Google's current 3 issues

In my opinion, Google’s current 3 issues are “Enterprise service”, “business in China”, and “management”. I would like to describe these 3 issues in detail.

1) Enterprise service

Google released “Google Apps” – SaaS application- to expand Enterprise application services about 3years ago. Recently, SaaS has gotten a lot of attention as business application and, to acquire high share in this market, Google penetrated in this business. But, Google’s recognition in enterprise market is still weak. When it comes to Google, many people image “search engine”, “gmail”, “youtube”, “google map”, “google earth”…etc… These are consumer oriented services and although these consumer services are well recognized, Enterprise services, like Google Apps, are not recognized well. I worked IT industry as an IT marketer in Japan, and promoted “SaaS” business by collaborating software vendors, like Microsoft, IBM, Google, Fujitsu, Oracle…. From my experience, many clients, though it may apply only in Japanese market, are not still so interested in Google Apps because of high price and low recognition of business application. They prefer other vendor’s services. In consumer market, Google has acquired high recognition and market share, but, in business market, Google is primitive. So, getting high recognition and market share in Enterprise service is Google’s issue.

2) business in China

Google was suffered from cyber attack in China and they contented with Chinese government about this issue. Finally, about 2months ago, Google decided to withdraw its search business in Chinese market. So far, the withdrawal of its services is only search business, but this service is Google’s core business and the withdrawal of huge market – China, which will lead world economy, will be a great impact on Google. To that end, in search business, the monopoly of baidu(“百度”) will more proceed in Chinese market. Personally I wanted Google to compete well with baidu and get top share in Chinese market, so it’s truly regretful. Other than search business, how Google develops its business in China is put on a show.

3) management

I admit Google is excellent company and its technologies/services are really innovative and contributed a lot to change our lives. But, I think, now, it has too many idea/technical oriented services & products, which may lead Google to fall between two stools. Certainly, many ideas/technologies themselves are really important, but, if they are not well managed to customer oriented services, they can’t become products of choice for many consumers and then they can’t sell well. To get high sales performance, stable management – sales strategy, marketing, customer oriented product planning, etc… is really important. For those companies which filled with affluent ideas/technologies, solid management is really required. If these are not well organized, excellent ideas/technologies will end up as mere gratification of the ego.
In that sense, I think Google should more focus on management to exploit their great ideas/technologies.

Future strategy of Microsoft

Recently, the most cutting-edge and popular IT keyword is "SaaS".
Many software/hardware vendors, like IBM, Google, MS, Oracle ...etc, are extremely focusing on this service.
“SaaS” has a tremendous amount of potential.

Software Gulliver - Microsoft is one of them. Microsoft is sifting software business( product out ) to service business.
Now, merely providing software products, this business is pretty obsolete and customers will not pay much money.

Recently, MS released "Azure", Microsoft's SaaS service. This service will become the base of profit of MS.
So far MS provided various software - MS office, SQL Server, Sharepoint, Exchange, .NET, etc...

By releasing these products by way of SaaS, users can use sophisticated MS services without paying expensive license fee and by minimizing system maintenance and deployment cost.
Also, MS can get new customers and provide standerdized services - they can reduce personalized support or customize.

Although many software/hardware vendors are now sifting to SaaS business and creating promising business models, I think MS has huge advantage, because of excellent IT technology, business know-how, brand-image, sales power...

I am really interested in future “SaaS” business and which vendor leads this business.

Four square business model

We learned four square in our information system class. Before the class, I did not know that service, so, after the class, I immediately accessed to the site and used it. I think it was really impressive and fantastic service!! So, from my short experience of four square, I would like to describe about 1) why four square become so popular 2) four square’s business model, from my viewpoint.

1) Why four square become so popular

-Advanced SNS function-

We can communicate with our friends about “what restaurants are best”, “what restaurants are not so good” etc…

We can know someone who often goes to restaurants in which we are interested and make friends with them. We can trace what and where restaurants our friends have been.

-High Game nature-

Every time we go to some restaurants and check in Four square, we can get a variety of titles according to the number of check in. These titles are called “Badge” and the most check in users are given “mayor” title – the best title. Many users are motivated to get high “Badge”.

-High usability-

We can register user and the location of restaurants, and write any comments so easily.

-Providing API -

Since four square provides API, it can cooperate with various application/web services. For example, now, four square can cooperate with twitter and Yelp, so we can read some reviews about shops which are written in Tweet or Yelp around them.

2) four square’s business model

-Advertisement revenue-

Four square can get revenue from local advertisement. For example, some restaurants put up an ad about “Today, we serve drink for free for the first 10 customers”, then, they can get more customers by advertising in four square.

-Providing value-add services by connecting with local restaurants-

Four square and local restaurants connect together and provide value-add services to customers. For example, if customer goes to some restaurants by way of four square, they can get some discount service or some coupon tickets or some special services. If customer gets more value, they are willing to go to some restaurants and restaurants get more profits.