Preview

Google and Its Innovative System

Better Essays
Open Document
Open Document
1452 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Google and Its Innovative System
Google, as an internet-based company founded in 1996, which has done a tremendous progress in the past 13 years, is particularly successful and innovative. In 2007, Google surpassed Microsoft as the most visited site on the Web (Kopytoff V, 2007). The company 's influence on the Web is undeniable. Many would ask: How did Google manage to grow up from a nobody to a giant of internet-based companies in such a short time? The answer has much to do with one of the most important elements of Google 's organizational culture - Innovation. This paper will begin by discussing the innovation ecosystem built by Google, it will then show how Google works under this innovation ecosystem and why Google deploy this type of management, finally, it will consider what it brings to this company. Google is a company that floods with innovation, and the source of those innovations is the innovation ecosystem. This innovation ecosystem is a type of management that involves organizational innovation and open innovation. “Organizational innovation can be considered as the processes of developing new products or services, technologies, systems,

business models and ideas” (Samson & Daft 2009, pp.223). Open innovation means “extending the search for and commercialization of new ideas beyond the boundaries of the organisation”(Samson & Daft 2009, pp.414). This ecosystem consists of four major parts of people: content providers, consumers, innovators, and advertisers. All elements within the framework affect each other. The most important part of this ecosystem is consumers. Google has an enormous amount of users, there are 47.3% of total internet population uses Google as their main search engine, which is about “132 million unique visitors per day (as of 11/2007)” (Lyer & Davenport 2008, pp.62) and over 304 million searches per day(US core search report 2009). These users search information and reveal interests, which the company could consume targeted advertising on targeted group of



Bibliography: ComScore Releases June 2009 U.S. Search Engine Rankings, [Online], 2009, Available: http://comscore.com/Press_Events/Press_Releases/2009/7/comScore_ Releases_June_2009_U.S._Search_Engine_Rankings Google Finance, [Online], 2010, [2011,March 26]. Available: [2011, http://www.google.com/finance?fstype=ii&q=NASDAQ:GOOG March 27] Lyer, B. & Davenport, T. H. 2008, „Reverse Engineering, Google‟s Innovation Machine‟, Harvard Business Review, April., p. 59-68. Kopytoff, V.2007, Google surpasses Microsoft as world 's most-visited site, [Online]. Available: http://articles.sfgate.com/2007-04-25/news/17240342_1_google-coms core-unique-visitors [2011, March 27]. Samson, D. & Daft, R, L. (eds) 2009, Management, South Melbourne, Melbourne. Zee, M, K. 2010, Google Surpasses Coca Cola to Become the Second Most Valuable Brand on The Planet, [Online]. Available: http://thenextweb.com/socialmedia/2010/02/18/google-surpasses-coc a-cola-valuable-brand-planet/ [2011, March 25].

You May Also Find These Documents Helpful

  • Good Essays

    Google is one of the largest and well-known companies in the technology industry. They have been known for their search engine for many years now. Also, Google has expanded their business into several other areas in technology from smart phones, tablets, android, and business software. Google’s search engine is known for reliably getting its users the information they want. One unique aspect that Google has is its business organizational structure is that it is flat and formed up into project teams, unlike most businesses.…

    • 801 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Fin 516 Mini Case

    • 1678 Words
    • 7 Pages

    Google Inc. is one of the leading computer search engines in the world and is continuing to grow as the…

    • 1678 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Itm434 Mod 5 Case

    • 1036 Words
    • 5 Pages

    Google is by any standards a huge corporation, generating in 2009, annual revenue of $23,651,000,000. At its core is its search engine, which processes over a million search requests every day. It is globally involved in the advanced development and application of multinational public cloud computing, Internet search and advertising technologies and its declared mission from the outset has been ‘to organize the world’s information and make it universally accessible and useful’.…

    • 1036 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Google has created the most popular search engine and organized the information in such a manner that it has created a sustainable competitive advantage as is clear from the fact that although the search engine was started in 1997, the company is still having its domination in the search engine market with a market share of 67.5% in Feb. 2013 as per the data released by comScore, the leading (comScore, 2013: Mar. 13). Company has created a first mover advantage by aggressively building its search engine by adding to it Google Books, Google Scholar, Google Finance, Google News, Google video, Google Images etc. which helped the user search with specific key words. The company has been able to sustain its competitive advantage as is also clear from the fact that General Sentiment, a social analytical company has ranked Google topping the list of brands with a brand value of $756.6 million even surpassing Apple’s brand value (Reisinger, 2012: Aug. 2). This is a result of its innovative products and heavy expenditure on sales and marketing. Google invested $6.143 billion in 2012 on sales and marketing which is 12.2% increase over investment of $4.589 billion in 2011 on sales and marketing (Google, 2012: n.d). There was addition of advertising expenses of $288 million in 2012 (Google, 2012: n.d) which is a reflection of how the company invests in brand building of its products. The diversification move undertaken by the company is the result of innovation at Google and extensive research and development with R&D expenses continuously increasing from $3.8 billion in 2010 to $5.2 billion in 2011 and $6.8 billion in 2012 (Google, 2012: n.d). Although there were initial problems with the…

