Introduction Google Inc.is one of the five most popular websites in the world. Google is a web search engine that lets you find other sites on the web based on what you type on the keyboard. Google also provides specialized searches through blogs, catalogues, videos, news items not forgetting cloud computing and also online advertising technologies. For your information, most of its profits are derived from AdWords which offers pay-per-click, that is, cost-per-click (CPC) advertising, cost-per-thousand-impressions or cost-per-mille (CPM) advertising, and site-targeted advertising for text, banner, and rich-media ads.
In a nutshell, this extraordinary company is an American multinational company specializing in Internet-related services and products. Google was founded byLarry Page and Sergey Brin while they werePh.D. students at the University of Stanford. They collaborated and worked on a search engine called "Backrub." The name came from the search engine's use of back-links to determine page relevance. This is a patented algorithm known as PageRank. Brin and Page left Stanford and founded Google Inc. in September of 1998. During the 4th of September, they incorporated Google as a closed company. By the year 2000, Google was the world's widest and largest search engine. By 2001 it did something that eluded most of the dot.com business start-ups of the time. Google became profitable. .
The organization’s mission from the outset was "to organize the world's information and make it universally accessible and useful", and its unofficial slogan was “ Don’t be Evil”. They shifted to their new headquarters at Mountain View, California in 2006 which was famously known as Googleplex.Rapid growth since incorporation has triggered a chain of products, acquisitions and partnerships the core search engine of Google. It offers online productivity software including email(Gmail), office suite also known as Google Drive, and social networking site Google+. Personal computer products comprises of applications for web browsing, organizing and photo editing, and not forgetting instant messaging too! The company leads the development of Android mobile operating systems (OS) and the browser-only (Chrome).Google also caters for laptops known as aChromebook.
The corporation has been estimated to run more than one million servers in data centres around the worldand to process over one billion search requests and about 24 petabytes of user-generated data each day. In December 2012 , Alexa, one of the world’s famous web information company provider , listed google.com as the most visited website in the world. Numerous Google sites in other languages figure in the top one hundred, as do several other Google-owned sites such asYoutube and Blogger. Its market dominance has led to criticism over issues including copyright, censorship and privacy.

Question for Discussion 1. Based on information in this chapter, identify major similarities and differences between the new-product development process at Google versus that found at most other companies.
One of the similarities between Google and its competitors is both companies targeting markets which have existed for some time such as online browser search and mobile phone application market. Secondly, both business entities have successfully produce innovative products which are new in the market. For example, Google has unleashed Gmail and Google Chrome while competitors such as Microsoft has produced Internet Explorer 10 and Skype. Going on to distinct differences, Google has the capability to implement major new services in a short duration of time compared to its competitors . Google successfully released its final version of iGoogle in less than a year. Finally, Google’s new-product development plan is relatively short in comparison with the other companies in the particular market. This is because Google would rather let their prospective projects fail quickly than seeing a meticulously planned, long, drawn-out product fail.

2. Is Google’s product-development process customer centered? Team based? Systematic?
I believe Google’s product development process is systematic because they install an innovation management system to collect, review, evaluate and manage new-product ideas. Google employees are encouraged to spent 20 per centof their time to develop ‘cool and wacky’ product ideas. And all new ideas are quickly tested in beta form. One part of the innovation management system is Google Lab, a site where users can try out experimental Google application. Moreover, Google’s new-product development process is more holistic and systematic. Every new idea or prototype will be tried out as a beta version as soon as possible so that they can learn what the market wants, thus making a positivespark for greater innovation. If they are in doubt, they will do something and they will always pick the fastest path. They would rather see projects fail quickly than see a carefully plan, long, drawn-out project fail.

