Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers many online tools and platforms including: Gmail, Maps, and YouTube. Most of Google’s web-based products are free. They are funded by Google’s highly integrated online advertising platforms AdWords and AdSense. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing them with a rich source of information. “Instead of trucks and assembly plants, Google’s supply chain is made up of fiber networks, data centers, switches, servers, and storage devices.” Three main things that Google worries about is the relevancy of results, speed of search, and the cost of executing a search query.
Amazon is an electric commerce company that is based in America. It is a leading global internet company and one of the most trafficked internet retail destinations worldwide. Amazon directly sells, or acts as a platform for the sale of, a very broad range of products, including books, music, videos, consumer electronics, clothing, and household products.
In January, Google reached an historic landmark with a $200 billion market cap. The only U.S. companies with larger market caps are Exxon Mobil, Microsoft and Wal-mart. Market capitalization is a measurement of business value based on share price and number of shares outstanding. It generally represents the market’s view of a company’s stock value and is a determining factor in stock valuation. I believe that Google is worth more in stock value because they provide more services to consumers and it’s more readily available.
Savitz, Eriv. Jan. 4th, 2010. Google Market Cap Nears $200 Billion, Tech Trader Daily. Retrieved Sept. 8th, 2010. http://blogs.barrons.com/techtraderdaily/2010/01/04/google-market-cap-nears-200-billion-apple-close-behind/
Malik, Om. Dec. 4th 2007. Google’s Infrastructures is Its Strategic Advantage, GigaOm. Retrieved Sept. 7th, 2010. http://gigaom.com/2007/12/04/google-infrastructure/
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