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  1. 1. Google Marketing Strategy.Google Inc., starting from just a smart algorithm, has developed a totallynew business model, has become in a few years the world leading searchengine, has developed winning applications as Google Earth, GoogleVideo, Google Maps, Gmail, and is enjoying a huge success. Google,starting from scratch, has won the challenge against a giant like Microsoftand against the previous search engine market leaders Yahoo, Lycos,Altavista, Excite.Google Market Capitalization.In nov 2007 Google Inc. was the 5th biggest US company, consideringstock market capitalization. In nov. 2007 Google shares had topped $700.Google stock market capitalization in nov 2007 was $230 billion, in July2008 was $170 billion.By comparison in July 2008 Microsoft stock market capitalization was$240 billion, General Electric market cap was $270 billion, Exxon stockmarket capitalization was $450 billion.The key question is:why the Google Business Model is a winning Business Model?The answer is a complex one, and involves more factors. Its a mix ofsmart decisions, excellent marketing strategy, great advisors, highlyinnovative and risky business model, and great products.These are the key resons why the Google Business Model won:1.- Google had - and still has - a simple, clean, clear, minimalistic user
  2. 2. interface. no frills, just the logo and the search box - easy and fast to load.And this was a key feature with the slow internet connections of the earlyyears 1999 -2001 - while Yahoo and most of the other search engineswere more like generalistic portals, full of confusion, full of uselessfeatures and useless links, full of annoying banner ads, heavy and slow toload.Google had a clear understanding on psychology of perception, and howthe interaction eye/brain works, while the bigger competitors didnt.Bottom line is: If the user visits a search engine, what he wants to get issimply that: just a search engine.A search engine which is fast and reliable. If the user wants a generalisticportal, he goes to a portal, not to a search engine.Larry Page and Sergey Brin, the Google Executives, understood this, andthis was what they delivered. And made their users happy.2.- Google had - and has - reliable search results (not always, but most ofthe time). Page and Brins PageRank algorithm worked well.3.- Google got good advice from VCs and from Wilson Sonsini Goodrich& Rosati. Larry Page and Sergey Brin have been advised and assistedfrom the beginning by John Doerr, VC Partner of Kleiner Perkins and byWilson Sonsini Goodrich & Rosati, the leading law firm of Silicon ValleyInsight on Google Business Model4.- Google introduced a smart, innovative and quite risky business model- Adwords - and the pay per click concept. The risk proved winning, andthe innovative business model worked. Still today Adwords is the mainsource of revenues of Google Inc.5.- In the following years, Google became a powerhouse with animpressive pipeline of new great products - Google Maps, Google Earth,Google Video, Gmail. And slim revenues.
  3. 3. why the Google Business Model is a winning Business Model?(continued from page 1)6.- Google worked very hard on Brand Building. It seems that brand building was much more important to them than justrevenues and profits. The strategy worked. And it was a key asset in the subsequent IPO at the Nasdaq.7 - Google was an innovator of the Business Model. Google delivered all these great new products basically for free,enticing and luring million of users worldwide, with the result of building the Brand in an outstanding, quite unbelievable way- and did it so fast.Eric Schmidt was made CEO of the company, David Drummond, an attorney of Wilson Sonsini Goodrich & Rosati who hadadvised Google founders since the early days, joined Google as Chief Legal Officer, Wilson Sonsini Goodrich & Rosati tookcare of the IPO at Nasdaq.At the IPO in August 2004 Google share price was set at $85, which to many financial analysts seemed eccessive andunreasonable. In nov. 2007 Google shares had topped $700.And in nov. 2007 Google stock market capitalization reached $230 billion, while annual revenues reached $16 billion andprofits $4 billion.An excellent return for Google shareholders.A question comes forth:Who is the Mind behind Google?Who is the Mind behind the stunning Google success?Who is the mind with the Vision and giving the direction and the strategy?(back to Google Business Model - Part 1)Have your say on GoogleIf you wish you can give your opinion on Google, cast your vote on Google applications as Google Earth, Google Maps,Google Chrome, Gmail, on the Google Search Engine, about the Google Marketing Strategy and about the Google BusinessModel.
