Google Recommendations for Improvement
Google is the largest web search and advertising services company. It manages a huge index of website and related other online content. Though Google has remained a well-known company, the company is threatened by some issues which could adversely impact its operating margins. It is essential for the organization to focus on the continuous improvement and enhancement of operations in order to generate revenue and remain dominant in the world of search engines.
One of the main weaknesses of Google is the high dependence on the advertisement segment. The company generates a major portion of its revenue from advertising segment, which could have an adverse impact on its business operations. The advertising segment accounted for 96% and 97% of the total revenue during years 2010 and 2009.The concentration of revenue from one segment could adversely affect the profitability of the company. I would strongly advice them to diversify its business strategy.
A good opportunity would be expanding to the online video sector which demand is expected to increase by the end of 2013. Youtube, allows users across the world to upload, share, view, rate, and
comment on both amateur and professional videos. With such a high growth potential in the online video market, the company could stand to gain from its service.
Due to the spread use of Cable a good option for a company such as Google would be to acquire or pair up with a Cable or Satellite TV provider where a consumer can search the internet while sitting on the coach using remote and Google’s search engine.
Regarding its corporate level strategy they should continue expanding through acquisitions.ITA Software, in July 2010 a flight information software company. The agreement allows the company to pursue the creation of new flight search tools that will enable users to find better flight information more easily on the Internet. In February 2010, the company acquired