This document is an international business research paper about Google Company, a renowned multinational technology company in America, which has steadily grown to the global presence over the past few decades. Currently, Google Company operates internationally and its services and products are being used and felt in almost every part of the world. Google is particularly credited for making the world a global village whereby everybody can connect easily and promptly with people in other parts of the world as well as transact business online. Two students at Stanford University namely Sergey Brin and Larry Page founded the company in September 4, 1998. The company is currently headquartered in Mountain View, California, united states of America.
Google Company specializes in offering a wide range of internet related products and services for both business and individual use. Such products and services offered by Google Company include internet search engine, cloud computing, online advertising technologies, as well as software applications among others. One of the most important online advertising products that Google is widely recognized for is the AdWords: it has helped the company generate many profits, which has significantly steered its growth prospect within the last few years.
This international business research paper focuses on identifying, discussing and elaborating (1) Google’s mission and goals, (2) its rise to international business level, (3) its products for both domestic and international market, (4) market entry strategy, (5) promotional strategy, (6) pricing strategy, (7) challenges being faced, (8) as well as strategies and plans being used by Google to address the challenges it is facing in the international market.
Google’s Mission and Goals
The official mission statement of Google Incorporation is designed to reflect is business and focus on the internet services and its states “To organize the world’s information and make it universally accessible and useful.” Being in an internet and technology driven business, Google designed its mission statement to reflect a powerful in terms of what it wants to achieve for the people. Since its official establishment in 1998, Google Incorporation has been following its mission statement, a practice which has significantly contributed to its rapid growth in the international market and achievement of its current position as one of the most valuable and profitable internet-based brands in the global market.
This mission statement has been consistently used to define the company’s long-term as well as short-term goals, business strategy, product development, and pricing strategy. Google’s mission statement and goals pushes it to aim towards achieving new heights in the international market such as development of new products, rapid innovation, and profitability level among other key areas. The success of Google Incorporation is directly related to its desire to fulfill its mission and goals. Even though it is not indicated in the mission and vision statements, Google Incorporation has a moral and business goal to focus on increasing its profits, expanding the market, as well as meeting its customer needs and shareholder satisfaction, which has been a significant source of motivation constantly pushing the company into new areas.
How Google Became a Global Company
Google Company started from a simple school project to an international company with great success stories. Sergey Brin and Larry Page, who were students at Stanford University, decided to make their dissertation topic an actual company, which eventually become a worldwide search engine. Google’s success and rise to the international level resulted from a simple insight from its founders, Brin and Page. By late 1990s, they had realized that the sprawling mass of data, which was cascading the web, could be easily transformed by ranking them according to their popularity. It was this ranking that fueled Google into great success enabling the company to reap millions from online advertisements.
Apart from the ranking of search results, Google also started embracing some of the most challenging new ideas and technology, which eventually fuelled its rise to the international market. By embracing new technologies and ideas, the company started developing new and better products that offered real world and most appropriate solutions to consumer problems.
From the time of its establishment in 1998, Google has focused on offering products and services to the international market. Even though the company was started in United States of America, Google Incorporation does not offer products and services which targets only the domestic market: in essence, because the business in internet-driven, all its products and service target on the international market thus can be accessed on every part of the globe without any serious limitation. As a result, in Google Incorporation there are no existing differences between products and services being sold domestically and those being sold internationally: the same products are sold across both domestic and international markets. The entire globe can be considered a domestic market as well as international market for Google’s products and services. Currently, Google Company offers a wide range of products for both personal and business, both targeting domestic and international market.
