INDEX

WHAT IS STRATEGY?
OPERATIONS, STRATEGY AND OPERATIONS STRATEGY
OPERATIONS AND STRATEGY
Operational/Production Strategy
Production Capacity
Size and Location of Plants
Technology
Quality of Products
Research& Development
GOOGLE
History of Google
How Google works !
Product and Service OF GOOGLE
Productivity tools and Operational tools

Whats Googles Strategy?

Google's Global Expansion Strategies
Could anything derail this strategy?
Bibilography

WHAT IS STRATEGY?

WHAT IS STRATEGY?
T

he Word Strategy comes from the Greek Word Strategos which means Art of
General. In military science, strategy literally means the art and science of directing
military forces in a war or battle. Today, the term strategy is used in business to
describe how an organisation is going to achieve its overall objectives. Strategy is
concerned with deciding which alternative is to be adopted to accomplish the overall
objective of the organisation.
Strategy is a comprehensive long term plan. It tries to answer three main Questions.
What is the present position of the Firm?
What should be the Future position of the Firm?
What should be done to attain the Future Position?
It is to be noted that nowadays, the term strategy is used even from short term
perspective and not necessarily from long term point of view.

Also, in some organisations, the term strategy and business policy are used
synonymously.

Strategic

management involves the formulation and implementation

of the major goals and initiatives taken by a company's top management on behalf of
owners, based on consideration of resources and an assessment of the internal and
external environments in which the organization competes.
The word strategy comes from the Greek word strategos which means art of general.
The term strategy is used in business to describe how an Organization is going to
achieve its all over objectives. The term strategy is defined in simple word as follows:
Strategy is a broad long-term plan designed to achieve the overall objectives of the
firm

Strategic management provides overall direction to the enterprise and involves

specifying the organization's objectives, developing policies and plans designed to
achieve these objectives, and then allocating resources to implement the plans.
Academics and practicing managers have developed numerous models and
frameworks to assist in strategic decision making in the context of complex
environments and competitive dynamics. Strategic management is not static in nature;
the models often include a feedback loop to monitor execution and inform the next
round of planning.

Harvard Professor Michael Porter identifies three principles underlying strategy:

creating a "unique and valuable [market] position", making trade-offs by choosing
"what not to do", and creating "fit" by aligning company activities to with one another
to support the chosen strategy. Dr. Vladimir Kvint defines strategy as "a system of
finding, formulating, and developing a doctrine that will ensure long-term success if
followed faithfully."Strategic management is a systems approach to identifying and
making the necessary changes and measuring the organizations performance assist
moves toward its vision. It has been defined as
..Management . . . system . . . that links strategic planning and decision making with
the day-to-day business of operational management.
-Gluck, Kaufman, and Walleck, 1982
Why we want to do Strategic Planning :

To have the capability to obtain the desired objective.

Fit well both with the external

environment
an organization's

and

with
resources

and corecompetencies - it should

appear feasible and appropriate

Have the capability of providing an organization with a sustainable

competitive advantage - ideally through uniqueness and sustainability

Prove dynamic, flexible, and able to adapt to changing situations

Suffice on its own - specifically providing favorable outcomes without the

need for cross-subsidization

OPERATIONS, STRATEGY AND

OPERATIONS STRATEGY

Organisation frames Strategies in all Functional Areas. The Functional Area Includes.

Human Resources
Marketing
Finance
Operational/Production.
INTRODUCTION to Operations
An organizations operations function is concerned with getting things done;
producing goods and/or services for customers. Operations management is important
because it is responsible for managing most of the organizations resources. However,
many people think that operations management is only concerned with short-term,
day-to-day, tactical issues. Correct view is by considering the strategic importance of
operations. All business organizations are concerned with how they will survive and
prosper in the future.
A business strategy is often thought of as a plan or set of intentions that will
set the long-term direction of the actions that are needed to ensure future
organizational success.

The relationship between operations and the other business functions is similarly
important. The objective of the operations function is to produce the goods and
services required by customers whilst managing resources as efficiently as possible.
This can lead to conflicts within an organization. Conflicts between the operations
and the marketing functions are likely to centre on the desire of marketing to ensure
that operations concentrate on satisfying customers. Whilst this may seem desirable,
marketing will usually want operations to be able to meet customer needs under any
circumstances. This is likely to lead to demands to produce greater volumes, more
variety, higher quality, a faster response, and so on, all of which are likely to lead to
less efficient operations. Conflicts between the operations and the accounting and
finance functions, on the other hand, are likely to centre on the desire of accounting
and finance to want operations to manage resources as efficiently as possible. This
will tend to pull operations in exactly the opposite direction of that desired by
marketing. Conflicts between operations and the human resource management
function are likely to centre on issues of recruitment, selection, training, management
and the reward of those employed within operations.

