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What are the questions one can expect in a digital marketing interview?

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Thenumber of hits is not regarded as an accurate measurement of a website’spopularity.Hit rate - Also considered the conversion rate, it is the percentage of thedesired number of outcomes received by a person relative to the totalactivity level.Homepage - The main page of a website.Hummingbird Update – Google algorithm update integrating naturalsearch language into their rankings calculation and further devaluing certaintypes of websites.Impressions - The actual number of people who’ve seen a specific webpage. Impressions are sometimes called page views.Inbound link - A link from another website to your website.Indexing - Behind-the-scenes creation of an ever-changing database basedon the contents of web documents; search engines and filtering software useindexing to find and/or block documents containing certain words orphrases.IP address - A unique number that identifies a computer or system.ISP - Short for an Internet service provider, an ISP is a company that providesaccess to the Internet.JavaScript - A scripting language developed by Netscape and used tocreate interactive websites.Keyword - A word that is entered into the search form or searches “window”of an Internet search engine to search the web for pages or sites about orincluding the keyword related to it.Keyword density - Keywords as a percentage of text words that can beindexed.Keyword marketing - Placing a marketing message in front of users basedon the keywords, they’re using to search.Keyword stuffing - Placing excessive keywords into page copy and codingsuch as meta tags; this may hurt the usability of a page but is meant to boostthe page’s search engine ranking. Hiding keywords on a page by makingthem the same color as the page background and loading tags with repeatedkeyword phrases are examples.Keyword weight - Refers to the number of keywords appearing in the pageare divided by the total number of words appearing in that area. Weightalso depends on whether the keyword is a single word or a multi-wordphrase.Lead generation - The process of collecting contact information andidentifying potential sales leads.Link checker - A tool used to check web pages for broken links.Link farm - A series of websites linking to each other in order to increaserankings.Link popularity - Often used as one of the criteria to determine rank onsearch engines, the measure of the quantity and quality of sites that link toyour website.Metasearch engine - A search engine that displays results from multiplesearch engines.Meta tags - HTML coding that is used to describe various features of a webpage and appears in search result listings.Navigation - Elements of a website that facilitate movement from one pageto another.Online marketing - A term referring to the Internet and e-mail-basedaspects of a marketing campaign, which can incorporate banner ads, e-mailmarketing, SEO, eCommerce, and other tools.Open Directory Project (DMOZ) - A large directory of websites run byvolunteers. Their database is used by many websites across the Internet.Opt-in - A program where membership is restricted to users whospecifically request to take part.Opt-out - A program that assumes inclusion unless stated otherwise. Theterm also refers to the process of removing one’s name from a program.Optimization - Fine-tuning a website or web page with the ultimate goalbeing to ascertain a higher position in all or a specific search engine’sresults.Organic listings - Listings that appear on a search engine solely because ofmerit, applicability, etc. In other words, listings that are not paid for; alsocalled natural listings.PageRank - Part of Google’s search algorithm, it measures a page’spopularity and is calculated in part by analyzing the number of links to apage from other sites and factoring in the importance of those pages. Thehighest rank is a score of 10 out of 10.Page view - A request to load a single HTML page. Indicative of thenumber of times an ad was potentially seen or gross impressions. Pageviews may overstate ad impressions if users choose to turn off graphics(often done to speed browsing).Paid inclusion - Paying to be included in a search engine or a directoryindex. May not improve search rankings but guarantees the inclusion of pages aspider might have missed and “respidering” of pages periodically.Pay-per-click - An online advertising payment model in which payment isbased solely on qualifying click-throughs.Pay-per-sale - An online advertising payment model in which payment isbased solely based on qualifying sales.Pop-under - An online advertisement that displays in a new browserthe window behind the current browser window and is seen when an individualcloses his current browser window.Pop-up - An online advertisement that displays in a new browser windowwithout an overt action by the website user.Public relations - The form of communication management that seeks tomake use of publicity and other unpaid forms of promotion to