value chain model for google?
Porter's value chain model for google
- 1 decade agoFavorite Answer
Internet Information >> Popularity ranked by number of links >> Google's own algorithms that are x% better than other search engines >> The greatest reach in search engines >> network economics for the google consumers: advertisers, information publishers, and people adding search capability to their intranets.
Google's annual report breaks down revenue by category, to see the value chain by % of Google's activity.
Another value chain broke into the desktop (taking from Microsoft). So, the reach from the Google search bar, and their other mini-apps increases their market dominance.
There is a secondary market for Google rankings, so instead of advertisers purchasing Google ads or changing website content to get a higher Google exposure directly, it's a third-party provider that specializes in this.
Google's other services (maps, images, Froogle, blogger, gmail, etc.) further increase their reach, therefore giving them a greater value for their consumers.
Also, the breadth of services gives Google Ads the finest-grained ideas of what people are using different Internet services out there, giving another value add.
Any discussion I made of Google's value chain would be driven by discussions of network value (value/customer ^ size of network), reach, and marketing granularity (custom fit of Google for advertisers and other revenue generation by Google).Source(s): http://investor.google.com/