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Google’s business model

Google’s Business Model

Introduction

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Google is a search internet program, which was formed in 1996 by Larry Page Serge Brin in college at Stanford. Initially, it was known as Googol but now it has gained its fame and it is known as Google. In the aim of improving its current technology, they formed Google business model, which runs all the businesses in the program. It has made the conducting of business by different companies easier than ever. Before Google was initiated, business was performed in a very normal and tedious process. After its initiation, it has come to change the business world from how it was conducted to how it is conducted today.

Discussion

When Google business model was created, very many businesses did not have the internet business model as one of their strategies. However, this proved to be very challenging for the businesses to try this model. After some of the companies tried the business model, the conducting of business was never the same again. It proved to be faster, time saving and it saved a lot of the companies’ money. It changed the business world in many different ways that are simple but major.

It has changed time in businesses

In the past, there were a lot of business processes and paper work that was involved in the process of conducting business. This usually took a lot of time before any business could be fully finished. The sales agents had actually to advertise the business to the different clients and the clients had to visit the different companies to purchase their products. This took a lot of time to accomplish. Additionally, it wasted a lot of the customer’s time, which would have been spent doing something else. Therefore, Google management came up with this idea of trying to change the business world completely.

After the business model was introduced, the time in business was changed forever. The many business processes that were usually involved were reduced to the most essential ones. When this processes were reduced, it meant that it was very first to conduct the different businesses faster than before. Additionally, the time in which the customer used to spend while traveling to the sellers’ places was reduced since it became irrelevant (Vise, 2011). People could now conduct business on the internet without the need of seeing one another. For this reason, a lot of time was saved and the customers could now do other businesses.

Additionally, it changed the time that was spent in advertising by reducing it gradually. Before, the different sales agents had to travel far to advertise the different commodities using their different means, which they thought were possible. However, after the introduction of the model, advertising became faster, since many people could be reached at the same time within a short period (Rappa, 2010). Therefore, the time that was usually spent by the different sales agents to advertise the different commodities was saved. It is because of this that the Google business model has changed how business is conducted completely.

It has changed the advertising format in business

In the past, businesses used to advertise their commodities through sales agents and the television. This is very costly and time consuming especially if the product or the target customers are very far from the companies’ premises. Although the television advertisements are still used even today, they are quite expensive as compared to the ones used in Google. This made the costs of doing business to be expensive and only little profits were realized after these vigorous advertising exercises.

However, after the business model was introduced the companies changed in the advertising world since the products could be advertised anywhere especially when the change in technology came. Approximately ninety percent of the world’s population uses internet (Shanker & Astrachan, 2006). Therefore, the advertising of the products through the internet lowered the cost of advertising. It is because of these that the world of business has changed completely in the way in which the different business processes are conducted.

It has made business to become global

In the past, only big companies like coca cola used to conduct their businesses globally. It was too costly for the small companies, even the medium sized company, to conduct their business globally. This made it less competitive for these big companies because they were only a few of them. Additionally, it was very difficult for a country to acquire those goods that it did not locally produce. This meant that there was no free flow of goods among the different companies.

When this business model was introduced, the different companies changed their marketing strategies and they became global. The small companies now were able to sell their goods overseas at the least possible costs. This is because the cost of advertising has been made cheaper by Google (Vise, 2011). Additionally, Google is global; therefore, the products being made by these small companies can be advertised globally. For this reason of advertising becoming global, the small companies can now be able to transact their businesses globally hence changing the course in which business is being conducted.

In addition, the mode of business transaction has changed completely. Small businesses can now transact their business globally making it easier for the small companies to transact their business globally (Vise, 2011). This is because now they can be able to transact with their customers overseas without having to travel from one country to another thus reducing the amount of costs, which could have been involved. Due to this reason, the way business was being conducted has changed completely.

