I chose to blog about Google's Business Model because it is much different than most hypertext search engine company's philosophies. Like everyone else, Google is advertisement based. Yet they place value on Customer satisfaction more than others. The Google engine was built with the destination's importance rating in mind. This is somewhat contradictory to what the advertisers want mainly because the advertisers are only interested in a number of hits on a site. So Google is put in an awkward situation were they must choose between what their users want and what their customers want.
Their Model must be one that is based on a quality outside of the mere customer satisfaction realm. They had to develop and implement something that would solve the ethical question of "who the heck to we please?"
The PageRank algorithm was developed in order to do just that. It works so that people who are trying to sell something are categorized in their yellow box at the top, and everyone else (with their respective importance rating) is displayed below. But of course the programmers at the internet stores refused to be bested by a Business Model. Therefore they devised ways to get their websites in the top 10 sites without paying a penny.
1998 if you were to google "cell phones" one of the top sites was "The Effect of Cellular Phone Use Upon Driver Attention". Nowadays, of the first 20 sites, 14 involve sales. So much for that business model... noble thought though.
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Well Google must be doing something right; their stock is in the 400's and raising. So who ever they are pleasing, paying customers or a regular Joe Street Smith looking up cell phones, they are doing a great job at it and making some serious coin for their investors.
OK, a good start! Now, let's think about the assumptions underlying the model. What do they seem to be? Are they appropriate? Sufficient? What factors do you think Google did not take into consideration? How would that impact their business model? How might they improve their modeling?
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