21 there have been reports of youtube being watched

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for this market (Rosenteel, 2013: Jan. 21). There have been reports of youtube being watched by 800 million visitors monthly with 4 billion hours of videos viewed every month and every seconds 46,296 videos are being watched and the growth has been very rapid since 2005 (Bullas, 2013: Feb. 11). 2) Test 2 – Cost of entry must not capitalize all future profits – Google bought you tube for $1.65 billion (Associated Press, 2006: Oct. 10) but You Tube has generated around 8% of Google’s value and generated $1.5 billion in revenues in 2011 alone (Trefis, 2013: Jan. 23) and therefore, it will not capitalize on all the profits 3) Test 3 – Better-off Test – Both you tube and Google are complementing each other as you tube receives the promotion on Google and Google receives promotion on you tube and the synergies are greater because the consumers are demanding for online videos.
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Test for Browser Chrome 1) Test 1 – Attractiveness of Industry – Web browsing market has become very attractive especially with the growth of internet usage on mobile phones with phenomenal growth potential by 2014 (Bosomworth, 2013: Jan. 8). Therefore, the industry is very attractive. 2) Test 2 – Cost of entry must not capitalize all future profits – Google has registered an average net profit margin of 24.4% in the last five years (Forbes, 2013: n.d) and therefore, even the costs of R&D cannot capitalize all future profits of the company since topline is also growing at rapid pace (Google, 2012: n.d) 3) Test 3 – Better-off Test – Google Browser Chrome is the second largest player in the market and has 20.12% share of the web browsing market (Kerr, 2013: Mar. 9) and browser is a complementary product to its Google website as to operate it, it is essential to have a web browser and Chrome complements it in that way. Test for Mobile Phone Operating System 1) Test 1 – Attractiveness of Industry –.With a projection of smart phone user penetration among mobile phone users projected to grow from 75% in 2010 to 79% in 2012 (E- marketer, 2012: Apr. 9), the mobile phone operating system has tremendous growth potential and therefore the industry also seems to be very attractive. 2) Test 2 – Cost of entry must not capitalize all future profits – Google acquired Android for just $50 million (Morris, 2012: Aug. 9) and therefore, the cost of entry did not lead to capitalization of all future profits.
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3) Test 3 – Better-off Test – Android is an operating system and this diversification is actually paying off Google because the company can now extend the business and the advertising revenues can be increased utilizing Android. Articulate one or more strategic issues related to Google management's ability to coordinate organizational activities and/or corporate diversification into new products. The major challenge faced by Google was whether to maintain its core business of generating revenues through Google search engine only or to focus more on other applications such as Android based operating system, Google Plus and other Google products. Google was under
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