Impact of Internet on Google Inc.

[Name of the Author]

[Name of the Institute]

Executive Summary

Today, internet has become the vital component of our lives; it has not only revolutionized a business world but also impacted a common world as a whole. Due to internet, globalization has occurred which has provided great opportunities to several creative and innovative businesses. Google is among such companies that have taken advantage of internet, and predicted its high usage in the future. The most successful and leading business of Google are wholly dependent on internet. Internet is the platform that has facilitated Google to serve entire world and earn from them as a whole. Google's products as well services (such as search engine, advertising, AdSense, and Youtube) are all internet based and highly used worldwide. In fact the company is still creating and innovating new products in line with increasing internet usage trend, for instance, Google has introduced Android Operating System to enable its customers to use internet application (developed by Google) through mobile devices, which is now increasing greatly with the introduction of smartphones. Furthermore, the financial position of the company is also very strong, though some adjustments needed to me made like utilizing excess cash to correct ROA or maintaining company's operating expenses. Hence, Google is one of those companies that have captured the greatest market share based on internet technology.

Executive Summaryii

Introduction1

Discussion2

Google Business Aspects2

Technology3

Business Model3

Focuses on the Experience3

Internet Socio-Culture & Google Inc.4

Significance of Internet Based Search Technology4

Google's Success Factors6

PigeonRankTM6

Ad System 6

You-Tube 7

Google Code Search 8

Google Alerts 8

Google Book Search 8

Sketch Up9

Android 9

SWOT Analysis of Google10

Strengths10

Weaknesses12

Opportunities13

Threats15

Financial Analysis of Google16

Real Revenue Growth16

Sustainable Revenue Growth17

Pricing Policy18

Operating Expense Control19

EBITDA to Actual Cash Flow20

Excess Cash21

Return on Assets (ROA)22

Working Capital Needs23

Debt Financing23

Cost of Capital and EVA24

Conclusion25

References27

Impact of Internet on Google Inc.

Introduction

The name 'Google' is one of the most familiar one for almost all the people across the globe. Every person on this globe is familiar with Google Inc., which is a multinational cloud computing, an advertising, and most significantly an internet search engine corporation. Various internet based services are offered by Google to its wide range of customers and it mainly generates profit through its advertising business part using its Ad Words program (Henderson, 2012). The company 'Google' was basically founded by Sergey Brin and Larry Page, who were attending Stanford University and known as 'Goggle Guys'. Initially a company was a private limited firm but eventually it became publicly traded in August 2004. Goggle was started with the main aim of to work as a search engine, however with the rapid growth of a company, Google started offering products and merging with other firms (Sharma, 2011).

Goggle offers several online products like Gmail account that is used by people in order to remain in touch with their family, friends, and business. Goggle has also offered its users the social networking sites such as Orkut and recently a Google+. Different applications that can be used on web browsers are also offered by Google, for example the Picasa photo organizer that facilitates ...