Strategy can be considered to exist at three levels in an

organization

OPERATIONS AND STRATEGY

Strategy in a business organization is essentially about how the organization seeks to
survive and prosper within its environment over the long-term. The decisions and
actions taken within its operations have a direct impact on the basis on which an
organization is able to do this. The way in which an organization secures, deploys and
utilizes its resources will determine the extent to which it can successfully pursue
specific performance objectives.
Slack et al. (2004) argue that there are five operations performance objectives:
1) Cost: The ability to produce at low cost.
2) Quality: The ability to produce in accordance with specification and without error.
3) Speed: The ability to do things quickly in response to customer demands and
thereby offer short lead times between when a customer orders a product or service
and when they receive it.
4) Dependability: The ability to deliver products and services in accordance with
promises made to customers (e.g. in a quotation or other published information).
5) Flexibility: The ability to change operations. Flexibility can comprise up to four
aspects:
i.
ii.
iii.

The ability to change the volume of production.

The ability to change the time taken to produce.
The ability to change the mix of different products or services

iv.

produced.
The ability to innovate and introduce new products and services.

Excelling at one or more of these operations performance objectives can enable an

organization to pursue a business strategy based on a corresponding competitive
factor. However, it is important to note that the success of any particular business
strategy depends not only on the ability of operations to achieve excellence in the
appropriate performance objectives, but crucially on customers valuing the chosen
competitive factors on which the business strategy is based. Matching operations
excellence to customer requirements lies at the heart of any operations based strategy.
How this might be done is discussed later in the chapter. It is unlikely that any single

organization can excel simultaneously at all of the five operations performance

objectives. Trying to do so is likely to lead to confusion if operations mangers pursue
different objectives at different times. This lack of clarity
is likely to lead to suboptimal performance and result in a failure to excel in any of
the operations performance objectives. Consequently, organizations need to choose
which performance objectives they will give priority to. This may result in having to
trade-off less than excellent performance in one aspect of operations in order to
achieve excellence in another. The concept of trade-off in operations objectives was
first proposed many years ago by Skinner (1969). He argued that operations could not
be all things to all people.
What
was needed was
to

identify

single goal or
task

for

operations;
clear

set

a
of

competitive
priorities to act
as the objective.
The task would
then act as the criterion against which all decisions and actions in operations could be
judged. The airline Easy Jet offers an example of a company that has a clearly defined
task for its operations, namely achieving the lowest possible operating costs.
It is worth noting, that some operations management scholars reject the
concept of the trade-off. They point to the ability of some organizations to outperform
their competitors on multiple dimensions. They appear to have better quality, greater
dependability and a faster response to changing market conditions and lower costs.
Ferdows and de Meyer (1990) argue that certain operational capabilities enhance one
another, enabling operations excellence to be built in a cumulative fashion. In their
sandcone model of operations excellence (see Figure 2.1)

They maintain that there is an ideal sequence in which operational capabilities should
be developed. The starting point, the base of the sand cone is excellence in quality.
On this should be built excellence in dependability, then flexibility (which they take
to include speed), then cost. They emphasize that efforts to further enhance quality
should continue whilst commencing efforts to build dependability. Similarly, actions
on quality and dependability need to continue whilst building flexibility. Finally
efforts to reduce costs take place alongside continuing efforts to improve quality,
dependability and flexibility.
They claim that operational capabilities developed in this way are more likely to
endure than individual capabilities developed at the expense of others. Skinner (1985)
argued that operations could become a Formidable Competitive Weapon if the
function was allowed to play a full strategic role in the organization. That this was not
the case in some organizations, was due to there being inappropriate expectations of
and attitudes towards operations. In their four-stage model, Hayes and Wheelwright
(1984) categorize different types of organizations based on their attitude towards their
operations .Hayes and Wheelwrights four stage model is underpinned by their
belief that an organizations operations can provide a source of competitive
advantage. It can only do this if the operations function is managed strategically. As
such, they argue, all organizations should aspire to reach the highest level possible,
ultimately reaching stage 4.