3. Considering the product life cycle, what challenges does Google face in managing its product portfolio?

A product life cycle (PLC) consists of five distinct stages, which are product development, introduction, growth, maturity and decline. During different stages of the product life cycle, Google faces different challenges.
During the development stage of a new product, Google have to determine the market demand and its needs. This is to make sure that their new product can satisfy the customers. Moreover, development of product is very risky. It needs a very high cost to carry out research, investigations and so on. Once the new product fails, it will cost the company a massive loss. Therefore, in managing its product portfolio, it needs to make sure what they have invested in a new product will bring revenue to the firm in the future.
Introduction stage starts when the new product is first launched. Introduction takes time, and sales growth is slow. In this stage, profits gained by Google are low or negative. This is due to the fact that their sales are at the low rate while expenses of distribution and promotion are high. However, promotion expenses is a must to introduce the new product into the targeted market. Therefore, Google have to decide whether or not to invest the money to introduce the new product as a wrong decision can be very costly. For example, Android, the world number one smartphone operating system is created by Google. But Google still cannot capture purchases and activities of all those Android users when it comes to apps and entertainment media. So, Google combined and redesigned everything and launched Google Play. Google had no idea whether Google Play will be able to be successful. Google took the risk and spend money on promoting and advertising Google Play on various platforms.
If the new product satisfies the market, it will enter a growth stage, in which sales will rise very fast. In this stage, the major challenge that is faced by Google would be whether to continue to maximize profit or improve the product. Google will face a trade-off between high market share and high current profit. If Google choose to spend more money on promotion and product improvement, it can be a market leader in that category. However, its profit cannot be maximized. This is because product promotion and improvement will cost the company a very high cost. For example, Android has very high market share. It is currently the number one smartphone operating system ahead of iOS and Windows Phone. Google had decided to improve and develop the Android system continuously so that it can get more market share. Google have to handle its product growth rationally and carefully so that the cost is always under control to raise the profit of company.
During the maturity stage, a product sales growth will slow down. The slowdown in sales growth results in many producers with many product to sell. In turn, this leads to very strong challenges, which is greater competition. Competitors like Amazon, Facebook, Apple and Microsoft begin marking down prices, increasing their advertising and sales promotions, and upping their R&D budget to get better version of product. Therefore, Google should do more than simply defense their matured products. They should consider modifying the market, product and marketing mix. They have to constantly find new ideas to diversify its product portfolio in order to maximize profit while defending market share.
During the decline stage of a product, the sales eventually dip. The decline may be slow or rapid. Sales decline for many reasons, such as technology advances, shift in consumers’ taste, and increased competition. The challenge that Google will face is to prevent the product sales from declining. They must identify those product in the decline stage by regularly reviewing sales, market shares, costs and profit trends. Then, the management of Google must decide whether to maintain, harvest or drop the declining product. The decision will be important as continue with a declining product will be very costly to a firm. 4. Is there a limit to how big Google’s product portfolio can grow? Explain.
First and foremost, there is no limit to how big Google’s product portfolio can grow. It is due to the innovation of its company. A quote from Google’s engineering manager, “We set an operational tempo: When in doubt, do something. If you have two paths and you’re not sure which is right, take the fastest path.” When it comes to new-product development at Google, there are no two-year plans. The company’s new product planning only looks four to five months ahead. Google would rather see projects fail quickly than see a carefully planned, long, drawn-out project fail. It’s famously chaotic innovation process has unleashed a seemingly unending flurry of diverse products, most of which market leaders in their categories. Thus, Google manage to grow without a limit with this so called a Super Duper Speed of Innovation. On top of that, perhaps Google is now in the stage of maturity in the Product Life Cycle (PLC). Maturity stage which a product’s sales growth will slow down, this stage normally lasts longer than the previous stages, and it poses strong challenges to marketing management. Company begins marking down prices, increasing their advertising and sales promotions, and upping their R&D budgets to find better versions of the product. They consider modifying the market, product and marketing mix. Thus, that is how Google is open to new-product ideas from just about any source. From the innovation the Google is trying to do so far, it creates a better future for us. Google invited the world’s smartest 50 people to tackle some of the world’s biggest problems so called “Solve for X”. For instance, how about turning contact lenses into computer monitors with heads-up displays, packed of full data. The marvel of Google is its ability to continue to instil a sense of creative fearlessness and ambition in its employees.
In conclusion, I would like to say that Google can grow its product portfolio without a limit for what that Google has success in so far. They create a new level of living style for this generation of people. 5. Will Google be successful in markets where it does not dominate, such as social networks and application/entertainment stores? Why or why not?
Yes,Google will be successful in markets where it does not dominate such as social networks and app/entertainment stores.The first reason why Google will achieve success in markets is because Google knows how to innovate.Google freewheeling new product development process moves at the speed of light.There are no two year plans at Google when it comes to new product development but just takes four to five months.Google would rather see projects fail quickly than see a carefully planned,long,and drawn out project fail.Other than that,Google focus on many categories such as e-mail services(Gmail),a photo sharing services(Google Picasa) and other.Not like Facebook that just focus on social networking.For example Google Play,at first Google could not capture the purchases and activities to all those Android users when it came to apps and entertainment media but after Google combined and redesigned everything it had in that department and launched Google Play,an iTunes-esque market place for apps,music, music and games,Google is slowly picking up the gap between Google Play and Apple iTunes Apps Store.Even though one reviewer points out that Google Play still lack the polish of Apple but he confident that Google will always improve in the future.Other example is Google+, an

