Chapter 6: Resource and Capability Analysis
6.1 Resources
6.1.2 Intangible resource
● Technology Know-How
Alphabet’s R&D department is well-established and is continuously searching for new ideas and technologies to transform the current services and increase its
competitive advantage. (anon, n.d.) Alphabet is shown to be a leading company in the information technology industry. It has brought several market-leading products, from the smartest search engine to the Adsense browser and advertising platform.
Alphabet invests a significant amount of time, money, and effort to continually advance its technological abilities centered on increasing internet security, faster download, innovations that generate more revenues, and customer satisfaction. It also focuses on IaaS (Infrastructure as Service) to support enterprises in implementing cloud computing systems in their organizations. Youtube profited from a reduction in operational costs from technological development provided by Alphabet, and the use of PaaS (Platform as a Service) has boosted operational efficiency.
(Rodrigo, 2016).
● Youtube API
The YouTube Application Programming Interface (YouTube API) grants the ability to reclaim feeds related to videos, users, and playlists. It also provides the capability to manage those feeds, for example, creating new playlists, adding videos to favorites, and sending messages. YouTube is well-known for its user-friendly and easy to use website interface. YouTube’s website design is focused on enhancing user experiences from all the three stakeholders; user, content creators, and advertisers.
The API allows developers to access video statistics and YouTube channel data. Google describes the YouTube API Resources as "APIs and Tools that let you bring the YouTube experience to your webpage, application or device." The Players and Player APIs section identifies methods to let your users watch videos in your application and control the playback experience. You can use player parameters to customize the player's appearance and use Player APIs to control the player from
your web page or application directly. A significant benefit of YouTube's API's is that 3rd party companies can manage pay per click linked with advertising for the videos.
Therefore, it allows the video creators to receive money for the effort they have put into their videos. YouTube APIs also allow stronger integration of the video service into a 3rd party website.
Reputation
● Brand Name
Google obtained YouTube for US$1.6 billion in 2006. Analytics estimate YouTube to be worth up to US$170 billion in 2020, delivering Google a 100x return in under 15 years. YouTube ranked the 5th largest digital ad platform with a 6 percent share, after Google Search, Facebook, Google Display, and Instagram.
- YouTube carries value to its three key stakeholders:
Users: free, targeted, and relevant video content in various categories, including
entertainment, educational, tutorial, news, et cetera.
Creators: monetize video content on the platform with the broadest reach. Allows creators to focus on delivering quality content and outsource hosting and marketing costs to YouTube.
Advertisers: YouTube is the second-largest social media platform in the world with
over 2 billion monthly active users. Youtube can create brand impacts and targeted reach across a global audience. YouTube eventually aims for global viewership and monetizes by selling ads to businesses.
Rankings where listed Year Position
Best Global Brands 2020 30
BrandFinance Global 500 2020 26
BrandZ Top 100 Most Valuable Global Brands 2020 37
The Top Most Loved Brands 2020 10
Table 7: YouTube’s ranking in the year 2020
● Company culture
YouTube is one of the top companies where people want to work. Alphabet, the parent company, ranked number 1st out of 50 companies people want to work with by LinkedIn. YouTube Company Culture is described as ‘Intergalactic Explorers’.
‘Intergalactic Explorers’ refers to creative, social and innovative, and energetic. A competitive and dynamic environment that emphasizes personal achievement is an ideal culture for those who are proactive and agile in their thinking. YouTube is an exceptionally team-oriented, creative workplace where every employee has a voice to make the company’s choices. Youtube works in small teams to design, develop, and deliver key features and products in concise time frames.
● Youtube trademark Logo
Figure 8: Youtube’s standard logo
YouTube’s logo is a rounded red square with a white triangle in the middle of the square; this part is called the ‘YouTube icon.’ Beside the youtube-icon is the word
‘YouTube’ labeled on the right side. The colors of youtube logos are YouTube Red, White, and Almost black.
Figure 9: Youtube’s color code
The YouTube logo has a flexible appliance. There are two versions of the YouTube logo, the full-color Logo and almost black and white, but the middle triangle should always be white. Use the ‘almost black full-color’ Logo on a light background and use the ‘white full-color’ Logo on a dark background. If a background color makes the full-color Logo hard to see, you should use a monochrome Logo instead. The triangle mark works as a call to action, and a shorter version of the Logo is the
‘youtube icon’. Youtube allows their partners and advertisers to use the Youtube name, Logo and Icon to promote their YouTube channel or content as long as they restrict to the usage guidelines found on YouTube’s official website.
Figure 10: Youtube’s full-color logo(left) and monochrome logo(right) in appliances
6.1.3 Human Resources
● Employees
As of 2019, YouTube has 1,121 employees based at YouTube headquarters and has. Alphabet, its parent, has 85,050 employees and ranked 1st by tech companies that people wanted to work with the most in 2019. The company never retains an employee based on paper qualification but preferably on the merit of services he has provided. The organizational structure is flat where the power distance is low. HR’s policy works on ethical principles that are based on ethics (anon, n.d.). Google receives over a thousands of applications every year, considering the high rewards it offers to its workforce. In a modern way, HR managers carry out a refined recruitment process and selection based on a traditional model (Rodrigo, 2016).
● Content Creators (Partners)
Content creators are an essential aspect of the youtube business model. They are technically directly employees of youtube because the youtube company didn’t hire them. However, they are considered youtube’s human resources, called
‘partners’ since the creators are individuals, groups, and companies who provide content (video) on youtube. Youtube gives incentives to creators in the form of money.
With the average Youtube pay rate hovering between $0.01 and $0.03 for an ad view, a YouTuber can make around $18 per 1,000 ad views, which comes out to $3 to $5 per 1,000 video views.