It has changed the business information completely

It the past, businesses had difficulties in passing their information to the different potential customers. They never used to have better ways of providing full information about a product to its customers. Apart from the television and the different radio adverts that were being aired in the different stations, customers never got enough information about a commodity. If they needed to use a commodity, they had to check in the various retail outlets or the different shops or rely on hearsay. This was not good for both the customers and the different companies that wanted to sell their commodities to the different customers.

However, after the introduction of the Google business model things changed for the better. The different companies were now able to provide their different potential customers with information about their goods and the company itself. This made it easy for them to sell the different commodities to their potential customers since they had readily available information (Mannings, 2008). Due to this availability of information in the internet, the customers have been able to access the information at ease making the conductivity of the business easier. Therefore, the mode in which business was being conducted changed completely.

It changed the mode in which business research is being conducted

Business research in the past was very costly and time consuming because the information had to be gathered manually even where it was not necessary. This made companies to lose a lot of money while there were researches for ways to improve their businesses. In the fast place using these modes of research, it was not helping to improve the business but instead it was costing the companies a lot of money. Additionally, companies at that time were afraid to make any changes in their business models since there was no enough research evidence that a business model would work.

After the Google business model was introduced, the different companies now were able to conduct the different researches that they wanted since the information was readily available in the internet. Additionally, the different companies were able to make the risk in changing the different strategies since they had enough evidence (Howard, 2010). This proved to be very beneficial to the different companies who later adopted these methods of conducting business. Therefore, this led to a complete change on the ways in which companies conducted their businesses.

It changed the consume-seller contact

Sellers and consumers used to meet face to face and conduct their business. This face-to-face contact was both advantageous and disadvantageous. The different customers were able to meet the buyers and bargain or check the quality of the commodities they were buying. On the other hand, it was very time consuming and costly if the goods that were being produced were not in the same location as the consumers. This made it costly for both the consumer and the seller who really wanted to transact their goods with ease.

Therefore, when Google was introduced the consumer-seller face-to-face contact was cut-off completely and they could conduct business without having to meet one another. This changed the business for the better since the different costs, which were initially incurred due to time wasting and traveling, were being saved (Girard, 2009). On the other hand, that contact was important for both the consumer and the seller because the consumer would be able to inspect the different commodities and the seller could be able to see the customer’s reaction (Girard, 2009). However, due to this, it was not possible but the advantages were greater than the disadvantages.

Conclusion

Google started as a small enterprise by college students in the University of Stanford. It was not known but in the beginning of 2000, it made great changes that led to the change of business in the world today. It saved the amount of time in which businesses were being conducted, the rate at which the business used to transact and the rate at which information was being transferred from one place to another. Before it was almost impossible to perform these duties but because Google business model it became easy, the business world changed completely and it will never be the same as before.

References

Chesbrough, H. & Rosenbloom, R. S. (2002). The role of the business model in capturing value from innovation: evidence from Xerox Corporation’s technology spin-off companies. Oxford University Press. Retrieved from http://icc.oxfordjournals.org/content/11/3/529.short

Girard, B. (2009). The Google way: how one company is revolutionizing management, as we know it? San Francisco, CA: No Starch Press.

Howard, T. W. (2010). Design to thrive: creating social networks and online communities that last. San Francisco, CA: Morgan Kaufmann.

Mannings, R. (2008). Ubiquitous positioning. Norwood, MA: Artech House

Rappa, M. (2010). Business Models On The Web. Institute of advance analytics. Retrieved From: http://digitalenterprise.org/models/models.html

Shanker, M. C. & Astrachan, J. H. (2006). Myths and realities: Family Businesses Contribution to the US Economy – A Framework for Assessing Family Business Statistics. Business Review. Retrieved From: http://fbr.sagepub.com/content/9/2/107.short

Vise, D. A. (2011). Think Again: Google. Foreign policy. Retrieved From: http://www.foreignpolicy.com/articles/2006/04/25/think_again_google?page=full

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