influencefeelings, opinions, or beliefs about the company, its products, or services.Query - A search phrase submitted to search engines.Ranking - The position of your website within the search engine indexesfor a particular keyword.RSS - Stands for really simple syndication . A lightweight XML formatdesigned for sharing headlines and other web content. Typically, an RSSnewsreader or aggregator is used to subscribe to syndicated RSS feeds.Reciprocal links - An agreement where two website administrators agree tolink to each other’s websites.Refresh tag - A tag that defines when and to where a page will refresh.Robot - Any browser program that follows hypertext links and accessesweb pages but is not directly under human control. Examples are the searchengine spiders, the “harvesting” programs that extract data from web pages.Robots.txt - If you wish to control which parts of your site a search enginespider indexes, you can use a robots.txt file to prevent the spider fromindexing certain parts. Not all spiders will follow it, but it can be a usefultool if parts of your site are not ready for indexing.SEO - Stands for search engine optimization . The process of developing amarketing and technical plan to ensure high rankings across multiple searchengine results lists.SERP - Stands for search engine results placement . Essentially, whereyour website is ranked on a given search engine for a chosen search term.Search engine - A server or a collection of servers dedicated to indexingInternet web pages, storing the results, and returning lists of pages thatmatch particular queries. The indexes are normally generated using spiders.Search engine submission - The act of supplying a URL to a search enginein an attempt to make a search engine aware of a site or page.Shopping cart - Software used to make a website’s product catalogavailable for online ordering, allowing visitors to select, view, add/delete,and purchase merchandise.Site search - A program providing search functionality across a singlewebsite or blog.Skyscraper - A type of online ad that varies from a traditional banner size(468 x 60) and is significantly taller than the 120 x 240 vertical banner.Social Media – Online resources developed for interaction amongindividuals using highly accessible and scalable publishing techniques.Social media uses web-based technologies to turn communication intointeractive dialogues.Spam - Unwanted, unsolicited e-mail, typically of a commercial nature.Spider - A program that visits and downloads specific information from aweb page.Splash page - A branding page before the homepage of a website.Stickiness - The amount of time spent at a website, often a measure ofvisitor loyalty.Submission - Putting forward a site to a search engine or directory.Thumbnail - A rough sketch or snapshot, usually of a website, thatprovides a small view of what a web page looks like in the form of a .jpg,.gif, or .png file.Title tag - HTML code used to define the text in the top line of a webbrowser; also used by many search engines as the title of search listings.Traffic - The visitors and page views on a website.URL - Stands for uniform resource locator ; an address that specifies thelocation of a file on the Internet.Unique visitors - A measurement of website traffic that reflects the numberof real individuals who have visited a website at least once in a fixed timeframe.Universal search - The integration of various media types into search resultlistings, including but not limited to websites, blogs, video, news, etc.Viral marketing - A phenomenon that facilitates and encourages people topass along a marketing message about a specific product, service, orcompany.Web analytics - The process of using web metrics to extract usefulbusiness information.Web browser - A software application that allows for the browsing of theWorld Wide Web.Web design - The practice of selecting and coordinating availablecomponents to create the layout and structure of a web page.Web directory - An organized, categorized listings of websites.Web metrics - Statistics that measure different aspects of activity thattranspire on a website.Website - A site (location) on the World Wide Web. Each website containsa homepage, which is the first document users see when they enter the site.The site might also contain additional documents and files. Each site isowned and managed by an individual or company.White hat - A reference to proper SEO methods that are approved by thesearch engines. Using these methods increases your chances of your sitebeing permanently indexed in the search engines.Whois - A utility that returns ownership information about second-leveldomains.World Wide Web - A portion of the Internet that consists of a network ofinterlinked web pages.XML feed - Simplified version of HTML that allows data (includingproduct databases) to be sent to search engines in the format they request.

How should I respond to my boss who fired me via email and let him know that I’m very disappointed that he did not have the courtesy to do this face-to-face (we work from different states, but always communicate through video calls)?