  4. 4. vote using numbers from 1 to 10: 1 = poor 5 = medium 10 = greatIf you dont want to vote on a certain application, or you do not have an opinion about it, simply leave the space blank.Give your vote on Google applicationsThe Google Chrome Browser.In September 2008 Google launched its new browser, named Google Chrome. Google Chrome enters the browsercompetition challenging Microsoft Internet Explorer, which has the 73% of the browser marketshare, Firefox, which has 19%,and Apple Safari, with 6% of the browser market. Under the marketing point of view its a risky move on the side of Google.If Google Chrome is not going to be definitely superior to Firefox it could undermine Google brand value.Google does it again, with its new Google Latitude offering. Latitude lets you automatically share yourlocation with friends, and let them share theirs with you. By using your phone or Web browser, you cansimply look at a Latitude Google Maps mash-up, and see where everybody is.Like many Google offerings, Latitude is cool, easy, functional, useful, appealing and free.Why do they do it? Why does Google invest so heavily in great products, then just give them away?Theres only one way to understand Googles business model, which is to understand that Googlesservices are not products. In fact, Google has only one product. And that product is you. Or, rather, us --all of us. That sounds like an extreme position, but I mean it literally.Google makes billions of dollars in revenue each fiscal quarter. That money comes about by the sameprocess that all companies use: They sell a product to their customers. Their customers pay money forthat product.Whos Googles customer? You? Really? Whens the last time you paid Google for anything?Advertisers are Googles customer. What do they sell to advertisers? They sell you. Or, at least, they rentyou out, or provide access to you.
  5. 5. They improve their product by improving you. Thats where Google Latitude comes in. Latitude representsmerely the latest in a long string of Google offerings designed to condition you for hard-core contextualadvertising.With each new privacy-invading service, Google customers feel mild shock, followed later by acceptance.: First was the realization that our personal information is always available to anyone via an ordinaryGoogle search. Remember when you first looked at a satellite map of your house on Google Maps? Youwent through the same shock-then-acceptance process with Street View. The idea that Googlecomputers were scanning all our e-mail in order to display advertising related to the conversations werehaving took some getting used to as well.But we got used to it. We got used to all of it. And thats the purpose of these free services. By making theviolation of our privacy desirable -- by mainstreaming the use of technologies that used to exist only incautionary science fiction -- Google is building a better product. Theyre building a better target foradvertising.Google Latitude isnt a product. Its an automated product-development tool. Its purpose is to softenresistance to constant location tracking.Once were all enjoying and depending upon Google Latitude for work, to keep in touch with our kids andto meet up with friends and family, Google will drop some advertising in there. And, oh, boy will it becontextual.Google Latitude includes a chat feature. Mark my words: Google will one day throw a switch and starteavesdropping on these chat sessions the same way it does on Gmail. Googles servers will combinewhat it knows youre talking about -- "hey, lets grab a beer" -- with what it knows about your location, andoffer up paid advertising that puts it all together. "Click here to meet at Billy Bobs Bar & Beanery."Over time, Google will likely combine all it knows about you from your Google searches, Google Calendarappointments, purchases via Google Product Search, interests on Google Reader, and conversations inGmail and Talk -- along with your location -- and constantly offer you eCoupons, special deals and adviceabout nearby products and services. Your phone will become like a personal assistant, always ready tooffer you what you want before you know you want it. But all those products and services offered will beGoogle advertisers.Google will become what it has always wanted and intended to become, which is an advertisinggatekeeper as indispensible as Microsoft is (or was) with Windows, Apple is with downloadable music is with online book sales.But in order to get there, Google needs you to change. They need you to drop your resistance to beinglistened to, tracked and monitored at all times. They want you to be the best product you can possibly be.Googles customers will love you.
  6. 6. WikipediaGoogle Inc. (NASDAQ: GOOG, FWB: GGQ1) is a multinational public cloud computing,Internet search, and advertising technologies corporation. Google hosts and develops a numberof Internet-based services and products,[5] and generates profit primarily from advertisingthrough its AdWords program.[2][6] The company was founded by Larry Page and Sergey Brin,often dubbed the "Google Guys",[7][8][9][10] while the two were attending Stanford University asPh.D. candidates. It was first incorporated as a privately held company on September 4, 1998,with its initial public offering to follow on August 19, 2004. The companys stated mission fromthe outset was "to organize the worlds information and make it universally accessible anduseful",[11] and the companys unofficial slogan – coined by Google engineer Paul Buchheit – isDont be evil.[12][13] In 2006, the company moved to their current headquarters in Mountain View,California.Google runs over one million servers in data centers around the world,[14] and processes over onebillion search requests[15] and twenty petabytes of user-generated data every day.