Groupproject_White.docx

Economic Impact on Society in General

Many businesses utilize different methods for better marketing practices and getting their business name out in the open. It is no question that Google has helped with this process immensely with its exceptional Google search engines and advertising tools. Amazingly, you can locate anything or specific information through a simple search for anywhere locally, nationally, to even worldwide. However, Google is not only utilized for big chain organizations, and small businesses, but also used by companies that primarily utilize the world wide web for any business practices.
Google helped provide $111 billion of economic activity for over 1.5 million American businesses and nonprofits across the U.S. in 2013. Varsity Tutors, a business located out of Missouri, is one example of a successful business that Google as helped to connect with potential and existing customers. Being one of the fastest growing tutoring companies in the online education industry today. Growing from just two tutors in 2007 to over 3500 in over 30 major metropolitan cities for in person tutoring, and online tutoring platforms country wide by 2013. Google has assisted in this successful transition by providing easier streamline processes at an affordable cost, thus resulting in the business passing those savings to their clients. Bottom line, these savings can and are an positive cycle that is generating through many businesses resulting in a healthier economic society.

Economic Impact on Those Directly Involved

Many are not aware that Google is not owned strictly by “Google.” Due to a complete restructure, Google is now actually a subsidiary of the company Alphabet Incorporated. Valued at well above $500 billion, Alphabet Inc is a collection of many individual businesses (Rocha, 2017). In 2015 Alphabet lost around $3.6 billion due to its investments in their other developments such as their self-driving cars, and space exploration. However, Google being its largest and most successful business platform has brought in much revenue and profits (The Economist, 2016). Most of Google’s products are offered for free to its consumers. Most of its main profits comes from Advertising. AdWords, AdSense, and Search Advertising, which made up to 86% of its 2017 revenue, with additional revenue coming in from apps, cloud offerings, and hardware. In fact, as of 2017, Alphabet continued to cultivate and had an overall revenue of $110.9 billion with a 23% year on year growth rate (Witzenburg, 2018). Google is one, if not the biggest, search engine competitors in the technology industry today. It is of no question that with Google’s continued success, and competitive partnerships this company’s economic impact will continue to flourish positively.

References

Google’s Annual Economic Impact Report Features Varsity Tutors. (2014, July 29). Entertainment Close-up. https://link.gale.com/apps/doc/A376305873/BIC?u=vic_liberty&sid=summon&xid=ddb

Of profits and prophesies; Alphabet. (2016, February 6). The Economist, 418(8975), 59(US). Retrieved from

https://bigalecom.ezproxy.liberty.edu/global/article/GALE%7CA450846323?u=vic_liberty&sid=summon

Rocha, M. (2017). Corporate credit report of alphabet inc (Doctoral dissertation). Retrieved from https://run.unl.pt/bitstream/10362/25872/1/Rocha_2017.pdf

Witzenburg, M. (2018). Google Strategic Audit. Retrieved from https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1043&context=honorstheses