Introduction
Issues raised by Machiavelli in his “The Prince” are applicable to Google business as portrayed by its successful brand and profitability. Machiavelli elaborates that nothing makes a prince more popular than innovation. Google has proven to be very reliable and user-friendly to those who carry out their searches using its search engine.
Competitors can only be driven off in disgrace for failing to meet the standards that Google has developed for about a decade. Google has to maintain high profit margins to finance innovation. Machiavelli states that the prince needs to make large profits to gain the ability to venture into greater enterprises. Machiavelli states that a firm must appear humane.
Google holds the first position, with other three firms, on having the best reputation for CSR. In the study, consider the subjects as the customers, an attack as a competition, and the armies as the strategies. Machiavelli described that is better to be loved by the people than to build fortresses, and Google has achieved this requirement.
Google’s history
Google’s history fits Machiavelli’s description of a man who becomes a prince. Sergey Brin and Lawrence E. Page gained experience in running BackRub, which gave them an advantage in developing a better search engine. Machiavelli explains, in regard to Hiero the Syracusan, that “whilst he had endured much trouble in acquiring, he had but little in keeping” (26).
Machiavelli (26) discusses how Hiero had to build new alliances and armies to sustain his reign. Google built its reputation and expertise for many years, but afterwards it has dominated the industry. It is an advantage to Google because it has gained experience dealing with problems as they arise.
Innovation and reputation
Machiavelli (107) considers that nothing makes a prince more popular than innovation. Google selects a few of the best products to develop. Its products, such as YouTube, provide the user with a wonderful experience.
Machiavelli explains that innovations need to keep “the minds of the people in suspense and admiration, and occupied with the issues of them” (108). It means that a prince ought to venture into activities that bring him glory. Google’s products have been warmly received by the masses. It is an advantage to Google because it will always surpass consumer expectation.
Sforza upgraded his rank from a private man to a prince. Machiavelli (67) elaborates that a firm ought to be competitive at all times, through the story of Francesco Sforza. Sforza’s sons became private men by neglecting martial arts (competitive strategies). Google has remained dominant through commitment to continuous improvement.
Machiavelli discusses that Ferdinand of Aragon’s (Spain) inventions were done “in such a way that men have never been given time to work steadily against him” (108). Machiavelli (108) describes a successful prince, who dominated the others through innovation. The prince created a technology gap between himself and his competitors. It is advantage to Google because it will take competitors time to develop similar abilities.
Customer experience
Google cares a lot about customer experience, even though it would like to maximize profits by posting as many advertisements as possible. Machiavelli (87) points out that a prince ought to avoid being hated and despised at the same time.
Google has avoided to be hated by customers due to being strategic rather than aggressive on posting advertisements. It is a disadvantage to Google because it cannot maximize profits, according to the available space.
Google has been able to compete successfully against Yahoo and Bing by focusing on the user preferences. Provided that the prince “is an excellent man, and revered by his people, he can only be attacked with difficulty” (Machiavelli 88). It will remain difficult to cut Google’s market share because it is highly preferred by the customers.
Machiavelli (10) elaborates that a disease is difficult to detect during the early stages, but easy to cure. Google uses CPC (cost per click) model to receive benefits (Kim par. 1). It may be considered as an early treatment for a disease that may favor Google against competitive pricing.
Machiavelli (106) implies that is better to be loved by the people than to fortify the city against external factors. It is better to impress the customer than to rely only on unique products. Unique products can be considered as fortresses.
Machiavelli, when referring to Germany, explains that “a prince who has a strong city, and not made himself odious, will not be attacked, or if any one should attack, he will only be driven off with disgrace” (49). In Google’s case, new entrants are discouraged because of the investment needed to capture part of the market share.
Machiavelli (49) discusses that Germans had a habit of keeping enough food supplies to last a whole year. Attacking the Germans would take a lot of time because the lack of supplies is usually what drives people out of besieged cities.
Consequently, Google has kept its system updated to offer everything that the customer may need at an affordable rate. Competitors can only be driven off the market for failing to meet Google’s standards, which is an advantage to the firm.
Google’s products
Gmail grew rapidly because it filled a gap that Yahoo lacked. Machiavelli describes that the one having come up with new methods “has for enemies all who have done well under the old conditions and the lukewarm defenders in those who may do well under the new” (24). The popularity of Gmail is an advantage because it appears attractive as a marketing agent.
Machiavelli (24) explains that the difficulty in acquiring a new territory comes from the application of new methods and their security. It is difficult and costly to create new technology, but it provides a lasting competitive advantage. Google filled a gap in consumer demand that Yahoo failed to address. Machiavelli (24) uses different stories to show that it is necessary to meet consumer preferences.
In the story of Cyrus, Machiavelli claims that “it was necessary that Cyrus should find the Persians discontented with the government of the Medes for him to give them relief” (24). Satisfying the discontent of people gave the great rulers ease in leading the people. It is advantageous to Google to foresee emerging trends, and satisfy them before competitors.
Google in China
Google.com would have been more successful in China if there were no interference by the authorities to control the content accessible to the Chinese. Machiavelli explains that “for although one may be very strong in armed forces, yet in entering a new province, one will always need the goodwill of the natives” (4).
Google entered China when it already had a good reputation. The censorship in China worked against Google, which made Google to apply the Machiavelli’s concept in governing cities by their own laws.
Machiavelli provides three options. The first is to “ruin” that country, which Google applied by operating from Hong Kong. However, it failed because the Chinese authorities slowed the pace of the searches, making it less preferred by users. The second is to reside there in person, which Google applied (Machiavelli 20).
