Google is the most widely used search engine and is the most successful company in online business today. Google is a global technology leader focused on improving the ways people find and use information. It maintains the world’s largest online index of websites and other contents and, via their automated search technology, makes this information freely available, nearly instantly, to anyone with an Internet connection. Its focused aim is to organize world’s information and make it universally accessible.
What are the direct and indirect network effects in Google’s business?
What is the business model of Google and its value proposition?
Theory and Analysis:
Network effects means when that a product or service becomes more valuable when more people use it now it terms of Google business we believe direct network effects are there but indirect effects are dominating -now the value of Google search engine partly increases as more people log in and use the search engine since Google takes advantage of the pattern the users are using and the Google exploits its customer data to better its system, where as in terms of indirect network effects as more people use Google they make the service more valuable for the members of the other group here they are advertisers. Advertisers benefit from an increase number of people using Google search engine. The main focus of Google is its users. So as more users will use the services advertisers will automatically follow.
Google Value proposition:
Google’s value proposition lies in its relevance to user search and it is free for large audience which indirectly is the basis for generating revenues for them.
Google Business Model
Service Design: 
Founded by Larry Page and Sergey Brin, the mission statement of the Google is” to organize the world’s information and make it universally accessible and useful”. Following is the business model of the Google describing its main constituents and the factors based on its business model.
Google search engine (Cloud Computing)
Google search engine is the most widely used search engine today it’s the foundation of the company. One can find information in 150 different languages and translate between them, and can find almost any information he wants from. The success for the search engine to be widely used is because of the fact that it provides useful and relevant information faster from its large data base. Its page index is over 3.3 billion pages.
Google’s Customers are target groups, hundreds of thousands of advertisers, world’s largest global enterprises, Millions of users around the world
Yahoo and Microsoft
Finance Design: 
Google primarily generates revenue by delivering relevant, cost-effective online advertising through:
AdWords programs: The primary source to generate revenue, Adwords are used by hundred and thousands advertisers to promote their products and services on the web. Advertisers bid in an open competition environment to make their adds appear alongside the search results for particular keywords
Pay per click : Advertisers only pay when there are clicked
Adsense: in addition, hundreds of thousands of partners, from bloggers to major online publishers, participate in our Google AdSense program. This program delivers ads from our AdWords advertisers that are relevant to the content or search results on partner sites. The AdSense program enables advertisers to extend the reach of their ad campaigns, improves partners’ ability to generate revenue from their content, and delivers relevant ads for their users
Organization Design: 
A key strategy for both Google is to seek out smaller companies that are good at creating certain products or services and then either partner with them or buy them outright. Google has made some high-profile deals that have strengthened their place in the market. In 2005, Google purchased 15 companies for a total of $85 million. These companies ranged from an analytics start-up called Urchin to a 3-D drawing application called SketchUp [source: Google]. One of Google’s largest acquisition deals was for the online advertising company DoubleClick. Google purchased DoubleClick in 2007 for $3.1 billion [source: Economic Times]. Google has also formed partnerships with companies like AOL, NBC and the DISH Network. Most of these deals focus on online or over-the-air advertising.
Google employed 19,835 full-time employees as of December 31, 2009
Co-founders Larry Page, president of products & Sergey Brin, the president of technology
Board of Directors
Eric Schmidt, Google Inc.
Sergey Brin, Google Inc.
Larry Page, Google Inc.
L. John Doerr, Kleiner Perkins Caufield & Byers
John L. Hennessy, Stanford University
Paul S. Otellini, Intel
K. Ram Shriram, Sherpalo
Shirley M. Tilghman, Princeton University
& Executive Officers
It is based on the following technology principles
Crawling (also Google bots): A crawler is a software program that visits a page, copies the content and follows the links from that page to the pages linked to it, repeating this process over and over until it has crawled billions of pages on the web and it helps Google continuously traverse the web in real time.
Indexing: it almost similar to a index at back of a book, If you think of the web as a massive book, then Google’s index is a list of all the words on those pages and where they’re located, as well as information about the links from those pages, and so on. The index is parceled into manageable sections and stored across a large network of computers around the world.
Serving: displays the processed searched results.
Google search key ingredients are:
Build tools that simplify the process of buying and selling ads, make it more effective and measurable, and open the ecosystem to more players for e.g. the Google display network has grown from simple text ads to include a range of formats including rich media, video, image and Flash.
Using technology called “dynamic allocation,” it enables publishers to maximize their revenue.
Google Display Network (comprising over a million partner websites, and Google-owned sites like YouTube) and our Double Click advertising technology
Mobile-specific ad formats
Cloud Computing: You can access your stuff from anywhere, using any device with a browser: smartphones, netbooks, laptops. Data associated with them is stored on Google’s machines, rather than on your desktop hard drive or on servers maintained by your company, keeps live copies of your data on multiple servers in each of multiple locations, meaning that there’s no scheduled downtime and your data is backed up and secure.
Mobile and Android: This technology approach builds mobile applications, such as Google Maps and Gmail, that work across multiple devices and locations.
Google Chrome: based on speed, simplicity and security
The approach to the report is a desktop research through internet and using different websites, scientific articles and discussion blogs.
Empirical material that has been used is the documentations related to
Google’s effective approach of putting user needs first is the basis for accomplishing their profits. A unique user experience has led Google to strong word of mouth promotion. They accordingly for with their commitments that is they provide the most relevant and useful search results possible independent of financial incentives. They make efforts to provide most relevant and useful ads which does not annoy the users. They are always trying to improve user experience, search technology and different other areas of information organization.
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