Analysis Of The Google Company
A monopoly or oligopoly market structure comes into existence when a prevailing entity or a finite number of prevailing entities influence their power to some prejudiced benefits over consumers, suppliers, and the economy at large. To the best of my understanding and the pandering understanding of a considerable number of individuals nothing of commentary has emanated from the practices of the Google Company that it is pandering in such activities. Actually, many of their products are given out for free and if they require some compensation then it’s a few coins (Jang, p.30).
The competition in its products is on the decline in many of its huge markets such as maps, Mobile Operating system as well as Email and searching. Terming their market structure as perfect competition would be quite unbearable. When all is said and done, even a giant like Google has experienced a seamless antagonism that has led to the decline of some of its services. A good example is the Google money, social networks and the Google payments. This is a clear indication that Google has allowed combat and has submitted when battled. This simply states its bbmarket type as Perfect Competition.
Google is a subsidiary of Alphabet Inc. the description of a corporation being a separate legal entity from its owner’s mentions Google as a limited liability company. This means that the company calls for the subscription of shares from the general public and acts within the will of the shareholders. Alphabet Inc. is run by the founders of Google that is, Larry page as CEO and Sergy Brin as the president.
The main merchandises tailored by Google are basically products and services. The company offers seven products and services which are used by quite a considerable population of an estimated seven billion people globally while their close competitors Facebook has a reach of 1.5 billion users. This makes the services offered the Google Company a public item. The company and its other entities fit in the internet software, and computer hardware industry. The industry offers a variety of products and services starting from computer operating systems, office productivity systems, information technology consultancy, and many others. The restructuring of Google and the creation of a parent company Alphabet Inc. led the establishment of nine companies under one corporation which extends its services all over the world (Larry, p.48).
The United States having the best radical software and information technology, more than a quarter of the $3.8 trillion international bazaar is in the United States. The industry alone in U.S counts for $1.14 trillion of the U.S value Growth Development product (GDP) and 10.5 million straight employment opportunities. The number of employment opportunities established by the software industry solely has seen a 14 percent increase since the year 2014. The U.S has more than 100,000 information technology and IT companies with 99 percent of them being small and middle size.
Conferring to Forrester’s predictions on international cloud implementation, their search showed that organizations would spend more than $191 billion on cloud facilities by the year 2020 as compared to the $ 72 billion that was used in the 2014. The upsurge will be more than 150%. In the year 2015 the United States trade was roughly $34 billion cost of computing facilities, which was a proliferation of 40% from the year 2010. The software sector as a service providing entity imposes a lot of growth expectations in the cloud service bazaar and the bar is expected to rise even higher. Google’s mother company alone has a share capital of $1,056 which translates to a net worth of over $600 billion. Google’s net worth is at $101 billion. The organization is in the race to overtake Apple which is currently at the first position. In the year 2016 Google made $21.5 billion which translated to $58 million per day (Durica and Svabova, p.115).
In a typical startup style, Larry page and his colleague Sergy Brin established Google at a friend’s place. Today, the search engine is the worlds’ most prominent hunt machine and one of the greatest innovative achievements ever in history. Larry Page being the co-founder of the company and the CEO of Alphabet Inc. possesses 25,000 class A collective standard shares as well as more than 20 million class C capital standard shares. Sergy Brin being the president of Alphabet Inc. the mother company of Google holds 19.3 million class C capital standard shares and has a net worth of $46.1 billion. The other person who has quite a considerable share in the company is Erich Schmidt. He possess 21000 class C of Google standard Entities, 4.2 million class C capital shares and 21,000 class A Google standard entities, he is worth $13.1 billion. The other top share subscriber of the company is Sundar Pichai. He was appointed the CEO of Google in the year 2015. Prior to holding the office of the chief executive officer, he was in charge of the Google android operating system. He possess 19,586 class A Google standard entities, 136,664 class C standard entities, 1,292 class A collective stock units and 24,569 class C capital stock units.
The remaining 70.73 percent of the organization’s stock is institutionally retained. The largest institutional holders are the Vanguard group with an approximate 40 million shares which translates to a net worth of $40 billion. The overall operations of the company encompass the provision of quality products and services. Being an international, and freely exchanging organization, the company focuses on the creation of a powerful search engine, internet analytics, cloud computing, website programs, mobile applications, advertising technologies as well as browser and OS development. Due their extended creation and provision of programs and computing systems, most of their products are produced through the software development cycles by computer and IT specialists.
With a total of 18 billion search engine questions in each and every month, the Company stems up to be one of the most efficient service and information providers in the entire world. Compared to others, it is ranked as the most used search engine with a 66 percent penetration rate. The company derives much of its income from advertisements and from a good number of minor corporate advertising strategies which include Search Engine Optimizations, the purchase of space on search results which is oft-times called Sponsored links – These are Ad words which trigger and allow users to display their services over websites and social media networks. The other thing is the purchase of advertisement channels which include affiliated sites such as blogs. Additionally, Google incorporates AdSense and the DoubleClick Ad Exchange which helps in the monetization of content as well as the creation of a real time platform for the trading of pageant ad cosmos.
In the response of customer and user related issues, the company provides a customer support platform where a user can forward any case or deficiency of the service of the products the company has offered, on condition that the issue aligns with the company’s’ policies and principles. The page also provides a direct phone contact and a mail chat on the instance of urgency or immediate action. Furthermore, there is a compilation of answers to the most asked questions and the probability of a customer getting the answer of their related issue is quite high.
The strategic choice of Google as Multinational Company is directly proportional to the nature of their business and the elements of the industry. The universal strategy of the organization encompasses wide market latitude; the company conveys its products to almost every single person in the society. However, the generic strategy of discrepancy calls for uniqueness in the provision of products and services. Google comes out as exceptional and sets its steps way ahead of other companies, due to the creation of exceptional and outstanding products and services. The exceptionality is achieved because of the embrace of high innovation and inventive techniques. The increase in the company’s products and services such as the Google search, fiber, and Glass is a clear demonstration of the implementation of the innovational techniques. Google correspondingly ensures its search algorithm changes over a specified interval; this is to ensure competitive benefits against its close competitors Yahoo! and Bing. The Strategy of the company perfectly fits within the Monopolistic Competition market structure. Simply, the company competes to provide quality products and services in order to gain popularity (Ago et al. p.211).