First, I will share a short answer (in bold). If that is short enough to satisfy the reader, no need to read further.For those who may be curious regarding the argument supporting my answer, feel free to read on. But as this is a moral question, be forewarned that I will not be relying statistics or empirical data in my argument. It is mostly in the form of personal, anecdotal experience.Short AnswerMost of the answers here seem to assume that there are the viable options based on relative youth and opportunity, and therefore take a magnanimous view of ‘putting it behind you’. Japan Inc., particularly for those nearing the 60 age mark, provides neither. And following a ‘put it behind you’ option only empowers the perpetrators to continue their morally repugnant malfeasance. My response:On the the way out, 'accidentally' touch the mass-mail link sending said e-mail to everyone in the company.As a response to a couple of comments regarding my somewhat meandering answer, my ‘thesis’ is as follows.The opportunists in this world become self-entitled through deception. Transparency (Glasnost for those old enough to remember the end of the Soviet Union) is the most important step in disarming those greed and fear-driven opportunists. It is the moral obligation of adult members of a community to expose those who misuse their authority for personal agendas … otherwise the silent are as guilty as the perpetrator.ReasoningSocial primates, like many other animals, survive and reproduce using deception as one of many strategies. But despite what Social Darwinists, Wall Street, or neo-lib multi National CEO’s would have us believe, competition is NOT the only, perhaps not even the primary strategy for sustainability. There is a lot of wiggle room for collaboration, cooperation, and nurturing behavior … even in the purely ‘animal’ world.Homo sapiens, though, may be on the brink of exceeding our capacity for sustainability as a species, ironically, because of our success in pushing the limits of natural resources with our large scale populations. Even now, new military alignments are responding more quickly than emergent technologies to the next Malthusian catastrophe. Although Malthus was wrong in specific predictions, he is essentially correct in recognizing the basic problem of how growing populations deal with diminishing resources.One of the more plausible, contemporary theories offering a proximal cause for the above mentioned dilemma (I will be glad to entertain others) is, according to Robin Dunbar, that our neocortex size is directly correlated with the number of individuals we can collaborate with on a personal basis. We are a social primate that evolved from earlier social primates living in bands of no more than about 250 individuals, quite small communities compared to the modern nation-state. Cross cultural replications of his theory have pretty much confirmed that number as somewhere between 150 and 250 people maximum, and many an ‘enlightened’ corporate or political leader recognize this number for its task based efficiency. Anything higher than that, and even many smaller groups, become less of a collaborative circle and more of a provisional hierarchy. Large scale populations are incapable of direct, collaborative democracy or any other kind of government based on equality alone, and must resort to some kind more or less representative hierarchy.But there are many dysfunctions resulting from when our cognitive-tribal limits are entwined with large scale hierarchies including mission creep and ‘distancing’ or ‘othering’ those not in our social caste — and then marginalization or dehumanization of those at the bottom by those at the top. As one NPR guest speaker said (I think he was an historical anthropologist from England), it is not that Marie Antoinette was particularly cold to French peasants. They were simply outside of her tribe … the Hapsburgs, who were the ruling class of most of Europe. As the international scope of the Panama Papers has gradually been exposed, even since the French revolution, things have not changed so much. We are not in a class war. The war is over. The rich have won.Hierarchies in the form of institutions are the preferred tool for self-entitlement at the expense of marginalizing others. Forget that ‘everybody’ wins bullshit. Even before the current hollowing out of America’s middle class, before the Lehman shock, the yearly income of the average CEO was over 400 times that of the average worker. It has now returned to that level and more. The Gini coefficient is statistically problematic for many reasons, but it is a reasonable start for seeing the unequal distribution of resources, and as Thomas Piketty pointed out in Capital in the Twenty-First Century, the inequality tends to get worse if left to laissez-faire neo-liberalism. Such a steep Tower of Babel can not sustain itself through vampirization of its working class base for very long, and thus the next bubble crash, the next Malthusian catastrophe.But this is not limited to business institutions alone. I will give three short examples, and then follow that with my personal narrative.1 - Political Institutions … Even though WikiLeaks and Edward Snowden are vilified and criminalized by the U.S. government, I am of the opinion the world would be worse off without the individual moral fortitude of whistle blowers to expose