Information Technology Industry

Google Inc.

Google Inc

Introduction

When we talk about the information technology industry, Google is the name that pops up to every ones mind. Google is such a strong brand name that we can only ask to “Google” it, instead of saying “Search” it. A company that incorporated in (1998)w by Larry Page and Sergey Brin and started operating its business. It was one of the top website by the end of the same year. Today, they are the leader in the technology industry. Googe have a wide variety of products namely; Google Chrome, Mobile, Translator, Google Image, Google Drive and Android etc (www.google.com). Google is currently at 68th place in the industry worldwide with the annual sales of $50.2 billions (www.forbes.com).

Google's search engine holds approximately 88% of the global website traffic according to a recent survey.( MarketLine, 2013, p. 22 Google Inc. Reference Code: 5B199F61-608D-4923-B4A3-F5EE15285ADE). The Android mobile operating system is a great success. Google has the foremost place in online search and advertising. Google is targeting branding advertisement, which is an effective way to capture consumer market. Google's cash reserves are appropriate for this purpose, and they can even make some strategic acquisitions. By acquiring small firms strategically, they can even capture larger market share. Current financial position of Google is showing positive signs for investment purpose. United States economy is one of the markets where investors are provided with liberal business environment. Hence, United States has always been an interesting market for the business units.

Fundamental Analysis

United States is one of the strongest economy of the world. It is highly productive and the most diverse market in the world. US economic environment is very ideal for the growth because of high scores on economic liberalism and diversity of the economy. The investment favorable business environment and potential market receive positive international response that is why.

Economic Analysis

In the year index of 2013, The US has lost ground with an economic freedom score of 2013. The score declines at 0.3 points from the previous year with declines in business freedom and labour freedom. After the decline in the US score, it still is above the average world regions. Talking about the unemployment rate that is around 8%, which is quiet low as compared to other regions of the world. Inflation (CPI) is around 3.1%. US GDP showed a growth rate of 1.8% in 2011. As Compared to other economies US Public debt is around 104.8%. This percentage is high as compared to previous years (Heritage). The company recorded revenues of $50,175 million during the year 2012 (FY2012), an increase of 32.4% over FY2011. Currently united states GDP has grown at an annual rate of 2.5% in the second quarter of 2013 which is a positive sign. This growth rate reflects that economy is growing at good pace and this is better time to invest in the company. It happened due to increase in exports and fixed investment. There has also been a decrease in the federal government spending and balance ...