Google's Business and Operating Systems

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Google’s Business Model

Google generates the majority of its revenue by offering cost-effective highly relevant advertising. Google sites account for 66% of total revenues for the company. Google also networks and the networking brings in approximately 8.7 billion dollars which percentage wise is around 30%and last but not least the licensing and misc. ventures and projects account for the last 4% that’s left. In total the company sales were 29.3 billion dollars last year. The U.S. alone totals almost half of Google’s revenue at a whopping 48%.

Google uses tools like Ad-words in which advertisers and business owners bid for good keywords. Any advertiser that wants to be able to have their ad displayed on Google search must continuously monitor the price of the keyword and maintain a bid high enough to keep their ad active. As competition for the best keywords increases the price goes up. The customers are what drive the increase in ad revenues for Google. Strength about Google’s monetization plan is the fact that it’s one of the most brilliant plans in the world trying to be copied by companies across the globe. Its business plan has led Google to the top already. The only weakness I see is the fact that its business relies so hard on advertising. 66% to be exact and if a new search engine were to come around and captures the public eye more (highly doubt it anytime soon) then Google will see huge losses in their strongest capital generating sector.

Google’s Corporate Values

Google has three corporate values that play a big part in the dynamic environment in which the company operates. The values are: don’t be evil, technology matters, and we make our own rules. Each of the values sounds simple and basic; that i...

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...ling list” (Newsweek, 2006). This software allows employees to post ideas and then other employees have the opportunity to rate their ideas. This is similar to Google’s search ranking system; the more an idea is rated the higher it appears on the list. In addition to fostering a creative environment, the 70-20-10 rule also helps to increase the company’s bottom line.

Google’s corporate environment has always been groundbreaking and cutting edge since the company was founded. A significant portion of the company’s success must be given to the far out ways in which it develops it products and services, therefore, standard business practices probably will never work for Google.

Works Cited

Another reason Google’s business plan is brilliant.

Hoover database.
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