Anda di halaman 1dari 19

Submitted by

Shalu Maria Paul

BCG Matrix &


TWOS Matrix

Introduction

Google began in January 1996 as a research project by Larry


Page and Sergey Brin Stanford University Ph.D. Students
The domain name for Google was registered on September
15, 1997, and the company was incorporated on September
4, 1998.
Google hosts and develops a number of Internet-based
services and products, and generates profit primarily from
advertising through its AdWords program.
The company's mission statement from the outset was "to
organize the world's information and make it universally
accessible and useful
Google runs over one million servers in data centres around
the world, and processes over one billion search requests

Why only
Google?
It came from misspelling of the word
"googol.

What does it
mean??
Agoogolis thelarge number 10100; that is, thedigit 1
followed by 100zeroes
10,000,000,000,000,000,000,000,000,000,000,000,
000,000,000,000,000,000,000,000,000,000,000,000,
000,000,000,000,000,000,000,000,000,000.

Few Figures
about.
Type Public
Traded as NASDAQ:GOOGFWB:GGQ1
NASDAQ-100
Component
S&P 500 Component
IndustryInternet,Computer software
Founded - Menlo Park,
California, U.S.
(September 4, 1998)
Founder(s) -Larry
Page,Sergey Brin
HeadquartersGoogleplex,Mountain
View, California,United
States

Revenue- US$
37.905billion(2011)
Operating income- US$
11.632billion
(2011)
Profit-US$9.737billion
(2011)
Total assets-US$
72.574billion (2011)
Total equity-US$
58.145billion (2011)
Employees -54,604 (2012)
SubsidiariesAdMob,DoubleClick,Motor
ola Mobility,On2
Technologies,Picnik,YouTu
be,Zagat

Products offered by
Google

Technology

Services

Innovation

Potential Users
Service & Products

Talks

Communicate
& Share

Docs

Translate

Business
Solution

Launched/
Released Year

Potential Users

Students
Office workers
Professionals
Elders

2006/ 3

Students
Office workers
Professionals

2005/8

Students
Office workers
Professionals

2005/ 8

Commercial
customers

AdWord

2000/ 10

AdSense

2003/ 3

Analytics

2005/ 11

Office workers
Professionals

BCG Matrix

Developed by Bruce Henderson of BCG Group in


1970s
Mainly used for Multi-product companies
Consist of 4 cells
Most renowned business portfolio analysis tool
It has two dimensions: MARKET SHARE and
MARKET GROWTH and Four Category : Star,cash
cow, Dog and Question Mark

Quadrants of BCG
Matrix
Question Marks
New in the market

Dogs
No Demand/
Outdated

Stars
All time
high
dema
nd

Cash Cows
Revenue Generation

Dog & Question


Mark

DOG
It has a small market share in a mature
industry.
A dog may not require substantial cash
because dogs have low market share and a low
growth rate and thus neither generate nor
consume a large amount of cash.

QUESTION MARK (Problem Child)


It has a small market share in a high growth
market.
Question marks are growing rapidly and thus
consume large amounts of cash, but because
they have low market shares they do not
generate much cash.
It has the potential to gain market share and
become a star, and eventually a cash cow when
the market growth slows.

Star & Cash Cow

STAR
It has a large market share in a fast growing
industry.
Stars generate large amounts of cash because
of their strong relative market share, but also
consume large amounts of cash because of
their high growth rate.

CASH COW
It has a large market share in a mature, slow
growing industry.
As leaders in a mature market, they exhibit a
return on assets that is greater than the
market growth rate, and thus generate more
cash than they consume.
Such business units should be "milked",
extracting the profits and investing as little

Cash Cow

The Search-Ad business


is Google's Cash Cow,
and at the moment makes all
the profit Google earns - they have a
very large (dominant) market share,
but over time it is a slowing market
(relative to the rapid growth of
technology
sectors
and
under
increasing
competitive
pressure).
They are thus doing what every
company is advised to do in this
position, ie to invest their surplus in
faster growing industries and so keep
up the pace. To this end their rate of
acquisition has been phenomenal, not

Question Mark

Most of Google's acquisitions tend to be in


the Question Mark camp - small market
shares but in rapidly growing markets. No
doubt the strategic thinking is that the
Google infrastructure will be able to rapidly
ramp up the growth of these small
companies. In the pst, Google has been quite
good at this, and refined the offerings before
finally launching - problem is that by and
large it hasn't worked more recently, and
many of the acquisitions have withered,
finding themselves becoming...

Dog
these are plays that lose market
share and/or the sector declines.
Google places some bets early so
the sector fizzles out, which is
fine - low cost option plays are a
creditable achievement. The
problem is when too many
Google acquisitions look like
Jaiku - it was a decent competitor
to Twitter but died as Twitter
exploded, forcing Google into
some far more high cost/high risk
plays (such as Buzz) later in the
day. Chrome could be a dog - the
browser market is mature, they
have a low market share - if the
current consumer Ad campaign
doesn't massively increase
market share then its likely to be

Star

the aim of all the acquisitions is


clearly to become Stars, those
businesses that surpass the old
business and launch Google into new
areas. GMail / Google Docs and
YouTube are the current successes but none of them make any money, in
fact YouTube would be spectacularly
bankrupt if it wasn't for massive
subsidies. And Stars have to make
money eventually - very large
services that lose money are a
millstone around any company, and
may well attract regulatory attention
for being anticompetitive. So right
now, these ain't real Stars, given
their unprofitability they are more
like black holes. So Google has to
engineer something more here.

TWOS Matrix
TOWS is the acronym for threats,
weaknesses, opportunities, and strengths. The
Tows matrix can be used to develop a set of
strategies for the company since it gives
alternate set of strategies from which to choose.
Breakdown of the strategies:
SO strategies use a firms internal strengths
to take advantage of external opportunities
WO strategies are aimed at improving internal
weaknesses by taking advantage of external
opportunities
ST strategies use a firms strengths to avoid
or reduce the impact of external opportunities
WT strategies are defensive tactics directed
at reducing internal weaknesses and avoiding

TWOS Matrix