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red by global economic crisis have placed risks on Google advertising revenue accomplishments. Google ‘s business model is an online advertising model by generating revenue almost wholly from distributing related, useful online advertising. Statistically, advertising revenues was 99% of Google’s total revenue in 2007 and 97% in 2008 and 2009 (Google Inc, 2009). The economic slowdown has encouraged online advertisers to restrict advertisement spending. Consequently, the “average cost-per-click” made by the advertisers fell as advertisers have tightened advertisement costs in reaction to the global economic recession. Additionally, advertisers have reduced their bids on keywords due to the lessening in sales through “per paid click.” Accordingly, if key advertisers decrease or stop displaying advertisements on Google due to financial budget concern, the negative damage on Google business and revenues could be severe and fatal. For instance, even though Google web sites and Google Network members’ advertising revenue has grown from increasing paid clicks on advertising projects, the ads revenue was also offset by decreasing “average cost –per-click” reimbursed by advertisers to a large extent (Datamonitor,2009).

 

Social and cultural risks

 

Social and cultural trends upon growing public awareness towards personal privacy and identity security issues have certain risks. These risks are particularly confronted by information technology based corporations, like Google. Applying these risks to the Google case, the risks are data privacy and security issues. Google’s success has been developed significantly through brand identity and reputation. To preserve and uplift the Google brand is vital for global expansion on end user, advertisers, Google Network members and other business partners. As a result, the exposure to data privacy and user security will affect unfavourably on Google business operating outcome and financial results and ultimately damage Google brand image (Google Inc, 2009). For example, the company invented the “street view function” for Google Maps and Google Earth, proposing 360 degree street-level city views and authorising users to view chosen cities’ and surrounding urban areas. This invention has lead to some privacy issues. For instance, the mayor of North Oaks, Minnesota complained Google has broken the “trespassing ordinance” in the city. Similar issues in culture and privacy can result in harmful impact on its brand reputation, which will further affect its growth (Datamonitor, 2008).

 

Technological risks

 

The launch of new technology is required for an innovative company. The new technology will come with lots of intellectual property, like patents, trademarks, and copyright and in order to protect the exclusive technology. However, if the outside situations are out of control, they will pose threats or risks to intellectual property. To take Google as an example, any important harm to Intellectual property (IP) rights could hurt Google’s business. For example, Google’s multinational operations could 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。