2009 was a negative period for the United States economy. A big recession hit the country, and the founders of Google were trying to make a plan in order to make to limit the damage caused by an economic decline. Brin and Page the two creators of the giant Google were shocked form the situation that was occurring. Their company was feeling the effect of the economic downturn. Google’s stock price dropped 51 percent. The two entrepreneurs were trying to figure out a way to keep the company from drowning. Google main problem was how to maintain the culture that made the company successful in the previous two years. Some consequences that the company had to face was eliminating products that were not selling, and most hurtful firing employees. Moreover, employees left because of many reasons for example low salaries and benefits, cost of living, and new goals.
Given the economic environment in 2009 as described in the case, what implications, opportunities, and threats does this context pose for Google currently? What about 2012?
With the given situation, where it was difficult to keep any company profitable, Google more than other businesses had to face complicated economic phases. The first and more important implication was downsizing the workforce trying to keep the most skilled workers and relocate them in the areas of need. Some of the threats for Google were trying to keep up with the competition, which it was aggressive. Many companies were trying to the same road of connecting people with information on the web. The biggest competitor for Google was Microsoft Corporation with its search engine Yahoo. Moreover, other companies were competing against Google from start-up...
... middle of paper ...
...ompany should not stop progressing.
What recommendations would you make to Google? Why?
Google should expand its horizons and look more towards new goals. The company should work on finding new niche market in order to keep people interested in using every service available. Yahoo is Google’s first competitor, and as good competition is supposed to be, they try to eliminate each other, and get their hands into the whole market. Therefore, Google should analyze what are the strategies to keep Yahoo away from getting advantages on certain service provision. As much as Yahoo can be a study model for Google, it also presents a big threat. Although the completion seem to be the biggest problem for the company, jobs positions are as important as getting customers. Keeping the right workers for long period of time will increase quality production and therefore profits.
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