GOOGLE IN CHINA

Google in China



Google in China

Introduction

Google.com establish by two Stanford students abolished their postgraduate study. Now become worldwide biggest search engine on the internet with 82 million users per month have access to more than 8 billion web pages. Larry Page and Sergey Brin opened their first office in a friend's garage together with three employees and until today's success. Google Inc has been hailed as one of most successful internet star-up Company. Now Google is from star-up to growth position.

Strategy

The scheme is the changes they make to their "page grade" algorithms to determine best results for the surfers.

What give Google's technical strategy great power, sustainability, and edge? Ironically and paradoxically enough it is their competitors and the search engine optimization experts (SEOers).

The affrays hold Google ahead by displaying Google what "bad" and slow outcomes looks like. The Seers show Google the changes required for "page rank" to "expel" them, and to stay ahead of everyone else.

Google page grade algorithms are a mystery that they guard with their lives. Not only that, it is the most influential single factor in building a $160billion empire called Google.

You will not find more than three people within Google's world who know the whole working of "page rank", and rightly so, if page rank to remain a winning technical strategy that fits with the overall corporate strategy.

Third, delivery strategy: Google may have the best search results in the world, but if they don't deliver it quickly or in a matter of a fraction of a second, their customer will go elsewhere, like what happened to Yahoo and AltaVista when Google came along.

SWOT and PESTLE analysis

Google, being an international company, receives revenue not only from the U.S., but also from other countries. According to the 2006 annual report, "international revenues accounted for approximately 43% of our [Google's] total revenues in 2006 and more than half of our [Google's] user traffic came from outside the U.S. During this period"(p. 26). The company doing business in multiple currencies makes it vulnerable to currency exchange rate fluctuations, which may occur as the economies of countries experience change.

Since 99% of Google's revenue comes from advertising, nearly 43% of their total revenue will come from advertisers outside of the U.S. As currency exchange rates fluctuate, 43% of Google's revenue will be affected.

Also, the economic situation in countries may affect the companies that advertise through Google. According to Engardio (2005) "the balance of power will shift to the east as china and India evolve". The economic ascending of Asia and china forms an opportunity to Google; as more companies will start up and want inform the world about their products. Also, as the economic situations of the countries become better, computers and internet will become accessible to a larger part of the population. This may result in a higher user base for Google.

The financial position in the U.S. May pattern a risk to Google. Some speculators anticipate the U.S. Economy to ...