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
Its 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 webs major share.
QUESTION?
Country Analysis
Country US China Japan Users (Mn) Usage Growth (2000-2007) 210.00 162.00 86.30 120.80% 620.00% 83.30%
India
Brazil World
42.00
39.15 1173.00
740.00%
682.8% 225.00%
QUESTION?
IS GOOGLE IN THE RIGHT BUSINESS? Lets Look at Products and Rev Model.
13.60%
53.30% 20.10%
Total search in year 2006 99.57 Bn Google is doing 138.1 Mn search per day
Substitution threat:
Mobile search. But due to less sophisticated technology threat is far away few years Switching cost is LOW
QUESTION?
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.
Googles Culture
Heart of Small Company Hands 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 caf for all employees
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
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
Value Chain
Dynamic View
Buying many sites, Opening offices in many Countries, Huge investment in R&D, Continuous investment in increasing Database Searching for various avenues, Continuous innovation, Developing people, learning new technologies
Resource Endowments
Resource Commitment
Activities
QUESTION?
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?
Top Competitors
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
Traditional ad domain Office Suites
Competitor Analysis
Google Aim To make everything free for the Virtual User.
QUESTION?
2Web Technologies Phatbits Urchin S/W Inc. Dodgeball Reqwireless Current Comm. Group Android Skia Akwan InfoTech AOL (5% stake) Internet
dMarc Broadcasting Radio Advertising Measure Map Upstartle @Last Software Orion Neven Vision JotSpot YouTube- Video Sharing Endoxon
Xunlei Adscape Video Game advertising Trendalyzer Tonic Systems Marratech GreenBorder Panoramio FeedBurner PeakStream Zenter Grand Central VOIP
5 year Performance
5 year Performance
R&D -> More than 10% increase Y/Y since 2002
Continuous Innovation, creating new products. New products every year, Need Based Positioning, Depth rather than Breadth. Ready to deal with dramatic change.
Recommendations
Diversify earnings not products
Country US Revenue % 61%
UK
Rest Of World
14% 25%
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.
Recommendations
Balance Scorecard