A Stage 1 organization finds it impossible to manage its operations strategically, as its

operations performance objectives are continually changing between low cost,
increased flexibility, improved quality, etc. Because operations managers never have
the time to focus on a consistent set of objectives, a stage 1 organization is
characterized by a reactive approach to operations management. In such an
organization, operations can never provide a source of competitive advantage.
A Stage 2 organization manages its operations by seeking to emulate those of its
competitors. It is likely to copy the prevailing best practices of its industry, such as
JIT (just-in-time), TQM (total quality management), BPO (business process
outsourcing) etc. However, as they always adopt these techniques in the wake of
industry leaders, they are never likely to have developed the same level of expertise in
their application. The best that such an approach can achieve is to match the
operations performance of its competitors.

Hayes and Wheelwrights four stage model

Although the combination of operations practices adopted by a stage 2 organization
may be considered by some as amounting to an operations strategy in that they are
consistent, they will not be overtly linked to business strategy. Indeed, it may be that
such an operations strategy is inappropriate for the organizations business strategy. In
any event, a stage 2 organizations operations cannot provide the basis for competitive
advantage
A Stage 3 organization has an operations strategy that is linked to and derived from
its business strategy. This means that its operations performance objectives are

aligned with, and supportive of, its business objectives, offering the possibility that
operations can provide the means of achieving a competitive advantage. The chances
of achieving competitive advantage will be considerably increased if the organization
has adopted industry best practice in its operations.
A Stage 4 organization is radically different to one at any of the other stages. A stage
4 organization uses its operations excellence as the basis for its business strategy an
operations-based strategy. The operations of a stage 4 organization are at the forefront
of developments in best practice in that they set industry standards in ways that
delight customers. Thus, the organizations operations enable it to retain its existing
customers and attract new ones. For an operations-based competitive advantage to be
sustainable, the organization must continually develop its operations, as any source of
advantage is liable to be imitated by competitors.
To remain at stage 4, an organization needs to learn how to make the most of its
existing resources and competences to learn how to develop new capabilities. Recent
advances in the understanding of organizational performance have emphasized the
importance of path dependency (i.e. how organizations got to their present position),
the dynamic nature of the capabilities on which organizational success ultimately
depends and the role of organizational learning.

Operational/Production Strategy
The production department of any organisation aims at improving the Quality and
increasing the Quantity and reducing the Cost of Production. To achieve production
objectives there is a need to frame production strategies in respect of:

Production Capacity
Size and Location of Plants
Technology
Quality of Products
Research& Development
Modernization

Organisation focuses on each every important aspect of these Strategies as the help
the organisation to Increase their Sales, Higher Market Value, Reduce the Cost of
Production and etc. Support of all these five elements will help the organisation to
overcome certain limitations of the company.
The organisation focuses more on the Operational Strategy help in optimise the
resources and reduce their wastages. Improves the Market position, Competitive
Advantages.

 Production Capacity
An organisation must decide about production capacity. The production
capacity depends upon the level of demand for the firms products. In case of
the most of the products, the level of demand normally fluctuates depending
upon the cycle of the economic activities such as boom, recession, and server
other factors including degree of competition in the market

Factors for Demand of the Product

However, every organisation has to decide about the production capacity after
proper forecasting sales in short term as well as in the long term.
Now-a-days, some firms prefer to get the products manufactured from
external sources and undertake only marketing activities.
There are also firms that partly make products within the firm, and partly get
them ordered from outside agencies.
Therefore, a firm needs to take a decision whether to make the products or get
it order from outside agencies, before making a decision on installation op
production capacity.

Size and Location of Plants

A firm has to make policy decision in respect of the size and location of
plants. The plant size depends upon the extent of projected demand and on the
extent of projected demand and on the extent of dependence on outside
agencies for production purpose, if any.

While making a decision on the size of the plant,the firm should decide on the
economies of scale. Initially,a firm may go for small size and may gradually increase
the size of the plant.
The location of the plant is equally important. A firm may locate its plant at a single
location or at serval locations in order to take advantages of local condition,sucha as
avabilitu of raw materials,nearness to the market, etc.
It is important to note that while locating plants, certain factors must be given
importance, such as :

Law and Order Situation.

