Business Model Canvas Analysis of Google †MyAssignmenthelp.com

Question: Discuss about the Business Model Canvas Analysis of Google. Answer: Introduction: Google is a multinational technology organization of American origin which mainly specialises in the internet related products and services. The services of the company include, technologies related to online advertising, software, hardware and cloud computing. The organization was founded in the year 1998 by Sergey Brin and Larry Page. The rapid growth of the organization has been driven with the help of various products including, core search engine of the company (Google Search), services designed for the work related purposes (Google Doc, Slides and Sheets). The products include, Google Calendar, Google Drive, Google Duo, Google+, Google Maps, Google Translate, YouTube, Google Keep, Google Photos (Google., 2018). The growth of the organization had started from the year 1999 when the offices were moved to California. The organization has gone through changes and acquired many new companies during this phase. The revenues of the company also increased in a stable manner from the ye ar 2000. The search engine platform provided by Google had become dominant in the market and was able to acquire a huge position of the entire market within the year 2013. The business model canvas of Google will be analysed in the report based on the nine building blocks of business (Beckett Dalrymple, 2017). Business model canvas of Google Key Partners Vendors of software Vendors of hardware Advertisers Developers of the apps Partners related to distribution Key Activities Managing the data centers Maximizing the network effects R D related to the development of new products Managing the massive infrastructure based on IT (Dorantes-Gonzalez et al., 2015) Value Proposition Free search Free sites Free apps Free collaboration socially Free monitoring of the sites Free systems of operations Targeted advertisements Selling of the ad space Selling of the apps Search appliance of Google Google apps related to business Customer Relationships Mass relationship in an automated manner Direct relationship with the corporate customers Dedicated sales related to large accounts Customer Segments Customers related to search operations Apps customers Sites customers Corporate customers Google+ customers Advertiser and advertising customers Owners of mobile devices Internet users Developers (Frana et al., 2017) Key Resources Partners of the company Data centers Platform of the company Channels Network of the partners Direct sales with the corporate customers Support and sales teams on the global platform Cost Structure Costs related customer acquisition Vendor costs related software Operations costs in the data centers (Fritscher Pigneur, 2014) Revenue Streams Share of the revenues related to app sales. Fees related to subscriptions Free information regarding the users Free information related to the sites Revenue from the ad words Fees from licensing Revenue related to hardware Product sales of the enterprise (Ghezzi et al., 2015) Key relationships between the nine building blocks Business Model Canvas is a tool used for strategic management for the purpose of developing a new business or the documentation of an existing business. This is a visual chart which contains the elements which can describe the value proposition, customers, finances and the infrastructure. This framework can be used for the purpose of analysing the business and further taking steps to improve the various areas related to the organization. Business canvas is used for the purpose bridging the gap between the strategies and the processes that are implemented in the business. The nine building blocks of the business model canvas are related and dependent on each other (Gonalves da Silva, 2017). The business model canvas of Google is described as follows, Key Activities The key activities that are performed by the organization include, the research and development related functions that are performed for the development of the new features and technologies. These activities also include the development of the existing technologies of the organization. The organization also spends a large amount of time in the management and maintenance related activities of the massive infrastructures in the IT related services and products. The activities of the organization are performed on the strategy, alliance and marketing areas (Joyce Paquin, 2016). Key resources The key resources of the organization include, servers, IT infrastructure and servers that are required by the processes in the company. The licenses, proprietary related materials and patents are the other resources of Google. Value proposition The offerings of the organization aim towards creating value for the customers related to advertising, internet search, advertising and platforms. This offering is supported by the mission statement of the organization. Customer Segment The customers of the company are divided into three major segments which are, the users, advertisers and the network members of Google. Customer relationships The customer relationships are built to include the support and sales related services which are dedicated for the larger customers (Ojasalo Ojasalo, 2015). Channels The channels are used to reach the customers with the help of google.com and other affiliate websites of the organization. Cost Structure The primary costs are related to IT infrastructure, marketing related costs, people and the costs related to research and development. Revenue Streams The revenue stream is related to the income that is generated from the advertisements in the search engine. The different components of the business model canvas help in the delivery of value to the customers. The value proposition helps in the addition of distinctiveness to the company so that it can differentiate itself from the others in the market. The BMC of Google is related to the interaction between the various components so that value can be created. The business concept of Google is shaped in such a manner so that it constitutes the key drivers of business. The main factor related to the mission statement of Google states that the company needs to concentrate on the customers and success will follow (Plenter et al., 2017). The organization has developed a client base which helps them in understanding the customers. The suppliers, resources and the activities of the organization are related to each other in such a way so that they can deliver the services to the customers. The revenues of the organization are earned from the advertisements on Pay Per Click basis. The relationships that are maintained by the organization with the customers has a major effect on the revenue stream. The partners and the channels of the company play a major role in increasing the revenues of Google. Critical success factors of Google The critical success factor of Google is the coordinated group of employees who are a major part of the corporate culture of the organization. The groups are formed by leaders who work as an effective and single team. The organization has always been committed in providing the best available technologies to the customers. Google has planned for expansions whenever it was necessary for the profitability of the company. The marketing and promotion related activities of the organization have always been performed with the help of the brand that has been created in the industry. The colourful display of the homepage of Google has been able to attract the attention of the customers and users (Romero, Villalobos Sanchez, 2015). Google has been a successful organization since the time of its inception in the year 1998 and has created a different position in the industry. However, the organization may have to face some serious issues in the near future. The investment of Google on the Google Plus platform which is being used to provide competition to Facebook, however they have not been able to create a user-friendly platform like Facebook. The search engine of Google is mostly by the users who operate the computers. However, in case of the mobile user apps are used much more as compared to the Google search engine. The payment related platforms that were introduced by Google has failed to gain much of the share in the market. The growth of the organization has slowed down in the recent times due to the increasing competition in the industry (Vargas, Calva Camacho, 2015). Recommended changes in the business model The organization needs to extend its business so that they can gain revenues from the other areas excluding those that are gained from advertisements. The channels of the sales team need to be extended so that the organization can create a large sales force. The customer segments can be increased by expanding the business operations in the other areas. The members of the Google Network can be increased by creating new business opportunities. Google can aim at making their social networking site Google Plus much more interactive and user-friendly in nature so that it can compete with the other organizations in the industry. The investment on the organization can be increased so that Google can further expand its operations in the industry. The organization has focused its business activities in similar areas and this leads to the lack of diversity in Google, this issue can be resolved by acquiring new business areas. The organization needs to hold on their own identity when they expan d their business in new areas. The major change that can be made to the business model is the increase of suppliers and partners in their own area of operations. References Beckett, R. C., Dalrymple, J. (2017, December). Business Model Value Capture: an Activity Theory Perspective. InISPIM Innovation Symposium(pp. 1-13). The International Society for Professional Innovation Management (ISPIM). Dorantes-Gonzalez, D. J., Kkayd?n, H., zlem, ?., Bulgan, G., Ayd?n, U., Son Turan, S., ... Teixeira, F. F. (2015). Improved Business Model Representation of Innovation Concepts. InProceedings of the 2015 World Conference on Technology, Innovation and Entrepreneurship, Istanbul, Turkey, May(pp. 28-30). Frana, C. L., Broman, G., Robrt, K. H., Basile, G., Trygg, L. (2017). An approach to business model innovation and design for strategic sustainable development.Journal of Cleaner Production,140, 155-166. Fritscher, B., Pigneur, Y. 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