published an article with title “Google’s mobile – ranking showdown is about to kich off

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On 20 April, 2015, Parmy Olson published an article with title “Google’s mobile – ranking showdown is about to kich off” on the Forbes online magazine. The article refers to the problem of development in the web version of Google on the mobile phones. With the websites do not have mobile-friendly design, such as Microsoft Windows Phones, The Daily Mail,… the users can’t read the information about the products / services because of the incompatibility between web version on PC and mobile phones. This makes a huge impact to sales sold through ordering online from the mobile devices of the companies. Meanwhile, a Google representative, Zineb Ait Bahajji, said that Google warned the website developers about this problem to guide them to have mobile-friendly design. However, Google have to implement effective solutions to get higher profits from advertising on mobile devices (Olson, 2015).
Therfore, the article mentioned the business strategy of Google in recent times. At the same time, it also indicates the weak marketing strategy of Google in term of explaning ad vance the information of product to the buyers. So the problem pointed out by the article is completely compatible with the theory of marketing services.
Google, which is a world-class Internet company headquartered in the United States, was established in 1998 (Sampson, 2013). The company’s main product is the search engine “Google”, which is widely regarded as useful and the most powerful search engine on the Internet. In fact, Google has a lot of abilities, especially in publishing an endless source of information. The search engine “Google” can be considered as a janitor of the largest world database. Although Google does not have your name, it gets your IP address. Google knows your favorite sites. Google also knows what you like, dislike, interest in, or worry about. Google knows the your politics views and religion. In addition, Google is able to locate the position of the users, read email, keep search history, and many other outstanding features. Due to these great possibilities, Google can earn lots of profits over the years. Google was ranked third in the Forbes ranking with a brand value of USD 56.6 billion, up 19% over the previous year (Forbes, 2014). Despite being a search service, Google still proves its superiority to other brands such as Kleenex and Xerox through huge revenue from advertising services. In 2013, Google, which gained $ 16 billion in profit before tax, was the company had the highest benefits from advertising (Womack, 2014).
In essence, Google’s profit comes mainly from the user searches on Google. The rise of mobile devices leads to applications and mobile software to be used more. The user begins to change the habit of searching the web by finding in the application through their mobile phone. When Google announced financial reports in the fourth quarter of 2014, the company expressed that profit earned from each of the user clicks fell 3% compared to the same period last year, and it continued to decline (Google, 2015). According to analysis of Danny Sullivan, editor and founder of Search Engine Land, a site specializing in the analysis and evaluation of search engines and the internet, Google have had a huge problem in the search field. According to Danny, after the iPhone was appeared in 2007 and Android smartphone was launched in 2008, the number of mobile internet connections will soon surpass the number of people using the internet on a personal computer.
Previously, Google only sold advertising on the web version of PC. And in 2013, the company had to change it to exist. The new strategy did not distinguish the two platforms on mobile and PC. As a result, Google also decided to sell advertising on the web version on the mobile devices. It is a wise move, and then, the company continues to make money from mobile advertising, holding its position as the giant search engine on the Internet. However, Google still has to face other difficulties. When Google sold advertising on search engines of the web version on mobile , the company did not warn the companies about the differences between web versions on mobile and personal computers. Normally, the companies buy ads and search results for their products will be displayed on Google. When users click on these results, it will lead to a website having their products, this effect is the best. But everything changes when the users search something by their mobile devices. Because the previous product sales pages are only suitable for the web version on the computer, so on mobile, web users will see a lot of inconvenience. This makes the companies do not sell more their products through the links from Google as before. This is also discussed quite thoroughly in the above article.
This would be simple if millions of products supplier painstakingly build sales sites that are compatible with web version on the mobile. However, Google can not force them to do it. Meanwhile, the users begin to change their habits. They do not feel comfortable when making a purchase by traditional method that searchs on Google, they start moving to use the applications on the mobile phones. Many retailers launch their own mobile applications, allowing users to quickly find and buy the items they need. And then, Google continues to lose their search market share.
When the only “golden cow” of Google can’t lay eggs again, the company can’t grow more and that is reason why Google’s stock price is stalled for in more than 1 year (Google, 2015). So the next question is posed as how Google CEO Larry Page will drive the boat to pass the next difficult time. It can be confirmed that if Google has no changes, it will be also disastrous than Microsoft before. Curently, Google has been suffering from many problems, from the antitrust lawsuit to the strong competition of Facebook, creating the risk for Google when it can be removed from the Android operating system established by itselve. Therefore, Google must have effective measures to get rid of these difficulties and become flourished in the near future.

References
Olson, P. (2015). Google’s mobile – ranking showdown is about to kich off. Forbes, accessed on 16 April, 2015, available at:

http://www.forbes.com/sites/parmyolson/2015/04/20/googles-mobile-search-ranking-showdown/

Sampson, R. (2013). Kingonomics: Twelve Innovative Currencies for Transforming Your Business and Life Inspired by Dr. Martin Luther King Jr. BenBella Books, Inc., pp. 181 – 195.
Womack, B. (2014). Google profit, revenue rises on year – end advertising gain. Bloomberg business, accessed on 16 April, 2015, available at:

http://www.bloomberg.com/news/articles/2013-01-22/google-profit-revenue-rises-on-year-end-advertising-gain

Website:

http://www.forbes.com/

https://www.google.com/finance?fstype=ii&q=NASDAQ:GOOG

 

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