(a) Personal Products
The wide range of personal products offered by Google are developed to enhance user application search as making perfect internet search engines that give users exactly what they are looking for. From search Chrome to Gmail, Google’s products are developed to help users find the information they need and get things done quickly and efficiently. The following are the different categories of products and services offered by Google incorporation for personal application.
|Web applications||Search engines (Google chrome)|
|Bookmarks (Mobile bookmarks, web bookmarks)|
|Maps (Mobile maps, web maps, Google Earth)|
|Photos (Google Photos)|
|Scholar||Google Book, Google Scholar|
|Home and Office||Gmail, Drive, Docs, Sheets, Slides, Forms, Drawings, Sites, Calendar, Translate|
(b) Business Products
Google Company also offers a wide range of products and services for business: they include tools that are designed to help all kinds of businesses succeed on the web. Business tools form the backbone of their own business and enabling various kinds of businesses grow around the world. They include advertising programs, office programs, and media programs among others.
|Productivity tools||Business Gmail, Calendar, Hangouts, Drive etc.|
|Advertisement programs||AdWords, Shopping Campaigns, YouTube Ads|
|Revenue stream||AdSense, AdMob|
|Performance programs||Google Analytics Standard, Google Analytics for mobile apps|
Market Entry Strategy
Chaffey et al (2009) defined market entry strategy as the goals, plans, and decisions that a company makes concerning which market it wants to start its chain of business activities. It also involves making plans and decision on how and when to enter the new market. Google Incorporation started in United States of America but within relative short time, the company has managed to enter many new markets and subsequently grown to global presence. However, still there are few markets such as china where the company has not gained significant influence even though it has presence competing effectively with the local providers of similar services.
The new market entry strategy used by Google Company is somewhat a complex one because of the market dynamics and the nature of its business. The company is known for using a combination of different new market entry strategy depending on the logistics and the existing market conditions. Partnering is one of the company’s new market entry strategies. Over the past years, Google has successfully using partnering strategy to enter new markets successfully such as India among other countries in Asia. In this strategy, Google Company arranges for sophisticated strategic alliance with other companies in the new market.
Another significant new market entry strategy that has been successfully used by Google incorporation is the purchase of companies. Over the past years, Google Incorporation has been purchasing new promising companies within its business model. This strategy has led to the purchase of various companies and online providers such as YouTube, Twitter, as well as WhatsApp among others. This strategy has enabled Google to increase its market share and profitability as well as eliminate its competitors.
Google Company also uses direct negotiation with the government in order to enter the new market. Google has used this strategy in china to access its market and avoid the censoring activities of the Chinese government. The company employs this strategy when there is high level of government control and censoring in the market it wants to enter. Google also uses other new market entry strategies such as licensing, franchising, and royalties among others.
Unlike other companies, Google’s strategy is to use minimal promotion to domestic as well as internal market, which has worked well for it in saving revenues. This decision was arrived at because the company has attained global presence, popularity, and market dominance thus it does not need extensive promotional campaigns. Despite the global market dominance, Google still does some minimal promotional campaigns as a means of maintaining its dominance and entering new markets. The minimal promotional strategy involves the use of online advertisement, for example, recently Google launched online ads promoting its Gmail for work (business email).
The minimal promotional strategy has created great beneficial effects for Google’s internet-based business, as a result of using this strategy in its marketing mix, the company has directly benefited from the availability of more funds which are invested on other critical areas of the business. They often use the more funds for research activities and the development of new product lines.
The minimal promotional strategy involves the use of a wide range of tools such as AdWords, flyers, Public Relations, TV advertisements among others. The company uses AdWords, which is one of its best-recognized products, to promote itself in the international market. In this approach, Google often places adverts online with a link to its own services. They also include flyers inside business magazines in order to promote themselves. Most significantly, Google also uses money off promotions aimed at providing incentives to advertisers to use their AdWords thus directly promoting the product. In addition, the company also uses a special TV advert for the Google Chrome for promoting the product. Effective Public Relations also form part of Google’s essential promotional strategy: the company uses this strategy to manage the media proactively for its own promotional benefits.
It is also essential to note that Google’s promotional strategy actually relies on the use of viral, referral and marketing. By using the minimalist promotional strategy, the company relies on gaining consumer trust and loyalty through advertisement policies that are considered morally superior. The referral strategy has proved to be very effective in promoting Google products among several users across the globe: the best referral strategy often work well for people with many friends and networks.
