What is the winning business model of Google?

Name: Ow San Poh

Student ID: 1081101785

What is the winning business model of Google?

Google is becoming the largest market share website nowadays. Although it is established later than the rest such as Yahoo and MySpace, Google is still succeed in leading the industry.

The business model which Google had and currently apply is advertising. Google and Yahoo have the similar function and business model, yet, Google is still act as a leader even though Yahoo joints the industry first. They not only provide advertising service for creating revenue, they also provide a vital tool for most of the internet users which is search engine. But, people choose Google instead of Yahoo because of the speed and the reliability. Besides, Google has designed a very clear and simple website for the users. People are tending to choose those easy to focus and simple site instead of those complexes designed.

Besides, Google is not only provides search engine with a reliable result most of the time, they also provide several free products or services to the users. These functions are including Google Maps, Google Chrome, Google Earth, Gmail, Google Dictionary and so on and they are free of charge. In other words, Google is not acting a successful advertising website but also a powerful and functional website for users.

Google is not only developing in their home country but worldwide. They has specified the search engine result based on the region, and this is much convenience the users. Early of the year 2010, China has a conflict with Google and it is a hot issue within the industry. However, in March 2010, Google has announced to stop the search service on Google.cn and redirected to Hong Kong based Google in their official blog. Yet, Google is still remaining the number of users and this incident is not affecting them.

When people tend to choose Google rather than other competitors, most of the companies advertise their product and services in Google in order to approach more customers. Google earn revenue from the advertisement as a main source.

Cannot deny that, the success of Google is having now is because of the right business model. In the future time, Google can try to make the site as simple and easy to navigate since online with mobile phone is a new trend in the market. More and more users are browsing websites with mobile phone due to the convenience and easy to carry if compare to laptop. Therefore, Google should minimize the capacity of website and thus, the users able to apply the services of Google in the mobile phone smoothly.

See, the blog I am using is also from Google. So, how can we deny Google is not the leader?

Reference website:

http://www.vertygoteam.com/google_marketing_strategy.php

http://www.vertygoteam.com/google_business_model.php