[16][17][18]Googles rapid growth since its incorporation has triggered a chain of products, acquisitions andpartnerships beyond the companys core search engine. The company offers online productivitysoftware, such as its Gmail e-mail software, and social networking tools, including Orkut and,more recently, Google Buzz. Googles products extend to the desktop as well, with applicationssuch as the web browser Google Chrome, the Picasa photo organization and editing software,and the Google Talk instant messaging application. More notably, Google leads the developmentof the Android mobile phone operating system, used on a number of phones such as the NexusOne and Motorola Droid. Because of its popularity and numerous products, Alexa lists Google asthe Internets most visited website.[19] Google is also Fortune Magazines fourth best place towork,[20] and BrandZs most powerful brand in the world.[21] The dominant market position ofGoogles services has led to criticism of the company over issues including privacy, copyright,and censorship.[22][23]Contents[hide] 1 History o 1.1 Financing and initial public offering o 1.2 Growth o 1.3 Acquisitions and partnerships 2 Products and services o 2.1 Advertising o 2.2 Search engine o 2.3 Productivity tools o 2.4 Enterprise products o 2.5 Other products 3 Corporate affairs and culture o 3.1 Employees o 3.2 Googleplex
  7. 7. o 3.3 Easter eggs and April Fools Day jokes o 3.4 Philanthropy o 3.5 Network neutrality 4 Criticism 5 See also 6 References 7 Further reading 8 External links 9 Related informationHistoryMain article: History of GoogleGoogles original homepage had a simple design since its founders were not experienced in HTML, thelanguage for designing web pages.[24]Google began in January 1996 as a research project by Larry Page and Sergey Brin when theywere both PhD students at Stanford University in California.[25] While conventional searchengines ranked results by counting how many times the search terms appeared on the page, thetwo theorized about a better system that analyzed the relationships between websites.[26] Theycalled this new technology PageRank, where a websites relevance was determined by thenumber of pages, and the importance of those pages, that linked back to the original site.[27] Asmall search engine called Rankdex was already exploring a similar strategy.[28] Page and Brinoriginally nicknamed their new search engine "BackRub", because the system checked backlinksto estimate the importance of a site.[29][30] Eventually, they changed the name to Google,originating from a misspelling of the word "googol",[31][32] the number one followed by onehundred zeros, which was meant to signify the amount of information the search engine was tohandle. Originally, Google ran under the Stanford University website, with the The domain was registered on September 15, 1997,[33] and thecompany was incorporated on September 4, 1998, at a friends garage in Menlo Park, California.Financing and initial public offering
  8. 8. The first iteration of Google production servers was built with inexpensive hardware.[34]The first funding for Google was an August 1998 contribution of US$100,000 from AndyBechtolsheim, co-founder of Sun Microsystems, given before Google was even incorporated.[35]On June 7, 1999, a $25 million round of funding was announced,[36] with major investorsincluding the venture capital firms Kleiner Perkins Caufield & Byers and Sequoia Capital.[35]Googles initial public offering (IPO) took place five years later on August 19, 2004. Thecompany offered 19,605,052 shares at a price of $85 per share.[37][38] Shares were sold in aunique online auction format using a system built by Morgan Stanley and Credit Suisse,underwriters for the deal.[39][40] The sale of $1.67 billion gave Google a market capitalization ofmore than $23 billion.[41] The vast majority of the 271 million shares remained under the controlof Google, and many Google employees became instant paper millionaires. Yahoo!, a competitorof Google, also benefited because it owned 8.4 million shares of Google before the IPO tookplace.[42]Some people speculated that Googles IPO would inevitably lead to changes in company culture.Reasons ranged from shareholder pressure for employee benefit reductions to the fact that manycompany executives would become instant paper millionaires.[43] As a reply to this concern, co-founders Sergey Brin and Larry Page promised in a report to potential investors that the IPOwould not change the companys culture.[44] In 2005, however, articles in The New York Timesand other sources began suggesting that Google had lost its anti-corporate, no evilphilosophy.[45][46][47] In an effort to maintain the companys unique culture, Google designated aChief Culture Officer, who also serves as the Director of Human Resources. The purpose of the
  9. 9. Chief Culture Officer is to develop and maintain the culture and work on ways to keep true to thecore values that the company was founded on: a flat organization with a collaborativeenvironment.[48] Google has also faced allegations of sexism and ageism from formeremployees.[49][50]The stocks performance after the IPO went well, with shares hitting $700 for the first time onOctober 31, 2007,[51] primarily because of strong sales and earnings in the online advertisingmarket.[52] The surge in stock price was fueled mainly by individual investors, as opposed tolarge institutional investors and mutual funds.[52] The company is now listed on the NASDAQstock exchange under the ticker symbol GOOG and under the Frankfurt Stock Exchange underthe ticker symbol GGQ1.GrowthIn March 1999, the company moved its offices to Palo Alto, California, home to several othernoted Silicon Valley technology startups.