At the same time, as Google will try to diversify its presence on the market, it will run into Microsoft, an important adversary. However, the IT market offers numerous opportunities as well, starting with the diversification and amplification of the portfolio of instruments that Google is offering to entering some of the related segments, such as some of those that have been described previously.

Alternative solutions

There are several alternative solutions to some of the problems that have been previously identified.

1. Develop new technologies

This type of solution would allow Google to enter new markets, but will also address one of the problems that has been identified as the brain drain: important executives migrating to other companies because of the need for new challenges. This type of solution is a feasible one: the company has enough financial resources to pour them into developing new technologies and into research and development in general. The problem with this type of solution may be that Google would enter some market segments where other players have been competing for a longer period of time and have greater experience.

2. Improve the search mechanism

This type of solution would again involve a significant amount of resources being put into research and development. The problem is that this solution does not address the problem with people leaving the company: developing the search engine is what the company has been doing from the very beginning, it needs to focus on new areas as well. At the same time, one can also wonder how much the search engine can be improved technologically and whether this type of development would still bring additional revenues for it to be profitable.

3. Develop through acquisitions

Again, Google has significant financial resources that it can put into acquisitions and new development. The example of Google purchasing You Tube is significant in this sense: with $1 billion invested, the company both entered a new market segment and increased its chances and possibilities...

This is very important and Google could take into consideration similar actions in other market segments as well, including the social connection market.
Optimal solution

The optimal solution is probably a combination of alternative solutions no. 1 and 3. One thing is clear at this point: Google needs to develop so that it can diversify its approaches and continue to attract the best individuals on the market. Combining the two solutions would both allow Google to gain a start in its development process and also model the acquired companies according to its own culture and style. At the same time, acquiring new companies would allow Google to take over some of the respective companies' resources, notably the human resources, thus increasing the overall value of the company.

Google will also need to continue developing some of its web-based applications, which allow the company to develop new directions and take away some of Microsoft's market share.

In implementing the proposed optimal solution, Google will need to keep in mind that the growth needs to be sustainable and not overstretched financially. In that sense, the growth should be primarily financed through the company's internal resources rather than through debt or through a new public offering, which would dilute the value of the company for the stakeholders.

The company should also continue the sustainable internal growth process. With this, one can enumerate, for example, training programs for the employees, maintaining the same type of working environment and allowing for individuals to be promoted in the company.

Bibliography

1. Penenberg, Adam L. "Why Google Is Like Wal-Mart." Wired. 21 April 2005. Retrieved on 25 February 2007.

2. Google Annual Report 2008.

Penenberg, Adam L. "? http://www.wired.com/culture/lifestyle/news/2005/04/67287 o "http://www.wired.com/culture/lifestyle/news/2005/04/67287" ?Why Google Is Like Wal-Mart?." Wired. 21 April 2005. Retrieved on 25 February 2007.

Google Annual Report 2008.