Google applied the third concept as well, which states that the prince “is to permit them to live under their own laws” (Machiavelli 20). Google permitted China to live by its own laws by forming Google.cn specifically for China. It is different from Google.com.
The people in China can have a fast speed search engine similar to the one found in other countries due to Google.cn, which withdraws information that the Chinese authorities may consider offensive (Fox News par. 4). It is a disadvantage to Google because it cannot standardize its products in China.
Reliance on other firms
The Android system may appear like the kingdom of France from Machiavelli’s point of view. Machiavelli (18) contrasts the Turkish kingdom with France. France had lords under the king, which made it easier to access power once one had made deals with the lords, and eliminated the king. The Turks had only a king, and no other hierarchy below him.
In the Turkish system, it was difficult to access power. Once accessed, one would have a stable kingdom. Examples of a Turkish system include Gmail and Google Search. Their operations do not rely on other firms. The advantage they offer Google is reliability during intense rivalry.
The French kingdom involves using the lords to access power. The prince will have an easy access because he only needs to eliminate the king (Machiavelli 18). Google using the Android system and other firms fits the description of the French kingdom. It offers an advantage to Google because it creates easy access to new markets.
Google relying on other firms to use the Android system creates an easy access to more smartphone and tablet users. The firms are compelled through contracts to set Google as their default search engine. Machiavelli explains that “such men can open the way into the state and render the victory easy, but if you wish to keep it afterwards, you meet with infinite difficulties” (18).
Machiavelli seems to state that a firm should learn to win the customer directly, instead of relying on other firms to access the market. Google has been compelled to attack the French kingdom with the smartphones’ segment, while the PCs’ segment is attributed to a Turkish kingdom. The French Kingdom, to Google, has the disadvantage of being unreliable in times of intense rivalry.
Profitability
Google has to maintain high profit margins if it has to remain dominant. Machiavelli (76) discusses that a company needs to make large profits if it is to venture into greater enterprises. The prince would not be able to carry out new developments without increased liquidity. Increased liquidity is an advantage to Google’s operations.
Google’s net income, between 2004 and 2013, increased 32 times when its revenues increased 18 times (Google Inc. tables). Net income increased at a higher rate than revenues. Machiavelli (76) claimed that without high profits it would be easy for the prince to be despised. Machiavelli (76) examines two stories. Pope Julius II was known for liberality, only before he ascended into power.
The King of Spain was known for meanness. Liberality refers to the action of a prince to tax his subjects at a lower rate, in order not to offend them. Meanness refers to the aggressiveness of a prince in collecting taxes.
The King of Spain was able to carry out new enterprises as a result of higher tax revenues his men collected (Machiavelli 76). On the other hand, Pope Julius II changed from liberality to meanness, soon after becoming the most powerful man in the Roman kingdom.
The vast tax revenues enabled the pope to wage war without reviewing tax rates, which may have caused people to rebel in the times of war (rivalry). Higher profits have allowed Google to invest more in R&D and develop new products. Google has been able to make acquisitions that have strengthened its strategies.
Low prices can make it difficult for a firm to survive in an industry. Lower prices may be used for entry into a new market. As Pope Julius II used liberality to access power, but changed once he began to rule (Machiavelli 76). A company has to develop superior products, so that it can charge higher prices.
A business that depends on low prices is likely to have low profit margins, unless it relies on the economies of scale by selling large quantities of its product. Machiavelli explained that “nothing wastes so rapidly as liberality, for even whilst you exercise it you lose the power to do so, and so become poor and despised” (76).
It means that when a prince has not acquired wealth, he will lose his ability to remain liberal. A firm that has supernormal profits has greater ability to invest in other new projects. Google’s profits have grown at a rapid rate. It is an advantage to Google because the firm may fortify itself through product differentiation.
Corporate Social Responsibility
Google has to appear caring by spending some of its earnings on a few selected community programs. Machiavelli mentions that the prince ought to appear to the public as “altogether merciful, faithful, humane, upright, and religious” (85). Google is ranked first among the companies that treat their employees well. It is also at the top of companies that care for the communities (Smith par. 20).
Machiavelli (38) gives examples of kings who reigned without glory because they used a lot of cruelty to be rulers. Giovanni and Oliveretto da Fermo were strangled one year after gaining leadership through cruelty (Machiavelli 41).
A good CSR reputation is advantageous to Google because customers would like to be associated with a firm that cares about humanity. Machiavelli (42) elaborates that a cruel leader is vulnerable to both internal and external attacks.
Conclusion
Google will remain dominant, provided that it is admired for its innovation. Machiavelli suggests that innovation can be more successful if competitors require a lot of time to reach the same level. Reliance on mercenaries can weaken a prince’s position in times of war. Mercenaries are unreliable during intense rivalry.
The high profitability of the firm is sustainable if the firm uses it to venture into new enterprises that provide fortresses. Google recognizes that customer experience is more important than relying on individual products. It is good to be loved by the people. Google recognizes that CSR is just as important as religion. Machiavelli emphasizes the importance of appearing religious.
Works Cited
Fox News. Google Challenges China Censorship with New Tool. 2012. Web.
Google, Inc. n.d. Investor Relations. n.d. Web.
Kim, Larry. The War on ‘Free’ Clicks: Think Nobody Clicks on Google Ads? Think Again! 2012 Web.
Machiavelli, Nicolo. n.d. The Prince. n.d. PDF file. 2014. Web.
Smith, Jacquelyn. The Companies with the Best CSR Reputations. 2013. Web.