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.
 Core Products & Revenue Model
• Core Products – Search and Adwords.

• Revenue Sources -
• Contextual Ads - Adsense.
• Adwords.
• Licensing Google search.

• Approx – 10 Billions Dollars.

 Internet Advertising - 2007

Global - By E-Marketer
• Number 1 – Advertising Medium in terms of growth
rate.
• Ad spending on the Web should net out at $21.7 billion
this year VS $20.4 billion on radio.
• E-Marketer predicts that online advertising will reach
$28.2 billion next year (an increase of 30 percent)
• Online advertising will account for a nearly twice as
many dollars - constituting a hefty $44 billion market
 Internet Advertising Trend
and Predictions
Global - By Zenith Optimedia - continued

• The internet will grow six times faster than traditional

media between 2006 and 2009 and increase its share of
the ad market from 5.8% to 8.7%.
• All of the fastest-growing ad markets are in the Middle East
and Central & Eastern Europe
• These regions are growing at double-digit rates,
compensating for an under performing North America
• World Adspend to grow 5.2% in 2007, on par with long-
term trend
• Olympics, elections and football to lift growth to 6.2% in
2008.
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?

 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.
Continuous Innovation
 Biz Model

• User Info
• Social Networking
• Page Rank
• Relative Importance
• Customization
• Contextual Advertising
• competitive advantage comes from its core competencies in computer
hardware and software engineering
 QUESTION?

• WHAT IS GOOGLE PITTED AGAINST?

THE BATTLE ZONE

Competitive Landscape
Search
Competitive Landscape
Advertising
Competitive Landscape
Video Blogging
Competitive Landscape

Social Networking
 QUESTION?

• HOW WOULD GOOGLE CLASSIFY THESE

PLAYERS AND WHO ARE THE TOP
COMPETITORS?

THE BATTLE ZONE – Part Deux

 Direct Competitors
OR Complementors?
• Internet companies,
• web search providers,
• Internet access providers,
• Internet advertising companies