Google's competitive challenges and regulatory issues in the search engine industry
Google is the leading global technology giant at the moment.It is facing serious competition from firms like Yahoo and Microsoft. This study has identified the current situation that the company faces and needs to be addressed. Some of the challenges identified include its failure to offer competitive perks to its employees and under-utilization of the ads business opportunities. This has even led to the lose of its employees to top competitors. The study also offers recommendations on the same.
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Organizational Analysis of Google
Google is a high-tech organization with appealing rates of growth beneficial to shareholders. Inherent with its development, Google faces notable challenges. This study will focus on the situation facing the company besides exploring the competition it faces from rival firms in the industry. This study also provides positive and feasible recommendations for the leaders of the organization to consider. Besides the issues facing the company, the outstanding development of the organization is brought forth (Joiner, 2008).
The nature of the situation being investigated
Google has rapidly developed because of its capability to resolve the need for information access in a substantial and developing client base. This makes us wonder whether operating business through monopoly is a noble thing. In case there is an ideal approach to the search for information, should the search engine business be allowed to succumb to this development design or turn into a regulated industry? The exponential developments of the web and internet databases have made the search business develop rapidly without allowing the current laws governing the business time to improve (Joiner, 2008).
Yahoo, Microsoft, and Amazon have all been enjoined in a lawsuit seeking to block the court settlement of a 2012 Copyright Infringement Act complaint. If successful, this might give Google the right to digitize, have, and offer ads against a large number of published literatures. This is only a modest touch of the issues that Google faces against its competitors. Google consented to pay $125 million to settle the copyright claim (Chia, 2009). Microsoft recorded a suit against Google in 2012 preventing it from double-click merging. Yahoo additionally indexed a suit in November 2012 against the company to abandon the actions to defeat the complaints of antitrust controllers. In February 2013, SourceTool, a B2B web index recorded an antitrust suit against Google blaming it for increasing it ads rates unjustifiably. Experts in the data technology sector affirm that some of these issues are the works of Google's curve rivals like Microsoft, Yahoo and Amazon. In January 2013, Microsoft offered to purchase Yahoo for $47.5 billion. However, Yahoo requested more cash (Reed, 2012). Instead of purchasing the company, Microsoft chose to collaborate with Yahoo. It had the defined goal of giving Google some serious competition. Even with such partnership, Google remains the dominant force with a market share of approximately 70% in the data, search engine, and ad business sector (Casey, 2011).
Other issues confronted by Google are their powerlessness to spur their contract workers spread everywhere on the planet. In December 2012, Google could not give bonuses to their contract employees but chose to give them G1 phones. According to Times Online (2010) the customized G1 units will be given to all changeless Google workers in the United States, Canada, Western and Central Europe, Australia, Japan and Singapore covering around the range of eighty for every penny of its twenty thousand global staff. The loss of the monetary bonuses is not the first blow for Google staff. Some restaurants on its campus grounds opening at night have significantly reduced.
Besides, the credit crunch also led to a decline in demand for its devices. Google's individual occupants of Silicon Valley have been gravely hit by the credit crunch. The reduced consumer spending power resulted in declined sales volume for its devices. With the high expense of credit, organizations are cutting down as much as they can on IT spending. Surveys estimated that 150,000 jobs have been cut down in 2007 (Joiner, 2008). As per the surveys, the recruitment consultancy, the axe fell on organizations such as Yahoo, Hewlett-Packard, and Yahoo.
Google gets no less than 1,500 job applications on a daily basis. This implies that each year they have about over half a million applicants looking to work in this prestigious organization. This has proven to be a headache of the top corporate managers and extreme trouble to shortlist and pick the best applicants for different positions offered (Newton, Long & Sievers, 2009).
Moreover, the dedication and loyalty of their staff is also another dilemma for the organization. In May 2012, Elliot Schrage, one of the senior officials at Google left to join the social community: Facebook. Elliot was head of worldwide public affairs and communication. His departure saw a succession mass migration of its top officials from Google to Facebook like Gideon Yu and Ethan Beard (Eisenberg, 2009). This development among the top staff shows inadequacies of the company's executives in developing a proper system and methodology of dealing with such challenges among the aggrieved senior staff. The main issue is that this staff might uncover business secrets of Google to chief rivals in the data technology business. Google should tackle this issue amicably. However, Google failed to give the typical $2,000 set aside for Christmas but rather gave to all its workers a variant of the G1 cell phone discharged that year (2012). This was a demotivation to workers because they expected the money (McClelland, 2009).
