Introduction Google isone of the world’s leading innovators and are also one of the top companiesthat have successfully ‘gone global’. According to Google’s official websitethe company started in the year 1998 by Larry Page and Sergey Bin (Google,2017).
Google provide many different aspects to different markets across theglobe. Firstly, Google is the number one search engine worldwide. In 2016Google owned 64% of the search market share which was a huge differencecompared to their main competitors Bing who only had 21.
4% of the market share(ComScore, 2016). The company offer a lot of different products to the market.Google have a very complex and diverse product range and also have a strongcorporate image throughout the world. According to Fortune Google is the bestglobal company in the world to work for as it offers many benefits to staff(Fortune, 2014). Collinsdefine globalisation as “the process enabling financial and investment marketsto operate internationally, largely as a result of deregulation and improvedcommunications.” (Collins, 2017) Google are a perfect example of a company whohave successfully “gone global.
” Google is available in most countriesthroughout the modern world. There are mainaspects of globalisation that have defined Google’s success to go global. Thereare many different reasons for globalisation that according to BBC (2014) theseinclude “Improvements in transport which ensure decreased shipping costsfrom country to country. This also helps transport a large amount of goodsquicker. Another is “Freedom of trade – organisations like the World Trade Organisation (WTO) promotefree trade between countries, which help to remove barriers between countries.””Improvements of Communications” is another,this is when online communication has helped communication between countries. “Labouravailability and skills”, this is when many different countries have differentminimum wage limits compared to others.
This is a reason why a lot of techfirms choose to have their products made in less economically developedcountries so they can make their products to a high quality at a lower price. (BBC,2014)There are different views to globalisation according toWetherly and Otter (2014:266). These include Neoclassic and Neoliberal views ofglobalisation. Neoclassical is stated by Adam Smith within Wetherly and Otter(2014:45) “Modern day neoclassical economics focuses in quantifying andmodelling the economic behaviour that underpins the effective functioning ofthe price mechanism.” According to Investopedia “Thistheory coincides with the idea of rational behaviour theory, whichstates that people act rationally when making economic decisions.” This meansthat Neoclassical Economists believe that the public make decisions based on ifthey feel the product they are buying is of a certain value to them.
The otherview of globalisation is neoliberal. The Guardian (2017) states that neoliberalmeans “it denotes a preference for marketsover government, economic incentives over cultural norms, and privateentrepreneurship over collective action” This suggests that thisview favours the markets, economic incentives and private entrepreneurship overhigher factors. Wetherlyand Otter (2014: 263) suggests there are six main aspects of globalisationwhich include international trade, Globally organised production and investmentflows, migration, communication flows, cultural flows and rapid technologicalchange.
Rapid Technological ChangeRapid technological change has helped benefit Google inmany ways. Firstly, Google is a provider of technological advances withinrecent years as they are tech giants within today’s technological market. PaulScharre at CNAS (2017) suggest that “Technology is changing our world at anastonishing pace.
In thespan of a few short years, the internet, mobile devices, and social media havetransformed how we communicate and get information about the world.” Thesetechnological advances show how a company like Google can benefit overall fromsuch examples as social media and the internet as Google would use these typesof technological advances to advertise and show how people interact with theirproducts. Since Google are a very popular tech company they can benefit from theserapid technological advances. For example, Google has a specific aim tointroduce the first driverless car to the market. Google have also neverproduced a car before which is a first for the tech giant.
Although with therapid technological advances in today’s society Google could very much succeedwith this move. The financial times (2017) states that Googles driverless car is”Potentiallyone of the most disruptive new technologies, as well as one of the most hyped,driverless cars have been at the centre of a race between big automakers andtechnology companies in the US, China and Europe.” There are many differentadvantages and disadvantages of this aspect of globalisation. Karehka Ramey atuseoftechnology (2013) suggest that the advantages include quicker means ofcommunication, encourages innovation and creativity, improves on humanresources management, saves time and it also creates mobility for the company.They then go on to suggest that disadvantages include high maintenance costs,causes distraction, can make staff lazy and not want to do their job to theirfull potential and it can also affect work relations between staff. Overallthis aspect is one of the most important for google going global as they are atech giant within today’s world.
Communication Flows Communicationflows are very important to any company especially Google. There are differentvariations of communication that include internal and external communication.Internal is when the communication is inside the company and external isoutside the company. Stated by Wetherly and Otter (2014:265) “Globalization hasbeen greatly influenced by the speed with which communications have improved inthe world, both in terms of transport and communications.” Google wouldtransport many of their products from their product range internationally toensure the biggest impact of sales, revenue and profit. By having a goodoverall communications system in place this would be possible for them. This aspect of globalisation has manyadvantages and disadvantages.
