GOOGLE

GOOGLE
STRATEGIC ANALYSIS
Jyoti Sharma
Kanika Sharma
Kanik Mandhotra
Kanupriya Rathore
Kesar Singh
 Google
• Introduction
• Company Profile
• History and Product
• Google Strategy
• Google Issue in China
 About Google
• "Google is now the most dominant search
tool on the web, setting the standards
that others try to follow and better, as
yet unsuccessfully“
• "The search engine and the company
grewquickly through word of mouth,
initially with regular web users
comingacross the tool and finding the
results to their liking"
 How old is Google
• In September,1998. Google Inc.
opened its door in Menlo Park CA
• Answer 12 year
• Google's original homepage had a
simple design since its founders were
not experienced in HTML, the
language for designing web pages
• The Vision
To make search engines so powerful they would
understand "everything in the world".

• The Mission
To organize the world's information and make
it universally accessible and useful.

• The Focus
Google continues to focus on innovation and on
the user experience
 Leadership
• Dr. Eric Schmidt,
• Chairman of the Board and Chief Executive Officer
• Larry Page, Co-Founder & President, Products
• Sergey Brin, Co-Founder & President, Technology
 History
• The company was founded by Larry Page
and Sergey Brin, often dubbed the
"Google Guys",while the two were
attending Stanford University as Ph.D.
candidates. It was first incorporated as a
privately held company on September 4,
1998, and its initial public offering
followed on August 19, 2004.
 Financing and initial
public offering
• The first funding for Google was an
August 1998 contribution of US$100,000
from Andy Bechtolsheim, co-founder of
Sun Microsystems
• Google's initial public offering (IPO) took
place five years later on August 19, 2004.
The company offered 19,605,052 shares
at a price of $85 per share
 Acquisitions and
partnerships
• In 2004, Google acquired Keyhole, Inc
• Google bought the online video site
YouTube
• In 2005, Google partnered with NASA
Ames Research Center
• Google entered into a partnership with
Sun Microsystems
 Inorganic Growth - List of
Google acquisitions
2004 2005 2006 2007 2008

2Web Technologies dMarc Xunlei

Phatbits Broadcasting– Adscape – Video
Urchin S/W Inc. Radio Advertising Game advertising
Dodgeball Trendalyzer
Reqwireless Measure Map Tonic Systems
Current Comm. Group Upstartle Marratech
Android @Last Software GreenBorder
Skia Orion Panoramio
Akwan InfoTech Neven Vision FeedBurner
AOL (5% stake) JotSpot PeakStream
-Internet YouTube- Video Zenter
Sharing Grand Central –
VOIP
Endoxon
Global Market Share

Country Users (Mn) Usage Growth

(2000-2007)
US 210.00 120.80%
China 162.00 620.00%
Japan 86.30 83.30%
India 42.00 740.00%
Brazil 39.15 682.8%
World 1173.00 225.00%
 Google Products (>60)

Web Communication &

Standalone
Search publishing
Applications
Maps 3D Warehouse
AdWords Editor
Ride Finder Blogger
Gmail Notifier
Analytics Calendar, Docs&
Hello Pack
Directory Spreadsheets
Photo Screensaver
Google Mini Dodgeball
Picasa
SMS FeedBurner
Secure Access
Search Mash Gmail, Orkut
GTalk
YouTube
SketchUp
Advertising Reader
Desktop Extension
AdSense Mobile Products
Blogger Web
AdWords Blogger Mobile
Comments
Audio Ads Calendar
Browser Sync
Click-to-Call Gmail
Dashboard Widgets
Grants News
Send to Phone
TV Ads iGoogle
Toolbar
Reader
Maps Mobile
 Google
Strategy
 Google Strategy
• Google Inc. is a single-product-line
business search engine technology.
• Google strategy on the micro level is the
allocation of a company’s resources in
such a way that will take advantage of
profit opportunities outside of domestic
market
• Google wants world wide web’s major
share
Core Products & Revenue
Model
• Core Products
– Search and Adwords.
• Revenue Sources
- Contextual Ads - Adsense.
• Adwords.
• Approx – 10 Billions Dollars.
Requirements for a global
strategy are:
• Analyze your capabilities.
• Define export potential of product.
• Identify best foreign markets for
product.
• Use available government assistance.
 Philosophy of Google
• Focus on the user and all else will follow.
• It's best to do one thing, and do it well.
• Fast is better than slow.
• Democracy on the web works.
• You don't need to be at your desk to need an answer.
• You can make money without doing evil.
• There's always more information out there.
• The need for information crosses all borders.
• You can be serious without a suit.
• Great just isn't good enough.
 Google’s Culture
• Heart of Small Company
• Hand’s on contribution to the Products by each
employee
• Flat Hierarchy
• Each employee having several responsibilities in
different departments
• Hiring Policy
– Non Discriminatory
– Preference of ability over experience
• Multilingual company environment
• Multidomestic culture
• Recreation along with work
• Common café for all employees
Uniqueness about Google
• 1st to get it right advantage
• Trade off between “Speed” &
“Compression”
• Best asset utilization (Efficient
storage space)
• R&D expenditure = 50% Net
Income(10% of Revenue)
 Biz Model