Availability of infrastructure

transportation.
Availability of Competent Work Force.

facilities,including

power

and

Technology

Technology refers to the know-how and includes equipments, machines, tools,

processes, etc. The Organisation has to take into accounts several factors while
making a decision on the choice of technology, sucha as investment required,
availability of skilled manpower to handle the technology,effect on the cost of
production and quality of products, etc.

There are cases, where firms may go for second-hand machinery either from
domestic market or from Abroad, or may go for brand new Machinery.Therefore,
proper decision has to be made regarding the choice of technology including the type
of machinery.

Technolgy upgradation is also one of the important factor. With the help of the new
Technology and Machine ugradation it will help the firm for Optimum Utilization of
its Resources,Increase in Production and Sales not only this but will help to survive
the Market competition.

Quality of Products

A decison has to be made regarding the quality of products. Quality is what customer
expects or is the requirement of customer. In the words of John Bank
Quality refers to full satisfying agreed customer requirements at the lowest
internal cost.
Therefore, quality varies from customer to customer. A customer belonging to upper
income class may percive quality differently as compared to the customer beloning to
lower economic class.
For instance, in the class of washing powder, a customer belonging to lower
economic class may prefer low priced washing powder. But the customers belonging
to both the classes would prefer a high quality product that can meet the
requirements.

A proper decision has to be made on the quality of products.For instance, this purpose
the firm must understand who the Customer is,What are his need and thereby, take
steps to satisfy the needs of the customer.
Now-a-days, emphasis is placed on Total Quality Management, which place emphasis
on Defect free work.The Defect free approach is phrased in various ways as right first
time,every time,zero defects, working smarter etc.

 Research and Development

Research and development is an important area, which is often overlooked in India.
Organisations should place a good deal of emphasis on R&D, as it not only helps to
improve the Quality of products/ service , but it also helps to reduce costs and to
develop new and better products. The policies relating to R&D need to include
o Amount of Funds to be invested in R& D over a period of time.
o Wheter R&D to be centralized or Decentralized.
o Areas in which R& D is required,such as processes,products and etc.

Research and development related to the various aspect of the oragnisation such as
demand of the product in the market, Demand of the Competitor Product in the
Market, Customers Likes & Dislikes, The economic factor effecting the organisation
and various other aspect

.
Research and Development help the Organisation to increase its Strength, Overcome
its Weakness,Grab the Opportunities and Handle the Threats.

GOOGLE
INTRODUCTION
Google is an American multinational corporation specializing in Internet-related
services and products. These include online advertising technologies, search, cloud
computing, and software. Most of its profits are derived from Ad Words, an online
advertising service that places advertising near the list of search results

.
Google was founded by Larry Page and Sergey Brin while they were Ph.D. students
at Stanford University. Together they own about 14 percent of its shares but control
56 percent of the stockholder voting power through super voting stock. They
incorporated Google as a privately held company on September 4, 1998. An initial
public offering followed on August 19, 2004. Its mission statement from the outset
was "to organize the world's information and make it universally accessible and
useful," and its unofficial slogan was "Don't be evil."In 2004, Google moved to its
new headquarters in Mountain View, California, nicknamed the Google plex.
Rapid growth since incorporation has triggered a chain of
products, acquisitions and partnerships beyond Google's core search engine. It offers
online productivity software including email (Gmail), a cloud storage service (Google
Drive),an officesuite (GoogleDocs)
and
a social
networking
service (Google+). Desktop products include applications for web browsing,
organizing and editing photos, and instant messaging.
The company leads the development of
the Android mobile operating system and the browser-only Chrome OS for a ne tbook known as a Chrome book. Google has moved increasingly into communications
hardware: it partners with major electronics manufacturers in the production of its
"high-quality low-cost" Nexus devices and acquired Motorola Mobility in May
2012. In 2012, a fibre-optic infrastructure was installed in Kansas City to facilitate
a Google Fibre broadband service.
The corporation has been estimated to run more than one million servers in data
centers around the world (as of 2007); and to process over one billion search requests,

and about 24 peta-bytes of user-generated data, each day (as of 2009). In December
2013 Alexa listed google.com as the most visited website in the world. Numerous
Google sites in other languages figure in the top one hundred, as do several other
Google-owned sites such as YouTube and Blogger. Its market dominance has led to
prominent media coverage, including criticism of the company over issues such
as search neutrality, copyright, censorship, and privacy.