[53] The next year, against Page and Brins initialopposition toward an advertising-funded search engine,[54] Google began selling advertisementsassociated with search keywords.[25] In order to maintain an uncluttered page design and increasespeed, advertisements were solely text-based. Keywords were sold based on a combination ofprice bids and clickthroughs, with bidding starting at five cents per click.[25] This model ofselling keyword advertising was first pioneered by, an Idealab spin off created by BillGross.[55][56] When the company changed names to Overture Services, it sued Google overalleged infringements of the companys pay-per-click and bidding patents. Overture Serviceswould later be bought by Yahoo! and renamed Yahoo! Search Marketing. The case was thensettled out of court, with Google agreeing to issue shares of common stock to Yahoo! inexchange for a perpetual license.[57]During this time, Google was granted a patent describing their PageRank mechanism.[58] Thepatent was officially assigned to Stanford University and lists Lawrence Page as the inventor. In2003, after outgrowing two other locations, the company leased their current office complexfrom Silicon Graphics at 1600 Amphitheatre Parkway in Mountain View, California.[59] Thecomplex has since come to be known as the Googleplex, a play on the word googolplex, thenumber one followed by a googol zeroes. Three years later, Google would buy the property fromSGI for $319 million.[60] By that time, the name "Google" had found its way into everydaylanguage, causing the verb "google" to be added to the Merriam Webster Collegiate Dictionaryand the Oxford English Dictionary, denoted as "to use the Google search engine to obtaininformation on the Internet."[61][62]Acquisitions and partnershipsSee also: List of acquisitions by GoogleSince 2001, Google has acquired many companies, mainly focusing on small venture capitalcompanies. In 2004, Google acquired Keyhole, Inc..[63] The start-up company developed aproduct called Earth Viewer that gave a 3-D view of the Earth. Google renamed the service toGoogle Earth in 2005. Two years later, Google bought the online video site YouTube for $1.65
  10. 10. billion in stock.[64] On April 13, 2007, Google reached an agreement to acquire DoubleClick for$3.1 billion, giving Google valuable relationships that DoubleClick had with Web publishers andadvertising agencies.[65] Later that same year, Google purchased GrandCentral for $50 million.[66]The site would later be changed over to Google Voice. On August 5, 2009, Google bought out itsfirst public company, purchasing video software maker On2 Technologies for $106.5 million.[67]Google also acquired Aardvark, a social network search engine, for $50 million. Googlecommented in their internal blog, "were looking forward to collaborating to see where we cantake it".[68] And, in April 2010, Google announced it had acquired a hardware startup,Agnilux.[69]In addition to the numerous companies Google has purchased, the company has partnered withother organizations for everything from research to advertising. In 2005, Google partnered withNASA Ames Research Center to build 1,000,000 square feet (93,000 m2) of offices.[70] Theoffices would be used for research projects involving large-scale data management,nanotechnology, distributed computing, and the entrepreneurial space industry. Later that year,Google entered into a partnership with Sun Microsystems in October 2005 to help share anddistribute each others technologies.[71] The company also partnered with AOL of TimeWarner,[72] to enhance each others video search services. Googles 2005 partnerships alsoincluded financing the new .mobi top-level domain for mobile devices, along with othercompanies including Microsoft, Nokia, and Ericsson.[73] Google would later launch "Adsense forMobile", taking advantage of the emerging mobile advertising market.[74] Increasing theiradvertising reach even further, Google and Fox Interactive Media of News Corp. entered into a$900 million agreement to provide search and advertising on popular social networking siteMySpace.[75]In October 2006, Google announced that it had acquired the video-sharing site YouTube forUS$1.65 billion in Google stock, and the deal was finalized on November 13, 2006.[76] Googledoes not provide detailed figures for YouTubes running costs, and YouTubes revenues in 2007were noted as "not material" in a regulatory filing.[77] In June 2008, a Forbes magazine articleprojected the 2008 YouTube revenue at US$200 million, noting progress in advertising sales.[78]In 2007, Google began sponsoring NORAD Tracks Santa, a service that pretends to follow SantaClaus progress on Christmas Eve,[79] using Google Earth to "track Santa" in 3-D for the firsttime,[80] and displacing former sponsor AOL. Google-owned YouTube gave NORAD TracksSanta its own channel.[81]In 2008, Google developed a partnership with GeoEye to launch a satellite providing Googlewith high-resolution (0.41 m monochrome, 1.65 m color) imagery for Google Earth. The satellitewas launched from Vandenberg Air Force Base on September 6, 2008.[82] Google alsoannounced in 2008 that it was hosting an archive of Life Magazines photographs as part of itslatest partnership. Some of the images in the archive were never published in the magazine.[83]The photos were watermarked and originally had copyright notices posted on all photos,regardless of public domain status.[84]In 2010, Google Energy made its first investment in a renewable-energy project, putting up$38.8 million into two wind farms in North Dakota. The company announced the two locationswill generate 169.5 megawatts of power, or enough to supply 55,000 homes. The farms, which
