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Created on: November 20, 2007
Google is a corporation that is becoming more profitable by the day. This massive internet giant has a continuous growth that has made it one of the richest technology based companies in the world. It currently employs thousands of people has has stretched itself across the four corners of the cyber world. This all begs the question; how are Google achieving this? Google's business model boils down to two primary focuses advertising and innovation.
Google's co-founders Larry Page and Sergey Brin have said themselves that the current pre-dominant business model for commercial search engines is advertising. Google Ads went from a means to generate the necessary revenue to keep the budding search engine on its feet to a profit machine that became a key focus in Google's business plans. This form of advertising is cheap for businesses to buy, easy for Google to distribute and highly profitable. On top of all this, the ingenuity of it is that it allows other individuals to generate their own money by getting other web users to click on the advertisements when they visit their web site. Within no time businesses and indivduals alike wanted a piece of the Google Ads action. This sudden popularity was used as part of the model and therefore allowed Google to get its own name around the cyber world, quickly gaining the title of biggest search giant. It has been growing ever since.
The other side of Google's hugely successful business plan is innovation. The Google brand became one of the internets most well known names within just years of it being in operation. The advertisement system and the quality of Google's search algorithms set the search engine at the top of its game. Realising that their success couldn't just stop there, Google turned to innovation. The company quickly expanded, providing endless services to the individual; Google News, Google Maps, Google Earth, Froogle, Google Scholar, Google Products the list goes on an on. Innovation became a key part of Google's business plan as it allowed them to expand at the rate they do.
In summary, simplistic as they are, these two foundations of the Google business model have been extra-ordinarily successful, and their continuing ingenuity will probably provide growth for this vast company for a long time.
Learn more about this author, Chris Spencer.
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A look at Google's business model
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