Googles Information

Revenue

US$ 66.001 billion (2014)

Operating income

US$ 16.496 billion (2014)

Net income

US$ 14.444 billion (2014)

Total assets

US$ 131.133 billion (2014)

Total equity

US$ 104.5 billion (2014)

Number of employees

53,600 (Q4 2014)

History of Google
Google began in January 1996 as a research project by Larry Page and Sergey
Brin when they were both PhD students at Stanford University in Stanford,
California.
While conventional search engines ranked results by counting how many times the
search terms appeared on the page, the two theorized about a better system that
analyzed the relationships between websites. They called this new technology Page
Rank; it determined a website's relevance by the number of pages, and the importance
of those pages, that linked back to the original site.
A small search engine called "Rank Dex" from IDD Information Services designed
by Robin Li was, since 1996, already exploring a similar strategy for site-scoring and
page ranking. The technology in Rank Dex was patented in July 1999 and used later
when Li founded Baidu in China.
Page and Brin originally nicknamed their new search engine "Back Rub", because the
system checked back links to estimate the importance of a site. Eventually, they
changed the name to Google, originating from a misspelling of the word "googol", the
number one followed by one hundred zeros, which was picked to signify that the
search engine was intended to provide large quantities of information. Originally,
Google

ran

under

Stanford

University's

website,

with

the

domains google.stanford.edu and z.stanford.edu.

Google's original homepage had a simple design because the company founders were not experienced
in HTML, the mark up language used for designing web pages.

The domain name for Google was registered on September 15, 1997, and the
company was incorporated on September 4, 1998. It was based in the garage of a
friend (Susan Wojcicki ) in Menlo Park, California. Craig Silverstein, a fellow PhD
student at Stanford, was hired as the first employee.
In May 2011, the number of monthly unique visitors to Google surpassed one
billion for the first time, an 8.4 percent increase from May 2010 (931 million). In
January 2013, Google announced it had earned US$50 billion in annual revenue for
the year of 2012. This marked the first time the company had reached this feat,
topping their 2011 total of $38 billion.
Google is currently the biggest web search engine database. It searches over
22 billion pages Google uses a unique algorithm called a Page Rank system to get
targeted results for your search queries. Ill explain Page Rank in more detail later.
Finally, Google offers many useful features, shortcuts and special databases and
services. Googling is knowing how google thinks so that you can create searches that
are going to work best for your needs. Googling is knowing how to exploit Googles
strengths and weaknesses (yes Google does have a few weaknesses. Googling is also
knowing how to access and use Googles special features and databases.

How Google works !

A spider program finds pages on the public web and builds a huge database
from the web pages. Word net defines a spider as a computer program that prowls
the internet looking for publicly accessible resources that can be added to a database
The familiar search box on Googles home page gives users a way to search this
database by entering search terms and symbols that act as search limiters. Googles
unique page rank system decides how the results should be organized for display. The
page rank system looks at a number of things First it looks at the links going to a
particular page and considers those links to be like votes.

Here is Googles home page. When you go to this page, at www.google.com,

the default setting is for a general Web search. Other options that are possible from
the home page screen include images, videos, news and maps. There are also links for
more search options, advanced searching, preference settings and Language tools. In
this section of the course, I will be concentrating just on Web searching. See section
four of this course of information about Advanced Searching, Preference Settings and
Language Tools. See Section three for searching images, videos, news, maps and
more.
HOW GOOGLE WORKS is an entertaining, page-turning primer containing
lessons that Google Executive Chairman and ex-CEO Eric Schmidt and former SVP
of Products Jonathan Rosenberg learned as they helped build the company.
In their new book, the authors explain how technology has shifted the balance of
power from companies to consumers, and that the only way to succeed in this everchanging landscape is to create superior products and attract a new breed of
multifaceted employees whom Eric and Jonathan dub "smart creatives."

Covering topics including corporate culture, strategy, talent, decision-making,

communication, innovation, and dealing with disruption, the authors illustrate
management maxims with numerous insider anecdotes from Googles history.
In an era when everything is speeding up, the best way for businesses to succeed is to
attract smart-creative people and give them an environment where they can thrive at
scale. HOW GOOGLE WORKS is a new book that explains how to do just that.

"An informative and creatively multilayered Google guidebook from the

businessman's perspective."

Product and Services

Of GooGle
For the 2006 fiscal year, the company reported $10.492 billion in total
advertising revenues and only $112 million in licensing and other revenues. In 2011,
96% of Google's revenue was derived from its advertising programs. In addition to its
own algorithms for understanding search requests, Google uses technology from the
company Double Click, to project user interest and target advertising to the search
context and the user history.