  11. 11. were developed by NextEra Energy Resources, will reduce fossil fuel use in the region andreturn profits. NextEra Energy Resources sold Google a twenty percent stake in the project inorder to get funding for project development.[85] Also in 2010, Google purchased Global IPSolutions, a Norway based company that provides web-based teleconferencing and other relatedservices. This acquisition will enable Google to add telephone-style services to its list ofproducts.[86] On May 27, 2010, Google announced it had also closed the acquisition of the mobilead network, AdMob. This purchase occurred days after the Federal Trade Commission closed itsinvestigation into the purchase.[87] Google acquired the company for an undisclosed amount.[88]Products and servicesSee also: List of Google productsAdvertisingNinety-nine percent of Googles revenue is derived from its advertising programs.[89] For the2006 fiscal year, the company reported $10.492 billion in total advertising revenues and only$112 million in licensing and other revenues.[90] Google has implemented various innovations inthe online advertising market that helped propel them to one of the biggest advertisers in themarket. Using technology from the company DoubleClick, Google can determine user interestsand target advertisements appropriately so they are relevant to the context they are in and theuser that is viewing them.[91][92] Google Analytics allows website owners to track where and howpeople use their website, allowing for in-depth research into getting users to go where you wantthem to go.[93]Google advertisements can be placed on third-party websites in a two-part program. GooglesAdWords 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 AdSense,allows website owners to display these advertisements on their website, and earn money everytime ads are clicked.[94] One of the disadvantages and criticisms of this program is Googlesinability to combat click fraud, when a person or automated script "clicks" on advertisementswithout being interested in the product, just to earn money for the website owner. Industryreports in 2006 claim that approximately 14 to 20 percent of clicks were in fact fraudulent orinvalid.[95] In June 2008, Google reached an advertising agreement with Yahoo!, which wouldhave allowed Yahoo! to feature Google advertisements on their web pages. The alliance betweenthe two companies was never completely realized due to antitrust concerns by the U.S.Department of Justice. As a result, Google pulled out of the deal in November 2008.[96][97]Search engine
  12. 12. In 2010, Google updated its homepage with a new shadow-less logo.[98]The Google web search engine is the companys most popular service. According to marketresearch published by comScore in November 2009, Google is the dominant search engine in theUnited States market, with a market share of 65.6%.[99] Google indexes trillions of web pages, sothat users can search for the information they desire, through the use of keywords and operators.This basic search engine has spread to specific services as well, including an image searchengine, the Google News search site, Google Maps, and more. In early 2006, the companylaunched Google Video, which allowed users to upload, search, and watch videos from theInternet.[100] In 2009, however, uploads to Google Video were discontinued so that Google couldfocus more on the search aspect of the service.[101] The company even developed GoogleDesktop, a desktop search application used to search for files local to ones computer.One of the more controversial search services Google hosts is Google Books. The companybegan scanning books and uploading limited previews, and full books where allowed, into theirnew book search engine. However, a number of copyright disputes arose, and Google reached arevised settlement in 2009 to limit its scans to books from the U.S., the U.K., Australia andCanada.[102] Furthermore, the Paris Civil Court ruled against Google in late 2009, asking them toremove the works of La Martinière (Éditions du Seuil) from their database.[103] In competitionwith, Google plans to sell digital versions of new books.[104] Similarly, in responseto newcomer Bing, on July 21, 2010, Google updated their image search to display a streamingsequence of thumbnails that enlarge when pointed at. Their web search still displays results in abatch per page format.Productivity toolsIn addition to its standard web search services, Google has released over the years a number ofonline productivity tools. Gmail, a free webmail service provided by Google, was launched as aninvitation-only beta program on April 1, 2004,[105] and became available to the general public onFebruary 7, 2007.[106] The service was upgraded from beta status on July 7, 2009,[107] at whichtime it had 146 million users monthly.[108] The service would be the first online email servicewith one gigabyte of storage, and the first to keep emails from the same conversation together inone thread, similar to an Internet forum.[105] The service currently offers over 7400 MB of freestorage with additional storage ranging from 20 GB to 16 TB available for US$0.25 per 1 GB peryear.[109] Furthermore, software developers know Gmail for its pioneering use of AJAX, aprogramming technique that allows web pages to be interactive without refreshing thebrowser.[110]