all-purpose social network already has more registered members compare to Facebook,the number one social networking.Because of that,Mark Zuckerberg,founder and CEO of Facebook,working hard to copy the best features of Google+ and accelerate development of other Facebook features already being developed.Google had done many innovation to be success in markets where it does not dominate.We believe that Google will be successful in markets that it does not dominate based on innovation that they do and will always improve in the future.

CONCLUSION

Overall, Google has definitely solidified its place as one of the most innovative companies in the world. The company has been continuing to strive in organizing the world’s information and make it universally accessible and useful to everyone on Earth. Their virtuous view of information as something natural, mined, refined and which can distributed in a large scale is undoubtly something to be fond of. Their staff is working efficiently in realising ideas which help every individual in acquiring any information they desire, anytime, anywhere with precision plus speed. They have clearly shown how quickly and nimble they are in new-product development compared to their competitors who are still lagging behind refining and approving initial ideas. Google engineers are encouraged to launch any beta applications into Google Labs to see how the market behaves, iterate, and finally altering the product into something awesome. These individuals behind Google’s success embrace doubt, uncertainties and fear to convert it into something positive. As a result, Google has unleashed an unending flurry of a melting pot of products, most of which are leading the pack in their respective markets. Besides lightning fast product development, they make use of their ever-flourishing innovative ideas by acknowledging it as their main competitive weapon. For example, Google Play. Google combined and redesigned everything it had and launched Google Play, so that it can remain relevant and gain riches in the Android apps market and its operating system market for androids smartphones. Diverting from competing through innovation, Google has been a great example of an organization which puts no restriction on where new ideas come from. Management does not mind the various sources which are available at our own fingertips but emphasises strongly on their company’s passion for aiding people to find and use information. One thing worth mentioning is that Google gives a ’20 per cent time’ for every employee to work on whatever projects which quench their passion. The recent ‘Solve For X’ conference was undeniably the best indicator to describe what type of innovator Google is. To sum it nicely, try talking to any Googler at the various levels and departments, one moving theme emerges: Whether they’re designing search engines for the blind or preparing meals for their colleagues, these people feel that whatever task they are doing can make a change in the world. Can you just marvel on how Googleeffortlessly instil a sense

of creative boldness and ambition in their delegates?Google wants to know what every individual under their roof is able to contribute to the world positively through Google. This after all, is the company that aspires to connect any information one’s heart desire just right at your fingertips, with no need to wait or qualm. Oh yes, Google, is hands down the “new-product innovation at the speed of light”

References

1. http://en.wikipedia.org/wiki/Google 2. www.kellogg.com 3. www.forbes.com/sites/eco0nomics/2012/02/13/why-the-tesla model-x-is-a-home-run/ 4. http://www.usatoday.com/story/tech/columnist/2013/10/18/google-results-internet-search-record-stock-price/3004297/ 5. http://www.reuters.com/article/2013/10/18/us-google-results-idUSBRE99G17Z20131018 6. http://finance.yahoo.com/blogs/breakout/google-worth-1-000-share-152452501.html