It is also essential to note that most of Google’s advertisements for promoting itself are done online with only a few exceptions. A common practice of promoting itself is to place a link on its homepage for the new products. This approach shows that faith that Google Company has on using viral promotion strategy. The company uses simple and honest promotional strategy, which it has done by creating dependable and trustworthy brand.
Lastly, Google Company uses a peculiar sales promotion strategy, which has worked effectively in promoting its products to different classes of users. Even though the extensive range of products being offered by Google are free for the public, the company still maintains sales promotion strategy aims at providing customers with incentives for loyalty. For instance, it provides its customers with different levels of premiums for their product testimonials.
Google Company also promotes itself by sponsoring different activities, which increases the awareness of its products. For instance, recently Google sponsored a $30 million competition for lunar landing. The competition lent Google massive news coverage that exposed many people to their different products thus becoming a reliable promotion strategy.
Pricing strategy is one of the most essential components of the company’s marketing mix. As explained by Jarvis (2011), the marketing mix used by Google involves a combination of several different strategies. Google Company uses different pricing strategies because of its beneficial effect of satisfying different kinds of products they have made available in the market. The four most notable pricing strategies that has been persistently used by Google include value-based pricing, market-oriented pricing, premium pricing, and penetration pricing strategy.
Google preferably uses premium pricing strategy in both new and existing markets and it involves the act of giving out free products while selling the premium or add-on features of the particular product. Google Company particularly uses this pricing strategy for various products such as Gmail among others: in this case, the company maintains free version of Gmail account while at the same time offering premium versions particularly for business clients. This pricing strategy has been very effective in increasing Google’s performance in the market as well as sales revenues. While using this pricing strategy, while there is a free version, the company also offers a premium version that has additional features thus compelling users to buy the premium version: the free version of the product is made to support only limited features. In addition, Google also chooses to make some features of the free version only available for a limited trial period after which the user is requested to buy the full version. Premium is the most compelling pricing strategy that is being used by Google Company even to date.
Google Incorporation also uses market-oriented pricing strategy alongside premium and others. The company uses this strategy particularly when determining the best prices for its product, which will consider the market conditions. For instance, Google uses the market-oriented pricing strategy to determine the price of its products such as Chromecast. The essential benefit of this pricing strategy is that it is based on the current market prices and it offers a comparison of the prices of other similar products available in the market. Google Company uses this pricing strategy to determine the base prices for all its products after considering the market condition. This pricing strategy has helped Google to become more competitive in the market by offering relevant prices for all its products.
Google Company also uses penetration pricing strategy especially when it is entering new market and wants to increase its market share and dominance. In this case, the company chooses to offer lower prices for its products as compared to other companies in the market thus helping it gain market share where there is presence of high competition. Previously, Google has successfully used penetration pricing strategy for its cable television service and Google Fibre Internet among other products: these two products are directly competing against the Comcast.
Google Company also uses value-based pricing strategy especially when determining prices for its products based on the values perceived by their customers. The company often uses this strategy when it wants to align its products prices in line with the perceived customer values. Over the past, Google has been using value-based pricing strategy to offer the best prices for its online AdWords advertisements.
Challenges Faced by Google
Just like other companies, Google Incorporation faces a number of challenges operating in the international market most of which are related with the governmental controls and hacking activities. Getting the right relevance in social media is one of the most compelling challenge that Google is facing is the international market. In addition, the company faces tough competition from other social media providers such as Facebook, Twitter, and LinkedIn among others. Currently, Google does not have anything to take on the challenge from the professional networking by LinkedIn as well as the microblogging by Twitter.