  13. 13. Google Docs, another part of Googles productivity suite, allows users to create, edit, andcollaborate on documents in an online environment, not dissimilar to Microsoft Word. Theservice was originally called Writely, but was obtained by Google on March 9, 2006, where itwas released as an invitation-only preview.[111] On June 6 after the acquisition, Google created anexperimental spreadsheet editing program,[112] which would be combined with Google Docs onOctober 10.[113] A program to edit presentations would complete the set on September 17,2007,[114] before all three services were taken out of beta along with Gmail on July 7, 2009.[107]Google Calendar, a calendar program closely integrated with Gmail,[115] was also taken out ofbeta that day after its beta release on April 12, 2006.[116]Enterprise productsGoogles search appliance at the 2008 RSA ConferenceGoogle entered the enterprise market in February 2002 with the launch of its Google SearchAppliance, targeted toward providing search technology for larger organizations.[25] Googlelaunched the Mini three years later, which was targeted at smaller organizations. Late in 2006,Google began to sell Custom Search Business Edition, providing customers with an advertising-free window into Google.coms index. The service was renamed Google Site Search in 2008.[117]Another one of Googles enterprise products is Google Apps Premier Edition. The service, andits accompanying Google Apps Education Edition and Standard Edition, allow companies,schools, and other organizations to bring Googles online applications, such as Gmail and GoogleDocuments, into their own domain. The Premier Edition specifically includes extras over theStandard Edition such as more disk space, API access, and premium support, and it costs $50 peruser per year. A large implementation of Google Apps with 38,000 users is at LakeheadUniversity in Thunder Bay, Ontario, Canada. In the same year Google Apps was launched,Google acquired Postini[118] and proceeded to integrate the companys security technologies intoGoogle Apps[119] under the name Google Postini Services.[120]
  14. 14. Other productsGoogle Translate is a server-side machine translation service, which can translate between 35different languages. Browser extensions allow for easy access to Google Translate from thebrowser. The software uses corpus linguistics techniques, where the program "learns" fromprofessionally translated documents, specifically United Nations and European Parliamentproceedings.[121] Furthermore, a "suggest a better translation" feature accompanies the translatedtext, allowing users to indicate where the current translation is incorrect or otherwise inferior toanother translation.Google launched its Google News service in 2002. The site proclaimed that the company hadcreated a "highly unusual" site that "offers a news service compiled solely by computeralgorithms without human intervention. Google employs no editors, managing editors, orexecutive editors."[122] The site hosted less licensed news content than Yahoo! News, and insteadpresented topically-selected links to news and opinion pieces along with reproductions of theirheadlines, story leads, and photographs.[123] The photographs are typically reduced to thumbnailsize and placed next to headlines from other news sources on the same topic in order to minimizecopyright infringement claims. Nevertheless, Agence France Presse sued Google for copyrightinfringement in federal court in the District of Columbia, a case which Google settled for anundisclosed amount in a pact that included a license of the full text of AFP articles for use onGoogle News.[124]In 2006, Google made a bid to offer free wireless broadband access throughout the city of SanFrancisco in conjunction with Internet service provider Earthlink. Large telecommunicationscompanies such as Comcast and Verizon opposed such efforts, claiming it was "unfaircompetition" and that cities would be violating their commitments to offer local monopolies tothese companies. In his testimony before Congress on Net Neutrality in 2006, Googles ChiefInternet Evangelist Vint Cerf blamed such tactics on the fact that nearly half of all consumerslack meaningful choice in broadband providers.[125] Google currently offers free wi-fi access inits hometown of Mountain View, California.[126]One year later, reports surfaced that Google was planning the release of its own mobile phone,possibly a competitor to Apples iPhone.[127][128][129] The project, called Android, turned out not tobe a phone but an operating system for mobile devices, which Google acquired and then releasedas an open-source project under the Apache 2.0 license.[130] Google provides a softwaredevelopment kit for developers so applications can be created to be run on Android-based phone.In September 2008, T-Mobile released the G1, the first Android-based phone.[131] More than ayear later on January 5, 2010, Google released an Android phone under its own company namecalled the Nexus One.[132]Other projects Google has worked on include a new collaborative communication service, a webbrowser, and even a mobile operating system. The first of these was first announced on May 27,2009. Google Wave was described as a product that helps users communicate and collaborate onthe web. The service is Googles "email redesigned", with realtime editing, the ability to embedaudio, video, and other media, and extensions that further enhance the communicationexperience. Google Wave was previously in a developers preview, where interested users had to