Google has created a logarithm that helps managers pinpoint and address individuals seeking to quit to be given new relegated roles before departing. This advancement is sufficient confirmation that Google's administration has not upped its game. Consequently, some of their staff feel underutilized; a scenario that has propelled many number of them to leave to other firms. Google Inc. has experienced some high-profile passageways to opponents incorporating Twitter and AOL. These takeoffs, which might turn out to be costly in terms of time and cash. This shortcoming of Google is that there appears to be issues with the top administration regarding its failure to attract and retain key individuals (Chia, 2009).
Similarly, Google procures the services of many contractors and some of them practically do nothing but waste the assets of the organization. The company has been giving orders to its 12000 supervisors to keep all the permanent staff in employments set up as an aftereffect of a rebuilding practice. Some co-founders thought that the 12000 contractors were unnecessary, and it was wise to lower their numbers (Reed, 2012). Along these lines, this was a confirmation that planning of employee recruitment, job evaluation, and description was poorly handled by the company's management.
Conclusions based on the research
Google will continue to advance its worldwide command of all parts of the internet, search, interactive media and telecommunications commercial ventures. As the commercial enterprises and the business sector choose what will happen with TVs, workstations, phones, gaming gadgets, musical supplies and information transmission, Google will be prepared on all fronts with the items and services needed for success. They will continue to upgrade news, mail, blogs, chatting, voice messages, web journals, forums and data sharing of any sort to seamless integration of the items and services.
The issues it will confront all appear to be originating from external sources of copyright issues, foreign government interventions, U.S. government regulation, security issues and global cultural issues. Provided that the corporate culture remains open and free streaming with solid associations with youth, decently versed Information Technology veterans in the industry and instructive assets, they ought not to have an issue with their expectations to the external planet and their client base. The span of the organization might in the end make it seem excessively effective and make it more troublesome to administer (Reed, 2012). The search engine organizations are in an alternate class than other commercial ventures. This is because the center business touches and controls a developing measure of individual data besides government information in the U.S.A. And globally. The new ground of space, control, and utilization of delicate or individual information over the web to other insecure outputs is becoming untrustworthy. It is more than a basic information base; a search motor that seemingly might turn into an apparatus of manmade intelligence is nothing to disregard.
Google will continue to address the security issues from all perspectives and be solid supporters of standards for security. The company will get to the base of all the copyright issues. They will address more social issues and continue to develop into the global neighborhood. These social issues are as paramount as security issues. The outcome of such actions shows that the client base needs to feel dedicated to them. In case they feel short-changed in any way, the company with suffer from such careless actions arising from the loss of business opportunities. Google's approach of making quick web administrations accessible to the public and further archival of client information is a cautions undertaking. The company must always work hard to bolster client confidence on the private data the harbor. It is interesting that recorded exploration will incredibly profit from the endeavors of a high technology organization.
Google must share and make accessible all pertinent information for any individual who wants it and without confinement or restriction. However, client privacy must be upheld at all times. To do this, they should continue to profit by making advertising more considerable and deserving of procurement to their clients (Newton, Long & Sievers, 2009). The security of information coupled with the potential of man-made intelligence along with global government interruptions requires extreme and close investigation. The company may have to join forces with its competitors to establish a common ground on the extent to which they should disclose information to government operatives.
Recommendations for the organizations leaders to consider
The following are recommendations and alternatives for leaders of the company to consider:
I. Developing Google browser or closer and more collaboration with database organizations
II. Developing Google database software or associations with browser organizations
III. Developing server fittings and programming to precede innovative progressions and security for Google information frameworks (Fidoten, 2011).
IV. Continued R&D in Television, music, telephones, workstation, telecommunications and gaming
V. Developing of man-made applications and intelligence that might utilize this. Examination of what these frameworks can or can not do.
VI. Create search frameworks and items with interfaces designed for defined markets like children, physically challenged, or new users such as numerous senior subjects and rural foreign markets
VII. The company must analyze the anticipated outcomes of regulation and be ready for the possible scenarios arising from the same.
VIII. Hire a lobbyist or get more included politically to verify where the legislature at present has issues with Google and any of its practices
IX. Continue to promote and openly state that cookie information is removed after a certain period as present policies state (Reed, 2012).
X. Determine areas that continue to torment Google with law suits, such as security and copyright issues
XI. Become a watchdog organization for security issues that the U.S. And different governments wish to maltreat
XII. Emphasize security policies for advertising. Organization ought to be seen as a security rights leader that respects the people and their concerns while utilizing the web.
XIII. Becoming the de facto standard in administering the web advertising market by furnishing continuous data to online advertisers about current utilization of each ad
XIV. Evaluate Technology and continue to stay on the cutting edge of all new mixed media items
XV. Continue developing cutting-edge technology and attractive ways of making internet users pursue website registration for content
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