Economics of Innovation Coursework Essay

Introduction

Innovation is main feature in process of entrepreneurship and always one of the most important. Google Company and its founder can be perfect example of exceptional entrepreneurship. Google is American public corporation (Multinational) which is usually associated with internet research. Google Company also provides cloud computing (delivery of computing as a service, rather than a product) and technologies connected to advertising sphere.  Google Company had maintained its market leader place by huge number of innovations during last thirteen years. Google was first company in internet market sphere, which began to develop and host Internet-based services and products; profit of a company was primarily generated from advertisement through AdWords program (the program offers pay-per-click advertising).

The Google Corporation was founded by Sergey Brin and Larry Page (Google Guys), it was incorporated and privately held on 04.09.1998. Innovation of Google showed exceptional entrepreneurship by its founders.  Both of them are now are world’s well known billionaires with computer scientist and internet entrepreneurship occupation.  During an orientation for new students at Stanford Sergey Brin met Larry Page with whom he later became friends.  Later they applied Brins’s data mining system to create a superior search engine. This innovation became very popular in Stanford and soon both entrepreneurs decided to start up Google. This Radical innovation brought a lot of changes in our modern “internet life” and of course brought its founder and company to leader position in internet market of services. Now days Google has very significant economic, social and technical impact, and as example of perfect entrepreneurship it has managed to make their first steps in various markets. As the world has shifted in the direction of Web-based media, connection and delivery of services which concerned to be computing, including a swift rose of usage of new technological inventions like IPad and smartphones: Google Company, not its all possible competitors is the innovative chief of the changes in this market by virtue of its founders.  Apple was on the leading position before current year but lately lost that advantage due to company was willing to build its self as a monopoly in creation of software and hardware for smartphones. But Google is considered to be a leader in the arena of web markets by implementing its Cloud-based technologies. World’s share of Google today is 65% in PC research area and considered to be a monopoly. In all spheres of internet search, media and comunication this company is being a standard setter for internet-based usage in big variety of areas, like: Online mail and online programs which works with documents- free email and set of programs of Google company is gaining increased popularity in business sphere ; Maps of the cities and countries are free of charge, complement , innovative and leader in options versus its competitors; Google books – became very popular among “internet readers”; Maps, Android, Voice which being mostly used by smartphones are capturing very significant part of market share; Google Chrome today considered as speed standard setter. This company doesn’t has enough shares to be considered as a proper monopoly, although Google company gaining strength and competitiveness year by year due to innovative strategies and technologies.

Due to exceptional innovations in marketing, advertising and technological spheres Google has a lot of advantages. The main feature of all advantages of Google is that company is always changes strategically and technologically. This company has implemented new innovative and simple marketing by using pay per click advertising technology (advertiser makes profit only when user make click on advertisement. For the Google Company making significant profit in different markets is not important, instead it make money only by setting advertisements of Google vendors in this variety of markets. As another marketing strategy of Google is sale of its well known product Android to OHA(open handset alliance) . The plan of Google is to set Nexus One as a setter of standards. This application (Nexus One) was developed due to anxiety of Google that Android applications will not be able to take full advantage in the market because of Android phones. As example it has diversified to HTC evo, Motorola droid. With Google’s purchase of AbMob company intended to become a main player arena of Mobile advertising market. Google insured and guaranteed that restriction usage of Google Voice on iPhones  by Apple corporation do not influence on delivery of Google advertisements and applications into market of mobile phones, tablets, slates and netbooks. This innovation will provide to vendors ability to generate their profit simply by setting their advertisements and applications on any device which is “online”. Another market strategy of Google and its benefit is that almost all internet users are using OSS(open source software) application which is provided by Google. Only few of “fresh” company’s services like G TV and Google books will be slightly charged. As an example of effectiveness of this strategy we can compare other companies with Google.  For example Microsoft, Apple or Nokia will not be able to enter the market and nail vendors or customers of Google by setting zero prices for their applications, tools or services. How these companies beat or compete with Google by setting zero prices for their product; All these tools are provided by Google freely. Main attractive feature of Google is not only zero pricing of programs and applications but also availability of customization of them and control of vendors and customers over this online products.

Another one advantage of Google was brought by its founders. They were able to prove that their company is enough agile to get leading position in any market which they entered. As an example we can consider case with smartphones. Google Corporation and Apache License and usage of Android technology was able to beat Microsoft Company and Apple.

By using Apache and Android innovations Google obtained ability to create not only capable but also slim OS, which is considered to be more operational than its competitor- Microsoft model.  But Agility is attribute which is hard to maintain especially for huge corporations over long time.  Now economists are observing for how long Google will be able to preserve this advantage.  Although in the case strategy which was used in Chinese market, in the Security area and Wifi-data protection Google has proved to be able to sustain its leading position. Google’s dominant position in PC-based search and its active implementation in other market had almost always positive effect on its wealth due to usage of new and innovative strategies and technologies. Traditionally Google is considered to be one of the best occupation for IT specialists, In 2010 Google was named –the most attractive employer in the world due to their attitude to its employees. This year Google has confirmed this reputation—salary of all employees was increased on more than 10% due to profitability increase.  In the mid of 2010 Google was recognized as the most creative and respected company in USA (a survey of Harris Interactive). Also Google Company is intended to create Its own delivery service, for customers who used Online Shops (according to The Wall Street Journal).  In this way, new service of Google will be able to compete with leader in this service market- Amazon.com. Google Company was “created to create” that this is its infrastructure. This Corporation has spent billions of dollars to create its platform in WWW and also money was spent on development of new programs. Thanks to high technological PC web, Company is able to guarantee their production to be on the highest performance level. Companies which are wishing to take as a example Google company , should pay their attention on Google’s corporative structure, main features of it are Innovations, Creation of Anything modern and new, correct integration into chosen market.  As an example we can take Google Chrome- web browser which is still considered most popular and simple browser. 

Conclusion

Nowadays more and more young people connecting their career expectations with “innovational activity” – commercialization of ideas and successful implementation of it in modern business world. Since entrepreneurship sphere has “received” powerful push to development only during last few years, your businessmen and entrepreneurs have obtained unique chance to be successful in our high technological world and with support of technologies and experience of past generation become rich and famous and  Google Corporation and its founder is the  best example of exceptional entrepreneurship and successful usage of modern and available technologies.