Database for a Pet Store

Google vs. Amazon

Google and Amazon are two dominant companies with successful business strategies. They continually change and grow while maintaining their principles. The success of Google and Amazon is dependent upon their unique business models and goods and services. Even, though they are both very successful, Google is more profitable.

Google’s business model is revolutionary. Raking in 10,604.92 Million dollars a year Google is very profitable. Google’s business model is successful due to two key components; customer-oriented business and innovation. They remain true to their customers by offering free open-source programs. Services such as G-mail, Youtube, and Google Maps keep customers dedicated to Google. Most of Google’s revenue actually comes from two rather marginal means, online ads and selling search tools to companies.

Amazon’s success relies on customer-oriented services and simplicity. Customer’s pages are customized as products are offered to them based on their purchases. Customers can write reviews, lists, and guides for products. This is helpful for the company who does not have the time to maintain all the vast number of products properly updated. Customers trust their fellow consumer ratings more than the manufacture’s reviews. In recent years Amazon has revamped their business model. They have begun to offer web-based services in addition to their current services.

Amazon revenues are higher than that of Google’s, 10,711.00 Million dollars. However, their net profit is only at 1.77 percent. Google’s net profit is at 29.02 percent. This is due to the nature of the two companies’ products and services. Nearly all of Google’s products and services are web-based and as a result they have very little cost. Amazon is a product company and that incurs very high costs. The company is trying to transition from being a product company to a service company. Amazon’s shipping costs, inventory costs, and production costs devour their profits.

Google has a larger market capitalization, 210 billion dollars. Amazon has a market capitalization of a mere 37 billion dollars. This indicates that the public feels that the value of Google’s equity is greater than that of Amazon’s. Market capitalization is an estimate that the market has of a company’s value. The value is based on forecasts of the company’s future and economic conditions. The market feels that Google is more stable and profitable than Amazon. This is most likely due to the greater percentage of profit that Google has compared to Amazon.

Google and Amazon are both very successful companies. They both have business models that involve customer-oriented services and innovation. Google however is more profitable and has a larger market capitalization than Amazon. This is due to the different nature of Google’s products and services. Amazon is revamping their business model to increase their profit and market capitalization.

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Web-based technologies in Organizations

Organizations today use the web-based technology for various different applications. We-based technology helps companies globalize, have a competitive advantage, and be productive. New tools that organizations can use are the instant message services, web-ads, I-pads, web-service companies, and g-mail.

Instant messenger is a useful tool that several companies now use for communication. Ajax is a web-based technology that lets a user with an internet connection use major instant messenger services. This utilization is ideal for public computers because the user’s personal contact list can be retrieved virtually anywhere. As globalization grows, companies are finding ways to communicate around the world. Traditionally, individuals had to either meet face-to-face or make long-distance phone calls. With this new instant messenger technology, businesses can interact instantaneously and from virtually anywhere with an internet connection. The instant messaging system is essentially free. As a result, communication is no longer a large cost in regards to globalization.

Companies use new web-based technologies for advertising such as web ads. China now houses the largest internet population. Companies who buy web ads to advertise can now target a wider range of potential customers. Advertising using web-ads is a competitive strategy. By reaching target customers easily, companies can focus on customer orientation. Personalized web ads make the customers feel that they have a one-on-one relationship with the company. Web –ads are cost effective because revenue is not spent on wide-scale advertising to all groups in an attempt to attract the target groups. For example, a television ad is costly and all groups are exposed to it where as web-based ads are on selected websites that the target customer has interest in. It is cheaper and easier to reach the target customer.

IPads are a new web based technology that increases productivity. They are now replacing laptops in many companies. The iPad’s customized applications make the product able to be utilized by variety different businesses. One of the applications allows people to use internal corporate programs. This technology improves productivity from the former laptop by starting up faster and having a longer battery life.

Another web-based technology helping companies be more productive is web-software company services. CurdBee and Backpack help businesses be organized and create invoices. These companies create programs to help businesses do tasks such as invoices with their logo. Other programs organize businesses agendas, notes, discussion, and schedules in one construct.

G-mail is making business more productive by organizing the e-mail inbox. A new feature of G-mail will see which e-mails are most important and prioritize the e-mails by importance. This feature can help businesses and users save time by focusing on dire e-mails directly.

New web based-technologies help companies globalize, compete, and work productively. Different aspects such as instant messengers, web-ads, I-pads, web service companies, and g-mail help companies achieve those objectives. The new technologies help companies succeed.

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