  15. 15. be invited to test the service, but was released to the general public on May 19, 2010, at GooglesI/O keynote. On September 1, 2008, Google pre-announced the upcoming availability of GoogleChrome, an open-source web browser,[133] which was then released on September 2, 2008. Thenext year, on 7 July 2009, Google announced Google Chrome OS, an open-source Linux-basedoperating system that includes only a web browser and is designed to log users into their Googleaccount.[134][135]Corporate affairs and cultureGoogle CEO Eric E. Schmidt with Sergey Brin and Larry Page (left to right)Google is known for having an informal corporate culture. On Fortune Magazines list of bestcompanies to work for, Google ranked first in 2007 and 2008[20][136] and fourth in 2009 and2010.[137][138] Googles corporate philosophy embodies such casual principles as "you can makemoney without doing evil," "you can be serious without a suit," and "work should be challengingand the challenge should be fun."[139]EmployeesGoogles stock performance following its IPO has enabled many early employees to becompetitively compensated.[140] After the companys IPO, founders Sergey Brin and Larry Pageand CEO Eric Schmidt requested that their base salary be cut to $1. Subsequent offers by thecompany to increase their salaries have been turned down, primarily because their primarycompensation continues to come from returns stock in Google. Prior to 2004, Schmidt wasmaking $250,000 per year, and Page and Brin each earned a salary of $150,000.[141]In 2007 and through early 2008, Google has seen the departure of several top executives. InOctober 2007, former chief financial officer of YouTube Gideon Yu joined Facebook[142] alongwith Benjamin Ling, a high-ranking engineer.[143] In March 2008, Sheryl Sandburg, then vice-president of global online sales and operations, began her position as chief operating officer ofFacebook[144] while Ash ElDifrawi, formerly head of brand advertising, left to become chiefmarketing officer of Netshops, an online retail company that was renamed Hayneedle in2009.[145]
  16. 16. As a motivation technique, Google uses a policy often called Innovation Time Off, whereGoogle engineers are encouraged to spend twenty percent of their work time on projects thatinterest them. Some of Googles newer services, such as Gmail, Google News, Orkut, andAdSense originated from these independent endeavors.[146] In a talk at Stanford University,Marissa Mayer, Googles Vice President of Search Products and User Experience, showed thathalf of all new product launches at the time had originated from the Innovation Time Off.[147]GoogleplexThe Googleplex, Googles original and largest corporate campusMain article: GoogleplexGoogles headquarters in Mountain View, California is referred to as "the Googleplex", a play ofwords on the number googolplex and the headquarters itself being a complex of buildings. Thelobby is decorated with a piano, lava lamps, old server clusters, and a projection of searchqueries on the wall. The hallways are full of exercise balls and bicycles. Each employee hasaccess to the corporate recreation center. Recreational amenities are scattered throughout thecampus and include a workout room with weights and rowing machines, locker rooms, washersand dryers, a massage room, assorted video games, foosball, a baby grand piano, a pool table,and ping pong. In addition to the rec room, there are snack rooms stocked with various foods anddrinks.[148] In 2006, Google moved into 311,000 square feet (28,900 m2) of office space in NewYork City, at 111 Eighth Ave. in Manhattan.[149] The office was specially designed and built forGoogle, and it now houses its largest advertising sales team, which has been instrumental insecuring large partnerships.[149] In 2003, they added an engineering staff in New York City,which has been responsible for more than 100 engineering projects, including Google Maps,Google Spreadsheets, and others. It is estimated that the building costs Google $10 million peryear to rent and is similar in design and functionality to its Mountain View headquarters,including foosball, air hockey, and ping-pong tables, as well as a video game area. In November2006, Google opened offices on Carnegie Mellons campus in Pittsburgh.[150] By late 2006,Google also established a new headquarters for its AdWords division in Ann Arbor,Michigan.[151] Furthermore, Google has offices all around the world, and in the United States,including Atlanta, Austin, Boulder, San Francisco, Seattle, and Washington DC.
  17. 17. Googles NYC office building houses their largest advertising sales team.[149]Google is taking steps to ensure that their operations are environmentally sound. In October2006, the company announced plans to install thousands of solar panels to provide up to1.6 megawatts of electricity, enough to satisfy approximately 30% of the campus energyneeds.[152] The system will be the largest solar power system constructed on a U.S. corporatecampus and one of the largest on any corporate site in the world.[152] In addition, Googleannounced in 2009 that it was deploying herds of goats to keep grassland around the Googleplexshort, helping to prevent the threat from seasonal bush fires while also reducing the carbonfootprint of mowing the extensive grounds.[153][154] The idea of trimming lawns using goatsoriginated from R. J. Widlar, an engineer who worked for National Semiconductor.[155] Despitethis, Google has faced accusations in Harpers Magazine of being extremely excessive with theirenergy usage, and were accused of employing their "Dont be evil" motto as well as their verypublic energy saving campaigns as means of trying to cover up or make up for the massiveamounts of energy their servers actually require.[156]Easter eggs and April Fools Day jokesMain article: Googles hoaxesGoogle has a tradition of creating April Fools Day jokes. For example, Google MentalPlexallegedly featured the use of mental power to search the web.[157] In 2007, Google announced afree Internet service called TiSP, or Toilet Internet Service Provider, where one obtained aconnection by flushing one end of a fiber-optic cable down their toilet.[158] Also in 2007,Googles Gmail page displayed an announcement for Gmail Paper, allowing users to have emailmessages printed and shipped to them.[159] In 2010, Google jokingly changed its company nameto Topeka in honor of Topeka, Kansas, whose mayor actually changed the citys name to Googlefor a short amount of time in an attempt to sway Googles decision in its new Google FiberProject.[160][161]In addition to April Fools Day jokes, Googles services contain a number of Easter eggs. Forinstance, Google included the Swedish Chefs "Bork bork bork," Pig Latin, "Hacker" orleetspeak, Elmer Fudd, and Klingon as language selections for its search engine.[162] In addition,the search engine calculator provides the Answer to the Ultimate Question of Life, the Universe,and Everything from Douglas Adams The Hitchhikers Guide to the Galaxy.[163] Furthemore,when searching the word "recursion", the spell-checkers result for the properly spelled word is