    • 6024 Words
    • 25 Pages
    Good Essays
  • Good Essays

    Week 4 CASE STUDY FINAL

    • 959 Words
    • 3 Pages

    The following is a case study reviewing Google’s customer value proposition and profit formula linked to its business model. A brief overview of the company will be provided, as well as strategies Google has relied upon to build competitive advantage in the industry, product line, and market. Financial performance, investor relations, and the company’s key resources and competitive capabilities will be discussed, as well as competitive liabilities and resource weaknesses. In conclusion, recommendations shall be provided to Google’s top-management team to sustain its competitive advantage in the search industry.…

    • 959 Words
    • 3 Pages
    Good Essays
  • Good Essays

    kimmie

    • 839 Words
    • 4 Pages

    Founded in 1998, Google just had its most dominant year, with its search market share rising from 77 percent to 83 percent and revenues jumping 25 percent. Because most of the revenue came from search, Google is trying to diversify. But it faces intense competition in every market.…

    • 839 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Inside the Mind of Google

    • 1046 Words
    • 5 Pages

    Google’s greatest creation is its Internet search engine. In 2008 it is estimated that Google earned more than $4 billion in profits and more than 95% of that profit was tied to its advertising coming from its search engine. Google’s search engine was able to revolutionize the way an Internet search engine gave results to a particular search that was conducted. A basic search engine would stack results based on the amount of times your search term appears on each site. On the other hand, Google stacks its results based on its relevance and importance to that…

    • 1046 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Google Executive Summary

    • 1643 Words
    • 7 Pages

    Google has a strong brand image and value throughout the internet. Employees and customers remain loyal to the company and investors remain confident that Google will continue to expand and revenue will grow. In 2009, Google became the world’s first $100 billion brand.…

    • 1643 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Google is the largest search engine and the name of the corporation founded by Larry Page and Sergey Brin, The idea of Google was developed in the dorm room of its founders, while they were students at Stanford University. Google became an official corporation on September 4, 1998. Google’s mission is “to organize the world’s information and make it universally accessible and useful”. According to an article written in PC World, by McCracken, 2005, Google seems to be taking the far-reaching implications of those words literally. After carefully examining Google’s philosophy, mission, value and vision statements, it is evident that Google does what it says.…

    • 957 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Business Google vs Yahoo

    • 1618 Words
    • 7 Pages

    Google just so happens to be world’s largest and most powerful search engine. Google’s top competitors are AOL and Yahoo. Google has a Return on assets of 21.5% and Return on Equity of 25.97% with a revenue growth of 117.56% and its current revenue per share $11.692 (Wheelen 2008). In March 2001 Google.com became available in 26 different languages (Google.com). The search engine has even more now, well over 75. “Google did not have a profitable business model until the third iteration of their popular AdWords advertising program in February of 2002, and was worth over 100 billion dollars by the end of 2005” (seobook). Google believes in innovation to keep on going. Google constantly is developing new technologies and as you can see by its revenue growths it keeps getting bigger and adding more tools for users to access for free. Google is run by highly talented individuals that have the knowledge to build Google farther and farther each year in revenue’s. Google also offers different services for advertisers to network and expand their advertising through tools they provide such as Adsense (Google.com). Google offers all different…

    • 1618 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Google Strategic Plan

    • 3869 Words
    • 12 Pages

    The paper aims to examine the strategic plan by Google and the company’s dominance on the internet. The report will leverage my earlier reporting information by synthesizing the information into an informed strategic plan. Scholarly articles and scientific literatures will also be used as a backdrop for the report. The findings from the report indicate that Google is sweeping the world and is currently a threat to Microsoft. The ability to provide relevant searches and link seekers to opportunities gives the company a competitive advantage on the internet. However, there are many companies competing for dominance on the same niche. Nevertheless, Google’s accomplishment is far-flung and long-standing than any other company imaginable. The report will conclude by providing recommendation with regard to Google’s organizational structure and its management systems. Additionally, in the same end, the study will provide informed recommendations for establishing a corporate diversification strategy for the company.…

    • 3869 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Google in China

    • 699 Words
    • 3 Pages

    “Google Loses Market Share in Wake of China Concerns”. The Business, 27 August 2006, Lexis-Nexis Universe: General News Topics. Online. 15 Feb 2011.…

    • 699 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Google is a well know word in 2012, but the word “Google” or the verb “to google” were unknown at the end of the twentieth century. Google comes from an idea of that began in 1998 with two Stanford’s students. Larry Page and Sergey Brin found an alternative searching engine algorithm for a business that was involved in globalization, innovation and in rapid transformations. Page and Brin did not only find an alternative, but also drove a market with innovation and leadership. In the beginning of 2012 Google inc. reported revenues of $10.58 billion in the fourth quarter of 2011, representing a 25% increase over fourth quarter 2010 revenues of $8.44 billion. (Google investor relations, 2012). Such of success came through a great idea and a successful management. Good management includes attentive evaluations of internal and external factors in the four functions of management: planning, organizing, leading, and controlling.…

    • 952 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Google Inc.

    • 11296 Words
    • 82 Pages

    Thomas R. Eisenmann, “Betting on Google’s Future,” Wall Street Journal, August 24, 2004, p. B2.…

    • 11296 Words
    • 82 Pages
    Good Essays
  • Good Essays

    google case study

    • 631 Words
    • 3 Pages

    Google always apply their technology and creativity to solve important problems and come up with new ideas. As a result they are in a quest of building the world’s best technology and products.…

    • 631 Words
    • 3 Pages
    Good Essays

Related Topics