HaddadComprehensive Learning Assessment 1

Haddad Comprehensive Learning Assessment 1

The heart of Google's business model is a value proposition for advertisers: targeted text advertising on the Internet, accessible to users all over the world. With AdWords, advertisers can place ads and links on Google search pages (as well as on other partner networks). When you use Google search, ads appear on every page along with the search results. Google guarantees that the pages will only ads that are relevant to the search query. This business model only works if many people use Google search (Osterwalder, & Pigneur, 2010). The more users accessing the search engine, the more ads you can place and the higher the advertisers' earnings. Google’s value proposition for advertisers largely depends on the number of consumers who use this search engine.

Facebook follows a template called hidden revenue generation. Today, the social network created by Mark Zuckerberg in 2004 in Harvard hostel costs more than $ 500 billion. Facebook's business model is pretty straightforward and ad-based. According to information from the company's annual report for 2017, it relies on five conformist stakes: It allows society to link and communicate by each other via personal computers and mobile devices. The important business model is advertisement. Facebook News Feed shows an algorithmically graded series of stories and ads, modified for each person.

The success of Apple’s iPhone smartphones is largely ensured not only by the use of innovative technologies, but also by aggressive marketing. Apple evangelical marketers were able to convince users that they were able to create incredibly unique devices that have no analogues in the global smartphone market (Bergvall-Kåreborn, et.al. 2013, December).. Thanks to this approach, iPhone sales growth outpaced the growth of the smartphone market. However, according to analysts at Deutsche Bank, in general, iPhone sales followed the trend of the smartphone market: market growth, Apple sales grew, and vice versa (Lazonick, et.al. 2013, December). In recent years, the situation on the smartphone market has changed dramatically, sales growth has slowed sharply. According to analysts of the bank, this is due to the fact that the market is oversaturated. Consumers will buy new gadgets only if they need to replace old ones, the race for "flagship models" has exhausted itself (Keen, & Williams, 2013).

I think is most likely to dominate the Internet is googling. Google’s versatile platform model is remarkable. Here, revenue brings one consumer segment - advertisers, at the same time, the other two segments, Internet users and content owners receive free offers (Manyika, 2008). This is logical, since the more advertising is shown to users, the more revenue one can get from advertisers. In turn, an increase in ad revenue drives even more content owners to become AdSence partners. Advertisers do not buy advertising space directly from Google. They bet on relevant keywords related either to search terms or to the content of partner websites. Bids are made through the AdWords auction service: the more popular the keyword, the greater the amount the advertiser must pay.

There is a significant difference in Facebook, Apple and Google. As an individual consumer, I use to utilize Apple, then Facebook and google. I used Apple phone for my daily use, Facebook is use to spend my leisure time and I use google to search anything for myself.

Chapter 2

Compare the experiences implementing internal social networks of the two organizations described in this case. Why were they successful? What role did management play in this process?

In the case study, the experiences of Facebook and google implementing internal social networks of the two organization. Facebook is successful as it is ideal way to use the web and consume all of the other content people might desire, including video and news. Google has taken an unusual approach to building its fiber network. Its target audience is people actively consuming services (Zott, & Amit, 2010). Typically, completely new services receive no more than 15% of the market share, but thanks to the approach Google can get more. Yes, all companies should implement internal enterprise social network it helps to win their share, and secondly - to shake up the market, make it more competitive and increase the speed of access to create more suitable conditions for services.

References

Bergvall-Kåreborn, B., & Howcroft, D. (2013, December). The Apple business model: Crowdsourcing mobile applications. In Accounting Forum (Vol. 37, No. 4, pp. 280-289). Taylor & Francis.

Keen, P., & Williams, R. (2013). Value architectures for digital business: beyond the business model. Mis Quarterly, 37(2), 643-647.

Manyika, J. (2008). Google’s view on the future of business: An interview with CEO Eric Schmidt. McKinsey Quarterly, 1, 136-138.

Lazonick, W., Mazzucato, M., & Tulum, Ö. (2013, December). Apple's changing business model: What should the world's richest company do with all those profits?. In Accounting Forum (Vol. 37, No. 4, pp. 249-267). Taylor & Francis.

Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.

Zott, C., & Amit, R. (2010). Business model design: an activity system perspective. Long range planning, 43(2-3), 216-226.