New Product Development Strategy for Google
New Product Development Strategy for Google
Google is a world known company founded by Larry Page and Sergey Brin in 1997 based on the new name of their search engine that was BackRub that operated in Standford more than a year. The word Google itself comes from a pun of word “googol” a mathematical term for the number represented number 1 followed by 100 zeros that reflect their mission to organize infinite information in the web. Google is known for its search engine “Google” that is the world’s largest search engine since 2000 defeats other search engine such as Yahoo! and Bing. Since then, Google innovates and creates new products by partnership with or acquisition of some companies and the result is famous services their provided in the web or real life such as Gmail, Google+, Google Maps and Android mobile platform that is used by a lot of people around the world.
Discuss and suggest some feasible application considerations when developing a new product development strategy for Google.
Google is one of the biggest companies in the world that creates some of the famous product such as Google search engine, Android mobile platform, Gmail e-mail and many more. These products can compete with other products from other companies such as Apple, Microsoft, Yahoo! and many more that has market lead first rather than Google that join the business competition several years later even take a lead in the market. These products are not instant famous created but instead it’s created based on intensive and repetitive research that makes these products to be accepted by the customers. Below are some considerations when develop new product development strategy.
1. Corporate Planning Since Google established at 1998 with their web search engine “Google”, it started to create other services and applications that can be used by users to help them do their activities and business. Google focus into three primary market segments that is end users that is using Google for searching services, advertisers that will be charged when user clicks the advertisements and partner web sites of the Google (Google, 2005).
Google utilizes the power of advertisements especially in the internet since there are a lot of Google users around the world that are using Google anytime and anywhere by using AdWords that can be used by anyone to advertise their business and AdSense that can be used by online publishers with displaying relevant ads about their contents. Google follows and creates customer’s trends in technology market to make sure that Google can be accepted by customers. For instance, at 2010 Google initiated cloud computing as their centerpiece strategies since a lot of companies and users are moving their storage data and processing into cloud (web) and Google offered their services for cloud computing using Chrome OS and Google Cloud Services.
And Google strategies for 2011 are LTE or 4G development to gives users fast internet connection for their gadgets, mobile money that can be used by users using their mobile phone to do transactions including banking, buy and sell and review places using Near Field Communications (NFC), and increase availability of inexpensive smartphones since in 2011 Android has been used worldwide by users that can reach low end market. To expand the technology market target of users, Google creates some partnerships with some companies such as MTV, eBay, MySpace to help promotes and puts their products in their websites and services as well. Also Google do mergers and acquisitions of some companies such as Pyra Labs, Urchin, dMarc and many more to help create new market target and also new source of technology that can be developed for their products later on.
2. Marketing Planning To make sure Google introduce new products into the correct market target, Google needs to plan their marketing strategies to make sure customers and users can receive Google’s new products well. Google marketing plan can be divided into 4 categories that are Product, Price, Promotion and Place. Below are the explanations of 4 categories:
a. Product Google has categorized their products into some categories that are advertising solutions, business solutions, web solutions and product solutions that are used entirely in the web. In advertising solutions Google offers AdWord that can be used to advertise people’s businesses with flexible payment arrangements and AdSense that is used by publishers to advertise their products and contents in the web. Google will charge advertisers every time users click on Google advertisements in the web that help to increase the visitors to their website . Google offers some solutions for business purpose such as Google Cloud Services that will help business to put their data and processing into the cloud (web) that will help to expand their business and also minimize maintenance and expense since all services will be monitored by the Google itself.
Also Google provides Search Appliance whether hardware or software that helps to document search in the organization. Web solutions also offered by Google for internet users such as Google search engine, Gmail e-mail services, Google+, Google Map and Blogger website blogging that can be used for free. Also Google sell products that partnership with some distributors to sell from bag, trolley and many more and also some products with Google brands in it.
b. Price Google offers different price range for Google’s products that are offered to the customers from free into paid price with distinct price difference for each price. For free Google’s products it’s offered for the users for web services product such as Google+, Google Maps, Android, and Blogger that can be used by users in the web to do their activities or businesses. The reason why Google makes their web services product free is because they believed that services in internet should be free and easy to use for all the users. Google’s products with paid price is also have different price based on type of products that customer want to use. For example, AdWords will charge for the customers based on the cost per click (CPC) by the web users to advertisers with minimum startup cost for US$5.00 with flexible budget arrangement per day. Search Appliance also has different prices based on the type of hardware and software to used whether for mid size company to multinational company.
c. Promotion Google promotion is done by using the power of mouth advertising from one web users to other web users since users are using Google search engine to help them search what they want. While other search engine such as Yahoo! and Bing have complicated interfaces, Google offers simple and easy to use interface that makes it used by a lot of people and a lot of people will recommend it through words. Google creates some partnerships with companies to help them promote their products into the market such as Samsung and Google works together to create Google Nexus Prime, the first smartphone with Android 4.0. platform to run the phone. And Google offers open source for some of their products such as Android and Chrome OS so that a lot of people will familiar with the products before it’s released.
d. Place Users can find Google easily in the internet since a lot of users are using Google to search what they want in the internet. With internet, Google can expand their products and businesses untrammeled with region, language and cultures problems since now users can access internet and check information anytime and anywhere. And using that, Google can easily promote their products and services to the users based on their search. Google also creates some representative offices in some of countries such as Malaysia, Indonesia, and India to help customers to set up some services and products because maybe there are some changes that need to do before put the services and products into their business.
Google Chrome isolates each page or tab into its own “sandbox” to make sure the information in each page are secured from other page. Also Google Chrome is the first browser that supports HTML5 and extensions gallery that increases user experiences when browsing web. Google provides updates and patches for the Chrome but users can choose whether to install the updates and patches by themselves, automatically install or not to install. Google also provides source code of Google Chrome that makes it open source for public to help developing Google Chrome with name Chromium.
After Google Chrome web browser hits the market, Google launched Google Chrome OS that is an cloud computing operating system based on Linux that will store the data and services optionally in the web and hard disk as well. Google also puts Chrome OS source code into open source with name Chromium OS that can be developed by public that helps development of Chrome OS. Google Chrome OS officially hits the market at 2011 in collaboration with Acer and Samsung with laptop called Chromebook. Inside Chromebook, user won’t need to install anything else but instead running web applications in interface just like Google Chrome web browser that makes the process faster, easier and more secure than other OS.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 29 September 2016
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