corruption. There is a difference between what is criminal and what is moral. Simply considering the illegality of a homosexual’s very existence in Uganda should suffice as a simple enough demonstration. For a hint of the institutionally sanctioned atrocities of America that could have used far more whistle blowers and far sooner, even a cursory reading of ex-CIA analyst William Blum’s Killing Hope.pdf should suffice.2 - Business Institutions … The need for transparency of ANY large business institution or Trade Agreement should be self evident — the Carnegies, Rockefellers, Waltons, and Gates of this world did not become so wealthy by following good business practice in support of all stakeholders. They got that way through deception to the point of illegality. The link regarding Criticism of Microsoft is just one example. But now, a more immediate problem can be found in asking yourself why the TPP and TTIP trade agreements are closed door to the public? A pretty good answer can be found here, What is TTIP? And six reasons why the answer should scare you. But my summary is this … laissez-faire, neo-liberal, disaster capitalism is fundamentally incompatible with individual human rights or morality … incompatible with homo sapiens as a social primate.3 - But hey, this pattern of human behavior has been going on since humanity at its birth. I would not have wanted to be a slave devoting my short and brutish life to building a pyramid to honor a god-king of 5,000 years ago. But keeping with the spirit of religion as an institution, the mission creep, deception, and personal agendas are well encapsulated in the highest levels of ‘management’ with the Catholic Church sexual abuse cases.To repeat my ‘thesis’ … The opportunists in this world become self-entitled through deception. Transparency is the most important step in disarming those greed and fear-driven opportunists. It is the moral obligation of adult members of a community to expose those who misuse their authority for personal agendas … otherwise the silent are as guilty as the perpetrator.Up until now, I have defended my thesis with news and history that anyone can find and copy-paste from the net. But from here, I will defend my thesis with a personal anecdote, and lest any reader think I am bashing Japan in particular, I am not. I simply live here in Japan, have lived here for most of my life, and most of my friends are Japanese. I make a clear distinction between ‘communities’ and ‘institutions’. Many of the current dysfunctions of Japan as a sustainable economy and as a nation of nurturing communities are a result of a failure to make such a distinction.————————————————————————————————Though not by e-mail, but by being forced into a position of signing a contradictory document relieving me of all working rights, I was bullied into resigning from a tenured Associate Professor position in a Japanese Women's college in Tokyo, Jissen Women's Junior College. Upon refusing to sign a document clearly contrary to Japanese labor law, I later received a document delivered to me by lower management informing me that top management had decided to relieve me of all rights to receive classes in the following academic year, and my planned research sabbatical was rescinded. If this sounds like a cross between the Marx Brothers and Kafka, it's because it is.I was the only non-Japanese tenured member of that faculty of the Jr. College. With a few exceptions in the STEM curricula (physics, genetics, robotics), Japanese universities have a deplorably poor record of quality higher education, particularly in the social sciences and humanities. In fact, last year, a committee from the Ministry of Education issued a highly controversial 'recommendation' for all national universities to drastically downsize or completely eliminate departments of humanities and social sciences, and place all their bets on the STEM curricula. Japan Dumbs Down Its UniversitiesThis may be connected with the ruling LDP's strategy of dealing with Japan losing industrial competitiveness with neighboring Korea and China, and a growing trend of re-militarization as a response to North Korean posturing and increasing instability in the South West Pacific.But back to my being pushed out, several international reports, including the OECD report here http://www.oecd.org/japan/422803... have determined the single greatest cause of Japanese Universities as punching well below their academic potential compared to other countries, is because of management. Japan has a strong, top-down, centralized approach to academic control. There are systemic limitations to top-down, concentrations of power.With just a little bit of triangulating ... Friedrich Hayek, thoroughly critiqued how centralized governments, when exercising too much micro management, tend to be blind to the street smarts of the boots-on-the-ground merchants. Adam Smith in his 'The Wealth of Nations' warned that the greatest danger of large scale industrial society is the dehumanization of human capital. Robin Dunbar gives one answer as to how large is 'too' large. And even at the most abstract level, the mathematician Kurt Gödel shows how any institutional or systematic logical control is illusory and provisional at best.Illusory.Provisional.Control.I can still remember that last word being used in reference to the Fukushima meltd0wn in a successful wooing of the International Olympic Committee to commit to Tokyo. 