Tag Archives: hedging business risks

Major Search Engines have little to fear

Global recession wouldn’t impact the search business on part of the major search engines, as their business is diversified and spreaded across the Globe. The Google chairman last week has confirmed this. They are not afraid off US recession and economic slowdown. Search engines are operating currently vigorously in the major growing and emerging economies like India, China. This could be a great opportunity to hedge the business risk against slow growth rate of the economy. Anticipating the recession, Fed has taken a good step in reducing the rate of interest successively to 2.25 percent to boost the spending and investment level. More spending will lead to more online search behavior, more purchasing and selling and so bigger search business in turn. The reverse is true also.

Business profitability will be aggravated more in the countries like India where ample opportunities lie in the nature of diversities in terms of religion, language, and geography. Newer product development according to market research made it possible to cater to the different segment of the economy. But caution should be taken to mitigate the downside risk. Global economies are interlinked and any bad news there is US will instantaneously percolate among the other economies. So Search strategist should take care of this aspect of financial crisis in their upcoming algorithm.

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