Google Analytics allows website owners to track where and how people use
their website, for example by examining click rates for all the links on a page. Google
advertisements can be placed on third-party websites in a two-part program.
Google's Ad Words allows advertisers to display their advertisements in the Google
content network, through either a cost-per-click or cost-per-view scheme. The sister
service, Google Ad Sense, allows website owners to display these advertisements on
their website and earn money every time ads are clicked.

One of the criticisms of this program is the possibility of click fraud, which occurs
when a person or automated script clicks on advertisements without being interested
in the product, causing the advertiser to pay money to Google unduly. Industry reports
in 2006 claimed that approximately 14 to 20 percent of clicks were fraudulent or
invalid.
In February 2003, Google stopped showing the advertisements of Oceana, a nonprofit organization protesting a major cruise ship's sewage treatment practices.
Google cited its editorial policy at the time, stating "Google does not accept
advertising if the ad or site advocates against other individuals, groups, or
organizations." The policy was later changed. In June 2008, Google reached an
advertising agreement with Yahoo!, which would have allowed Yahoo! to feature
Google advertisements on its web pages. The alliance between the two companies
was never completely realized because of antitrust concerns by the U.S. Department
of Justice. As a result, Google pulled out of the deal in November 2008.
In an attempt to advertise its own products, Google launched a website called Demo
Slam, developed to demonstrate technology demos of Google Products.

Search engine

According to market research published by com Score in November 2009, Google

Search is the dominant search engine in the United States market, with a market
share of 65.6%. Google indexes billions of web pages, so that users can search for the
information they desire through the use of keywords and operators.

In 2003, The New York Times complained about Google's indexing, claiming that
Google's caching of content on its site infringed its copyright for the content. In this
case, the United States District Court of Nevada ruled in favour of Google in Field v.
Google and Parker v. Google.
The publication 2600: The Hacker Quarterly has compiled a list of words that the
web giant's new instant search feature will not search.
Google Watch has criticized Google's Page Rank algorithms, saying that they
discriminate against new websites and favour established sites. The site has also
alleged that there are connections between Google and the National Security
Agency (NSA) and the Central Intelligence Agency (CIA).
Google also hosts Google Books. The company began scanning books and uploading
limited previews, and full books where allowed, into its new book search engine. The
Authors Guild, a group that represents 8,000 U.S. authors, filed a class action suit in a
New York City federal court against Google in 2005 over this service. Google replied
that it is in compliance with all existing and historical applications of copyright laws
regarding books. Google eventually reached a revised settlement in 2009 to limit its
scans to books from the U.S., the UK, Australia, and Canada. Furthermore, the Paris
Civil Court ruled against Google in late 2009, asking it to remove the works of La

Martinire (ditions du Seuil) from its database. In competition with Amazon.com,

Google sells digital versions of new books.
On July 21, 2010, in response to Bing, Google updated its image search to display a
streaming sequence of thumbnails that enlarge when pointed at. Though web searches
still appear in a batch per page format, on July 23, 2010, dictionary definitions for
certain English words began appearing above the linked results for web searches.
The "Hummingbird" update to the Google search engine was announced in
September 2013. The update was introduced over the month prior to the
announcement and allows users ask the search engine a question in natural language
rather than entering keywords into the search box.

Productivity tools and Operational tools

Gmail, a free webmail service provided by Google, was launched as an

invitation-only beta program on April 1, 2004, and became available to the general
public on February 7, 2007. The service was upgraded from beta status on July 7,
2009, at which time it had 146 million users monthly. The service was the first online
email service with one gigabyte of storage. It was also the first to keep emails from
the same conversation together in one thread, similar to an Internet forum. The
service offers over 15 GB of free storage, shared with other Google Apps, with
additional storage ranging from 20 GB to 16 TB available for $0.25 per 1 GB per
year.

Gmail uses AJAX, a programming technique that allows web pages to be

interactive without refreshing the browser. Steve Ballmer (Microsoft's former
CEO), Liz Figueroa, Mark Rasch, and the editors of Google Watch have criticised the
privacy of Gmail, but Google claims that mail sent to or from Gmail is never read by
a human being beyond the account holder and is only used to improve relevance of
advertisements.

In 2004, Google started open source software project hosting, called Google
Code, which allows developers to download incomplete programs at no charge.

