This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
4/20/2007
I read an article in Business Week about the growth of Google. The article, which you can find HERE, talks about the incredible growth that Google has had and continues to have. They are even outstripping their own projections for growth and are leaving their competition, Yahoo and MSN, far behind. As I read this article I tried to determine which stage of the business cycle Google is in right now. At first glance I had thought that it was in a more mature stage because Google has been around for a long time and has seen tremendous success and should be reaching a point where their growth will start to slow. However, I later decided that it is most definitely in a growth stage. Not just because of the growth they are now seeing, but because they are constantly doing what needs to be done to ensure that their company will not reach a stage of maturity and decline. Specifically, they are outstripping competition because they are being innovative, not because they are just lucky. They are constantly improving their software and adding new features that are appealing to customers. This is very inspiring because when I think of Google, I think of a company that is constantly striving to better meet the needs of its customers. That is a refreshing thing, and definitely a principle that is taking Google to new heights!
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9 comments:
Sorry Hunter, this post is too late to count for credit.
This is just a test to see if it works.
Yes, Google does satisfy its' customers, even China!
Danny L. McDaniel
Lafayette, Indiana
Thanks for checking in Danny - long time, no comments.
Google is a great company to study. It is arguably one of the best companies to work for, with their multiple restaurants which are free to all employees. Google also outperforms all other competitors in their industry. I just heard about a new $25 million “Lunar X Prize” Google is backing. The prize will be given to the first team to successfully land a rover on the moon, travel at least 500 meters, and send back high resolution pictures and video back to earth. This is a company that needs to be recognized for being an outstanding company in all aspects that can be graded. More companies need to follow Google’s lead.
I like Google, but I have my doubts about encouraging this sort of behavior. Exactly how does this prize benefit the people who hold equity in Google?
If it doesn't, then this is just another case of management having too much cash flow and job security for their own good.
Dr. Tufte asked:
"I like Google, but I have my doubts about encouraging this sort of behavior. Exactly how does this prize benefit the people who hold equity in Google?"
Sometimes it's all about marketing. The most unique marketing stunts get the most attention and, later, more profits for the company -- more profits and more dividends.
Dr. Tufte said, “I have my doubts about encouraging this sort of behavior. Exactly how does this prize benefit the people who hold equity in Google?”
I think this type of behavior is very beneficial for Google. Google is number one in their industry right now, and if they don't keep innovating and trying to make their company better, who knows when Yahoo or other competitors will come up with something better? Google is satisfying its customers with new technologies and applications. If customers are more satisfied with someone else, they will use those other search sites. Fewer users mean lower revenues from advertisements which means a lower bottom line. I think this would worry Google stockholders.
OK. I'd put yourself in the shoes of someone that has to go pitch that idea at a shareholders meeting though.
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