Can Google Analytics improve your SEO and marketing performance?

Sigma Sigma Sigma

If you are new to the Blogging world or always wanted to have your own website or even market a product, what  can be done to find out how you are performing? There is a saying in the Six Sigma community “what get measured, get’s done”. There is a wealth of information that can be extracted from Google Analytics. For example, I want to know how many time someone is visiting my website or even a specific page, how would I know unless I have a program that can provide all that information. Google analytics can even display user demographics, what territoy and city people are logging in from, what language they speak, browser they are using and how long they are staying on your site. All this information is extremely helpful in marketing your product or yourself. Let me make a brief, but useful example. After marketing your “widgets” for a few months, you find out from reviewing analytics that 95% of your page views are coming from Darien, Il. With that information you could possibly offer discounts or specials to people from that area or even take out radio ads for that target area. More information to follow on how to use analytics on Twitter and take that information and incorporate it into your marketing plan.

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Is Google A Worthy Investment in the Search Engine Market

What Does Return On EquityROE Mean?
In simplest terms you could say that indicates how well total assets are being managed to produce profits in companies like Google, Microsoft and Yahoo, Inc!. To get a little more technical, it is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.From the graph below both Google and Microsoft look to have a good ROE.
ROE is expressed as a percentage and calculated as:

Return on Equity = Net Income/Shareholder’s Equity

 

 

 

 

 

 

 

 

What Does Return On AssetsROA Mean?
An indicator of how profitable a company is relative to its total assets. This is a very key metrix that investors look at. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company’s annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as “return on investment“. From the graph shown below Microsoft looks like the clear winner, but one analysis does not paint the entire picture.

 

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Does Google have a better mission and objectives than the rest?

Google’s Mission Statement

Google’s mission is to organize the world’s information and make it universally accessible and useful.  We believe that the most effective, and ultimately the most profitable, way to accomplish our mission is to put the needs of our users first.  We have found that a high-quality user experience leads to strong word-of-mouth promotion.  Our dedication to our users is reflected in these three key company-wide commitments”

  • We will do our best to provide the most relevant and useful search results possible, independent of financial incentives. Our search results will be objective and we will not accept payment for their inclusion or ranking.
  • We will do our best to provide the most relevant and useful advertising. Ads should not be an annoying interruption. If any element on a search result page is influenced by payment to us, we will make this fact clear to our users.
  • We will never stop working to improve our user experience, our search technology, and other areas of information organization.

 We believe that our user focus is the foundation of our success to date. We also believe that this focus is critical for the creation of long-term value. We do not intend to compromise our user focus for short-term economic gain.

 Retrieved from:

http://investor.google.com/corporate/faq.html

http://web.ebscohost.com 

DESCRIPTION

“Google Inc. (Google) is focused on improving the ways people connect with information. The Company generates revenue primarily by delivering online advertising. The Company focuses on areas, such as search, advertising, operating systems and platforms, and enterprise. Businesses use its AdWords program to promote their products and services with targeted advertising. In addition, the third parties that comprise the Google Network use its AdSense program to deliver relevant ads that generate revenue and enhance the user experience. In February 2010, the Company acquired Aardvar and On2 Technologies, Inc. In May 2010, The Company acquired of AdMob, Inc. (AdMob). In August 2010, the Company acquired Slide, Inc. (Slide). In December 2010, the Company acquired Widevine Technologies, Inc. (Widevine). In April 2011, the Company acquired PushLife. In September 2011, the Company acquired Zagat.”

INDUSTRY TYPE: INDUSTRIAL”

 Retrieved from: Worldscope, 9/25/11, GOOGLE INC.

The pictorial disply below shows how Google is currently persuing their mission as described in the “description” above.  

 Google’s Current Objectives

 1. Focus on the user and all else will follow.

Google has focused on providing the best user experience possible. Whether we are designing a new Internet browser or a new tweak to the look of the homepage, we take great care to ensure that they will ultimately serve you, rather than our own internal goal or bottom line. Our homepage interface is clear and simple, and pages load instantly. Placement in search results is never sold to anyone, and advertising is not only clearly marked as such, it offers relevant content and is not distracting. In addition, when we build new tools and applications, we believe they should work so well you don‘t have to consider how they might have been designed differently.

 2. It is best to do one thing really, really well.

With one of the world‘s largest research groups focused exclusively on solving search problems, we know what we do well, and how we could do it better. Through continued iteration on difficult problems, we have been able to solve complex issues and provide continuous improvements to a service that already makes finding information a fast and seamless experience for millions of people. Our dedication to improving search helps us apply what we‘ve learned to new products, like Gmail and Google Maps. Our hope is to bring the power of search to previously unexplored areas, and to help people access and use even more of the ever-expanding information in their lives.