On June 6 after the acquisition, Google created an experimental spreadsheet

editing program, which was combined with Google Docs on October 10.

Google Docs, another part of Google's productivity suite, allows users to

create, edit, and collaborate on documents in an online environment, similar
to Microsoft Word. The service was originally called Writely, but was obtained by
Google on March 9, 2006, and was released as an invitation-only preview.

Other products

Google Translate is a server-side machine translation service, which can

translate between 80 different languages. For some languages, handwriting
recognition, or speech recognition can be used as input, and translated text can be
pronounced through speech synthesis.

The software

uses corpus

linguistics techniques,

where the

program "learns" from

professionally

translated documents,

specifically UN

and European Parliament proceedings.

Google launched its Google News service in 2002, an automated service
which summarizes news articles from various websites.

In March
France Presse(AFP) sued

2005, Agence
Google for

copyright infringement in federal court in the District of Columbia, a case which

Google settled for an undisclosed amount in a pact that included a license of the full
text of AFP articles for use on Google News.

In 2007, reports surfaced that Google was planning the release of its own
mobile phone, possibly a competitor to Apple's iPhone. The project, called Android,

turned out not to be a phone but an operating system for mobile devices, which
Google acquired and then released as an open source project under the Apache 2.0
license
Google provides a software development kit for developers so applications
can be created to be run on Android-based phones. In September 2008, TMobile released the G1, the first Android-based phone. On January 5, 2010, Google
released an Android phone under its own company name called the Nexus One. A
report in July 2013 stated that Google's share of the global smart phone market, led by
Samsung products, was 64% in March 2013.

Whats Googles Strategy?

Internet Marketing

Monthly Newsletter

Search Marketing

Boiling Googles strategy down to just one thing is impossible, but Internet
marketers (and search marketers in particular) ought to be thinking about where
Google wants to take the industry, because even if Google ultimately cant go where
it wants, the industry will be changed regardless. Watching Google helps us
understand not only where Google is going, but where others might go also. So, what
is behind all

the actions weve seen

Google take over the years?

Some of the motivations are simple. Googles revenue is based on advertising, so it

needs more and more places to show its ads to increase its revenue. So, expanding its
reach through its AdSense contextual ad network makes sense. So does its acquisition
of Double Click. Both of these moves allow Google to place ads on Web properties it
does not own.

Similarly, Google has been consistently acquiring properties that serve as venues for
its ads, such as Blogger and YouTube. Google has also pioneered new offerings that
attract audiences for its ads, such as Gmail.
But Googles strategy is far richer than merely adding new venues for the same kind
of ads it shows on search results pages. Google knows that the reason that its ads have
commanded premium prices (versus banner ads) is because Google ads have the
customers attention. When someone is searching for something, they are interested in
the ads, while Web surfers might not be. Google understands that the attention paid to
a message is a critical part of why it has high value to an advertiser.

So, attention is more than real estate. Showing a display ad does not ensure true
customer attention. True attention is a function of relevance.
Google already commands attention with its search ads, and seeks to create similar
relevance with other forms of advertising. The act of searching itself is based on
relevance, but Googles contribution to advertising relevance is the hybrid paid search
ranking schemethey were the first to rank search ads based on the combination of

bid price and click through rate. By adding click through rate to the previous highbidder approach, Google not only maximized its income, but also increased the
relevance of those paid search ads. Its reasonable to think that the gradual increase in
clicks on paid search ads is partially caused by the fact that they are more relevant
than they once were, and searchers have learned trust them more.
But thats not Googles strategy, its Googles history. Google has a history of
selling advertising that is the most relevantits relevancy is driven by the attention
people pay to it. Googles strategy is to broaden this kind of relevancy beyond search.
Google wants plain old banner ads to command the same level of attention that paid
search ads do. And the key to that kind of relevance is personalization. Thats
Googles strategy. If you look at what Google has done over the years, it all ads up to
finding out more about everyone.