• User Info
• Social Networking
• Page Rank
• Relative Importance
• Customization
• Contextual Advertising
Continuous Innovation
Value Chain
 Dynamic View

Buying many sites, Searching for various

Opening offices in many avenues, Continuous
Countries, Huge investment innovation, Developing
in R&D, Continuous people, learning new
investment in increasing technologies
Database

Resource Resource Activities

Endowments Commitment
 SWOT
ANALYSIS
Strengths Analysis
Weaknesses Analysis
Threats Analysis
 Common Opportunities
• BRIC Countries
•Computer literacy is on the rise
•Telecommuting and at-home-businesses growth
•Mobile technologies offer another opportunity.
•Cheaper global telecommunication costs open new markets

Google Yahoo Microsoft

Traditional ad domain Other Software Pay Per Use office
Office Suites Apps. Internet Ads
 Recommendation
• Search : Competition from both big web companies
and well-funded startups will force Google to remain
focused on continuing to innovate in search.
• Contextual Ads – Continue good work
• Other Ad formats - With Google clearly intent on
spreading its advertising platform to the offline
world, go for more acquisitions.
• Video – Continue Good work. Consolidate position.
• Social Networking – Acquire other players.
• Office Suite – Continuous R&D
 Recommendations

• Be Multi-domestic company
• Find new sources of revenue.
• Continuous Innovation is the key to
maintain dominance in such an
aggressive environment.
• Concentrate on BRIC nations.
GOOGLE ISSUE
IN CHINA
Google China is a subsidiary of
Google, Inc., the world's largest
Internet search engine company.
Google China ranks as the number 2
search engine in the People's
Republic of China, after Baidu.
 Contents
• History
• Business
• Controversies
• Operation
 History
• Google China was founded in 2005
• Google's Beijing based office was initially
located at NCI Tower.
• In 2005, a Chinese-language interface was
developed for the google.com
• In Jan 2006, Google launched its China-
based google.cn search page with results
subject to censorship by the Chinese
government.
• In Mar 2009, China blocked access to
Google's YouTube site.
• In Jan 2010, Google announced that
they and other US tech companies
had been hacked and that Google is
no longer willing to censor searches in
China and may pull out of the country
• On June 30, 2010, Google ended the
automatic redirect of Google China to
Google Hong Kong
 Business
• Google China serves a market of
mainland Chinese Internet users that
was estimated in July 2009 to
number 338 million. This estimate is
up from 45.8 million in June 2002.
• Google China has a market share in
China of 29% according to Analysis
International
 Operation
• On January 12, 2010, Google
announced that it was "no longer
willing to continue censoring" results
on Google.cn.
• The Chinese government has since
made numerous standard and general
statements on the matter, but has
taken no real actions.
 Controversies
• According to official statistics, google.com
was accessible 90% of the time, and a
number of services were not available at
all
• Google uncovered a highly sophisticated
and targeted attack designed to steal
information from its Gmail service of a few
human right activists advocating for
freedom of speech in China and at least 20
other large companies
• The comment says
(a) it’s a principled stand on human rights;
(b) a response to poor business performance;
(c) a lack of confidence in the prospects for
the Chinese economy;
(d) a risk management decision to underline
its commitment to the integrity of the
‘internet cloud’ in the face of Chinese
hacking
 Market Share in ASIA
• China was one of the largest Asian
markets where Google was creating
inroads
• 50% searches in Japan, 8% in Korea
and 27% in Taiwan.
• in India, company has a remarkable
record of having 88% market share
THANK YOU