INNOVATION AT GOOGLE Case Solution
INTRODUCTION:
The purpose of this case study is to analyze business structure, revenue model and the risks associated with the revenue model of the organization. Goggle has transformed immensely with the transformation of the internet and the increasing usage and dependency of the people all over the world. The company lays immense focus and attention of the needs of the individuals and the users and therefore, shapes its policies as per the demands of the users. The management of the organization has always given priority to this irrespective of the margins and the revenues that the business could attain by pursuing the business first.
The company generates revenues based on the advertisement of the third party organizations on its search engines and various other supporting websites of the organization however, there are several risks associated with it and the management of the organization are aware of the threats that could harm the revenues of the organization.
SOURCES OF GOOGLE REVENUES:
The only source of revenues and margins for the Google organization are the third party advertisement that it places on its websites and various other member websites that are affiliated with the company and the fees that it charges to the users on its online buying websites. The management of the organization is very critical and cautious about the brand reputation as the facilitator and assistance provider for the users all over the world and does not allow or approve for payments to increase the rankings of the websites on the searches.
The management of the organization has been very vocal about the policy that it will promote rankings and search results as per their relevance to the content that is being searched. The management of the company awards advertisement slots on the basis of auctions in which various organizations that are seeking for slots on the most dominant search engine of the world participate. The company has introduced policy of pay per click to the advertisement companies and as per this policy the management of the organization will charge advertisers for every click on their ads by the users. This charging policy of the management of the organization is variable and varies from country to country. Historically the highest revenue generating market for the organization has been the U.K and the management of the organization needs to focus other potential markets where internet usage is high.....................
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