What is Google’s success secret? How can a company amass $9.7 billion revenues, mostly from advertising? :Google’s Two Secrets of Success

Google’s startling performance raises anew the question: What is Google’s success secret? How can a company amass $9.7 billion revenues, mostly from advertising?

The answer to the first question is certainly leadership and innovation in the fastest growing areas of search engines, multimedia, and smartphones. As other successful technology companies like Apple Computer (NASDAQ:AAPL), Oracle Corporation (NASDAQ:ORCL), and Salesforce.com (NYSE:CRM), Google is a customer-centered company—its innovation process begins and ends with the customer.

The answer to the second question is collective entrepreneurship—Google’s other secret to success.

Collective entrepreneurship is a network organization that allows a diverse group of people to share the risks and the rewards associated with the discovery and exploitation of new business opportunities. Google’s Blogger service, for instance, allows bloggers to set up their own blogs promoting ideas and products; viewers to get access to these products, and ideas; and advertisers to pitch their own products and services to viewers.

In other words, Google is in a collective entrepreneurship with bloggers, advertisers, and viewers, sharing the risks and rewards from the discovery and exploitation of new business opportunities—“a stroke of genius of company founders. Successful blocks that attract a great deal of traffic reward all parties: viewers get the information or the product thy search for; advertisers make their products and service available to the right audience; and bloggers and Google share the advertising revenues. By contrast, unsuccessful blogs that fail to attract traffic result in losses to all parties. Viewers waste their time, as they don’t find what they need; advertisers have no audience for their commercials; and bloggers and Google have no revenues to share—Google waste their cyberspace, and bloggers waste their time to post whatever material they post.

The bottom line: Google isn’t just a technology innovator. It is a business model innovator

by Panos Mourdoukoutas source:http://www.forbes.com/sites/panosmourdoukoutas/2011/10/13/googles-two-secrets-of-success/

---

---