The Google toolbar can report search terms and Web sites visited.
Geotargeting identifies where they are. Google Analytics reports all activity on a Web
site. Google Checkout knows what gets bought. Google Website Optimizer knows
which variations of your marketing message work best. Gmail knows what your
customers say, even in private. Google might even bid on mobile phone spectrum,
which might allow it to know peoples whereabouts and even more of their behavior.
And its all tied together with your Google Account.
Some people see some sinister Big Brother aspect to this, but I think its just the
natural evolution of relevance. Search engineers have spent the last 40 years working

on the content, but now its time to focus on the searcher. Thats why youre seeing
Google and the other search engines beginning to personalize search results. And it
will only escalatea few small changes to results here and there will lead to more
and more personalized results over time.
But thats not all. Behavioral targeting and retargeting brings personalization to
banner ads. (Even ISPs are looking at behavioral targeting.) And Google is wellpositioned to mine personal information, given how well it has executed its strategy.
Its hard to remember how, just a few years ago, Google seemed less capable than
Yahoo! and Microsoft to bring about personalization. Those companies had portals
that promised to detect far more information than Googles simple (and anonymous)
search interface. Its remarkable how much ground Google has covered since, so that
today it appears to know more about searchers and surfers than anyone

Google's Global Expansion Strategies

Google's domination of the search engine industry, and its emergence as a

competitor in the smart phone market, is due to its expansion strategy, as well as the
success of its original search engine product. Google's acquisition strategy, which is
based on a philosophy of only buying in small niche markets, and only when it can't
produce the product better in-house, has made a significant contribution to its global
expansion, according to business analysts.
Languages
In May 2000, Google launched the first foreign language versions starting
with 10 European languages. By September of that year, it expanded to include
Chinese, Korean and Japanese. As a reflection of Google's corporate humor, it also
included Klingon as a language preference, perhaps in a bid for intergalactic
expansion, or to attract Star Trek fans.

It opened its first

international office

in Tokyo in August 2001,

and in October

2004, it opened an office

in Dublin, Ireland,

staffed by multilingual Googlers to service its customers across multiple time zones
and languages.

Browser, Mail and Maps

In its philosophy, Google states that it wants to provide "a fast, accurate and
easy Google has also developed its own browser -- Google Chrome, Gmail and
Google Maps.
These are further examples of Google expanding its brand and keeping the
Internet user within the brand whatever the activity. It also owns YouTube and
Blogger, and Google is developing social networking tools, such as Google+, which
allows Internet users to "like" a search result in the same way as they can "like" a
Facebook page. -to-use service" for everyone, regardless of whether you are in
Boston or Bangkok.
Split Testing
The most basic way of determining which listings are more effective is by split
testing. This is when you make two similar listings and pay close attention to their
performance, abandoning the lesseffective one in preference of the
more-effective one.

For instance, "Wisconsin real estate

deals" vs. "Deals for Wisconsin real
estate" may appear to be almost identical, but one listing may prove more effective
than the other.

Focusing on the Target Market

Instead of picking whatever keywords will bring you the most website traffic, try to
pick keywords that appeal specifically to the types of people who will be interested in
buying your product or service. For example, if you sell clothing especially for
skateboarders, it may seem intuitive to pick key words such as "fashion" or "apparel,"
but this target market might not be prone to use such words,
and spending money on such advertising could just result in
large numbers of people visiting your website and not
buying anything.

Target Competitors' Customers

If
a

potential buyer enters your competitor's name as a keyword, the first listing on
the search results will probably be your competitor's website. However, when he
looks down the list of advertisements in the margin, you can have your website there.

This is one of the best ways of getting clicks from highly likely buyers because, since
they are looking specifically for your competitor, you already know that they are in
the market for your type of product. Advertisers sometimes shy away from
mentioning competitors in their advertisements because they are afraid that it could
be free advertising for their competitors. However, in this case, the customer has
already shown himself to be partial to your competitor, so using your competitor's
name in this way does not risk anything.

Could anything derail this strategy?

The most likely problem Google will have to face down is a backlash based
on privacy concerns. As the public becomes savvier about privacy with each passing
year, providing free software might not be enough to persuade people to part with
their privacy. Even the work underway is slow because searchers dont understand the
benefits of personalized search. Google is well aware of this danger, so it remains to
be seen if they can evade it.

Its
always

dangerous to attempt to summarize a companys whole strategy in a short blog post

Googles strategy is far more diffuse and nuanced than this. But it helps us to try to
simplify things to their essence, even at the risk of oversimplifying, because it helps
us understand the forces at work in Internet marketing.
Understand that what Google wants to do might not happen, but it is certain to affect
what others do and what eventually does happen in Internet marketing. If you pay
attention to these broad themes as you do think through your marketing strategy,
youll be more prepared for whatever does come along.

BIBILOGRAPHY

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