Google

Páginas: 12 (2950 palabras) Publicado: 25 de octubre de 2012
Analyze the company´s history, development and growth
Google is a company that was born from a university project in 1996 when their founders stumbled upon a key ingredient for a better search engine: rank search results. But the development of the internet and the search engines in particular initiate years before, when in 1990 Archie, the first internet search engine, was created. Then in 1993the web started to take off with the first web based search engine, developed on the scene of Alta Vista in 1995.
By 1998 when Google was looking for investors in order to keep growing, GoTo.com launched its service that had the philosophy of a search engine that would avoid spam, better results and eliminate bad traffic. Its developer concluded that the better way to eliminate the spam was tocharge for the keywords, but now the concern is how generate enough traffic to this search engine in order to charge the advertisers? They had to invest more than what they were receiving for the advertising to be able to growth and known in the network and it turns so profitable in a short period of time that in 2002 was one of the few dot-com companies that ended on high revenues. After thissuccess GoTo.com was talking to Google another company that was growing fast in the field of search engine, even when they did not have a business model, but they would be interested in merging the two companies. At the end the merge did not go through because Google founders found discrepancies on the way to charge for advertising and finally Google introduce its own advertising service using apay-for-click model, similar to GoTo.com now renamed as Overture. During this 2002 Google decide that with the growing they were having, they would need an experience CEO who help manage the company’s growth and to clarify their strategy, which is: giving the best possible search results to users, keep a clean and elegant web page, get a fair price for advertisers on the keyword them, implement Vickerysecond price auction for the keywords and implement new products like AdWords and AdSense were Google splits their profit with the publishers. Therefore Google has found their Business Model, which finally took them to the big league. The Google´s growth were based on the Vision and Values set off by Brin, Page and Smith defining the unique way of Google doing things, like create a 10 corevalues, with one outstanding and discussed value “Don´t be evil” which means, never compromise the integrity of the search results, another objective is deliver value to users first and then find the way to monetize that value. But they know that to be on the top they need to keep innovating that when “launch early and often” appears. Finally the most important is to keep its employees working on astimulated environment giving them the proper tools to make a difference.
In 2004 Google went public for $85 per share and by the end of the year reach the value of $200 per share. Then in 2005, $300 per share. All this growth could not show something different than that Google having 45% of participation. By 2007 Google revenues were $16.6 billion with a net income of $4.2 billion; this comes fromthe 75% of participation on the advertising web market.
Accomplishing their strategy of keep innovating Google launch a series of products as; Checkout, Gmail, Books, Maps, Froogle (Shopping network) and videos, bringing with them some copy rights issues, where Google came out victorious. In 2007, Google launch another product, “Android”, in order to participate on the $2.7 billion worldwidespending mobile advertising.
In a short period of time, these products have shown their development, for example Gmail got the 25% of the traffic of the competitors, Froogle was ranked number 8 on shopping networks, or with Google Maps. Also there were some products with a lower participation like Orkut. By this time Google Apps was gaining market traction. To succeed Google knew that you need to...
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