'The situation is under control.' ENG - P.M. "Fukushima is under control"... (Source ANN) - Fukushima Future . Such sincere enthusiasm! Although the latest news puts the scientific accuracy to doubt ... Fukushima: radioactivity under control? | Environment | DW.COM | 11.03.2016But this is all ‘academic’ now, because under the controversial ‘States Secrets Law’ rammed through the diet by the ruling LDP in 2015, investigative journalism regarding the Fukushima Meltdown is now likely to be ruled ‘illegal’ … Japan : Don’t mess with “state secrets” | Reporters without borders. The clever ways in which media is covertly controlled by collusion between large corporate advertisers and the national government has dropped Japan’s ranking to 72 in freedom of information, and I have a suspicion this is more than somewhat correlated with Japan’s somewhat poor academic standing … particularly regarding the critical thinking skills and social obligation to challenge authority normally associated with a liberal arts education.Upon hearing that 'Olympian' speech again though, I was somewhat taken aback at the emphasis on volunteerism ... particularly in light of the fact that the biggest sticking point between myself and my college was my department's educational policy of — you are not allowed to conduct volunteer (community outreach) activities this year'. In retrospect, the quality of my classes or my involvement in community outreach activities appears to be irrelevant. The highest level of management, the head of the board of directors, appears to have been behind a strategy to rid the Jr. College of any tenured foreign faculty. With Japan's demographics leaving too many colleges competing for too few students, foreign part-time or full-time faculty are the easiest targets for the first round of budget cuts.Even some of the 'Ivy-League' schools of Japan, Wasdeda and Keio, for example, are quite willing to use out-sourcing to replace academically qualified foreign faculty with cheaper foreign labor (scabs?) who would otherwise not be qualified to teach in a university. When I left, my former tenured position was replaced by a limited 3 year contract position for a single foreign instructor ... much easier to control, and as to date, that 3 year contract has not been extended, thus insuring a revolving door policy of using, and then discarding, foreign faculty. A foreign educator or researcher can not expect either the security of tenure, nor either the institutional-social currency that should come with that rank.To be fair, this 'management' technique is not limited to foreigners, neither is it limited to universities. College students, even High School students, have recently had to begin forming their own labor unions to protect themselves from illegal and immoral working conditions at part-time jobs ...Kansai college students form union to fight being exploited as part-time workers - AJW by The Asahi ShimbunHigh school students form labor union for protection in part-time jobs - AJW by The Asahi ShimbunOne of the current ruling party's election campaign promises was to create a working environment in which women can 'shine'. Perhaps there has been some improvement. Japan has now climbed to rank 101 out of 142 countries for gender equality in business and governance gender equality - The Japan Times.But corporate management still places a priority on maintaining the status quo, and is all too clever at finding loopholes to exploit women. The latest is 'mata hara' (maternity harassment) which forces mothers-to-be to 'retire' from a career track position.Japanese women suffer widespread 'maternity harassment' at work Matahara: turning the clock back on women's rights | The Japan TimesAbout 30 years ago, when I first came to Japan, I was working full time at a major trading company, the now defunct Nissho Iwai Corporation After about two years with them, I observed how they fired a relatively docile, compliant Japanese employee, just prior to his retirement — so that he would not receive the full retirement pension. That's when I thought a career in academics would be more nurturing, or at least humane, in treatment of faculty ... and so I chose to make a major career change into academics. I only wish it had not taken me 30 years to find out otherwise.It has been a fun ride, and Japanese college students, when given the opportunity, can be just as competitive and collaborative as students anywhere in the world. But the heavy hand of Machiavellian micro-management and mis-managment is just as bad in Japanese academia as is in the notorious Black companies. So when the highest level of management amounts to little more than self-serving opportunism ... a classic case of 'the fox guarding the hen house' ... my hope is that distributing information regarding bullying tactics will illicit sympathy at least, activism at best, from fellow co-workers.I realize my fellow colleagues' hands are tied too, because they are ineffect, held hostage my management. They also have families to feed andpersonal careers to pursue.I noticed several answers to this question as the equivalent of 'just put it behind you'. I find this problematic for two reasons:1 - This presumes the fired person still has something in front of them. At age 60, and with the student demographics forcing schools to close, or