Google has grown significantly since its founding in 1998. It has become the dominant search engine and second largest form of internet advertising behind search-based ads. Google's business model centers around targeted advertising by matching ads to user search queries. It has acquired many companies to expand into new areas like YouTube, Android, and digital advertising. Google maintains its competitive advantage through speed, accuracy, and focus on users while generating revenue through relevant ads.

1. Case Study

2. CASE SITUATION
 Since 1994, the number of people worldwide accessing
Internet has grown considerably (360 M in 2000 to 1,5 B
in 2008).
 To read news, conduct researches, buy online…
 This growth allowed internet advertising to become the
2nd most common form used in the U.S. (search-based
ads, video ads on YouTube and mobile search are among
the largest portion of Internet ads)

3. COMPANY OVERVIEW
 Type: Public
 Industry: Internet, Computer software
 Founded: in Menlo Park, California, U.S.
(September 4, 1998)
 Founder: Larry Page, Sergey Brin
 Headquarters: Googleplex, Mountain
View, California, United States
 Area served: Worldwide
 Employees: 53,546 (2012)
 Subsidiaries: AdMob, DoubleClick, Motorola
Mobility, On2Technologies, Picnik, YouTube…..

4. GOOGLE HISTORY

5. GOOGLE HISTORY
 Google was developed in January 1996, by
Stanford university computer science graduate
students Larry Page and Sergey Brin.
 Google was named “BackRub” relating to its
ability to rate websites for the relevancy by
examining the number of back links pointing to
the site.
 Later, the two founders renamed BackRub to
Google (which means “googol” a mathematical
term of the number 1 followed by 100 zeros)
reflecting the mission to organize infinite
amount of information on the Internet.

6. GOOGLE HISTORY
 In August 1998, a Stanford professor arranged
for Brin and Page to meet with co-founder of
Sun Micro Systems, to demonstrate the search
engine. He gave them a $100,000 Check.
 By the end of September 1998, the two friends
raized a total of $1M capital from
family, friends and other angel investors, in
order to set up Google Inc.

7. USERS TRUST BECAUSE…
 Consumers are loyal to the search engine
which is the worldwide leader in Internet
and Mobile search ads.
 Google is capable to retrieve highly
relevant search results in a fraction of
seconds.

8. USERS TRUST BECAUSE…
 Manyof them find Google’s search results
more relevant than those generated by
competing search engines.( yahoo, ask..)
 The search terms-matching of Google is
highly precise.
 The objectivity of the company.

9. POSITIVE RESULTS FOR GOOGLE
 Internet users preference for Google’s boosted
the company’s net income, revenues and
profits.
 In 2008, Google control the search-based ads
market .

10. GOOGLE BUSINESS MODEL

11. GOOGLE’S BUSINESS MODEL
 Its business model is successful since the net
income of 2007 was 40 times greater than in
2003.
 Google business model generates revenue by
providing advertisers with an opportunity to
deliver online advertising, directly matched by
keyword to a user’s search query.
 Google targets its ads to specific users using the
user’s browsing history.

12. THE THREE COMPONENTS OF
GOOGLE’S BUSINESS MODEL
Search Appliance
Search technology integrated into a third party’s Web page or
intranet. It delivers accurate search results throug a number
of documents.
Google MiniSearch Appliance is designed for small business.
 AdWords
it’s Google's advertising product and main source of revenue.
AdWords offers pay-per-click advertising, and site-targeted
advertising for both text and banner ads.
 AdSense
AdSense is used by website owners who wish to make money
by displaying ads on their websites. When user click on ad
displayed on a Web page, the advertiser pays Google and
Google give percentage of that amount to the web page
owners.

13. GOOGLE ACQUISITION STRATEGY
Since 2001, Google has acquired many
companies, mainly focusing on small venture capital
companies.
 In 2006; it used some proceeds of its IPO to
acquire dMark for radio spot ads and Wrintley
for web based spreadsheets software.
 Attracted many users by acquiring YouTube
(2006)
 Acquired in 2008 DoubleClick, diversify from
search ads and to generate revenues from
banner ads.