 3. Fast is better than slow.

Everyones time is valuable, so when you are seeking an answer on the web you want it right away–and we aim to please. We may be the only people in the world who can say our goal is to have people leave our homepage as quickly as possible. By shaving excess bits and bytes from our pages and increasing the efficiency of our serving environment, we have broken our own speed records many times over, so that the average response time on a search result is a fraction of a second. We keep speed in mind with each new product we release, whether it is a mobile application or Google Chrome, a browser designed to be fast enough for the modern web. In addition, we continue to work on making it all go even faster.

 4. Democracy on the web works.

Google search works because it relies on the millions of individuals posting links on websites to help determine which other sites offer content of value. We assess the importance of every web page using more than 200 signals and a variety of techniques, including our patented PageRank™ algorithm, which analyzes which sites have been “voted” to be the best sources of information by other pages across the web. As the web gets bigger, this approach actually improves, as each new site is another point of information and another vote to be counted. In the same vein, we are active in open source software development, where innovation takes place through the collective effort of many programmers. 

5. You do not need to be at your desk to need an answer.

The world is increasingly mobile: people want access to information wherever they are, whenever they need it. We are pioneering new technologies and offering new solutions for mobile services that help people all over the globe to do any number of tasks on their phone, from checking email and calendar events to watching videos, not to mention the several different ways to access Google search on a phone. In addition, we are hoping to fuel greater innovation for mobile users everywhere with Android, a free, open source mobile platform. Android brings the openness that shaped the Internet to the mobile world. Not only does Android benefit consumers, who have more choice and innovative new mobile experiences, but also it opens up revenue opportunities for carriers, manufacturers, and developers.

 6. You can make money without doing evil.

Google is a business. The revenue we generate is derived from offering search technology to companies and from the sale of advertising displayed on our site and on other sites across the web. Hundreds of thousands of advertisers worldwide use AdWords to promote their products; hundreds of thousands of publishers take advantage of our AdSense program to deliver ads relevant to their site content. To ensure that we are ultimately serving all our users (whether they are advertisers or not), we have a set of guiding principles for our advertising programs and practices:

○     We do not allow ads to be displayed on our results pages unless they are relevant where they are shown. And we firmly believe that ads can provide useful information if, and only if, they are relevant to what you wish to find–so it‘s possible that certain searches won’t lead to any ads at all.

○     We believe that advertising can be effective without being flashy. We don‘t accept pop–up advertising, which interferes with your ability to see the content you have requested. We have found that text ads that are relevant to the person reading them draw much higher click through rates than ads appearing randomly. Any advertiser, whether small or large, can take advantage of this highly targeted medium.

○     Advertising on Google is always clearly identified as a “Sponsored Link,” so it does not compromise the integrity of our search results. We never manipulate rankings to put our partners higher in our search results and no one can buy better PageRank. Our users trust our objectivity and no short-term gain could ever justify breaching that trust.

 

 7. There is always more information out there.

Once we had indexed more of the HTML pages on the Internet than any other search service, our engineers turned their attention to information that was not as readily accessible. Sometimes it was just a matter of integrating new databases into search, such as adding a phone number and address lookup and a business directory. Other efforts required a bit more creativity, like adding the ability to search news archives, patents, academic journals, billions of images and millions of books. And our researchers continue looking into ways to bring all the world‘s information to people seeking answers.

 8. The need for information crosses all borders.

Our company was founded in California, but our mission is to facilitate access to information for the entire world, and in every language. To that end, we have offices in more than 60 countries, maintain more than 180 Internet domains, and serve more than half of our results to people living outside the United States. We offer Google‘s search interface in more than 130 languages, offer people the ability to restrict results to content written in their own language, and aim to provide the rest of our applications and products in as many languages andaccessibleformats as possible. Using our translation tools, people can discover content written on the other side of the world in languages they don‘t speak. With these tools and the help of volunteer translators, we have been able to greatly improve both the variety and quality of services we can offer in even the most far–flung corners of the globe. 

9. You can be serious without a suit.

Our founders built Google around the idea that work should be challenging, and the challenge should be fun. We believe that great, creative things are more likely to happen with the right company culture–and that doesn‘t just mean lava lamps and rubber balls. There is an emphasis on team achievements and pride in individual accomplishments that contribute to our overall success. We put great stock in our employees–energetic, passionate people from diverse backgrounds with creative approaches to work, play and life. Our atmosphere may be casual, but as new ideas emerge in a café line, at a team meeting or at the gym, they are traded, tested and put into practice with dizzying speed–and they may be the launch pad for a new project destined for worldwide use.

