Google isn’t just a technology innovator. It is a business model innovator.
Yet now, after its latest earnings report, Google’s parent company Alphabet has a market capitalisation larger than Apple’s, as shares rose sharply in after-hours trading.
That makes it the most valuable company in the world, worth nearly $520bn (£362bn).
Boasting up to 90% market share in many countries, the giant search company owns one of the most popular websites on the entire Internet – the instantly recognizable Google.com search page.
So the most curious question of everyone “How did it get here?
The only reason behind the success, Google’s founder- Sergey Brin and Larry Page – invented a unique way of judging the usefulness of online data known as Page Rank.
They haven’t looked back, making millions from online advertising and embracing some of the most challenging new ideas in the world of technology.
And most of us use it day in, day out: to check out the weather before you book a last minute Holiday; to email the boss you won’t be in; to translate your child’s language homework.
But this is not a Bollywood movie, you have to struggle, you have to pay what you get. Same here, whether Google’s dominance of the market is fair to other players; whether their growing influence allows them, along with other multi-national giants, to pay less tax than many feel is warranted; whether the information they hold about us grants them too much power.
How the road of success Started
Larry Page and Sergey Brin met at Stanford University in 1995 and within a year they were working on their first search engine – “Back Rub”
When BackRub come up with the best search engine on the market, he suggests, it was its early success that provided it with the experience and necessity.
“The more you know about what people mean when they search, the more you are able to deliver accurate results … There are a lot of costs associated with that, processing, the data centers to support that. So there is a natural monopoly.”
In 1997 Page and Brin decided that their “BackRub” needed a new name – Google, which was derived from the mathematical term: googol (which is a very big number!) thus showing their desire to search through every nook and cranny with their engine.
In August 1998 a badly needed check to the tune of $100,000 was waved in front of Google’s eyes by Andy Bechtolsheim, this set them going on a mad money making run with over $1 million being invested initially.
“We celebrate our failures,” Google CEO Eric Schmidt
Yet not everything has worked.
“Google Glass was a fairly expensive investment,” says Mr Bergen. “They clearly made some mistakes.”
And the company has notably been unable to match its rival Facebook in the social media sphere.
Some believe that anything Google touches is golden. There are lots of example of failure products of Google. But what they do after failure read a short wording by CEO of Google.
For each product, I’ve also pulled a “celebratory failure quote.” I don’t mean for that to be as snarky as it seems. It’s meant to illustrate the difference between how Schmidt’s statement sounds and what his company actually tells the world.
I agree. Google’s a company that’s not afraid to take risks and does seem to embrace the idea that along the way, there will be failures. Maybe that’s “celebrating” those failures. But in its statements to the world, Google rarely sounds like it’s celebrating these missteps. It doesn’t really document anything that was learned. It just seems to say as little as possible to move on.
This kind of Positive thinking make Google different from other.
In the long run
So could anyone challenge Google’s dominance?
Brian Wieser thinks yes: “It’s not that hard to build a search engine and there are plenty of them out there.”
He says consumers could switch relatively easily to a new search engine if a better one came along.
“These things aren’t that hard to do any more. If there’s a chink in the armour it can be attacked.”
But Mark Bergen thinks in 10 or 20 years time Google will still be a big player, if only because they are being so ambitious now.
One thing I want to say about Google “They have so many irons in the Fire, at least one of them will pay off,”
So a real key to money making success is perseverance,
money will come,
just you will have to wait and be patient!