14. THE 10 PRINCIPLES OF GOOGLE
PHILOSOPHY
 1)It's best to do one thing, and do it well:
“search”
 2)Focus on the user and all else will follow: it
does its best to provide the most relevant and
useful search results possible, with simple
interface, independent from financial
incentives.
 3)Fast is better than slow: it’s the only
company in the world who want its users to
leave its website as quickly as possible.

15. THE 10 PRINCIPLES OF GOOGLE
PHILOSOPHY (CONT.)
 4)You don't need to be at your desk to need an
answer: Google encourages users to use wireless
phones to seek information
 5)There's always more information out there:
Google indexed more of the Internet pages than any
other search engine.
 6)Make money without doing evil: Google
Provide only “sponsored link” ads. “We will do our
best to provide the most relevant and useful
advertising, without any annoying
interruption”.

16. THE 10 PRINCIPLES OF GOOGLE
PHILOSOPHY (CONT.)
 7)Theneed for information crosses all
borders: The mission of Google is to faciliate
the access to information to the entire world.
 8)You can be serious without a suit:
foster fun challenge and highly
communicative work environment
 9)Great just isn't good enough: always
deliver more than is excpected.
 10)Democracy on the web works: Google rely
on individuals posting websites to rank and
give a value to other sites.

17. GOOGLE STRATEGY AND COMPETITIVE POSITION IN
2008

18. COMPETITIVE ADVANTAGES
 Speed, Accuracy, Objectivity and Ease of use.
 Fit between their technology and the consumer
behavior.
 Page Rank technology – social network Orkut merged
 Positioned as a “Fastest Crawling Technique”
 Trade off between “Speed” & “Compression”
 Best asset utilization (Efficient storage space)
 R&D innovation ( Android)

19. SWOT ANALYSIS
STRENGHTS WEAKNESSES
• Corporate Reputation &
• Increasing costs compared to
Brand Trust
sales
• Highly skilled employees
• Dependence on advertising
• The speed and simplicity of
business
its search engine
• No other cash flow source
• Huge cash reserves
than advertising
• Profitable business model
OPPORTUNITIES THREATS
• New internet devices • Increased competition in the
• New advertising platforms search engine market
• Increase in worldwide • Privacy concerns
internet penetration increase • Business model imitators
the total user base

20. STRATEGY TO DOMINATE
INTERNET ADVETISING
 Since its IPO in 2004, Google acquisition
strategy and R&D activities  increased the
company’s dominance in the Internet
advertising.
 The addition of new features (Google Maps,
Gmail, Book, Search, Blogger, Weather, Airline
travel information…) increased traffic to the
site and gave opportunity to serve ads to
Internet users.

21. STRATEGY TO DOMINATE
INTERNET ADVERTISING
 Strategy of the company to dominate search-
based advertising on Mobile devices had been
successful (Google accounted for 63% of
searches made on Internet-enabled phones)
 The company’s introduction of the Android
O.S. for mobile phones allowed to increase the
share of mobile search & expand the market to
new Internet ads types.

22. STRATEGIC OFFENSIVE TO
CONTROL THE DESKTOP
 Google Chrome browser was launched in 2008 in
order to accommodate cloud computing applications.
 The cloud computing allowed lower software
acquisition and computing support costs, and better
collaboration among employees.
 Chrome allowed Google to defense against Microsoft’s
moves to make it more difficult for Google to deliver
relevant search-based ads.

23. GOOGLE’S INTERNET RIVALS
 The reason why Google was able to sustain its
competitive advantage is its ability to maintain
strong relationships with Internet users,
advertisers and web sites.
 Google primary competitors are Microsoft and
Yahoo.

24. THANK YOU VERY MUCH…