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E-Commerce Success & Its Causes

Friday, June 26, 2009

Nowadays, the usage of technology have been adapt into human's life. Mostly, computer user will search information through the internet to increase their knowledge and awareness as well as fulfill their personal requirement. Besides that, the "money-creater" such as business man will involve in e-commerce [ the marketing, buying and selling of products and services on the internet.(Awars,2004)] as a short path to expand their business to gain profit and increase its organization reputation. One of the E-Commerce success is "GOOGLE".

Google was founded by Larry Page and Sergey Brin while they were students at Stanford University and the company was first incorporated as a privately held company on September 4, 1998. Google Inc. is an American public corporation and involve in internet and computer software industry. It earning revenue from advertising related to its Internet search, e-mail, online mapping, office productivity, social networking, and video sharing services as well as selling advertising-free versions of the same technologies. The Google Inc. gain net income , US$4.227 billion and its total capital is US$31.768 billion in year 2008.
(Retrieved from http://en.wikipedia.org/wiki/Google)

David Drummond, Google's General Counsel pointed to 4 factors as the key to Google's success:

  1. Technology. Along with its innovative approach to page ranking, Google is a purpose-built hardware company, building all its own servers from components it buys directly for their manufacturers. According to Drummond, Google now operates the world's largest distributed computer system.


  2. Business Model Innovation. By perfecting the nature of targeted ads, Google not only has created a highly effective revenue generator, it has produced what it hopes to be a better experience for its users. It is Google's goal to make their targeted ads at least as relevant and useful to users as the search results themselves.


  3. Brand. According to Drummond, a European study recently determined Google to be the number one most recognized worldwide brand. Indeed, Google has become a verb ("I can't wait to get home and Google him") which poses real challenges to a company seeking to protect the strength of its mark.


  4. Focus On The User Experience. Product decisions at Google are driven by optimizing for the user experience first and for revenue second. The folks at Google firmly believe that the better the user experience, the more easily money will follow.

Retrieved from:http://ventureblog.com/articles/2003/05/4_keys_to_googl.php

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