What makes Google keep going?

Google was founded on 4^th September, 1998 by Lary Page and Sergey Brin. Since its inception Google has consistently worked for providing information to people worldwide. To enhance its user experience it uses innovation as its major tool. Since 2003, every year it added at least two major developments in its products and services which helped to increase its market share as well as its profitability.

                                                                          Google Inc. has a sound business strategy supported by successful implementation and execution. 95% of its revenues come from advertisement. Google gives its users the best service luring them to use it more and more, and then target them with relevant advertisements. At first they attained expertise in their core area that is “providing information” worldwide that helped it to gain world recognition at fast rate. People from all over the world started using it and then it used its popularity and wide user base to market its other products and services like Gmail, Youtube, Nexus Smarthones, etc. Some of the areas where Google has done good job are following:

a)      User/Audience/ Customer: From identifying needs of users or customer to providing services to them, Google has done his best. It knew that people needed information and that too at a fast rate. To deliver faster search results it has used most efficient technology and techniques like PigeonRank and PageRank. Its search suggestions are useful. Its spellcheck feature allows users to search even those things on the web about which the user has just heard of. All these things help in gaining and retaining users.

                            As on 25/3/2014, there were 187 Million monthly unique visitors to Google sites which show how popular it has become among people.

b)     Reach and Market Share:  Google has worldwide audience reach. Every person uses it in some form, be it Google Search Engine, Gmail, Google+, Chrome, etc. Almost 12 billion search results were executed by Google in February, 2014.

After seeing growth in smartphone users, it launched Android operating system for cell phones in May, 2010 and a new version of Google Chrome for smartphones. These efforts resulted in Google share of US search market reaching 67.5% and US mobile search result market reaching 87.1% as on 20/03/2014. All these facts and figure suggests that Google has successfully implemented its market strategy that resulted in increased reach and market share and has also enabled it to fairly penetrate those markets which were new to it.

c)      Product and Service Innovation and Upgradation: This is the area where google has outperformed almost every entity and has set a high benchmark which Google itself keeps on increasing. Be it Google Chrome, Gmail, Android or Nexus phones, Google keeps on delivering improved version of its product and services.

                                       Its spending on R&D for the years 2011, 2012 and 2013 were 5.165, 6.793 and 7.724 billion respectively. Introducing Android which is a Linux based operating system for cell phones was an innovative idea welcomed all over the world and now every 7 out of 10 smartphones are based on Android.  Google Street view, introduced on 25^th May, 2007 is another innovative feature of Google Maps which provides panoramic views of various streets and places. This feature has enhanced user experience a lot. Hence, we can say that Google has also worked well in product and service innovation and its strategy regarding them, to some extent, is flawless.

d)     Human Resource and Corporate Culture: This is also area where Google has distinguished itself from other entities. The management team of Google consists of Executive Officers, Senior Leadership and Board of Directors. The success of any entity depends on its employees. Employee benefits, satisfaction and appraisal helps in gaining maximum output from employees. Therefore Google has adopted a corporate culture where its junior employees are free to ask questions and give suggestions to any member of management team. Google values ability over experience. So there are chances that a person who has less experience but more skills and ability than others can join and even be promoted. It boosts younger employees to give their best. Office interiors of every Google office has different theme. Google has also carefully worked on the socio-cultural aspect for gaining employee’s loyalty. For example, at one of its office in India its logo reads “Google _Bharat” which means Google _India. By doing so it gives its Indian employees a separate identity and coveys the message that Google respect their values.

                              The corporate environment at top level is also very sound. This is evident from the fact that most of the top management members are with Google for more than ten years and half of the members are with it since its initial stage. This is remarkably a positive sign for a MNC which is sixteen years old.

Considering all the above mentioned factors, we can say that the Google Inc. has a sound business strategy which values its users & customers, focuses on their needs and increases its market share and profitability, while focusing on product and services and improving employee satisfaction.

                                                                         However, Google faces tough competition. If we talk about Google’s core area that is providing information, its competitors are Yahoo and MSN.

If we consider its Operating System (OS) industry its major competitor is Microsoft which provides Windows based operating system for smartphones. Microsoft has also a large customer base due to which there are always great chances of it becoming a favourite platform for providing advertisement services to many companies. This can severely affect Google financial health which is mainly dependent on revenues from advertisement. Microsoft is also a mature entity in OS industry.

              The industry in which Google operates is fast growing and changing rapidly. Google should adopt futuristic approach so that it can anticipate changes of industry and adapt to those changes.

