What started as the brainchild of two Stanford University students has grown into a multi-
billion dollar search tool. The name “Google” is recognized by almost anyone with internet
access. It is used by people on smart phones, tablets, computers and gaming systems as one of
the first choices in search engines. The tiny company started by Sergey Brin and Larry Page in a
friend’s garage using components they put together themselves has now turned into a worldwide
Competition in the Search Industry
Google’s strongest competitor, Yahoo, had at one time sought to become affiliated with
the company. Conflicts between the two internet giants ended in 2008, when a possible alliance
was considered. Due to the possibility of the merger violating anti-trust laws, Google eventually
removed itself from the deal leaving Yahoo to continue searching for a partner. Yahoo
eventually teamed up with Microsoft and used Bing as the embedded search engine for its online
Since the early 2000’s Yahoo has ranked second to Google in terms of market shares and
overall revenues. In May 2010, Google sites had approximately 63.7 % of all search engine
market shares and Yahoo being in second place with 18.3 %. While Yahoo continues to rival
Google in many areas, the search engine rankings speak volumes when determining who the
leader is in the industry.
Google’s weakest competitor with approximately 2.3% of search engine market shares is
AOL. At one time AOL held promise of becoming one of the leaders in the industry but soon
faltered when Google and Yahoo began expanding their services and including new programs.
By 2010, AOL had dropped to one of the lowest positions with only the smallest of companies
trailing behind it.
Overall Industry Attractiveness
The search engine industry is one of the strongest growing in the world in addition to
being one of the most profitable. With more and more transactions being performed online and
the number of searches increasing at lightning fast speeds, the attractiveness of the industry is
quite clear. The only limits to be placed on the industry are those that limit the amount of
information that can be searched for and learned from. One of the main goals of Brin and Page
was to make information accessible to everyone across any type of boundary. They continue to
accomplish this as Google meets and exceeds each challenge it is faced with. Even competitors
must admit the success Google has received is the best when it comes to bringing information to
Changes in the Search Industry
How is the Industry Changing
The Search Engine/Internet industry continues to expand creating new and farther-
reaching boundaries each day. Google continues to meet the needs of consumers by providing
services that reach beyond the limits of their desk or office. People search for answers no matter
where they are. The days of answers on demand have arrived. Google has made it possible for
anyone to ask a question and receive an answer, even if they are miles from their office or home
Sources for Major Change
Source of major change in the internet market come in several forms. New technology
that is found in smart phones, tablets and other electronic devices allows for connectivity no
matter where an individual may be. As technology continues to move forward, so do the
opportunities for growth increase and spread in different directions. With the inclusion of
laptops, came the basis for smart phones. Smart phones led to tablets and other tablets that can
do the same job as both of their predecessors. With this overall increase in convenience and
availability, needed information can be requested and received from almost anywhere on the
Another source of change is in the types of tools that are used that help to establish
search protocols. AdWords and AdSense are just two of the new programs that increase traffic
by using advertising concepts in conjunction with the SEO keywords. Not only does it boost
rankings within the SEO network, it creates and establishes a source of revenue for both Google
and the advertiser.
Key Factors that Define Success in the Industry
Google continues to move forward using the strengths that have sustained it from its
inception. Its core values of putting the consumer and their needs first have helped them to
remain at the top of the industry. The company’s belief that if the consumer has what they need
and that everything else will fall into place, has proven successful.
Google’s philosophy of doing one thing well instead of being average while attempting
several tasks has also brought them benefit. With that being said, they also believe that doing one
thing well and focusing on a positive result leaves “evil” out of the equation. By focusing on one
task and making sure it is done right, a company has less time to undermine others to put
themselves in the lead. Their reputation speaks for itself (Gamble).
Google has continued to use its resources in the most efficient ways possible. By
incorporating the newest advancements in technology into every service and program they
design, Google continues to provide formats are that are easy to use and state of the art, which
means the customers who rely on them for information, get exactly what they ask for in as short
amount of time as possible.
With the inclusion of Google AdSense and AdWords, they have incorporated various
tools along with the information they provide. Individuals receive the information they request
along with ads and links that are relevant to the search. The combination not only aids the
consumer, but also keeps businesses unique to the query in the eye of the public where they can
receive the most web traffic.
Sponsors and stakeholders who use the AdSense and AdWords services provide Google
with much needed resources both in the form of working capital/revenue as well as links to
information which can be passed on to the consumer. As rankings for specific sites increase, so
do the resources Google receives. The exchange benefits everyone involved from the person
asking the question all the way to the investors and those who purchase advertising through
Google’s Value Proposition, Profit Formulas and Strategies
With Google, still following behind Blackberry in the Smartphone arena and Google
Chrome behind Internet Explorer and Firefox, the company still has work to do. The proposed
value of the company mainly rests within its ability to provide information as it is needed
through the search engines and programs it has established. While it has remained largely
untouchable in that aspect, the goals of the company are to continue to increase the value of their
other projects, including the Google Android systems and Google Chrome.
Google understands the concept that customers want fast, no frills service. Their
competitors would include banner ads and other advertisements that not only skewed searches,
but also took longer than necessary to provide the needed information. Google found they could
compete by reducing the clutter and eliminating unnecessary fees. The formula they established
became the norm for that propelled them to the top spot in the industry. Fast service combined
with few obstacles and accurate information equaled 50 million satisfied customers per month.
The equation works and works well in respect to Google’s profits.
Google’s strategies are based on common sense and dedication to service. Access to
information should not be confined by borders but should be available anywhere at any time to
anyone who needs it. The company has made it a priority to reach out to everyone who uses the
internet. You do not have to work in an office or wear a suit to need information. Google
continues to place their focus on the individual and their needs instead of the company mentality
that corporations are the only ones who must have answers.
Google has also placed its focus on continuing to produce the best in technological
advances to increase the efficiency of its searches. By opening up the highway, so to speak, the
transfer of information has become seamless and fluent across all lines of communication. From
cell phones, to laptops to any other electronic device that exchanges information, Google has
made it possible for information to travel to places that two decades ago would have been
By bringing together individuals who seek information and companies who are trying to
get their name out via Google’s AdSense and AdWords tools, they have combined the best of
both worlds. The result is fast, accurate information provided by a search engine that is
supported by companies who have a stake in helping the consumer reach their goals.
As Google continues to break new ground in the search engine market, the amount of
information available to individuals who surf the web will continue to increase exponentially.
With the advent of new programs adding to the resources and capabilities Google continues to
provide, the company will move forward along with the growth of the industry.
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