Development Prospects Of Google Main Products Economics Essay

Google remains as the figure one hunt engine in the universe, with 66.9 market portion in the U.S. and 93.9 market portion in France. When Yahoo continues to lose its market portion, the other chief rival Microsoft ‘s Bing exceeds Yahoo! With 16 % market portion.

The Adwords advertisement on the chief page of hunt consequences are less effectual than earlier. Google must go on to concentrate on the quality of research to fulfill its users and advertizers. Google should go on to concentrate on the quality of research.


Two major rivals are Hotmail and Yahoo mail! . At the terminal of 2012, Gmail defeated Hotmail by its popularity with 287.9 aˆ‹aˆ‹million users ( against 286.2 million and 281.7 million for Hotmail and Yahoo mail! ) Google tends to hold the most popular messaging of yet, to widen the spread between Gmail and its rivals, Google is expected to go on technological invention to convert more users.

• Social Network: Google+

Google launched Google+ in 2011, with integrating with other merchandises like Gmail, YouTube, and the figure of active users exceeded 235 million.

To convert its rival Facebook, which has over 900 million active users, it is indispensable to hold more registered users as possible. However, the rule of Google+ and Facebook is different, the aim of Facebook is to link people and construct their societal web, and Google+ intends to calculate out what people need and offer them precisely what they need in a societal web. In the first 10 yearss after the launch of Google+ , the users have increased to 10 million. And this velocity of growing is supported by Google ‘s background particularly Gmail ( Which has over 287.9 million users ) . Google is excessively late when Facebook has already over 900 million loyal users, successful applications. However, Google+ has really good design, but it should be a often modified merchandise as it ‘s in a period of turning and spread outing. Otherwise, 87 % users of Google+ are male. And Google needs to alter its scheme to pull female users.


In 2011, Android holds 57.5 % market portion, until November 2012, 75 % of smartphones sold worldwide use the Google system.

Android has been one of the primary drivers of growing in the market with a growing of 91.5 % , about two-base hit of the overall market. But in the undermentioned old ages, the competition between Android and Apple is going more and more drastic.

Play Google

An online shop combined and a amalgamation of Android Market, Google Music and Movies, by Google eBookstore. Play Google is catching up its rival, but the income of the rival Apple Store is 4 times more than Google Play. However, Google has a growing rate of 311 % , against 12.9 % ISO Apple in 2012. Geographically, the constituents of one-year income in 2012 are really different between Google and Apple. For Google, the USA contributes more than Japan ( 29 % against 26 % ) .

Despite an addition in popularity, Google may be able to catch up Call Store in the hereafter with a growing rate moral forces.

New merchandises

Google Glass

The thought of the Google Glass Project is replacing smartphones by a Head-Mounted Display ( HDM ) computing machine, with a signifier of spectacless. Information will be displayed in the hands-free Glass. The system will be Android from Google. This new engineering estimated to be launched in early 2013, with a monetary value of 1500 $ .

However the development of this new merchandise faces some questions such as the being of the merchandise. If the wearable computing machine will be a necessary portion of consumers ‘ life, the reply is still dubious till the launch of the existent merchandise.

• Tablet: Nexus 7

The Numberss of tablets utilizing the version of the Android runing system from Google has increased. Thankss to an aggressive scheme of the Nexus 7, the market portion of Android on the market has jumped from 29 % to 41 % . Apple loses market portion from 80 % to 56.7 % boulder clay 2012. For the approaching twelvemonth, the following new Nexus version is merely around the corner.

Nexus Q

After the Born of the streaming media device, Google deferred the release really shortly after the Born of the merchandise. As a really powerful rival of Apple TV, the feedback of Nexus Q is anticipating to come back in the twelvemonth of 2013.

Google Driverless Car

Here ‘s another really attractive merchandise of Google. After 3 months ‘ trial in the US, the Driverless auto has got the permission from the Department of Motor Vehicles in California. This auto will be more efficient and accurate in instance of exigency state of affairss harmonizing to the trial. And Google announced that this auto would be ready for general populace in 5 old ages.

However, there ‘re many questions about this auto: First if they should be legal, and even if they are, the market will be limited because the jurisprudence of different parts are different. If it becomes legal, Will it alteration traffic ordinances? The Secondly the safety of the auto is still dubious, but Google advertised that the auto would be decidedly safer than human drive.

