Why: It still sets the agenda in Web search, even as it pushes the development of Android for mobile devices.

Key innovation: Its software development process remains relatively fast even as the company has gotten very big.

Technology:

With Google’s Android mobile operating system now well established in the smart-phone market, manufacturers are set to introduce the first portable computers based on its Chrome operating system. The new OS is designed to let computers rely on the cloud, storing very little data and running very few programs locally. A cloud-based computer will require websites to load quickly, which is why Google has developed and released a free piece of software that helps optimize the performance of websites.

Market:

Google remains the dominant search engine on the Web and still collects the vast majority of its revenue from Web-based advertising.

Strategy:

In the past few years, Google has become more than just a search company. Its development of a mobile operating system and the introduction of voice calling over the Internet have allowed it to become a major force in telecommunications. This past year the company made its first foray into the television broadcasting market with the introduction of Google TV.

Challenges and Next Steps:

Despite numerous efforts, Google has been unable to establish a social-networking site or application that has caught on with users. Its latest offering, expected to debut this year and called GoogleMe or Google+1 (according to different sources), will not be a full-fledged social-networking site but a tool to facilitate social networking across Google's existing sites and applications.