Transnational Google Corporation is known as one of the most famous companies in the world. Google Corporation occupies leading positions in the rankings among the best companies and is considered to be the best employer in the world. This is due to its personnel policy, system of motivation, as well as providing the freedom for engineers to implement their own projects. This is a global company, which offers the search in all languages and has representative offices in all regions of the world. In the era of globalization this is extremely successful strategy, especially for companies with a computer sector.
Since the search procedure has always been free, there is a question regarding how the company increases its revenues. In fact, it was decided to make money from advertising. However, this business strategy of Google differs from other companies, as the advertising does not have an impact on the search process.
In some economic publications the business strategy of Google was introduced in the form of “the “4 E” - earn, entice and defend, expand the pie and experiment” (Halstead et al. 25). This reminds popular 4P model, which emphasizes the role of the price, production, positioning and promotion, but 4E model is more relevant in this case. First of all, it should be noted that approximately 95% of the company's revenue is received from advertising (AdWords, AdSense, Double Click), other activities provides no more than 5%. Secondly, the company draws all its ingenuity, comfortable projects of free services. “Focus on the user and all else will follow” strategy ("About Google") caused the creation of mail system “Gmail”, video services “YouTube”, the browser “Google Chrome” and others. All this pursues the main aim - to create the largest market for providing ads and protect themselves from the losing the users. As for expand the pie, it must be said that Google always tries unconventional methods (such as “Google Glass”), in order to extend the stay of users on its resources. Finally, making experiments is an integral part of their business strategy. All employees allocate 20% of the time for this directions. Thus, Google Corporation implements innovative ways to increase their income by diversifying and investing activities in constant development.
Works Cited
"About Google". Google.com. N.p., 2016. Web. 4 Sept. 2016.
Halstead, Hayley et al. "SITUATION ANALYSIS & MARKETING PLAN". Glass n.
pag. Print.
