Arin Gharibian

Genevieve DeLong
Mark Atia
Maxim Levkov
Phyllis Park
Vadim Kornilov
 Company
•G o o g l e ’ s H i s t o r y
Background

•P o l i t i c a l / L e g a l
Macro- •S o c i a l / C u l t u r a l
Environment •D e m o g r a p h i c
•T e c h n o l o g i c a l
Forces •E c o n o m i c

•P r o d u c t
Marketing •P r i c e
Strategy •P r o m o t i o n
•P l a c e

•G o o g l e F o r T h e F u t u r e
Conclusion
 Political /
Legal

Social /
Economic
Cultural

Technological Demographic
Political / Legal

GOOGLE, INC.
“I think Google should be like a Swiss Army knife: clean,
simple, the tool you want to take everywhere”
- Marissa Mayer, Vice President of Search Products and
User Experience at Google*

*Adapted from, The Google Way by Bernard Girard

Political / Legal

Political (e.g. posting of falsified information,

solicitation of votes, public opinion)

Policy (e.g. access to information)

Social (e.g. children's use)

Legal (e.g. copyright, intellectual property)

Technical (e.g. security, privacy)

Political / Legal

Net neutrality, private enterprises' act against government's attempt to impose control
over various aspects Internet information 'highway'.

Solicitation of votes

Proliferation of information

Purposeful dissemination of falsified information

Open information banks, such as Wikipedia and Wikileaks are regarded as sources of
authorative and credible detail, despite lack of accuracy and conformity.
Political / Legal

Digitization unleashes availability of information to the public with

little to no control from the owner.

Convergence of Internet to the public good in early 1990's was

intended to fundamentally remove it from the governmental funding
into private sector to allow it stand on its own feet.

Free for all, does not mean free of all laws

Google and the Internet takes the industry by the storm and
threatens the very fundamentals of copyright and intellectual
property laws.

Threats on laws that are enacted to protect against intrusion on

privacy and security.
Political / Legal

Massive digitization of books with little to no regard to the copyright aspect of works and in
consequence redefining the copyright laws.

Guarding against individual privacy, yet releasing products that expose privacy in direct violation of
privacy laws. Google Buzz, Google Maps, and other simular products.

Youtube video enables availability of media to masses in controversial political situations, while setting
agenda for the rest of the broadcast media. Such as acts of war-in the middle east or nature-in the
pacific rim, by being immediately available for consumption. Thus making broadcast media difficult to
hide truth and adding accuracy prospective to the disseminated information.

Further expansion of Internet, puts Google at the burden of compliance to variety of complicated
political and legal matters.
Political / Legal

Sensitivity to the laws of copyright in

international market place. Some countries
prohibit explicit availability of intellectual
property or copyrighted works to the public
or commercial use without owner's
permission. Thus, pushing Google into law
suits.
Social / Cultural
Demographic
Te c h n o l o g i c a l
Economic
Economic

Considering that Google is most closely

related to the online advertising industry with
their AdSense and AdWords programs, we will
now consider how this industry is influenced by
current economic trends and market dynamics.

“Advertising revenues made up 99% of our revenues in 2006 and 2007

and 97% of our revenues in 2008. We derive most of our additional
revenues from offering internet ad serving and management services to
advertisers and ad agencies, the license of our web search technology
and the license of our search solutions to enterprises.”2 -Google
Economic

These major economic trends display that right now is not the best time for
most industries, but the online search engine and advertising industries are
doing better than most, and so is Google...

Unemployment is up
and steady at around
10%

Overall consumption is down for

the past 3 years and falling!

This data was taken from another great tool that Google offers for
free: http://www.google.com/trends1
Economic

The online advertising trends and Google on the other hand are doing very well with
either steady progression or growth through the economic downturn!

Online advertising trends

are steady with slight
decreases from other
competitors while Google
is gaining the competitive
edge!

Google Stocks and

financials are growing
through the economic
crisis!

Proving that the current economic trends are not affecting Google
or the online advertising industry.
Economic

We consider that almost all the services that Google offers including the free
software and tools as well as the revenue bearing advertising programs can
be classified as having inelastic demand patterns.

The highly innovative software

that Google offers to their
“Google now controls 69% of
users are not only of the latest
online advertising market after
technology, highly effective, acquiring DoubleClick.”
and very useful, but most
importantly they are free!

Considering that Google’s

share of the online advertising
market is so high and they
don’t seem to want to stop
expanding, people will be
willing to pay top dollar for the
highly technological ad
targeting that Google offers,
which in most cases turns into
sales for most advertisers!
Even though Google has
major competitors, with their
high expansion and growth
rates they are positioning
themselves to transition from
an oligopoly to a monopolistic
leader of the online search
engine and advertising market!
Product

Simple, fast, & intuitive

Receives several hundred

million queries each day
through its search engine

Most used search engine

in the world
Product

Google vs. Bing

• Similar product
• Easy user interface
• Use comparable algorithms

Google vs. Yahoo

• Yahoo restructured website image
after Google dominated search
engine market share.
• Transitioned to a social media news
website
Product

Google’s main advertising product

and main source of revenue

PPC – Pay Per Click

Total advertising revenues were $28

billion in 2010
Product

Google Health

Google Finance

Google Mobile

Google Cloud

Google Documents

Google wants to be every part of your

digital life.
Price
Promotion

Sales and marketing expense were around $2 billion in 2008, which was
approximately 9% of total revenues.2

Sales and marketing expenses which include customer handling, sales, and
support are growing as Google expands into markets all over the world.

$266.4 million was spent specifically on advertising and promotion which is

only about 1% of total revenues in 2008!2

Google focuses mostly on its brand status, free products, and word of mouth
advertising.

Some of the advertising dollars are spent on the promotion of Adwords and
other products to online businesses looking to advertise.
Promotion

The Current and forecasted macro environmental forces will

not considerably affect Google’s promotional strategies.
• Google is currently putting a lot of focus on global expansion.

• It is important for Google to continue growing its own recognition and dominance in
other countries.

• Google has to be very careful with certain political and social differences that they are
sure to encounter in many countries all over the world.

• If they keep up with their level of innovation, technological forces will always be
something that they have under control.

• Unless online advertisers find a better way to advertise than online, Google should
keep its dominant status in the field of online search engine and advertising products.
Place
Conclusion