Company Is Known for Many Different Products essay

Download this essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from essay:

company is known for many different products and services, according to the annual report almost all its income derives from online advertising, so that shall be considered to be the company's business. The online advertising business is highly competitive, with firms like Yahoo, Microsoft, Apple and Facebook all being important players.

Macro View

The online advertising industry operates, more or less, like an oligopoly. There are a handful of major companies that dominate the industry. Essentially, online advertising works much like conventional advertising. The companies in the industry must deliver an audience to buyers, who purchase advertising space. Google does this through its own family of websites, of which several are among the most-used sites on the web, and through partnership with third-party websites that use Google as their advertising partner.

The industry is growing, although the pace of growth is beginning to slow. Over the past twenty years, the Internet has come to be a dominant force is communications in the world, and today is used by billions of people for information and communication. Thus, there are tremendous opportunities for volume in online advertising. In any advertising business, eyeballs are important and the companies that can deliver that traffic will be the ones that generate the most money, since the cost of any one ad is very low. The business therefore relies on a high-volume, low-margin strategy. Within that strategy, firms attempt to differentiate on the basis of being able to deliver a specific audience, and on the ability to deliver more information about the audience. That information is then used by advertisers to better target their ads.

Growth in the industry is a function of two things -- the state of the economy and the amount of time people spend online. The more people there are on the Internet, and the more time they spend on there, creates opportunities for companies in the online advertising business. In order to take advantage of those opportunities, firms in the industry need to have customers. The customers are the advertisers, and their willingness to spend is often tied to the state of the economy overall. Firms not only must decide where they want to spend their advertising dollars -- there are many media forms available -- but they must also set their advertising budgets, and these tend to fluctuate with the business cycle.

Success Factors

While Google cannot control the demand for its service, it can control the supply. Supply in this case is manufactured by creating an audience. Where a television station creates an audience by airing shows people want to watch, the Internet is not much different. Google has created a large number of sites -- national sites, search engines of different types, blog and entertainment sites -- and these attract users. The better quality the sites are, the more users they will attract. For example, in the search engine business Google was able to become dominant through superior technology. Its search algorithms delivered better results than those of competing search engines -- and they still do. Because of this, Google has a leading market share in most countries of the world -- China being a notable exception. Thus, a key success factor is the ability of the company to draw in users to its sites, where it has the most control over the content and therefore the ad targeting.

Another key success factor is to be able to translate this model to other websites. This is a key advantage that Google has over some of its competitors like Apple and Facebook, who mostly sell on their own sites. Google has effectively syndicated its advertising by being able to communicate to its customers (advertisers) the audience of partner sites. For the partner sites, Google splits the revenue. Thus, Google is able to not only leverage its own audience, but the audience of other sites around the Internet.

Google has other major competencies, but these are not key success factors in its industry. There is the possibility that the Android operating system -- for which Google makes very little -- can prove another success factor by driving more Internet users to Google's sites and partners. However, the other successes that Google has enjoyed with respect to innovation are probably not critical to its revenues or profits.


Cite This Essay:

"Company Is Known For Many Different Products" (2013, May 01) Retrieved October 21, 2016, from

"Company Is Known For Many Different Products" 01 May 2013. Web.21 October. 2016. <>

"Company Is Known For Many Different Products", 01 May 2013, Accessed.21 October. 2016,

Other Documents Pertaining To This Topic

  • Tyson Foods Is Known for the Different

    Tyson Foods is known for the different pork, beef and chicken products they sell to grocery stores, meat distributors, whole sellers, restaurants, industrial food processors and military commissaries. However, the industry is extremely competitive and is seeing tremendous amounts of volatility / demand. To fully understand the strengths and weaknesses of the firm requires carefully examining three financial outcomes with the statements submitted to the Securities and Exchange Commission. This

  • Product Costing Systems ABC Job Costing Put

    Product Costing systems (ABC, job costing, put costing, .) advanced topic managerial accounting the thesis statemenit a position body paper show evidence support position. The paper discuss opposite point view discuss position valid. Product costing systems Product costing system is a management tool which identifies the actual cost of producing each product. It identifies the profits and loss which can be gained or incurred on each product, hence giving companies the opportunity

  • Product Placement Hawaii Five 0 Solving Crimes With

    Product Placement Hawaii Five-0- Solving crimes with Microsoft phones The CBS crime drama Hawaii Five-0 is a re-configured version of the old 1960s crime drama set in exotic Hawaii. In its newest incarnation, the special task force crime fighters use contemporary methods to track crime, including smartphones. Every episode begins with a new crime, which is then resolved by the end of the hour. Microsoft has negotiated a special product placement deal

  • Product Analysis Organizations Are Formed

    On the other hand, iMac is performing relatively great from AMD in terms of a number of things like cost effectiveness, quality and advertisement. In the next section, we will talk about the marketing mix which usually called marketing communication mix. Marketing Mix of iMac Marketing mix essence is the most important essence underlies in marketing communication. Through the mix the researcher analyze the operation management of an entity along with

  • Product Management Issues Quality of Design Performance

    Product Management Issues Quality of Design, Performance, and TQM -- As manufacturing design and implementation became even more complex, an integrative approach to the end product became necessary. There are many theoretical rubrics for this, but one of the more stable and robust is that of TQM, or Total Quality Management. TQM, like other theories such as Six Sigma, is based on the idea that the quality of the end product

  • Company Sponsored Childcare

    Company Sponsored Childcare Recently there has been a movement in urban planning to give more consideration to the needs of the community for which a project is being planned. Urban planning no longer only involves where to place buildings and how to adjust traffic flows. Urban planning is beginning to consider more and more the community that it serves. Many communities that are slated for renovation consist of a large number

  • Product vs Service Marketing a

    Ultimately, these differences are superficial because the customer will always look for the same things -- quality and value. The notion that services are not comparable is absurd. For this to be true, a service would need to be in a monopoly. It is easy to compare your current haircut with your last, your current lawyer with your friend's lawyer. Customers constantly compare services, just as much as they compare

Read Full Essay
Copyright 2016 . All Rights Reserved