Google Plus: A Threat to Facebook?*

Issues:

» New product development
» Expansion Strategy
» Branding Strategy

Introduction

On July 28, 2011, US-based search engine giant Google Inc (Google) released the beta version of its social networking site Google+ (G+) after keeping the project a secret for more than a year. Though still in the field trial stage and available only through invitation, experts said that Google launched G+ to achieve a breakthrough in the fast growing social media space. "We're transforming Google itself into a social destination at a level and scale that we've never attempted - orders of magnitude more investment, in terms of people, than any previous project," said Vic Gundotra, Senior Vice-President of Social Business at Google.

Founded in 1998 by Stanford University graduate students Larry Page and Sergey Brin, Google was a global technology leader. The company's innovations in web search and advertising had made it one of the most recognized brands in the world. Headquartered in Mountain View, California, Google focused on search, online advertising, operating systems and platforms, and enterprise. In 2010, Google's revenue was US$ 29.321 billion . In the second quarter ended June 2011, the company generated revenues of US$9.03 billion — a 32% increase over the corresponding period of the previous year.................. ...