Question: answer the discussion questions below, please and thank you LEARNING FROM MISTAKES you ask a group of students to name a successful company. Google is
answer the discussion questions below, please and thank you
LEARNING FROM MISTAKES you ask a group of students to name a successful company. Google is likely to be one of the first firms mentioned. It dominates online search and advertising, has developed a successful browser, and developed the operating system that powers 82 percent of the smartphones sold in the fourth quarter of 2016. Its Success is evident in its stock price, which rose from about $150 in early 2009 to over $525 a share in early 2015. But that doesn't mean that Google has been successful at all & has tried. One of Google's most notable fures occurred when it tried to venture outside the online and wireless markets. In 2006, Google decided to expand its advertising business to radio advertising. After spending several hundred million dollars on its entrepreneurial effort in the radio advertising market, Google pulled the plug on this business in 2009. Google sow great potential in applying its business model to the radio advertising industry. In the traditional radio advertising model, companies that wished to advertise their products and services contracted with an advertising agency to develop a set of radio spots commercials)They then bought blocs of advertising time from radio stations. Advertisers paid based on the number of listeners on each station Google believed that it could develop a stronger model is design was to purchase Large blods of advertising time from stations. It would then sell the time in a competitive auction to companies that wished to advertise. Google believed it could sellad time to advertisers at a higher rate it could identify what ads on what stations had the greatest impact for advertisers. Thus, rather than charging based on audience size Google would follow the model it used on the web and charge based on ad effectiveness. To develop the competency to measure ad effectiveness, Google purchased Marc, a company that developed technology to manage and measure radio ads, for $102 milion Google's overall vision was even broeder. The company also planned to enter print and TV advertising. It could then provide a "dashboard to marketing executives at firms that would provide Information on the effectiveness of advertising on the web, on TV, in print, and on radio. Google would then sell them a range of advertising space among all four to maximize a firm's ad expenditures However, Google found that is empt to move the radio market bumped up against two core challenges. First, the radio advertising model was based much more on relationships than online advertising was. Radio stations advertising is and advertising agencies had long-standing retionships that limited Google's ability to break into the market in fact few radio stations were willing to sell advertising time to Google Abo, advertising agencies saw Google as a threat to their business model and were utwilling to buy time from Google Second Google found that is ability to measure the effectiveness of ndio ads was limited. Unlike the case with online markets. Where could measure whether people clicked onds, the company found it difficult to measure whether listeners responded to ads. Google tried ads that mentioned specific websites that listeners could go to, but it found few people accessed these sites the end. Google was able to stadio time at only a fraction of what radio stations could get from working the traditional advertising des. This led stations to abandon Google's sado business Google found that it had the initiative to innovate the radio market but didn't have the knowledge, experience of social connections needed to win in this market Discussion Questions 1 Why did the lessons Google med in the online advertising met apply to the radio marit? 2. Radio is increasingly moving to stand soming systems. Is this a new opportunity for Google should it steeds altogether! ESTRATEGIC IMPLEMENTATION