The advantages are that by having a good overallcommunications system in place Google can ensure internal or overseascommunication is operating the way it should be to achieve the highest overallaims and objectives for them as a company. Another is that communication is thenumber one aspect of success. Without a good since of communication Google willnot know what tasks needs to be done and completed. Disadvantages includeconflict within the company. Conflict can leave a company in a bad way. Forbesstates (Forbes, 2013) that conflict within a company has two outcomes the firstbeing “A valued employee just leaves becausethey’re miserable working at your company” or “It builds, becomes bigger, andthen finally erupts, causing a full-blown crisis.” This a bad for a companyespecially Google as with being such an international company everything needsto work in the correct order.
Overall communication flows are a key asset tosuccess for Google. With having a good since of communication in place theywill be able to work to achieve every aim and object they want to obtain tokeep the company running in the correct order. Globally Organised Production andInvestment Flows Having acompany that has globally organised production and investment flows allows themto plan ahead and ensure each and every production and investment move is thecorrect one to benefit Google. This ensures that no time is wasted when makingdecisions for aspects of the company for example what way to make a certainproduct on the production line or which company to invest money into. Wetherlyand Otter States that “Businesses have recognized the advantages of organizingproduction across national boundaries to take advantage of lower costs and thespecialist benefits of different geographical locations.” (2014: 264) Withmaking production in less economically developed countries Google can save ahigh amount of money that can be used to create products.
Google would offerinvestments to other company’s and they would also gain investments from othercompanies into their own. Google is reportedly investing $875m to tech giantsLG to offer a curved screen display to their customers for their new smartphone concept. This shows that Google have plenty of money behind them as acompany to even invest such a large amount of money for one product from theirproduct range. (TechCrunch, 2017) This aspect of globalisation comes with manybenefits as well as drawbacks. Benefits include that it initially saves moneyfrom production costs for Google as they can run production in countries with alower earning amount, this gives Google a good corporate image with offeringjobs within struggling parts of the world and it also allows Google to generatea high profit as they are saving money on production.
Drawbacks include thatinvestments may not work out in the long run which means Google can lose a highamount of sales, revenue and profit. Another is that even though Google havestated that are a “responsible manufacturing company” that are against thelikes of child labour, fair wage and anti-human trafficking (Google, 2016) manymay feel they could still be doing this behind closed doors. Overall thisaspect of globalisation is an important one to Google as for them it is a mainpoint to consider when looking into globalisation. International Trade and theCreation of the Global MarketInternationaltrade and the global market is a huge aspect for Google and has had a hugeimpact on the company.
Wetherly and Otter (2014: 263) state that “Trade itselfis a vital feature of economic activity within countries or regions. Withouttrade, business would not be able to benefit from the ability to specialize andthe associated benefits of an efficient division of labour.” This shows thatGoogle wouldn’t be able to initially benefit as a business as tradinginternationally creates a whole new horizon for the company by introducing awhole new group of individuals to supply their products to. With Google being aglobal company they can gain a higher amount of business opportunities and thiscan gain them even more sales, revenue and profit to enhance their companyfurther. Trading internationally can have many benefits and drawbacks. Internationaltrade also allows Google to present their products such as their tablets, smartphones, smart watches and search engine to countries that contain a highernumber of nationals. This is good for Google as this can allow them toadvertise to a wider range of people.
Benefits include it makes betterrelations between countries, creates a higher amount of capital for Google toexpand their company even more, creates jobs in different countries and itallows countries to receive a more diverse range of products. According to KimberlyAmadeo (The Balance, 2017) she suggests drawbacks include “reduces jobs indomestic industries that can’t compete on a global scale.” It leads to “joboutsourcing” which is when a company such as Google would change the overalldynamic of how they interact with customer complaints to save money for themselvesdue to cheaper labour charges within different countries.
Overall internationaltrade and the creation of the global market are a massive aspect for Googlewith going global. This allows Google to generate a high income of profit toallow them to generate a higher amount of sales, revenue and profit overall. ConclusionOverallall these aspects contribute to Google’s success in “going global.” By takingall of these aspects on board Google will have a clear view of how each can benefitand effect their company back. With planning ahead Google can avoid badoutcomes and overall bad corporate decisions that may lose the company sales,revenue and profit. Globalisation is a huge segment that Google want to keepbeing a success.
With doing so this will allow the company to achieve high aimsand objects to ensure the best overall outcome and allow them to gain a hugeamount of income from different countries and regions all over the globe. References 1. Google (2017) From the garage to the Googleplex, Availableat: https://www.google.com/intl/en/about/our-story/ (Accessed: 30th December 2017).2.
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