Open Source Solutions for companies
by Ronan CHARDONNEAU
dimanche 23 novembre 2008
vendredi 21 novembre 2008
Google: Conclusion
IV - Conclusion
Even and it is true that we could have some things to say regarding how Google targeted Asia which remain until now the place where Google have the most difficulties to enter, we cannot deny that Google did an incredible work in terms of international marketing.
In ten years it has covered almost all the planet with more than 60% of the market(and it is growing year after year). We could even think at least for Europe that most of the users are Google dependent.
His secret is coming from a mere idea of his creators Larry Page and Sergey Brin(both engineers): a very simple tool and easy to use.
It was that simple and that easy that making it available to the all world seemed to have been a kid game(easy to translate and to export through the net).
We however still have some questions tags regarding his implementation in Asia and moreover on four countries:
Why is it facing a so fierce competition in China, South Korea and Japan whereas it is the only three countries to which it accepts to make a specific customization?
Why his main competitor is far better than him in this area?
| Rank | Japan | South Korea | China | Russia |
| 1st | Yahoo: 64% | Naver: 77% | Baidu: 60,9% | Yandex or Mail.ru: 47,61% |
| 2nd | Google: 29,6% | Daum: 10,8% | Google: 27% | Google 25,67% |
| 3rd | Microsoft: 2,8% | Yahoo: 4,4% | Sogou: 3,1% | Rambler 12,17% |
| 4th | Others: 3,6% | Google: 1,7% | Yahoo: 2,4% | Mail.ru 5,53% |
| 5th |
| Others: 6,1% | Others: 6,6% | Others: 9,02% |
Google: Drivers of internationalization
III – 8 Drivers of internationalization
Demand drivers: when Google just started to come out the demand was high and this all over the world. Such a service was needed. The ones which were on the market were too complicated. A mere product was needed.
Cost drivers: Google is by chance a cheap product. Easy to acquire a domain name and few translations to handle in order to make the product available abroad.
Government drivers: none, even if installed firstly in the Silicon Valley I wonder if Google has not been well helped by the American Government
Technical drivers: Google operating on Internet when it was a real boom it has been for sure well driven.
Competition drivers: There was a competition at that time but other services were young as well so it was possible to make the difference. Or the main other search engines have been trapped by their starting strategies as Yahoo for the translation of its home page.
In order to conclude I would say that the launch of Google abroad has been helped by the situation at that time. It was really favorable for it.
Demand drivers: when Google just started to come out the demand was high and this all over the world. Such a service was needed. The ones which were on the market were too complicated. A mere product was needed.
Cost drivers: Google is by chance a cheap product. Easy to acquire a domain name and few translations to handle in order to make the product available abroad.
Government drivers: none, even if installed firstly in the Silicon Valley I wonder if Google has not been well helped by the American Government
Technical drivers: Google operating on Internet when it was a real boom it has been for sure well driven.
Competition drivers: There was a competition at that time but other services were young as well so it was possible to make the difference. Or the main other search engines have been trapped by their starting strategies as Yahoo for the translation of its home page.
In order to conclude I would say that the launch of Google abroad has been helped by the situation at that time. It was really favorable for it.
Google: The overall motivation of internationalization
III – 7 The overall motivation of internationalization
It is definitely a pro-active motivation which pushes Google to go international. Google was a service already made from his conception to go international. If it did not went abroad its competitors will have came up on his market.
It is definitely a pro-active motivation which pushes Google to go international. Google was a service already made from his conception to go international. If it did not went abroad its competitors will have came up on his market.
Google: Google's degree of internationalization:
III – 6 Google's degree of internationalization:
Google has the following figures for the repartition of his offices around the world:
Northern America: 23
Europe: 22
Asia/Pacific: 15
Latin America: 3
Middle East: 5
Total=68
From those figures we could calculate the “International workforce ratio”: ((offices in the world-offices in the USA)/Total number of offices)*100= (48/68)*100= 70%.
However I think a more interesting ratio can be calculated. In fact a company can have a very high degree of internationalization but dividing his efforts in an unequal way.
For me we should take in account the degree of internationalization with the market itself. You can be very internationalized but being bad internationalized because you are in some places where the market is not.
| Continent | Number of offices | % of offices | Perfect offices number | Perfect % of offices | World Internet users |
| Africa | 1 | 1,50% | 2 | 3,00% | 3,50% |
| South America | 2 | 3,00% | 5 | 7,30% | 7,10% |
| Central America | 1 | 1,50% | 1 | 1,50% | 2,40% |
| North America | 23 | 33,80% | 12 | 17,64% | 17,00% |
| Middle East | 3 | 4,40% | 2 | 3,00% | 2,90% |
| Europe | 23 | 33,80% | 18 | 26,50% | 26,30% |
| Asia | 13 | 19,11% | 27 | 39,70% | 39,50% |
| Oceania | 2 | 3,00% | 1 | 1,50% | 1,40% |
|
| 68 | 100,11% | 68 | 100,14% | 100,10% |
As we can see here we have the repartition of Google's offices around the world and the % of Internet users around the world. The perfect offices number show how these offices should have been allocated.
In total: 1+3+11+1+5+14+1=36 offices could have been allocated better.
1+3+24=27 offices are lacking.
Google has then 41 offices which are well internationalized it equals to 68-27=41; 41/68= 60%.
A such rate signifies that Google is covering more than half of the planet and it is doing it in the more or less the right way...60% is strangely correlated to Google market shares around the world, is that a coincidence?
As a comparison his main competitor Yahoo has the following situation:
| Continent | Number of offices | % of offices | Perfect offices number | Perfect % of offices | World Internet users |
| Africa | 0 | 0,00% | 1 | 3,50% | 3,50% |
| South America | 2 | 6,90% | 2 | 6,90% | 7,10% |
| Central America | 1 | 3,50% | 1 | 3,50% | 2,40% |
| North America | 4 | 13,80% | 5 | 17,24% | 17,00% |
| Middle East | 0 | 0,00% | 1 | 3,50% | 2,90% |
| Europe | 9 | 31,03% | 8 | 27,60% | 26,30% |
| Asia | 12 | 41,40% | 12 | 41,40% | 39,50% |
| Oceania | 1 | 3,50% | 1 | 3,50% | 1,40% |
|
| 29 | 100,13% | 31 | 107,14% | 100,10% |
As we can see Yahoo allocated his workforce quite differently from Google. Yahoo focused on Asia whereas Google put most of his effort in North America.
This example has been chosen to show that it is a good thing to be internationalized but it is better if you are intelligently internationalized. If you put your effort in some countries where the market does not exist(this is the case for Australia) you will get nothing.
Google: Types of internationalization
III – 5 Types of internationalization
The type of internationalization which stroke me the most in Google behavior is the partnerships, acquiring is also recurrent but more on a national level in order to extend their range of services that they will then translate in different languages in order to export it abroad.
As an example they made a partnership with China Mobile to provide mobile and Internet search services in China in 2007.
In October 2001 they made a partnership with Universo Online in order to become the largest search engine in Latin America.
They open as well several R&D centers. The first one sat up in Japan in December 2004.
The type of internationalization which stroke me the most in Google behavior is the partnerships, acquiring is also recurrent but more on a national level in order to extend their range of services that they will then translate in different languages in order to export it abroad.
As an example they made a partnership with China Mobile to provide mobile and Internet search services in China in 2007.
In October 2001 they made a partnership with Universo Online in order to become the largest search engine in Latin America.
They open as well several R&D centers. The first one sat up in Japan in December 2004.
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