Google Inc., starting from just a smart algorithm,
has developed a totally new business model,
has become in a few years the world leading
search engine, has developed winning applications
as Google Earth, Google Video, Google Maps,
Gmail, and is enjoying a huge success. Google,
starting from scratch, has won the challenge
against a giant like Microsoft and against the
previous search engine market leaders Yahoo,
Lycos, Altavista, Excite.
Google Market Capitalization.
In nov 2007 Google Inc. was the 5th biggest
US company, considering stock market capitalization.
In nov. 2007 Google shares had topped $700.
Google stock market capitalization in nov 2007
was $230 billion, in July 2008 was $170 billion.
By comparison in July 2008 Microsoft stock market
capitalization was $240 billion, General Electric
market cap was $270 billion, Exxon stock market
capitalization was $450 billion.
The key question is:
why the Google Business Model is a winning Business
The answer is a complex one, and involves more
factors. It's a mix of smart decisions, excellent
marketing strategy, great advisors, highly innovative
and risky business model, and great products.
These are the key resons why the Google Business
had - and still has - a simple, clean, clear,
minimalistic user interface. no frills, just
the logo and the search box - easy and fast
to load. And this was a key feature with the
slow internet connections of the early years
1999 -2001 - while Yahoo and most of the other
search engines were more like generalistic portals,
full of confusion, full of useless features
and useless links, full of annoying banner ads,
heavy and slow to load.
Google had a clear understanding on psychology
of perception, and how the interaction eye/brain
works, while the bigger competitors didn't.
Bottom line is: If the user visits a search
engine, what he wants to get is simply that:
just a search engine.
A search engine which is fast and reliable.
If the user wants a generalistic portal, he
goes to a portal, not to a search engine.
Larry Page and Sergey Brin, the Google Executives,
understood this, and this was what they delivered.
And made their users happy.
had - and has - reliable search results (not
always, but most of the time). Page and Brin's
PageRank algorithm worked well.
got good advice from VC's and from Wilson Sonsini
Goodrich & Rosati. Larry Page and Sergey
Brin have been advised and assisted since the
beginning by John Doerr, VC Partner of Kleiner
Perkins and by Wilson Sonsini Goodrich &
Rosati, the leading law firm of Silicon Valley.
Insight on Google Business
introduced a smart, innovative and quite risky
business model - Adwords - and the pay per click
concept. The risk proved winning, and the innovative
business model worked. Still today Adwords is
the main source of revenues of Google Inc.
5.- In the
following years, Google became a powerhouse
with an impressive pipeline of new great products
- Google Maps, Google Earth, Google Video, Gmail.
And slim revenues.
(continues on page
Vertygo Team Ranking
We are glad to announce that the Analysis Section
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Team Ranking on Google