Question 1
The secret behind the magic on how search engines work could possibly amaze many individuals when they come to realize. In order to understand how search engines work, it is important to view the four steps the data entered into the machine takes before the suggested results are displayed on the monitor for view or interpretation. The four simple but complicated steps includes, the crawling of the “spiders” to transport the alphabetical data entered into the computer, then followed by indexing of the data, and then the relevance of the data is assessed before the results of the search are displayed on the screen as an soft copy output.
During the crawling process, the spider ensures that it has captured the key words that are intended by an individual. In addition, the spider ensures that it has captured significant titles to deliver the intended search. When the spider has crawled the information is stored in a database and listed for easy manipulation. The search engine further uses complex equations to rank the information captured. The pages are finally displayed on the screen as search results of the search engine. The main source of income of search engines comes from display of advertising messages on the web. When a company displays their advertisement, there are some required charges that the company pays. In addition to this, when keywords from individuals are displayed on the website, they pay a required amount of money for the service.
The other ways through which search engines make money is through syndication and paid inclusion. The introduction of export tool among search engines is still recognized as one of the most successful step search engines has ever made in ensuring that the business interaction between different search engines was a success and hence registering higher profits. The overseas markets can be identified and expanded through their exchange business between the search engines.
Question 2
The dominance and rapid development in Google Company posed a threat to the other nations in fear that it was the only source of information to almost all the nations and the US government being under its full control could dominate the world business.
Google in France
In order to reduce the dominance of US over social cultures and information businesses, Google Company was subjected to pressure by the French government and in return it produced a website that had a domain name in French.
Google in Japan
In order to compete with Google Company, the Japanese developed a search engine of their own that would be more powerful to outdo the other dominant Google companies in Japan. The government of Japan launched an initiative project that would be a personalized system. In this regard, the Japanese knew it would dominate the country’s information technology businesses and hence make a step forward in the world economy.
Google in Germany
The German government under the leadership of Angela Merkel decided to develop their own information technology project rather than solely relying on Google for internet services. This development projected was named Theseus. The government hoped for understanding and collaboration in order to achieve the target of their project.
Question 3
The threat from government search engines can be described as real and dangerous to the progress of Google. In order to secure and continue to dominate the market in these countries that Google is facing stiff competition and government regulation, it needs to set its priorities in its motherland and try to be influential to the public through numerous inventions with fast improvement of the search engine.
- When a company becomes the first mover, it attracts the attention of the users and hence the other companies that follow after this would not have a room for exposure as the first movers have taken over the market. The eBay came after Yahoo and hence did not take the attention of the Japanese.
- The target of eBay attracting most online actioners was based on the concept that the company understood the native language of the locals more than the foreign Yahoo Company. In this regard, the company’s main focus was on their cultural differences as the Yahoo was an American based company.
- eBay has developed to be one of the most influential company in Japan at the moment due to government intervention on giving the country’s only company the first priority.
- Price has been the chief competitive tactic for IKEA since it started in 1943. IKEA’s decision to outsource its activities rather than increasing its prices in Sweden was a good strategy. This will enable the company to continue providing its high quality Scandinavian design products at a low cost hence holding its customers. Additionally, the formation of franchises enabled IKEA to own several stores that operate under its name in countries such as Malaysia, Israel, Kuwait, Singapore, Taiwan, turkey and UAE. These stores diversified the operations of the firm and enable it sell more while incurring little selling expenses. It enabled the company to enter new unexploited markets with high opportunities despite the many challenges associated with such markets. The franchises are another source of income for IKEA since the franchisees will pays royalty, levies and franchise fees. Additionally, IKEA will have a smaller central organization as compared to running the stores themselves. It also motivates IKEA to work smart to ensure that the franchises are operating at a greater efficiency so as to assure it of improved sales since IKEA has invested its time and resources in the franchises. IKEA will be able to maintain a more effective labor costs, reduced cost of labor turnover and general operational expenses. However, there is risk that the franchises might exercise undue pressure over it so that it implements new policies and procedures. IKEA will have to disclose confidential information to the franchises and this might be very risky for IKEA’s existence and general performance.
