Random Sheet The Official Blog of Nicholas Scalice

Google

From Research Project to King of the Web

Due to the rapid growth of the Internet in the 1990s, we have seen an influx of web companies come and go over the years. Some were far too bent on turning a quick profit and failed to satisfy their customers. Others simply imitated already established companies, and because of their bland approach to business, they failed as well. But, somewhere in the mix of things emerged a few solid, innovative, and well developed ideas based around satisfying customer needs while generating a healthy profit. Names like eBay, Amazon and iTunes started out as just such ideas and now they are household names. However, there is one company that far surpasses routine innovation and leadership, that has built its mark on the Internet landscape with the motto “Don’t be evil.” That company is Google and as this paper explains, in the short span of just ten years, Google has become the “King of the Web” with no plans to step down any time soon.

Looking back at the inception of Google, something interesting stands out from the very beginning. Google was not originally created as a business venture; it was a purely academic research project between two Stanford University graduate students, Sergey Brin and Larry Page, in January of 1996. Brin and Page worked countless hours developing a complex algorithm that would later be known as “PageRank” that the Google search engine would use to rank websites based on their relevance. Up to that point, the majority of search engines available were slow, clunky and relied on the simple concept of returning search results based on the number of times a searched keyword or key phrase was found in a given page. When Brin and Page realized they were onto something huge, they decided to expand Google beyond academic research. In 1998, Brin and Page officially incorporated Google and began looking for office space and employees to fill it. Eventually, the company settled in Mountain View, California, in a massive office complex that is aptly named the “Googleplex.” Additionally, Google has over 60 field offices worldwide.

Google is a one-of-a-kind company because their target market is so diverse. They do not appeal to one particular group, but rather, to a worldwide user base that is hungry for rapid access to a vast array of information. Google can capitalize on this market by giving their users what they want and even some of what they didn’t know they wanted. This is made possible through the technology of content-based targeted advertising. For example, if a user searches for “iPhone accessories,” they will see textual advertisements that are only related to iPhone accessories in addition to their organic (normal) search results. Because of this type of targeting, Google can allow advertisers to deliver products and services to exactly the right people, nearly every time. This process actually makes advertising useful, not only for businesses, but for users too, since it is related to what they are searching for in the first place.

With all of this being said, it would be difficult to pin Google down to only one target market or only one product or service. While it is true that Google started out as a simple search engine and nothing else, these days the company has transformed itself into an Internet giant by making several smart moves and acquisitions, such as the purchases of YouTube and Blogger. Google now offers everything from free website hosting to image editing software and everything in between. Other services include email, blogs, videos, news, weather, movie showtimes, book searches, photo searches, price comparisons, word processing software, shopping cart software, local maps, directions, global satellite imagery, phone-based local info, instant messaging, groups, translation tools, print advertising, social bookmaking services and much more. If a new trend opens up, Google is one of the first to explore it, with the idea of getting people hooked on a free tool or service, so that they can eventually deliver relevant ads to a huge user base.

By now it should be clear that Google’s target market is immense. The Google homepage is the second most frequently visited page on the Internet and Google controls over 65% of the U.S. Internet search market and all of this comes out of a company that is a mere 12 years old. No wonder Google has been called the “fastest growing company in the history of the world” by a British newspaper. Their market capitalization of almost $170 billion speaks for itself.

Nevertheless, Google is not a perfect company and if they’re not careful, they could very well lose their place of Internet dominance. Most recently, there has been talk of a projected acquisition of Yahoo by software giant Microsoft. Since Yahoo Search is the second most popular search engine and Microsoft’s Live Search is not far behind, the combination of both companies would finally give Google a viable competitor in the search market. At the time of this writing, it is unsure whether or not the Yahoo/Microsoft deal will go through or not, but regardless, Google needs to work extra hard to prevent this from happening if they want to retain their lead. I would suggest to Google that they strike their own deal with either Yahoo or Microsoft to counteract the threat of both companies combining. Billions of dollars are at stake here and Google needs to act fast to stay profitable in an increasingly competitive world.

