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1. Analyze and diagram Google’s business model (Johnson et al), detailing the relationships among the end users, web portals utilizing the Google search engine(s), advertisers, online publishers, AdWords/AdSense, and the communication and collaboration applications offered by Google. Identify and detail the customer value proposition, profit formula, key resources and processes. Based on your analysis, define the critical success factors for Google’s continued growth and profitability. How would these translate into objectives for the organizational design?
• Customer value proposition – based on mission of organizing the world’s information and making it universally accessible and useful. For users of Google, this means accurate results and for advertisers, this means delivering targeted ads with an abundance of tracking information and feedback.
• Profit model – over 94% of Google’s Revenues come from Advertising Revenue mainly using AdWords and AdSense.
• Key resources and processes – recruiting and screening people/talent, the Google algorithm which draws the large number of internet users who are being sold as a commodity to advertisers, R&D, its informal collaborative decision making
Continued innovation in search optimization and ad targeting are the critical success factors for Google in order to continue to attract advertisers and end users whose information can be used to refine the advertising process. This can be achieved by avoiding innovation stifling bureaucracy and maintaining rapid decision making (keeping Google “Googley”).
2. Evaluate Google’s management and organizational structure with respect to their ability to continue to innovate and lead the market for online advertising services. What are the strengths and limitations of the current structure and processes (Do You Have a Well-Designed Organization?) Are they effectively positioned for continued growth and innovation?
They appear to be well positioned for continued growth...
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