cost-profit relationships? What strategies has Google relied upon to build competitive advantage in the industry?
4.1 Business Model
AdWords and AdSense are important factors to Google to achieving success of business model. Google’s revenue comes from advertising, and 50% of advertising revenue comes from AdWords, and the rest comes from AdSense.
AdWords
Adwords is advertisement model that
Threat of competitors:
Southwest or Jet Blue have low cost prices and positive profit.
Good consequence:
Get away from bankruptcy
Bad consequence:
Employees are dissatisfied for 2 reasons:
First, because decrease of salaries
Second, because executives have big bonuses at the same time
6 years later, this problem persist
$375 million of losses in the first quarter of 2009
costs for recruiting and retaining designers are not directly associated with unit production but they never arise if LVMH does not hire any designers.
.
- Cost to get ISO 14001 certification
In 2008, Louis Vuitton just attained ISO 14001 certification for its Point-Neuf headquarters in Paris. To earn ISO 14001 certification, external audit is necessary. All the relevant costs including commi
cost-saving solutions. For example, one of Bezos belief is small organizational structure and no communication is needed. Amazon has a Two-Pizza Team Rule which means “if a project team can eat more than two pizzas, it’s too large.” Bezos believes small organization creates innovation and the team can experiment their vision independently.
Vertical Integration
Amazon has built its portf
cost-effective advertising and a wide range of revenue generating search services. Google's breakthrough technology and continued innovation serve the company's mission of "organizing the world's information and making it universally accessible and useful."
2. External Analysis
2.1 External Environment Summary
There are some external issues, first thing is growth of emerging market. Many d