Fiscal state of affairs

Slower growing in the long term

The growing rate of income of Google was declined for old ages due to multiple factors: the strong market competition, the immense investing in engineering, new merchandises, schemes, new market entries, the economic conditions and concern theoretical account. Google should alter its public presentation in the on-line advertisement market ; go on to introduce its merchandises and services to keep the growing rate and the addition in entire income.

Ad Business

In 2012, the minutess of on-line advertisement represent 95 % of entire gross for Google.

Harmonizing to a study of hunt engines made in 2012, the growing rate of Internet hunt had begun to decelerate down due to an addition in Smartphone users. Users can execute hunts in any mobility state of affairs. Even if the Mobile sector is turning and nomadic hunt engine contributes to the growing of income, but it depends to a great extent on the economic environment. Advertisers cut down their disbursement on on-line advertisement in the event of an economic downswing. And the portion of gross generated is limited compared to the hunt engine from the Personal computer and tablets. It should be noted that the operating income generated by publicizing plan of Google Network Members Adsens is much lower than the income generated by the Google site ( $ 12,456 and $ 31,221 severally in 2012 ) .

The chief aim in the advertisement plan from Google is to go on to develop the engineering PageRank. Operating income generated by publicizing plan of Google Network Members Adsens is much lower than the income generated by the Google site ( $ 12,456 and $ 31,221 severally in 2012 ) .

Amalgamation and Acquisition

To better the hunt engine, Google acquired 122 companies since 2001, is the largest acquisition of Motorola for $ 12.5 billion U.S. dollars. The acquisition of Motorola Mobility can get patent engineering for Google, and besides an entry in the industry of equipment market. In 2012, Motorola contributes 8 % ( 4136 Million dollars ) of the entire gross of Google. The acquisition of Motorola is really favourable for the growing of long-run income. After the restructure of Motorola Mobility, the chief undertaking is to gain, but the effects of the amortisation of intangible assets are conveying out due to the acquisition. Google sold the Set-Top Box of Motorola for $ 2.35 Billion U.S. dollars to the company Arris Group, with $ 300 million of freshly issued portions ( 15,7 % ) interest of the company. Giving up the possibility to acquire Google TV into 1000000s of places by the Set-Top Box, there ‘re a few grounds: the market of the Set-up top is in a period of diminution ; the dialogue with the Television suppliers is complicated ; Google focal point on the concern of the platform of Google TV, etc.

From the acquisition of Motorola we can reason that the instead than get the patents and new engineering, the chief way of Google in the hereafter will concentrate on the Mobile concern, particularly the nomadic advertisement.

International development

Google provides their merchandises and services in over 100 linguistic communications aˆ‹aˆ‹and over 50 paid and parts. The U.S. histories for over 47 % of their turnover in 2012 and the UK represents 11 % of entire grosss. But Google has lost its market portion of on-line research in China, which is one of its largest consumers. Until November 2012, Google represents 4.72 % of the market in footings of page positions. This rate is much lower than other states because of the Chinese domestic competition. The major Chinese market is dominated by Baidu, which represents about 75 % of the hunt engine market in China.

In the hereafter, the chief concern in China should be concentrated at the nomadic advertisement. In China, from 2011 to 2012, on Google ‘s AdMob Mobile advertisement platform, the petition sum has increased 120 % . Google provides to go on its investings in international markets. But if these investings can be reflected by any addition in international gross in the hereafter, that is the challenge.

As a consequence, Google gives the feeling of the leader of the market but it should be noticed that its concern theoretical account is based on the advertisement gross, which we can calculate the terminal of its concern rhythm. To maintain forcing users to snap in a changing environment, Google should go on to put in research and development, including through acquisitions, to better bing merchandises and services with engineering of the mark company. Even though Android dominates Io for the minute, the Apple ‘s concern theoretical account is much better than Google ‘s. If Google is unable to go on to supply efficient merchandises, the trade name perceptual experience of consumers will be badly affected and the credence rate of the merchandise will besides diminish. If the merchandises do non run into the existent demands of consumers, runing income will be plunged into a hard state of affairs. Because of the formidable competition in about every facet of their activities, Google should besides section its merchandises into activities and convince every individual rival in different Fieldss.

Annual study 2012 Google

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