Overview of company
Goggle Inc. is a Delaware company that provides search engine services and a broad range of internet services and products including; cloud computing, search engines optimization, and sales of software products. Google Inc. has its headquarters in Mountain View, California and is undoubtedly the worlds’ most successful Multi-cooperation since it incorporates the development of technology to the changing demands of consumers in the provision of services. The company’s search engine service is the fundamental source of revenue and bears the Google trademark. Despite the company’s superlative position in the market, Google face potential risk of market competition, fragmented Application owners’ attention and adamant consumers.
Product pricing and competition
The concept of product and service pricing integrates the variable of strategies to equate the cost of input visa vi the benefits of sales. Product pricing at Google compounds affordability to consumer while, delivering quality services and products that meet the needs of clients and expands beyond their expectations. Google maximizes the potentiality of the product pricing concept through market analysis to predict the future changes in consumer demands and the possible entry of competitors. Cognizant of the implications of faulty analysis and predictions in the technology markets, market relays on past analysis of Form 10-k and benchmarking from companies that offer similar products concerning their product pricing concepts (Bloomberg Business, 2016).
Risk assessment on product pricing and market competition
Google is a company that offers unique services and products in a world that technology services are continuously developing, and demands are unprecedented. Therefore, the company's fundamental risk base revolves around the notion of a market competitor, regulations and changing demands of suppliers that tend to alter the product and service pricing. First, the company operates in a crowded market with numerous companies offering similar products and services including; Microsoft, and Apple. All these companies and other unprecedented newcomers into the technology market affect the consumers loyalty whereby, they tend to divide the market base. Further, the competitors’ device products and services that perform a similar function as that of Google but at a relatively lower price. Such bottle-neck competitive strategies have compelled Google to lower the prices of some of their products and services or risk losing control of the market (Bloomberg Business, 2016).
Further, the unprecedented changes in consumers' demand also determine the product pricing at Google Inc. For instances, the company develops and sales applications, or buys applications from developers and in some cases integrates Apps modes into their services. However, some applications might face out quickly in consumers taste and preference forcing Google to restructure their pricing and in most circumstances; the prices are lowered to instigate quick sales and clear stock backlogs. These affect the equilibrium in financial input and projected benefits for the company. For example, Google company Inc signed agreements with Android developing companies such as Apple to integrate its Applications in one Appstore in 2012, but the deal could not be sustained three years later due to continues financial increase demands from the Android companies (The business Journals , 2016).
Audit approach and test control strategy
Google Inc operates a unique kind of business; hence, the compounding risks on product pricing and market competition. However, the company employs a comprehensive audit approach that integrates substantive financial testing to input estimates in all projects, deals and proposed sales. Further, the company relays n valuation accuracy assessments that are done through expertise in auditing departments so as to validate the revenue collection and profits from sales. Through the two approaches in auditing, Google has been able to sustain the challenge of product and services pricing instigated by competitive companies and changing market conditions thus, remaining a force to reckon in the technology and internet industry (The business Journals , 2016).
Bloomberg Business. (2016, March 14). Google US. Retrieved March 15, 2016, from Bloomberg Business: http://www.bloomberg.com/quote/GOOG:US
The business Journals. (2016, March 14). Company Profile Google Inc. (GOOG). Retrieved March 15, 2016, from The business Journals: http://www.bizjournals.com/profiles/company/us/ca/mountain_view/google_inc/15435