at best, tighten belts, my 'career' in Japan has been terminated — and this, after living over half my life in Japan, and all of my professional life. Thought about looking into China as a new start. It appears that 60 is China's cut-off age for work visas as well. But hey! Now I've got Quora, and plenty of time ... to read, remember, and write. And this brings me to my second reason for dismissing the 'just put it behind you'.2 - The 'put it behind you and be the better man (woman)' advice may be great advice for a radical-libertarian stand in which every man is an island. But I think the basic unit of humanity is the community, not the individual. At the very least, a community consists of the nuclear family. Without the altruistic drives of the family members, children will not be raised, pregnant wives will not be protected, and so on. Extending this to the idea of sustainable communities implies a similar altruistic drive to rise to self-sacrifice for the good of the community. 'Put it behind you' does not help the next poor fool who will be sucked in by the Leviathan, and then similarly discarded.I have long since learned not to expect equal treatment — as I am neither a member of the ethnic majority, nor am I a Japanese citizen. Japanese themselves, do not expect equal treatment in such a hierarchical, institutionalized society.Yet, Japan is my home, and has been for more than half my life. Even though I am not a citizen, I am (was) a teacher. No, an educator. As such, at the very least, I should consider myself as an adult ... a morally responsible member of a community. As such, my ethics can be summed up with a quote attributed to Edmund Burke Quotes (Author of Reflections on the Revolution in France) ... ‘All that is necessary for the triumph of evil is that good men do nothing’.The same sentiment, was echoed by the wake of the Eichman War-Crime trials by Pastor Martin Niemöller — "First they came for the Socialists, and I did not speak out—
Because I was not a Socialist. Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist. Then they came for the Jews, and I did not speak out—
Because I was not a Jew. Then they came for me—and there was no one left to speak for me."At the end of the BBC interview with Noam Chomsky, when asked on how 'you square your fundamental optimism about human nature with what seems to be a pretty pessimistic analysis of what's happening in the world?', he answered, '... we should have pessimism of the intellect, and optimism of the will'.I am a big fan of Chomsky, but I dare say the above quote coming from someone with such a high accumulation of social currency, a family, and a job (unlike myself) sounds dangerously close to a platitude. I am finding myself closer to 'optimism of the imagination, pessimism of the will'.Edit … Feb. 14 2018It appears Chomsky is coming around to my bit of pessimism for the long-term sustainability of the species.

What is the business value of Android to Google?

U52093: Economics of Business Strategy.Analysis of Vertical Integration Strategy at Google Inc.Byron Warwick: [email protected] area.This assignment aims to analyze the extent and success of Vertical Integration Strategy at Google Inc. Focusing upon certain key aspects of the economics of its strategic development, the analysis carried out will draw on relevant techniques and concepts where appropriate.Introduction.In pushing down transaction costs, many business analysts have argued that the Internet would push the final nail into the coffin of Vertical Integration as a business strategy. Companies would comprise of highly focused modules, concentrating on the set of narrow tasks for which they are best suited, and connecting with other specialized modules in order to form flexible, superefficient supply chains.So what then should be made of Google? Perhaps the ultimate Internet firm in pursuit of a vertical integration strategy so expansive it might well make Henry Ford blush.Many analysts would likely cite, “search related advertising” as Google’s primary business model. Deriving revenue from advertizing related to its Internet search, e-mail, online mapping, office productivity, social networking and video sharing services.However Google does more than this in its mission to, “organize the world’s information and make it universally accessible and useful”. It builds its own server computers and designs many of their components. It writes its own operating systems and builds and operates its own data centers. It owns much of the fiber-optic cabling through which its data travels, and it codes and delivers a suite of applications ranging from search engines to business productivity programs. Further still it sells and delivers ads over various media, operates its own checkout and payment service, and writes much of its internal operatingsoftware. And recently it has launched a well-received Internet browser called Chrome.Google therefore is no longer just a search engine company, as it has expanded its business into many additional offerings for both consumers and enterprise.What is Google’s business strategy/model?Although Google’s core business is search it makes almost all of itsrevenue from advertising. As Carr (2007) states, “More than 99% of its sales have come from the fees it charges advertisers for using its network to get their message out on the Internet”. Indeed the companies ‘protean’ appearance could be said to stem from the vast number of complements to its core search business. Therefore everything that happens on the Internet is in effect a complement to Google’s core business.The more individuals and companies do online the more ads they will see and in turn the more money Google would expect to make. Furthermore as Internet activity increases so does the amount of data that Google can collect on consumer’s needs and behavior. Which it can then use to tailor its ads more precisely, strengthening its competitive advantage and further increasing its income.It could be said therefore that Google’s strategy involves any activitythat encourages greater use of the Internet by reducing the cost and expandingthe availability of complements to its core product. Almost everything Googledoes, from building big data centers to fighting copyright restrictions andsupporting open source software is aimed at reducing the cost and scope ofInternet use.Make versus Buy.As Google has grown it has progressed along the make-buy continuum (Fig1.0) from a less integrated firm to an increasingly integrated one. From aninitial partnership with Yahoo! to become their default search engine in 2000, to further search partnerships with companies like Universo Online(Google, 2008b) and AOL/Netscape (Heilemann, 2005) Google has grown to become the largest search engine company in the world. Although Google’s aim is still to achieve its original mission of organizing all of the world’s information, CEO Eric Schmidt has estimated that this could take 300 years to achieve (Layer et al, 2008). This is telling as it gives an indication of the strategic patience of Google’s management and fundamental belief in its original mission which is to “organize the world’s information and make it universally accessible and useful”.It also helps explain the rationale behind Google’s many acquisitions.Information management tools that Google has not developed itself, it hasreadily acquired: Picasa for photo management; YouTube for online videos; DoubleClick for web ads; Keyhole for satellite photos (now Google Earth); Urchin for web analytics (now Google Analytics). And while few of these ventures make money today (Layer et al, 2008) each is a brick in the wall of Google’s overall strategy. With each new product and feature chipping away at information disorganization.These products have facilitated a foothold into many new markets, andplaced it in direct competition with software developers, advertising agencies,newspapers, TV networks, book publishers, movie studios and even credit cardprocessors (Carr, 2007).Google’s vertical integration strategy is a clear cut picture of downstream integration as the company expands its area of participation in thevalue chain. Its search technology and infrastructure is merely a utility thatallows it to do what really brings over 90% of its revenue and income –advertising (Dwivedi, 2005).Boundaries and limits.In order to define Google’s boundaries regarding make-or-buy decisions we must compare the benefits and costs of using the market (Fig 2.0) as opposed to performing the activity in-house.Looking at Google’s operations it performs much of its programming in-house(Baker, 2007) and develops its own propriety software based on the Linux OS. This gives Google an advantage as its bespoke operating and search software fits perfectly, and avoids possible production flow issues through the verticalchain.Google’s proprietary software and unique search algorithms are alsokept safe from leakage to competitors, as programming activities are containedin-house. There are also likely to be cost savings associated with performingthese activities in-house as opposed to dealing with independent market firms.Communication and quality control is also likely to be better as internalbusiness units do not have to deal with outside firms or contractors unfamiliarwith Google’s practices and standards. This is perhaps particularly relevantgiven Google’s unique corporate culture (Layer et al, 2008).Exploitation of Scale and Learning Economies.As Besanko et al (2007) points out, “Firms use the market (“or buy”) primarily because market firms are often more efficient”. Market firms exploit economies of scale and the learning curve, and they eliminate “bureaucracy”.Market firms in industries such as software development may have hadeconomies of scale or learning economies over Google in its infancy. However as Google has grown and its business has evolved (Fig 3.0), it has itself becomethe leading firm in many new industries (such as its DoubleClick and AdSense services in Online Advertizing). Therefore Google has increasingly become less-able to use the market in order to gain efficiencies in certain areas of its business as it is already the most efficient and experienced firm in operation.Bureaucracy Effect: Agency and Influence Costs.When we look at the influence of Agency Costs on Google we need to lookat the role of “cost centers”. Certain inefficient areas of the business may beinsulated from competitive pressure because Google itself is the only committedcustomer for their inputs. And as Schmidt (2008) and Dwivedi (2005) discuss,this could apply to many of Google’s free applications and beta stage products.The 80-20% principle carried out at Google - whereby workers have 20%of their time to pursue their own