SECTION – D (PART
– I)
Direction for
questions 117 to 120: Read the passages carefully and answer the questions given at the end
of each passage:
Number
of words in this passage : 844
The trouble started on May 4, 2004, only
days after Google’s celebrated coming out party. Geico, the giant automobile
insurer, filed a lawsuit against the search engine for trademark infringement.
The insurer claimed that Google’s advertising system unlawfully profited from
trademarks that Geico owned. Since all of Google’s revenue and growth was from
advertising, the disclosure of the lawsuit appeared ominous. “We are, and may
be in the future, subject to intellectual property right claims, which are
costly to defend, could require us to pay damages, and could limit our ability
to use certain technologies,” Google disclosed in a public filing outlining
potential risks. Abroad, where Google had promising growth prospects, similar
court challenges also arose. “A court in
To make matters worse, it turned out that prior to its IPO
filing, Google had eased its tademark policy in the
And there was more. Competition from Yahoo and Microsoft
posed a greater challenge to Google following the disclosure about its mammoth
profitability. With so much money at stake, the intensity of the competition
would heat up. Such competition might be good for computer users searching the
Internet, but Google said it posed additional risk for potential shareholders.
“If Microsoft or Yahoo are successful in providing similar or better Web search
results compared to ours or leverage their platforms to make their Web search
services easier to access than ours, we could experience a significant decline
in user traffic,” the company disclosed. In addition, google warned that its
momentum seemed unsustainable due to competition and “the inevitable decline in
growth rates as our revenues increase to a higher level.”
Then there was the question of Google’s exclusive reliance
on advertising, and one particular type of advertising, for all of its revenue.
That was potentially quite problematic. If Yahoo or Microsoft gained ground on
search, users could flock to their Web sites, and advertisers could follow.
“The reduction in spending by; or loss of, advertisers could seriously harm our
business,” the company disclosed in its SEC filing.
In the beginning, the firm earned all of its money from ads
triggered by searches on Google.com. But, most of its growth and half of its
sales were coming primarily fom the growing network of Web sites that displayed
ads Google provided. This self reinforcing network had a major stake in
Google’s successful future. It gave the search engine, operating in the manner
of a television network providing ads and programming to network affiliates, a
sustainable competitive advantage. But there was a dark side there too, because
of the substantial revenue from a handful of google partners, notably America
Online and the search engine Ask Jeeves. If at any point they left Google and
cut a deal with Microsoft or Yahoo, the lost revenue would be immense and
difficult to replace. “If one or more of these key relationships is terminated
or not renewed, and is not replaced with a comparable relationship, our
business would be adversely affected,” the company stated.
Google’s small, nonintrusive text ads were a big hit. But
like major television and cable networks, which were hurt by innovations that
enabled users to tune out commercials, the company faced the risk that users
could simply turn ads off if new technologies emerged.
Going public also posed a potentially grave risk to Google’s
culture. Life at the Googleplex was informal. Larry and Sergey knew many people
by their first names and still signed off on many hires. With rapid growth and
an initial public offering, more traditional management and systems would have
to be implemented. No more off-the-shelf software to track revenue on the
cheap. Now it was time for audits by major accounting firms. As Google’s head
count and sales inceased, keeping it running without destroying its culture was
CEO Eric Schmidt’s biggest worry.
Google, the noun that became a verb, had built a franchise
and a strong brand name with global recognition based entirely on word of
mouth. Nothing like it had been done before on this scale. The Internet
certainly helped. But Google’s profitability would erode if the company were
forced to begin spending the customary sums of money on advertising and
marketing to maintain the strength of its brand awaeness. Marketing guru Peter
Sealey said privately that the advice he gave Google to study consumer
perception of the Google brand was rejected by the company and that they were
unwilling to spend money on marketing.
117. Which of the following statement is true?
(A) Google’s
growing popularity has been a threat to other players operating in that market
segment like Yahoo and Ask Jeeves, as Google eroded their market share.
(B) According
to Google its decision to considerably
relax its industrial design policy in the
(C) One
of the major challenges for Peter Sealey has been to expand the Google Empire
while keeping its existing internal work culture inact.
(D) Google's
business potential is likely to be threatened seriously if the capacity,
accessibility and quality of the Web search offered by its competitors like Microsoft
or Yahoo becomes superior than the same offered by it.
Explanatory note:
Option A is incorrect. Refer to para
5, lines 6 – 8.
The shift has reference to trade
mark policy and not to industrial policy. Hence option B is incorrect.
Option C is incorrect – Refer to
last 3 lines of the last paragraph
Only option D
is stated in para 3, lines 4 – 6. (If Microsoft or Yahoo………..) Choice (D)
118. Which of the following Statement is false?
(A) Google has been potentially vulnerable to external competition owing to
its exclusive reliance on advertising for resource generation.
(B) By
writing the "the noun that became a verb", the author indicates the growing popularity of the search
engine.
(C) "non-intrusive"
in the current passage refers to the advertisement format that does not
directly hamper or distract the flow of operation of the person working on the computer.
(D) The
legal dispute between Google and automobile giant Geico during May 2004 centered
on the advertising system and the trademark policy adopted by the latter.
Explanatory
note:
The use of the word ‘latter’ which refers
to Geico in the sentence makes option D erroneous. It is Google, which adopted the
trademark policy. Option A is true. Refer to paragraph 4. Option B is also true
– Refer to the first two sentences of para 8, words like recognition’, ‘strong
brand name’ point to its popularity. Option C is true. Refer to paragraph 6.
Only option D is false. Choice
(D)
119. What conclusion can you form about
'Altavista' from the passage?
(A) It has been a partner of Google.
(B) It has been a Competitor of Google.
(C) It
cannot be concluded from the passage.
(D) It
was a partner of Google initially, but later emerged as a major competitor.
Explanatory note:
‘Altavista’ finds no mention in the
passage. Choice
(C)
120. Which of the following sentence is false?
(A) Google
has not been keen to undertake any major analysis on the popular impression
about the Google brand.
(B) Google's
resolution to provide the search engine and programming to collaborators like
America Online ensured significant revenue for both sides involved.
(C) Google's
perceived concern over Intellectual Property issues in the passage has been
quoted from a confidential company report.
(D) With
increase in the volume of Google's total annual revenue, it was anticipated by
the management that the annual growth rate of their business may decline.
Explanatory note:
Sentence C is false. Refer to
paragraph 1, lines 8 – 9 Google’s concern was disclosed in a public filing. So
it is not from a confidential company report.
Option
A is true – Refer to the last para.
Option B is true – Refer to para 6 –
lines 6 – 8.
Option D is true as found in para 3
last 2 lines Choice
(C)