Google Company also faces strong challenge from the mobile word through the vertical search. Google is the most popular front search when it comes to desktop; however, the mobile world provides people with alternative avenues to find quickly what they are looking for. The mobile world is quite different and people on smartphone rarely use Google to search for what they are looking for such as hotels, clothes, gifts among others. Instead, they go to particular apps offered by the mobile thus denying Google the central door. With the mobile world, people can go directly to the mobile apps to search for what they want thus avoiding Google: this is a big challenge that even Google is aware of.
Another challenge that Google strongly faces in the international market is the governmental control and censorship. In some countries, government great sensor the internet and control the activity of users and what they can access through internet search engines. In such country, Google faces great challenge in offering their full service to the potential customers. For instance, this has been the greatest challenge Google faces with China: they have made dedicated attempts to offer their services fully in china, but due to government censorship and control, they are unable to do so, and at time, they considered leaving the Chinese market.
Google’s Strategy for Overcoming Challenges
The challenge from the social media is of great magnitude and Google is currently developing some strategies to overcome it and remain top on the game. To overcome the social media challenge, Google is currently investing massively on its Google Plus platform, which is developed to provide answers to all social networking issues. Google Plus is designed to offer greater competitive advantage over other social networking sites such as Facebook, LinkedIn, and Twitter. In addition, Google is tying everything with the Gmail credentials, which is a formidable way of keeping users on all categories of its services, which is a great approach of overcoming the social media challenges.
Even though Google has limited ability to control the mobile world and apps, the company is currently working on some strategies to overcome its challenges. For example, Google is continuously developing its mobile web to make it more suitable and appropriate to mobile users in a way that could make them avoid using mobile apps to search for items. In addition, Google is increasing its presence in the mobile world by providing apps such as maps, Gmail as well as YouTube, which have become very popular amongst the smartphone users. Lastly, on the mobile world, Google is currently improving its voice-activated search technology to enable smartphone users to go directly to their mobile web to search what they are looking for.
Google’s plan for overcoming challenge imposed by strict censorship and government control is bilateral agreement. This way, the company makes some agreements with the government to allow their service. Even if they are not granted full permission, they have management to make agreements that have increased their presence in such countries such as china among others.
Google’s Past Mistakes
Even though it has rapidly risen to the international level, Google has made some mistakes in the past when developing its international market. One of the greatest mistakes that the company has ever made was the entry into mobile technology. As Google works on expanding and developing its international market, it made a decision to start the production of smartphones, MHO Ad Tech being its first handset. However, the company failed to maneuver the mobile world and the project failed due to many reasons one of them being poor design technology. The MHO Ad Tech was meant to be the bread and butter handset but it came out to be unsexy and possibly the least desirable amongst Google products.
Entering the mobile industry was one of the biggest mistakes that Google made in attempt to develop its international market. This is because the company has not developed enough capability to produce classy handsets that consumers are looking for in the market, which would possible outperform their rivals. In addition, the program to launch Ad Tech 2014 was half-baked, which actually lead to the production of handsets that did not meet customer expectations. Even though Google invested heavily in the project, the MHO Ad Tech ultimately failed. Instead of considering new venture in mobile world, Google could have focused on developing its existing market.
Currently, Google is one of the most profitable companies in the international market thanks to the steady efforts made by its founders Sergey Brin and Larry Page. It started as a simple dissertation project at the university but later became a global leader in the internet-based business. Currently Google offers a wide range of products targeting both personal users and business applications such as Gmail, search engines, drive, and cloud computing among others. Google uses a combination of pricing strategy including value-based pricing, market-oriented pricing, premium pricing, and penetration pricing strategy. The company has made some mistake in developing its international market but that has not affected it drastically – it still remains top of the game (Carr, 2008).
Carr, N. (2008). Is Google making us stupid? Yearbook of the National Society for the Study of Education, 107(2), 89-94.
Chaffey, D., Ellis-Chadwick, F., Mayer, R. & Johnston, K. (2009). Internet marketing: strategy, implementation and practice. New York: Pearson Education.
Jarvis, J. (2011). What would Google do?: Reverse-engineering the fastest growing company in the history of the world. New York: Harper Business.