  18. 18. exactly the same word, creating a recursive link.[164] In Google Maps, searching for directionsbetween places separated by large bodies of water, such as Los Angeles and Tokyo, results ininstructions to "kayak across the Pacific Ocean." During FIFA World Cup 2010, search querieslike world cup, fifa, etc. will cause the page indicator at the bottom of every resultpage to read! instead.PhilanthropyMain article: Google.orgIn 2004, Google formed the not-for-profit philanthropic, with a start-up fund of $1billion.[165] The mission of the organization is to create awareness about climate change, globalpublic health, and global poverty. One of its first projects was to develop a viable plug-in hybridelectric vehicle that can attain 100 miles per gallon. Google hired Dr. Larry Brilliant as theprograms executive director in 2004[166] and the current director is Megan Smith.[167]In 2008 Google announced its "project 10100" which accepted ideas for how to help thecommunity and then allowed Google users to vote on their favorites.[168]Network neutralityGoogle is a noted supporter of network neutrality. According to Googles Guide to NetNeutrality:Network neutrality is the principle that Internet users should be in control of what content theyview and what applications they use on the Internet. The Internet has operated according to thisneutrality principle since its earliest days... Fundamentally, net neutrality is about equal access tothe Internet. In our view, the broadband carriers should not be permitted to use their marketpower to discriminate against competing applications or content. Just as telephone companies arenot permitted to tell consumers who they can call or what they can say, broadband carriersshould not be allowed to use their market power to control activity online.[169]On February 7, 2006, Vinton Cerf, a co-inventor of the Internet Protocol (IP), and current VicePresident and "Chief Internet Evangelist" at Google, in testimony before Congress, said,"allowing broadband carriers to control what people see and do online would fundamentallyundermine the principles that have made the Internet such a success."[170]CriticismMain article: Criticism of GoogleGoogle has stated that its goal is "to organize the worlds information and make it universallyaccessible and useful", but has faced criticism on a range of issues.[11] Areas of criticism haveincluded copyright, privacy, and censorship. In 2003, The New York Times complained thatGoogles caching of content on their site infringed on their copyright for the content.[171] In this
  19. 19. case, the United States District Court of Nevada ruled in favor of Google in Field v. Google andParker v. Google.[172][173] The Authors Guild, a group that represents 8,000 U.S. authors, filed aclass action suit in a Manhattan federal court against Google in 2005 over its scanning andcopying of books through its Google Library program. Google replied that it is in compliancewith all existing and historical applications of copyright laws regarding books.[174]On December 2009, Googles CEO, Eric Schmidt, declared after privacy concerns: "If you havesomething that you dont want anyone to know, maybe you shouldnt be doing it in the first place.If you really need that kind of privacy, the reality is that search engines — including Google —do retain this information for some time and its important, for example, that we are all subjectin the United States to the Patriot Act and it is possible that all that information could be madeavailable to the authorities."[175] Privacy International ranked Google as "Hostile to Privacy", itslowest rating on their report, making Google the only company in the list to receive thatranking.[176][177]The non-profit group Public Information Research launched Google Watch, a website advertisedas "a look at Googles monopoly, algorithms, and privacy issues."[178][179] The site raisedquestions relating to Googles storage of cookies, which in 2007 had a life span of more than 32years and incorporated a unique ID that enabled creation of a user data log.[180] Google Watchhas also criticized Googles PageRank algorithms, saying that they discriminate against newwebsites and favor established sites,[181] and has made allegations about connections betweenGoogle and the NSA and the CIA.[182] Googles has also faced criticism with its release ofGoogle Buzz, Googles version of social networking, where Gmail users had their contact listsautomatically made public unless they opted out.[183]Google has been criticized for its censorship of certain sites in specific countries and regions.Until March 2010, Google adhered to the Internet censorship policies of China, enforced bymeans of filters known colloquially as "The Great Firewall of China
  20. 20. (back to Google Business Model - Part 1)The Google Chrome Browser.In September 2008 Google launched its new browser, named Google Chrome. Google Chrome enters the browsercompetition challenging Microsoft Internet Explorer, which has the 73% of the browser marketshare, Firefox, which has 19%,and Apple Safari, with 6% of the browser market. Under the marketing point of view its a risky move on the side of Google.If Google Chrome is not going to be definitely superior to Firefox it could undermine Google brand value.