Google’s business Google Inc. is an international technology company that deals in internet search and advertising. The core of Google’s revenues lies within advertizing, from programs such as Google AdWords and Google AdSense. In 2003, 97 percent of Google’s revenue was attributed towards advertizing, in which AdWords and AdSense made up 56 percent and 44 percent respectively (IMD, 2003). The AdWords feature allows advertisers to pay every time their link is clicked, while AdSense allows websites on the Google network to host links to AdWords advertisers and share the revenues with the (exhibit 3). Although the search engine feature is notably web giant’s most successful program, Google has developed new products and services, acquired small technology companies or partnered with them in an effort to expand its revenue base. Strategic threats to Google The search engine industry does not have any long run entry barriers, which means new or established internet companies can enter the domain, thereby creating competition for Google. Internet portals such as yahoo and MSN offer more products and services than Google’s search engine. Like Google, MSN and Yahoo both provide links to other sites, but go a step further by displaying more information and solutions. This feature could attract more internet users, which might lead to a decrease in market share for Google. Google’s strategic alliance with portals, such as AOL, T-Online and LA Times (exhibit 3), may cause a significant lose in revenue if the contracts were to come to be terminated. Costs and benefits of going public Advantages The main advantage of going public, especially for start-ups and small companies, is the provision of the large amount capital, which could be used to facilitate expansion and growth, or even pay off debts. The capital comes at a low cost, since no interest is required to repay the investors, and the amount raised need not be refunded back to investors, unless there is a case of liquidation or bankruptcy. Another monetary advantage is the capital gains made by the founders of the company, in case they decide to sell a proportion of their holdings. The company will also be able to source for more equity at lower costs in the future, through the use of rights issues (Draho 2004). A company going public will be in a better position to assess its value since share prices reflect the financial soundness of the company. Consequently, it will be easier for a public company to use stock-for-stock options in acquisition practices, than a private company. Non-monetary benefits can also be derived, such as the publicity the company gets in the market due to the IPO, which could help the company increase its market share. The company will also be in a better position to attract and retain qualified staff and management, due to its increased size. Disadvantages Several disadvantages can be experienced by companies that go public, such as disclosure requirements. It’s compulsory for public companies to publish their financial statements for the public, quarterly and annual results, as well as details of the company’s directors. Companies are also required by law to allow for audi