Google's Capital Expenditures: A Comparative Analysis

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Google is by far one of the top companies when it comes to capital expenditures (Capex), despite the drop in expenditures in 2015, the company remained well ahead of the competition. During 2015, right after Ruth Porat took over as the company’s CFO, capital expenditures at the company dropped every quarter. According to Levy (2016), total capital expenditures fell 14% for the company. However, Google’s largest competitors, Microsoft and Amazon, continued to increase their capital expenditures with Microsoft increasing spending by 19%. and Amazon maintained its level of spending after increasing spending more than four-fold over the previous four years.
As a result, Google does need to increase its Capex to account for the growth of two of …show more content…

They could use to increase some the marketing on some of their newer ventures such as their Google Apps and Cloud services. With the company’s global popularity, recognition and market dominance the company seldom engages in colossal marketing campaigns. However, the company has been known to advertise and promote key products or services. As an example, in 2012 the company spent about $213 million on advertising its own products, with the majority of the budget used for online ads. Of note the company spent an estimated $12 million to promote Google+, “including on a TV ad featuring The Muppets who were seen using the social network 's "hangout" video chat and singing "Under Pressure," the Queen and David Bowie hit” (Efrati, 2012). However, this is the exception as opposed to the rule and Google tends to favor the minimalist approach when it comes to promotions. A couple benefits of this is that Google’s minimalist approach appears to resonate with their target market. Despite the majority of their revenue coming from advertising, Google does not advertise on its homepage, not even for their own products. Additionally, the company spends little for promotion and as a result, more funds are available for other areas of the business. In 2014 Google’s …show more content…

Geographically the company is global and can be found in almost every major country in the world except China. Google and China cut ties due to censorship issues 2010 and as a result Google gave up access to a huge market. China requested that Google restrict and filter its search results and the company failed to comply and within months Google’s service was inaccessible in China. Despite the failed relationship between Google and China, Google is still working to gain a foothold in the second largest economy by investing in Chinese startups. Namely, in 2015 Google invested in Mobvoi Inc, A Beijing Based artificial intelligence startup that provides mobile voice search in China. Google is suspected to have invested $45 million in the company (Yuan,

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