 10. Great just isn’t good enough.

We see being great at something as a starting point, not an endpoint. We set ourselves goals we know we can’t reach yet, because we know that by stretching to meet them we can get further than we expected. Through innovation and iteration, we aim to take things that work well and improve upon them in unexpected ways. For example, when one of our engineers saw that search worked well for properly spelled words, he wondered about how it handled typos. That led him to create an intuitive and more helpful spell checker.

Even if you don’t know exactly what you’re looking for, finding an answer on the web is our problem, not yours. We try to anticipate needs not yet articulated by our global audience, and meet them with products and services that set new standards. When we launched Gmail, it had more storage space than any email service available. In retrospect offering that seems obvious–but, that is because now we have new standards for email storage. Those are the kinds of changes we seek to make, and we are always looking for new places where we can make a difference. Ultimately, our constant dissatisfaction with the way things are becomes the driving force behind everything we do.

Retrieved from:  http://www.google.com/about/corporate/company/tenthings.html

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HOW DOES THE GOVERMENT STOP MERGERS?

Seal of the United States Federal Trade Commis...

Image via Wikipedia

How does the Federal Government control companies from growing too large?  Laws called “Anti-Trust” laws were enacted as early as 1890 to aid in keeping companies from growing too large and gaining too much market share.  Which leave you and me paying more for the goods or services if completion is decreased. One of the first such laws passed was called the Sherman Act.  You might be thinking well how does the Governmental body know who is trying to cut out the competition.  Two gentlemen helped with that cause Orris Herfindahl and Albert Hirschman, they created the Herfindahl-Hirshman Index or HHI.  The United States Federal anti-trust authorities such as the Department of Justice and the Federal Trade Commission use the HHI as a screening tool to determine whether a proposed merger is likely to raise antitrust concerns [increases of over 0.0100 points generally provoke scrutiny, although this varies from case to case. The Antitrust Division of the Department of Justice considers Herfindahl indices between 1000 and 1800 to be moderately concentrated and indices above 2500 to be concentrated. As the market concentration increases, competition and efficiency decrease and the chances of collusion and monopoly increase.

Here is how the HHI works; it is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.  For example, for a market consisting of four firms ( example table below) with shares of sixty four and one tenth, eighteen, thirteen and six tenths and four and three tenths percent, the HHI is 4636.26 or (64.12 + 13.62 + 182 + 4.32 = 4636.26).

Markets in which the HHI is between 1000 and 1800 points are considered moderately concentrated, and those in which the HHI is in excess of 1800 points are considered concentrated; our example of the search engine market produces an HHI of 4636.26. Transactions that increase the HHI by more than 100 points in concentrated markets presumptively raise antitrust concerns under the Horizontal Merger Guidelines issued by the U.S. Department of Justice and the Federal Trade Commission

To revisit the search engine market there are (3) companies that control 95.7% of the market while 4.3% of the market is controlled by others.  The HHI result for all the search engine companies is 4636.26. Even if one of the companies were to merge with Google, the Government would consider the search engine market concentrated.  The HHI formula can be used in any market as a guide or as an investment tool to verify if a possible merger will take place.

MARKET SHARE

%

Percentage squared
Google 64.1 % 4,108.81
Yahoo! Inc. 18% 325
Microsoft 13.6% 184.96
Other 4.3% 18.49

 Sources retrieved from http://en.wikipedia.org/wiki/Herfindahl_index

                                      http://www.justice.gov/atr/public/testimony/hhi.htm

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Can The External Enviorment Really Effect The Elephant In The Room (Google)

swot-analysis-diagram

The SWOT analysis can direct us towards many potential issues a company is likely to encounter. The “Threats” portion of the analysis is a factor that a company can not control since this is the external environment. Seeing that this author is so fond  of Google,  let’s explore how the external environment can possibly affect Google’s strategic business plan for current and future needs. There are (4) main categories to the external environment that can change a companies strategic direction- political issues, Social issues,Technological issues and finally environmental issues.

Lets explore the technological issues for the moment since Google is technologically based, there are many subcategories to the main categories ”Technology”(see graph below) for example, security and hacking issues. Google can not control what some enterprising teenagers might do to infiltrate and disrupt their confidential information or how they might share this information with the world.  Another subcategories is “changing technology”, this is developing so quickly that is an area that needs special attention. Just look at what Apple did with the iPad to Hewlett Packard in that particular market. So it is vital to keep up with changing technology or you will get left behind. Technology based companies need to be the leader such as Apple has done so many times in the past. One key driver to staying in the lead is having the appropriate budget in R & D of which is another subcategories in the chart below.  

To sum of the importance of the external environment, it is crucial to really examine these areas you have no control over and try to anticipate what the next strategic move might be or there will be consequences to face and it could be something to the effect of loss of market share, no investor will like to see that. So be cautious and plan ahead.

 

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