Google Inc.Join now to read essay Google Inc.The rapid growth of the internet worldwide in the early 1990s sparked a technological revolution that continues to shape the world we live in today. This boom brought with it the perception of limitless opportunities and success in the “dot com” world. As a result, entrepreneurs of all kinds took to the internet with their ideas. After the initial rush into this new-found gold mine, the advantages of the World Wide Web were apparent to all who came to know and love it. While the success of opportunities appeared to have come to a screeching halt, several entities still continue to make the best of the situation. Today, names such as EBay and Amazon are commonplace in almost every household with a computer and internet connection. But, perhaps even more surprisingly, the name Google has become more than just a silly word with a meaning most people do not know. It represents a story of unbelievable success in a market that did not take kindly to small competitors. Google Inc. is now a major public corporation in the United States, but going back to its inception, growth, and success, we witness a truly compelling story.
Two graduate students, Larry Page and Sergey Brin came together to work on a research project at Stanford University’s computer science department. At the time they began working together in 1995, they looked into developing a new search technology that would operate more efficiently and on a completely different principle than existing web search engines. At the time, the most common method utilized by the major search engines on the internet was returns based on how often keywords appear in a particular website. The theory behind Google’s search technology approached the subject from a different angle. Page and Brin hoped to produce more relevant results, rather than something based on frequency. As a result, not only was the engine to be highly reliable, but it had to produce results with unprecedented efficiency. Complex results could be posted in under a second. This technology would continue to be built upon through 1998. Interestingly enough, Google was not the first search engine to be developed at Stanford. Yahoo and Excite, two major search engines, were also born at the computer science department there (Laudon & Laudon, 2007, p. 220).
Subsequently, Google is now a top Internet destination and possesses one of the most recognized brands in the world and available to anyone with an Internet connection. Google maintains the world’s largest online index of web sites and other content and revenue is generated by delivering relevant, cost-effective online advertising. Businesses use the Google AdWords program to promote their products and services with targeted advertising. Furthermore, Google maintains advertising on thousands of third-party web sites using the Google Network and Google AdSense. While Google continues to expand its product line into new and existing territories, the company considers its primary industry to be web search technology. However, Google also faces competition from online advertising companies, particularly those that provide pay-per-click services (The Washington Post, 2006) Currently, Google considers its primary competitors to be Microsoft and Yahoo. Future operating performance will be directly related to the role of information technology in the marketplace. Information technology is an area experiencing constant growth and innovation, which existing companies must address in order to overcome product obsolescence. Moreover, a variety of factors exist that will affect the success and future growth of Google. First, Google must protect its proprietary search algorithms accounting for its success to date. If such methodology reaches competitors, its competitive advantage is suddenly lost. Secondly, it must be able to maintain its competitive advantage over Microsoft in areas of expertise. Microsoft is a proven industry leader in many aspects of technology and has the financial strength to compete in every capacity (Builder, 2006).
Nevertheless, Google Inc. now enjoys a status of financial viability and relative maturity in the internet community. In terms of the entrepreneurial life cycle, Google has enjoyed the protection of a university environment and received its commitment of financial resources from generous outsiders. The actual developmental resources obviously came from the founders of Google, but at no real opportunity cost, except for that of having not been in the graduate program at Stanford in the first place. Next came Market Entry, defined by the profitably and/or success of the venture. One could arguably say that there was really not much to lose at this point, but that would be a difficult message to relay to both the founders who spent years developing Google, and the entities who funded the project. Market Entry was indeed marked with immediate success and thus sparked the next stage, full launch
This initial public offering process was a success, and a relatively short one. With little or no prior financing, only $1 was required to be capitalized on to fund the initial operations, with no subsequent capital. Market Entry ultimately raised a record $15 million and was a long term investor and is considered the first venture that was fully funded. The company was able to raise $30 million in early stages without any additional financing, and was able to fund its initial investment of $60 million through a secured dividend of 18% as of press release date. However, even this investment of funding of $60 million was a long one, and at least 50% of the funding was secured by long-term investors who had taken the equity at press release. The early and medium-term investors may not have been as well known to prospective investors as some of the less well-known investors of Google, and so ultimately we will simply call the “new Google.”
Prior and the Future
As the name implies, a large number of projects were already launched under the name, with many of them being developed by Google itself. It has become possible to distinguish several “developer” and “project” projects, and there are many examples which can be found in the various filings listed below. Google has also filed a patent and related trademark with various federal authorities, and as such it appears to the public that no one is using Google’s proprietary services in this world. As a result many are not working remotely at Google, and the overall quality of the team currently employed at Google is not on the level of a typical “big brother” company. However, the public also seems to be unaware of other technologies Google has built, and even if one can find documents containing such things it could be difficult to discern which one they can use.
The project “Google+”, which will ultimately become something much like the Social Network, is already funded by the $1.08 billion company-owned cloud service provider, Google Fiber, and a similar company-operated TV network is in development and will eventually start its own company (although it appears it doesn’t appear like Google’s official name as of yet). The current business model for Google has in the past operated for just a couple of years or so, and the company has had to work hard to gain traction. However, as with any great financial endeavors, it seems like this one was all worth it.
With the public offering due out in a few years and Google at a distance, it seems to be a solid investment for many, perhaps most, people. Some have already commented, “Google, now I wonder what is going to happen when they make it through and nobody else.” If anything, it should serve as a reminder to all who participate in the project what it truly is today: a giant corporation that is now on the cusp of making a statement of corporate sustainability and “development” (with the hopes of helping to change how the world views us by giving us a way to grow more and connect). Although at first glance it may not seem like something so radical as building a new world that doesn’t need to rely excessively on its current, all that was really needed that the project can be done.
Conclusion: The Future
Despite its name, but very little in common with Google, Google’s “company” still has considerable impact as a globally-wide force in the global computing and information technology industries. For its most recent public offering, Google’s venture company, a search engine for social networking site Facebook, has also been listed as a partner. In this world of online anonymity it