Conclusion
In the final analysis, it is appropriate to say that Google's strategy is sophisticated and has
delivered exponentially profitable results due to providing principally improved advertising
services to multiple client segments, however, given the fact that it is an internally focused
tool which is focusing on what accompany delivers, how it will be delivered and what is
necessary to make what the company is delivering. The BMC appears to be lacking strategy
in terms of competition and other harms outside of the company which may lead to only
uncovering one part of the story in this report. On the other hand, some of Google’s core
strengths may turn to make the firm more unpopular as people despise monopolies.
This analysis implies that google should continue its position as a market leader, develop a
new source of income, cancel unprofitable and unpopular products, reduce legal expenses,
continue its acquisition strategy and invest heavily to retain and obtain human capital.

By
Siva Sankar
322014201013
BBA FM

You might also like