The Strategy

The Strategy of the Google is to acquire the maximum number of

shares of the search engines and it seems they have successfully
executed this strategy.
Reason of unrest: Ever growing technology, Market competition,
People who use net very frequently and finally the end users.

Need of elasticity while establishing a new product or service
Deadlines for tasks completion
Reply to the original text has to be made within very short spam of
time
Establishment of new product in series
Production set up Model, Idea
Need to test the new products which are developed.

Analysis of the Googles industry

The Industry Stats

Country Analysis
Country
US

Users (Mn) Usage Growth

(2000-2007)
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%

The products and Revenue Model of

Google

Google Products
(>60)
Web
Search
Maps
Ride Finder
Analytics
Directory
Google Mini
SMS
Search Mash
Advertising
AdSense
AdWords
Audio Ads
Click-to-Call
Grants
TV Ads

Standalone
Applications
AdWords Editor
Gmail Notifier
Hello Pack
Photo Screensaver
Picasa
Secure Access
GTalk
SketchUp
Desktop Extension
Blogger Web
Comments
Browser Sync
Dashboard Widgets
Send to Phone
Toolbar

Communication
& publishing
3D Warehouse
Blogger
Calendar, Docs&
Spreadsheets
Dodgeball
FeedBurner
Gmail, Orkut
YouTube
Reader
Mobile Products
Blogger Mobile
Calendar
Gmail
News
iGoogle
Reader
Maps Mobile

Core Products & Revenue Model

Core Products Search and
Adwords.

Revenue Sources Contextual Ads - Adsense.

Adwords.
Licensing Google search.

Approx 10 Billions Dollars.

Internet Ad in the year 2007

In advertising medium the growth rate of Google is at the
peak.
people are spending more over the internet ad
rather then any other medium and this can be
seen that $21.7 billion has been spent over the
internet ad as compared to $20.4 which has been
spent for the radio ad.
According to the many predictions there will be a drastic
increase in the online advertisement till the next year
and the estimate increase is of 30 percent.

Internet Advertising Trend

and Predictions

Global - By Zenith Optimedia

The recent trends and predictions of

internet Advertising
considering the growing trend of
advertisement it can be predicted that the
internet advertisement will increase 6
times as compared to any other media and
share of the ad market will also increase
rapidly between the year 2006 and 2009.
The fastest growth in internet
advertisement has been seen in the middle
east and eastern and central Europe.

Global Market Share in

Search

13%

14%
53%

20%

Googl
e
Yahoo
MSN

Total search in year 2006 99.57 Bn

Google is doing 138.1 Mn search per day

Porters Five Forces Model for

Google Search
Supplier bargaining power :
Supplier focus is quite low
Switching costs is low
Threat of forward integration is low
Volume does play an important role
to suppliers

Rivalry factors:
Entry barrier:
Entry barriers due to brand
identity and scales is high

less players, small size industry

and growing rapidly
Product differentiation is low
Switching cost is low
Exit barrier is low
Switching cost zero
Informational Complexity due to
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

Substitution threat:
Mobile search is considered
to be the biggest threat in the
coming years
Switching cost is LOW

Google and its uniqueness

Google provides the best speed, the
most accurate information and the
most effortless use of the search
engine. Moreover their search engine
is always up to date to provide the
best possible and the most relevent
information.

Continuous Innovation

Biz Model

User Info
Social Networking
Page Rank
Relative Importance
Customization
Contextual Advertising