Google has made a lot of money, but what is the secret behind its success? This company has successfully challenged traditional management practices. Some people compare Google to the Toyota company of the 1980s and GM in the 1920s. Google started fourteen years ago and was recently recognized as the world’s most valuable brand for the fifth time. According to BrandFinance Global 500, Google reported a 50 billion dollar sales volume and 11 billion in gross profits in 2012. As such, Google has been viewed as one of the world’s most innovative companies.
While Google’s core business involves providing the most popular search engine in the world, its true mission is to innovate. It uses this revenue to prototype new ideas. Because its business model is built on the concept of “hidden revenue,” Google can invest more money in innovative projects than it would otherwise be able to afford. The company’s bottom line may be poor, but the company’s reputation as a leading innovator is well-deserved.
Google started as a search company. Now, the company has multiple offerings and is transforming into a tech giant. One example of an innovative product is Google Instant, which saves 11 minutes of search time every second. Google has been implementing cool features for users for a while now, but it’s hard to say how these new products will affect their bottom line. A more important question is: what is Google’s core business strategy?