interests could have a significant effect oninfluence costs. Employees set their own areas of interest and work together, which can often lead to innovation (Schmidt, 2008), but also higher influence costs. As managers have difficulty in controlling the allocation of financial andhuman resources. As evidenced by the creation and running of the Google Bus scheme (Schmidt, 2008).Reasons to Make.By increasingly avoiding the “market” Google has avoided costsattributable to poor coordination between steps in the vertical chain, thereluctance of trading partners to develop and share valuable information, andcertain transactional costs. The difficulties presented by the second point inparticular seem to have been neutralized by Google’s aggressive strategy toseek out and acquired certain businesses or complementary products/services (Fig 3.0) which support its overall strategic plan.In November 2007 Google announced an open source mobile phone platformnamed Android. Now launched, this is a fully open source mobile platform allowing anyone to augment the Android software and place it on any Android compatible handset. Android seems to be a significant step for Google as it believes that increasingly people will access the web directly from their mobile handsets as opposed to PC’s (Schmidt, 2008 & Roth, 2008 & Gardiner 2007).The launch of Android shows that Google has tried to take a relatively low risk entry to the mobile phone market. Linking up with hardware manufacturers (HTC – a Korean firm) and several telecoms companies in order to enter this new market (Roth, 2008). This partnering-up may also encourage the likelihood of a successful Android launch, as it is reliant upon specialized external expertise to ensure the effective coordination of production flows through the vertical chain.Contracts and coordination of production flows through the vertical chain.As Besanko et al (2007) discus, contracts between Google and other firms are essential for assuring the coordination of production and the effective provision of service for certain products, such as the Android mobile platform. Working with its telecoms partners Google will be better able to ensure a good fit along all dimensions of production.Significant in this example perhaps is the “Timing Fit”. The launch of the Android platform must coincide with the internal provision of the bundled GoogleApps (Roth, 2008), and the external bandwidth capacity and service provision from the telecoms networks. Not to mention increased production, distribution and marketing activities carried out by the handset manufacturers and retailers.Google may have produced the software internally, but is reliant upon other companies for producing the handsets (HTC), whilst the networks on which the devices will operate on are not owned by Google (Roth, 2008). The Androidplatform therefore has significant “design attributes” that Google would not have been able to create on its own. For example the “fit” of the Android software with the initial HTC handset and its ability to function and operate with no empirical limitation on the telecoms network required significant coordination of the production flow.Areas of misunderstanding in such an undertaking could lead to a costlyfailure, thus the stipulation of each party’s requirements and schedule in acontract helps to reduce risk.Leakages of private information.Privacy of information is very important to Google and has played a significant role in what Google has chosen to “buy” or “make”. Be it the working of its AdSense and AdWords advertising products or even the workings of its page file search algorithms – Google seems to focus on its core products, search and advertising, completely in-house. If it had used the “market” to provide component parts to some of these products or services they would risk losing control of valuable private information. And possibly even elements contributing to their competitive advantage.However the role of patents and protected intellectual property may enable Google to outsource certain downstream activities, from production (suchas was the case with the Android hardware) to marketing (telecoms firms/retailers). Without compromising its comparative advantage (Layer et al, 2008).Transaction costs.Looking to “relationship-specific assets”, the human asset at Google issignificant. Undoubtedly certain employees or groups of employees at Google are more valuable inside a particular relationship (i.e. inside Google) thanoutside it. Both in terms of tangible skills such as expertise with specificin-house software to the intangible, such as being able to effectively operatewithin Google’s unique corporate environment and culture (Google, 2008c).The holdup problem.If we continue with our example of the Android mobile platform, we can see that by partnering-up in the production of this product Google has avoided the holdup problem. It is not concerned or interested in the risks associated with becoming a handset retailer or manufacturer (Roth, 2008), merely in gaining entry to a new and growing search and advertising market (Schmidt, 2008 & Baker, 2007).Conclusion.From this analysis we have hopefully now managed to form a greaterunderstanding of the causes, extent and limitations of Google’s verticalintegration.(Written in Apr/May 2008 but much is still relevant)

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