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Google and Technology: Business Model Case Study

Google has, for a long time, utilized its technology and search engine to stay ahead of its competitors. Google has proved its prowess in the internet technology by owning more than 50 data centers around the world, which indicates the vast amount of information it can handle. In addition, it operates its own servers, builds software to manage data, keeping banks of servers in data centers of ISPs to have data close to delivery, among other things (Foremski, 2010).

Competitors are finding it hard to catch up with the company because of the high level of technology it uses, among other techniques. Google was responsible for 10% of all internet traffic according to data from 110 ISPs (Foremski, 2010).

Thus Google is offering its services at very large scale. Google has an extensive infrastructure according to Arbor, a seller of network control and monitoring hardware. This has made Google focus on building a private internet that is most efficient and of lowest operating cost (Foremski, 2010). Location of data centers in areas where the costs of electric power is lower is a strategy that Google has utilized for long to reduce costs according to Foremski. In addition, the company has explored other electric power options that are less costly, e.g. renewable energy sources like the solar and wind. These are less costly than coal-generated electric power.

Google has invested in technology to offer exclusive services as well as cut its costs. The company has invested in cheaper technology to build cheap hard drives and building their own servers. The data center operating systems belonging to the company comprise components and systems to manage failures. Usage of dark fiber is another strategy to reduce costs because they are cheap. Dark fiber refers to optical fiber which is not yet “lit” but “in the ground, in place, ready to be hooked up” (Foremski, 2010).

Having large amount of fiber gives them ability to trade bandwidth with others, as well as enabling them to operate one of the largest backbones in the world. Google has benefited from peering arrangements (where large Telcos and ISPs can carry extra traffic for each other if they have the capacity) which have reduced the company’s bandwidth bill to zero. This is of much importance while providing such services as video sharing through YouTube video.

Search engine is a technology that provides customers with an opportunity to search for various type of information even by typing a key word. A research of search engines involving 2000 consumers and carried out by Keynote in 2005 placed Google as the top company in the sector. Google has reigned against competitors in customer satisfaction and loyalty to brand image. However, the research showed that Google was holding steady while the competitors gained.

Google was likely to be chosen or preferred to others as a primary site by 81% of participants according to the aforementioned study. Yahoo scoped 61% from 11% and MSN increased to 38% from 8%. Ask Jeeves scoped 38% from 29% in May 2005. The study revealed the “tenuous nature of loyalty in the search market” with the likelihood of half of the customers turning to another search engine if their expectations were not met (Hicks, 2005).

Google has also ventured into online Video sharing business through its Google Video facilities that allows customers to share video files. In 2006, Google decided to venture into the video service market by a $1.65 billion acquisition of the video sharing website YouTube. This would allow Google to serve customers wishing to share videos such as music and movies. Competitors would therefore be put in a “jam” as views Sandoval (2006).

This would be a strategy that would see it move its plan of Google Video faster. Google Video was set to exist even after the acquisition of YouTube. Some competitors in this field looked forward to enhancing or continuing with their business in video sharing. Microsoft for example had its video sharing site named Soapbox on MSN video sharing site. The company wanted to integrate its video sharing service with Microsoft products that reached a vast majority to capture more market. In addition, the company sided with Blinkx, a video search provider to “power video search on parts of MSN Internet sites and”. Google however would stay much on top, considering the prowess that YouTube had already.

Google seemed to capture a vast market with “an ever-growing swath of the world’s businesses” becoming independent on the services it was offering (Kirkpatrick, 2007). The company also led in the search advertising market. Some of the technology that have helped Google lead in marketing its services include AdSense service that has made it be able to place ads of many types across the Internet.

Google serves customers who are interested in searching for information in the internet. This is in comparison with other companies like Facebook which have specialized on serving customers in the social networking arena. The power of information cannot be underestimated, with many customers now realizing the role of the internet to provide fast and reliable information. Research on the internet is also taking fast, and customers who are willing to look for a variety of reliable information stalked on the internet such as books, articles and journals have been served well by Google search engine.

This market segment includes young people who are in colleges and universities as well as professionals pursuing various academic interests. In addition, Google serves customers who want to advertise their business or events in the internet through placing ads on the websites. Thus business people who want to publish their companies or important activities have also found Google useful.

Google Scholar is a service specially designed for students who also have benefited from the service. Google Scholar provided access for scholarly resources. Customers also looking for products from other companies such as music, software, books and others, have found Google search engine very useful. Google has also served customers in the social networking arena through entertainment by its video sharing service and the YouTube. Customers are able to shoot, edit and distribute videos through Google (Sandoval, 2006).


Foremski, T. (2010). Google is building a private internet that’s far better, and greener, than the internet. Web.

Hicks, M. (2005). Google reigns as its competitors gain. Web.

Kirkpatrick, D. (2007). Why Google should invest in Microsoft. Fortune. Web.

Sandoval, G. (2006). With YouTube, Google puts its competitors in a jam. Web.


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