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Case Title:

Google’s Business Model – An Enigma

Publication Year : 2009

Authors: Ray A, Ray K, Syed A

Industry: Internet and e-commerce

Region:United States

Case Code: BSM0069IRC

Teaching Note:  Available

Structured Assignment:  Available

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Abstract:
Since its inception, Google amused the search engine industry with its user friendly interface. Initially, Google could not generate enough cash inflow until it put AdWords and AdSense into practice. The two cash generating engines had catapulted Google to become extremely profitable. With a huge loyal customer base, strong brand image, solid financials, everything seemed to be excellent for Google. But on the flip side, click fraud remained an unsolved problem for Google. Google's cash flow came entirely from on-line advertisement. Moreover, rampant fraud might sway its clientele to some other alternatives. This case tries to discuss the nuances of Google's business model vis-a-vis competition and raised debate about its long-term sustainability.

Pedagogical Objectives:

  • To understand the search engine industry.
  • To analyse Google's position in comparison with Yahoo and Microsoft.
  • To highlight the factors behind Google's dominance in the search engine industry.

Keywords : Search engine industry; On-line advertising; Google's PageRank; Click fraud; AdWords; AdSense; Sponsored links; Google's business strategy

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