Data Driven Business Model

Company name:
Key sources:
Source #1:
Source #2:
Source #3:


Question 1:

  • Value proposition: Google’s value proposition helps business owners reach many customers who search for their products. Marketers are only required to pay when prospective clients click on a link that directs them to the seller’s website. That way the site of the advertiser gets more visitors, and consequently online sales increase. Importantly, a company can target its adverts to prospective buyers in certain cities or countries (“Get Your Ad”).
  • Value architecture: Google’s value architecture defines how the company adapts to the evolving external environment and how effectively it manages its resources. The firm promotes innovation to maintain a competitive edge in the current business landscape (“Business Strategy”). The organization’s strategic plans lean toward investing in initiatives that have high impact on growth and sustainability.
  • Value network: The intense recruitment process at Google ensures that all the people at the organization are experts in their field. What is even more important is that the company’s culture promotes collaboration and fosters innovation, allowing these workers to share information and ideas with each other (“13 Reasons”). The organization benefits from this pool of talent and knowledge by attaining great productivity.
  • Value finance: Google makes the largest proportion of its revenues from adverts. Business owners are willing to pay the company to have targeted customers visit their websites. The advertising revenue generated by Google’s parent company was $32 billion in 2018 (Shaban). The organization has gained the trust of marketers as an effective medium of quickly reaching prospective buyers of their products or services.


Question 2:

Google offers free email and online search services to attract many users. The company leverages the large volume of data it receives from these people into a huge revenue stream. The organization uses information about users’ search habits, status updates, or product choices to display targeted advertisements (Goldman). The firm uses deep learning and artificial intelligence to gather data that enhances understanding of its users and then market to them (Tran).

Question 3:

  • Volume: Google leverages the volume of its users to create value for advertisers. Because many people use the company’s online search engine, advertisements can be targeted to reach people looking for the products or services that sellers offer. The firm uses artificial intelligence to detect the location of users and then show appropriate marketing messages (“Big Data”)..
  • Velocity: Google is concerned with how fast its systems generate and process data. The company has created artificial intelligence capabilities to quickly mine useful data from sources such as computing devices, social media websites, and application logs (“Big Data”).
  • Variety: Google considers and analyzes a wide variety of data, including videos, images, emails, and audio. The company has developed capability to enhance seamless evaluation, mining, and storage of different formats of information (“Big Data”).

Question 4:

Google enables innovations to stir sustainable growth and profitability. The company does not seem to rely on a primary value-harvesting strategy because the market for its products still expands. The firm’s current tendency is to allocate resources to reinforce its strengths and improve its product offering (Kolodny). Continued value creation rather than a value-harvesting strategy is expected to create more growth opportunities.

Question 5:

  • Value source(s): Google can focus on acquisition of growing businesses that can help market more effectively to its millions of web users. Some of these firms can bring new technologies and capability that would enable Google to generate higher revenues from marketers.
  • Example #1: Google’s acquisition of Looker, a business intelligence company, is intended to strengthen service delivery.
  • Example #2: To grow its advertisement business, Google purchased YouTube to increase its user base and generate more income from companies spending on marketing via online video channels.

Work Cited
“13 Reasons Google Deserves Its ‘Best Company Culture’ Award.” Forbes, 8 Feb. 2018, Accessed 24 June 2019.
“Big Data Analytics.” Google Cloud, Accessed 26 June 2019.
“Business Strategy.” Google Careers, Accessed 24 June 2019.
“Get Your Ad on Google Today.” Google Ads, Accessed 24 June 2019.
Goldman, Jeremy. “How Companies Like Amazon and Google Turn Data into a Competitive Advantage – And How You Can Too.” Inc., 19 Mar. 2018, Accessed 24 June 2019.
Kolodny, Lora. “How Google Parent Alphabet Invests in Start-ups.” CNBC, 17 Aug. 2017, Accessed 26 June 2019.
Shaban, Hamza. “Google Parent Alphabet Reports Soaring Ad Revenue, Despite YouTube Backlash.” The Washington Post, 1 Feb. 2018, Accessed 24 June 2019.
Tran, Kevin. “Google is Capitalizing on AI in marketing.” Business Insider, 12 July 2018, Accessed 26 June 2019.