GOOGLE

Strategic Analysis
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.
 Google Strategy
• It’s the same as of Honda & Sony
• Both these companies have major share in
world manufacture share of Engines and
Electronic Goods
• Google wants world wide web’s major share.
 QUESTION?

• IS GOOGLE IN THE RIGHT INDUSTRY?

Let’s Analyze the Industry

The Industry Stats
 Country Analysis

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%
Global Market Share
in Search

Total search in year 2006  99.57 Bn

Google is doing 138.1 Mn search per day
Porter’s Five Forces Model for Google
Search
Supplier bargaining power :
• Supplier concentration is low
• Switching costs is low
• Threat of forward integration is low
• Importance of volume to suppliers is high

Entry barrier:
•Entry barriers due to brand
identity and scales is high
Rivalry factors:
• Few players of relatively smaller
size industry is growing at rapid Substitution threat:
•Mobile search. But due to
pace
•Product differentiation is low less sophisticated
Switching cost is low technology threat is far away
Exit barrier is low
few years
•Switching cost zero
•Informational Complexity due to •Switching cost is LOW
secrecy of internal algorithms

Buyers bargaining power:

• Buyer size/volume is very small
• Change cost/frequency is very low.
• product/service importance is high.
• Ability to backward integrate is very less.
• Price sensitivity is high
• Product differentiation is low
 QUESTION?

• WHAT MAKES GOOGLE?

ANDAR KI BAAT
 Leadership
• Dr. Eric Schmidt,
• Chairman of the Board and Chief Executive Officer
• Larry Page, Co-Founder & President, Products
• Sergey Brin, Co-Founder & President, Technology
 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 Global Presence
•21 countries at present
 Uniqueness about Google
SEARCH
• Speed, Accuracy, Objectivity and Ease of use of.
• Fit between their technology and the consumer
behavior.
• Page Rank technology – Orkut merged
• Solved the scale up problem
• Positioned as “Fastest Crawling Technique”
• Keeps the search “Up to date”
 Uniqueness about Google
• 1st to get it right advantage
• Advertisers tie up as “CPC”
• Trade off between “Speed” & “Compression”
• Best asset utilization (Efficient storage space)
• R&D expenditure = 50% Net Income(10% of
Revenue)
Strengths Analysis

Weaknesses Analysis
Have I left any QUESTIONS
unanswered?

“THE POWER OF GOOGLE IS ENPOWERMENT.”

 THANKYOU

By
Abhishek Jain