- Since IKEA has not been very successful in the market, it is reasonable that it contracts its products. Contracting for its factories will allow other investors to bring in their human resource contribution as well as financial contribution that will increase the effectiveness and efficiency of IKEA. It is also good to contract as these spreads risks hence the business will not have to worry about the many risks that might hamper its operations. However, IKEA must be very keen on whom it contracts with to avoid compromising the quality of its products as this might be very devastating and will ultimately lead to failure and annihilation of IKEA.
- Nestlé’s use of internet and the web is advanced and has revolutionized its operations. The use of technology will enable Nestle to increase its effectiveness as well as its efficiency. Through its ordering site NestleEZOrder.com its clients will be able to access its products and purchase them online. This will increase its sales while reducing the marketing expenses. The marketing process is faster and customers will be able to obtain products as they may require.
- Nestle should consider selling its products over the social media such as twitter, Facebook and LinkedIn. This will improve its sales since virtually everybody is in this Medias and will learn of its product and consequently develop the demand. It should also start a site where customers’ views about its services will be presented. This will enable Nestle to realize any deficiencies in its products and services and rectify them as well as learn the tastes, needs and preferences of the divergent customers.
- For successful operation of any strategy, utter care and patience is necessary. Nestle should not strain beyond its capability to sign so many contracts at a go since implementation of the contract might give it unforeseeable difficulties. However, signing the contracts with major software and solution development with SAP should have been done after considering the financial and social implications that such contracts will have on Nestle. Nestle should slowly adjust to the technological advancements it will definitely succeed.
- Through the internet and Web, Nestle will be able to easily access international markets as well as link its operations with other multinationals. This will completely revolutionize Nestles activities as it will be conducting its marketing operations very differently and in many markets especially overseas markets. Through the internet, Nestle will build a strong customer base and ostensibly create a sturdy brand name.
- Having 8000 brands will enable customers to have a wide range to choose from. Sales revenues will increase since all the brands might perform well in the world market. The many brands enables the company to take care of the various needs, preferences and takes of the different consumers as well as take care of both high and low income earners in the society. However, it might be too costly for Nestle to market all the brands. Furthermore, the brands might be close substitutes hence others will be overshadowed. The many brands might also lead to compromising the quality of the food beverages produced by Nestle.
- Imagination Entertainment’s strict supply chain will greatly be affected by the financial capability of the company, little expenditure on R & D, diversity of the market and the 50:50 marketing mix. The company spends less on R & D yet some markets are very vast and scattered. Its financial ability is also limited meaning that it will therefore have to seek the assistance from other well established companies such as Disney Inc.
- The two business structure will enable Imagination Entertainment to effectively and efficiently run and control its businesses. It will also be able to increase since its units will be operating differently and serving the different needs, tests and preferences. However, the two unit structure might be costly to run since they will require several organizational units and the financial implication of this will be negative. It would not be able to benefit from the diseconomies of large scale production.
- Licensing will help Imagination Entertainment to diversify its operations hence selling more. However, the licensed company may not have the drive to ensure the product succeeds in the market. Joint ventures will enable Imagination Entertainment to take the best people from the best ventures and use them for its own advantage. It will also increase its market share. These ventures might be costly to run. Owning its supply chain will enable Imagination Entertainment to control its sales. However, selling costs might be too high.
- The strategies used a large firm allows the business to offer a large range of quality products since it has a skilled and highly trained staff who can penetrate challenging markets as well as strengthen business relationships. This also builds a strong brand name that will lead to an increase in sales since customers will be loyal. A large firm has a high financial ability as compared to entrepreneurial business and can therefore finance the best modern business models. On the other hand, small entrepreneurial businesses have little capability to use new advanced market entry strategies due to financial constrain and human resources insufficiency.