In another field, I would suggest that Google should think long and hard about the implications of controlling such a vast amount of information and personal data. There is a growing sense among the population that Google is slowly becoming a “Big Brother” of George Orwell’s 1984 fame. This may or may not be intentionally the case by Google, but when we think about it, Google knows almost everything about its users. For the average user, who has a Google-based email account and makes use of a good portion of Google’s other services, it is possible to know a great deal about that individual. Google knows what they search for, what’s in their email, how much time they spend online, what ads they click on, where they live, and other detailed information. Google then stores this information indefinitely in order to track its user’s web activity. Concerned individuals have referred to Google as a privacy disaster waiting to happen. Therefore, if the folks at Google intend to stay true to their motto of “Don’t be evil,” they better be prepared to defend their privacy practices. That is vital if they hope to remain profitable in the years to come.

Whether or not Google takes my suggestions, they have a lot of good things going for them. We’ll now take a more detailed look at Google’s Strengths, Weaknesses, Obstacles and Threats:

SWOT Analysis of Google, Inc.

From looking at the SWOT analysis of Google, it is clear that while the company is not perfect, there are many opportunities that could very well keep Google ahead of the pack for many years to come. Nevertheless, a company could have all the opportunities in the world and still fail because they didn’t act on them in time. That is why it is vital to have a top-shelf management team when dealing with an industry that can potentially change dramatically overnight. Fortunately, Google has just the right type of upper management who realize the urgency of actions over words.

From the moment Sergey Brin and Larry Page began thinking about Google as a corporate venture, they understood that while they may possess the technical skills needed to run the company, they didn’t have a great deal of business knowledge or business connections. Therefore, Brin and Page agreed to bring in an outsider, who would act as Chairman and CEO. This setup would still allow Brin and Page to have equal discretion in the decision-making process, while insuring that nothing from the business side of things would be overlooked. The person Brin and Page chose for this difficult job was Dr. Eric Schmidt, who formally worked as Chief Technology Officer of Sun Microsystems and later as CEO of Novell. Brin, Page, and Schmidt run Google as a “triumvirate,” which is a type of management style composed of three powerful individuals each with an equal vote (Battelle 133).

Running a company as a triumvirate usually has more benefits than drawbacks, but only if the three individuals can get along with each other. For Google, that doesn’t seem to be a problem, since Brin and Page have been friends since college and Schmidt is a seasoned professional who is excellent at keeping personal issues out of the business environment. When considering which five characteristics the Google team should have, there are many possibilities, but most important in my humble opinion, is the ability to work together in a group without bumping heads. To disagree in business is normal, only if it is done with a professional approach. Secondly, I believe it is necessary for Brin, Page, and Schmidt to stay on top of new technology and business news. Thirdly, it is always a good idea to remember the importance of customer satisfaction and put the customer first. Fourthly, a good leader motivates their employees to think outside the box. Among a huge amount of other work benefits, the Google team does this by allowing engineers to use 20% of their time for the development of their own ideas and creations. Finally, a good leader stays committed to excellence. The Google team strives for the very best in everything they do and they’re very careful not to release a finished project until it has undergone rigorous testing.

In closing, it should now be clear that the three leaders at the top of Google possess all of the necessary characteristics of outstanding business leaders. Sometimes it seems like Google may be on the wrong track or that the company is spread pretty thin, but the guys at the top are too smart for that to be the case. As Schmidt once said, “We try very hard to look like we're out of control. But in fact the company is very measured. And that's part of our secret” (Ignatius). It’s that type of logic that keeps all of Google’s competitors guessing, while Google reaps the sweet rewards of success.

Works Cited

Battelle, John. The Search. New York: Portfolio, 2005.

"Corporate Information - Company Overview." Google. 20 Mar. 2008. 19 Apr. 2008 <http://www.google.com/corporate/index.html>.

"Corporate Information - Google Management." Google. 07 Apr. 2008. 19 Apr. 2008 <http://www.google.com/corporate/execs.html>.

"Google as Big Brother." Google Watch. 23 Mar. 2005. 19 Apr. 2008 <http://www.google-watch.org/bigbro.html>.

Ignatius, Adi. "Meet the Google Guys." Time. 12 Feb. 2006. 19 Apr. 2008 <http://www.time.com/time/magazine/article/0,9171,1158956,00.html>.

Vise, David A., and Mark Malseed. The Google Story. New York: Delta, 2005.