Mobile Phone and Core Brand Values
With a portfolio as diverse as Google’s, what are the company’s core brand values? Is Google doing the right thing by diversifying into so many different product/service areas and taking on so many potential competitors (cloud computing, smart phones, high-speed Internet service, etc. )? Despite Google’s diverse portfolio, the company manages to maintain a very people-focused set of core brand values.
Google’s core brand values consist of maintaining its position as the leading organizer of information for its web search users, providing the best web-based marketing resources for its advertising clients, and being an excellent employer for their employees. Google’s ten part philosophy includes values such as “You can make money without doing evil” and “Focus on doing one thing really, really well” (Kotler & Keller, 2012, p. 38). The firm’s mission is to “organize the world’s information and make it universally accessible and useful” (Kotler & Keller, 2012, p. 30). It’s important to Google that users find their products and services useful because the more utility end users find in their products, the more they will frequent Google’s sites. The more users visit Google’s sites, the more the company is able to display its ads; which are the cash cow of the business. In fact, 90% of Google’s revenue stream comes from advertising services. Google creates and distributes many of its applications and services for free as part of its strategy to dominate the search engine industry.
In doing so, they create new opportunities to sell more ad space (Kotler & Keller, 2012). I believe that Google is doing the right thing by diversifying its product offerings. However, I think they should be very selective of who they decide to compete against and how their strategies measure up against their core philosophies. Two of Google’s core beliefs are that they should do one thing really well and that they can make money without doing evil. Google purchased Motorola and sold it only two years later for a loss because they realized that the cell phone handset industry wasn’t for them.
Thus, they went against one of their core beliefs of doing one thing really well. Google realized that they could continue to provide their Android software free to cell phone manufacturers and display their ads to end-users without the unprofitable Motorola manufacturing aspect of the business (Winkler & Ramachandran, Motorola, 2014). Google also entered the fiber optic market where there has not been any true demand for their speeds by consumers, yet they are taking business away from Comcast and other cable and phone companies (Winkler & Ramachandran, Fiber, 2014).
Marketers have often been accused of manipulating consumers into making purchases that they do not need. Therefore, one might question if they are holding true to their belief of making money without doing evil. Google has always been known to be a very people-focused organization. If the company continues to diversify and take on new competitors, they should be careful not to stray away from their core beliefs. After all, it is their core beliefs that have gotten them this far.