google Case analysis for AcademicResearchpro
1
06/10/15 Omar Al Dousari
BUS497
Google Single Page Case Analysis Summary
Although it is tough to criticize or make recommendations for a company like Google, there is always room for comments. Going over this case, one can clearly see that Google was a well planned out company form the very beginning that also got somewhat lucky. However, we can see before their first initial public offering, they had an elaborate and well planned out sale of their stocks. Google’s management definitely looked at the far future from the very beginning when they saw the hype and attention their company started to get. Other qualities the company had early on also contribute to its success. Their 10 philosophies were guidelines several companies during the early to middle 2000’s were lacking. They were raising the integrity and ethical standards while others were lowering it.
Based on the financials, we can see Google has always had a steady to rapid growth in revenue from 2001 until today. Their liabilities were always kept minimal while their assets and equity was high. The company did take a hit in share price in 2008 just like the majority of companies worldwide but they regained their strength in just a year. Their stock price peaked in February 2014 and it traded at $607 USD a share. Today, the share is worth between $520 USD and $530 USD and the company is estimated to be worth around $200 billion USD. One cannot comment much on the company’s financials; anyone can see how successful they are.
Anytime Google notices a trend in the market, they jump in on it and succeed in that field. They entered the smart phone industry by being the lead operating system (Android with 50.9% market share). I would make one recommendation. I feel as if the company is trying to enter too many different markets, which is somewhat risky. Many of their projects can fail since others are already doing it so well. For example, televised streaming is dominated by Netflix and Hulu therefor it doesn’t seam profitable in the long run for Google to continue with such a product. On the other hand, they have such a large amount of cash and recourses that they can make risky decisions without it hurting them.