Google: The Early Days

Though the case covers Google til early 2010, I will consider which a few key factors Google had in it's "early" success (1999~2002).

1. Their "special sauce" PageRank algorithm was a powerful and effective tool to rank web pages.  Their index / catalog of the web was growing faster than other competitors.

2. They developed an ad revenue model that closely aligned costs with benefits (cost per impression was a better model than Overture's cost per click)

3. They maintained their focus on their core competency - search and advertising.  They didn't expand corporate strategy until later on.

4. They recognized their weakness/limitations for corporate management and added experience early on with Eric Schmidt as CEO.

5. The unique governance structure that insulated the people who develop the strategy from the pains of quarterly earnings reports / investor quixotic demands. 

6. Google is a platform-mediated network with a self-reinforcing positive network effect.  Both user growth and advertiser growth of Google were positive (and still are) this allowed Google to beat Overture both on pricing and added even more advertisers to their network.  .

Their own "operating platform" (or philosophy) is quite interesting.  Devoting 20% of employee time to future projects "that may seem strange" or may even fail (Google Wave) The company established a very unique culture for continued disruptive innovation.

Some of these are a bit of over-simplifications.  There are more complicated reasons for Google's success that we can discuss in class.  Though I have to say Google's "Do No Evil" stance is quite hypocritical.  Their services existence enables much evil to be done.  Like a gun manufacturer that says they don't kill people - of course they don't, but they enable the killing of people (as well as protect people) Yes Google's good still outweighs the evil done, but by refusing to recognize the fact that they enable evil undertakings (like any technology does) they are delusional.  But this isn't a class on philosophy so I will stop there.