Power Shortage In India

As summer is about to begin in a month or so. Inverter and battery companies are gearing up for a good market share and locking horn with competitors. TV channels are now airing new advertisements of these companies. They are aggressive because they know that their will be a long phase of power cuts from April to July. This is less futuristic approach as compared to launch of electric car e2o by Mahindra. Many of us, including the Mahindra, have realised that power generation from conventional sources is a herculean task when it comes to India. Development can't be done without giving boost to manufacturing sector. Manufacturing sector can function well only when it has adequate power available at cheap rate. The demand for electricity will surely increase but the resources, like coal, will not.
                   In India, there is always a huge gap between demand and availability of electricity. As per the data provided by the Central Electricity Authority (CEA), in 2012-13, against a peak demand of 1,35,453 Megawatt(MW), total power availability was 1,23,294 MW, a deficit of more than 12,000 MW. At normal level the shortage was 7.1% in 2003-04 which increased to 10.1% in 2009-10 and 11% in 2012-13. How can we expect the Indian economy to grow at a rate of even 7-8% if we can't lower this deficit?  The southern states are worst affected. Major cities including Bangalore, Chennai and Hyderabad faced daily power cuts of 10-12 hours in summer of 2013. Same is the scenario with UP, Bihar and north eastern states. But, now there is some relief due to synchronization between southern grid and national grid. Why there are huge gaps in demand and availability of electricity? If we look around we can easily find the reason behind it.
                   In order to meet the increasing demand of electricity every country need to produce power at increasing rate. These power projects are mainly dependent on coal supply. Thanks to the coal scams due to which supply of coal has been deeply affected. As per the document prepared by the finance ministry, power projects worth Rs. 50,000 crore have been delayed due to non availability of coal. Due to shortage of coal, Tata Power and Adani Power were forced to buy coal for their UMPP and Mundra Thermal Power Project from Indonesia at higher prices which resulted in increase in production cost. India has consistently missed the coal production target in 11th plan. In the first year of the plan i.e 2007-08, it missed the target by 4.49 Million Tonnes(MT) which increased to 11.16 MT for the year 2011-12. Even for the 12th plan it is being speculated that a growth of 8% in coal production will not be achieved.
    Same story is with hydel projects. Construction work on most hydel projects have not yet started due either delay in getting green nod or in taking decision. These projects need to get sanctions, permissions and clearances from some statutory bodies, which on an average takes more than 1.5 years. As on 1st Jan, 2014, two projects, Tawang (800 MW) and Tato (700 MW) in Arunachal and Teesta (520 MW) in Sikkim were yet to get environmental clearances. Teesta project was in the queue since 2009. Most of us may be happy that we have achieved fiscal target of 4.8% but we should also see that this target has been achieved by holding capital expenditures that are mainly done for infrastructure development and public welfare activities. Holding these expenditures has delayed many power projects. We must achieve our targets but the way of achieving it should also be considered.
                                               Two major areas in which, to some extent, we can say that we are doing well are Nuclear Energy and Solar Energy. There are some environmental as well as public issues with nuclear power plants. Due to lack of education and awareness, people living nearby nuclear power plants have always opposed the projects. There were some strong protest outside the construction site e.g. Kudankulam Nuclear Power Project where 100 people sat on indefinite fast. But these projects are getting more and more importance because of there potential and size. On 13th Jan. 2014 the foundation stone of 2800 MW nuclear power project was laid by PM Dr. Manmohan Singh at Gorakhpur village of Fatehabad district of Haryana. India has 20 nuclear power reactors with installed capacity of 5780 MW. Seven more are under construction with additional capacity of 6100 MW.
                                                                The contribution of solar power in our country is very less. But this is something where we can excel much. Few state governments and private companies are investing aggressively in solar projects. On 27th Feb, 2014, India's largest solar power plant was launched in at Diken of Neemuch district of Madhya Pradesh with 130 MW capacity. Gujarat is the leader in producing electricity from solar power plants with installed capacity of 224 MW which is expected to be increased to 500 MW by 2014-15. We should take note that Rajasthan and MP have higher percentage of barren land as well as sunlight availability in comparison to other states which provide an edge over other states for producing solar energy. Some other state governments like Karnataka and Maharashtra have also started investing in solar projects. On seeing vast opportunity, many private sector companies including Tata and Reliance have entered in this field . The latest and the most talked move which gained global attention is the Apple's talk with Tesla Motors, an American company that designs, manufacture and sell electric cars. The crisis of power has made us venture in new fields. All we can say is that, although slowly, we are heading towards unconventional sources of energy which is a good sign for our country.
                                                          

Is it the return of Tata Motors?

The much awaited Q3 result of auto sector is here. The Tata Motors declared a jaw opening PAT of 4804.9 Crores as against 3542 Crores last year. At time when auto sector is riding on bumpy road Tata Motors has done a great job. As per SIAM(Society of Indian Automobile Manufacturers), the April-Nov. sale of passenger vehicles in FY 13-14 dropped by 5.34% as against same period in previous year.

So what did they do? Here is the Story.

                                                            Going back in 2012 when people started looking Nano as failure, Tata Motors appointed Ranjit Yadav as president of passenger vehicle business. He is the man who made Samsung grab 45% market share from just 8% in 3.5 years. Yadav not only worked to change Nano's image as a cheap car but also to enhance customer satisfaction. Since he has taken over charge, Tata Motors has jumped from 12th to 7th place in JD Power ranking for customer friendliness. Tata Motors is to launch a compact sedan and hatchback in 2014 and a new vehicle in each year till 2020. This is a very good news for market which did not see any big launch from Tata Motors for a long time.
            Jaguar Land Rover(JLR) also contribute to Tata's appreciable prformance to a great extent. They have successfully implemented product diversification strategy in JLR. It starts from the launch of Evoque, after which a series of product launches followed including Freelander, Discovey 4 and Range Rover Sports and recently the F-Type. JLR has successfully penetrated the Chinese market. Due to increase in demand JLR has entered into agreement with state authorities to open manufacturing facility worth £240 million for a capacity of 24000 units in Brazil by 2016. Jaguar has topped the JD Power ranking for Sales Satisfaction Index - Luxury. Apart from these, Tata has also developed new turbocharged petrol engine Revetron. This engine is considered to be quieter and low on maintenance. This is a wise step because the price gap between petrol and diesel is getting lesser every year.
                                                But still there are tough competitions from Maruti, Hyundai and Toyota. Maruti has recently regained its 40% plus market share due to high rural sales in India. So it will be interesting to see whether Tata Motors will continue to perform well in near future.