Corporate Strategy - Case Study - Google

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Corporate Strategy - Case Study of Google including PESTEL Analisis - ESCP Europe

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  • 99% of the revenue comes from online advertising programs 1% license
  • The business of Google is not selling search engine or applications, it’s business is selling web advertisement. How ? Using the search traffic by displaying ads on its own product The costumers are the advertisers and publishers that what to attract people on their website
  • What’s boost the business, the more the ads are efficient and performance, the more it’s attract advertisers, the more google gets revenues. What’s makes google ads so powerful, it’s the number 1 search engine in the world so it generate lot of traffic, it rely on different support like mail and videos, it also rely on relevant ads depending on the content of the pages.
  • 99% of the revenue comes from online advertising programs 1% license
  • 2 main historical competitors are Yahoo ! And MSN that provide search engine. Bing is a search engine developed by Microsoft and integrated on MSN and Yahoo! Recently Google extend its product and play with Ebay, Amazon, Microsoft.
  • 99% of the revenue comes from online advertising programs 1% license
  • Politics can influence the adoption of new technologie, like in Europe by encourage network dvp Regulation can also block Google progression, like in China with the censoring
  • Google growth is related on one hand to his stock market which permit investments, on the other the clients number, I mean the advertiser. Forex is also a constraint with the currency €/^$
  • About Social Factors, demography is important element especially the number of internet users. The trends of user are also to take in account. Brand reputation makes people attracted by the company.
  • Google is very up to date with technology matters, the company will depend on the evolution of technologies , as well on the evolution of the Internet. Network and infrastructure are also implied The mobile phone market which is booming is also to take into account
  • Let’s finish the external environment with legislation, Privacy concerns and competition law could be threat, Here is an example with google street view where you can see people in the street, about the competition law, I mean monopoly which is forbiden in by European Commission
  • 99% of the revenue comes from online advertising programs 1% license
  • Yahoo: search engine and advertsing business Microsoft/BING: competing in the search engine, and softwares, like word, excel, office tools, emails with gmail
  • SURPRISE
  • 99% of the revenue comes from online advertising programs 1% license
  • users see google as a dependable, reliable and fast search engine. Said otherwise, it gives updated & relevant information fast Innovative products :customized homepage, gmail, agenda, google earth, google maps, online office tools, localized search, picassa, etc…
  • Weakness: investors are cautious with the management model of google , 80 PERCENT CONTROLLED BY THE TOP 3
  • Waiting for permission from US justice court concerning the creation of an online digital library ANDROID OPERATION SYSTEM
  • - in coming years with same services, better interface and can catch up Google’s market. with allowing advertisers to select certain trademarked terms as keywords - european commissionhas voted an antitrust law, to promote competition and avoid monopoly Affect the quality of their service
  • 99% of the revenue comes from online advertising programs 1% license
  • USERS LOOK FOR THE RELEVANT RESULTS – THAT’S THE MOST IMPORTANT THING GOOGLE SHOULD CONCENTRATE ON Google’s core competence is its strong search technology which gives accurate results •  Google should also put in efforts to improve its search algorithms and stop spammers from spoofing and getting their pages ranked high.
  • 99% of the revenue comes from online advertising programs 1% license
  • users would choose the one who gives most accurate search results SERVICE QUALITY It is not recommended for Google to merge with mass-market portal. Though that would help Google in securing users and advertisers but it would also harm Google’s independent growth. Google has cutting edge technology and excellent minds behind it and it should use that in providing users with 100% relevant search results. Though rival portals are coming up with strategies to handcuff users but finally. Thus, Google should keep updating its technology and services with the same simplicity and comprehensiveness as it has been providing since its establishment.
  • Corporate Strategy - Case Study - Google

    1. 1. Case Study : Google Vincent ARGENTON Gil DGHAILI Yana ILIEVA
    2. 2. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
    3. 3. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
    4. 4. Google Business <ul><li>What are they selling ? </li></ul><ul><li>Web-based advertising </li></ul><ul><li>How ? </li></ul><ul><li>Monetizing search traffic (CPC, Paid listing) </li></ul><ul><li>To whom ? </li></ul><ul><li>Advertisers </li></ul>Google makes  99% of its revenue from advertisings
    5. 5. Google Business <ul><li>What boosts the busine $$ ? </li></ul><ul><li>Efficient Ads  More Advertisers  More revenues </li></ul><ul><li>What makes Google’s ads so powerful ? </li></ul><ul><li>N°1 Search Engine </li></ul><ul><li>Diversity of ads support </li></ul><ul><li>Relevant advertising </li></ul>« 40% of all web searches have a commercial motivation  »
    6. 6. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
    7. 7. Competition « Who’s afraid of Google ? Everyone. » What are the main competitors ?
    8. 8. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
    9. 9. External Environment <ul><li>PR like Political and Regulation factors </li></ul><ul><li>Adoption of new technologies </li></ul><ul><li>Local authorities blockage (censoring) </li></ul>Organizing the world’s information might be difficult in some countries
    10. 10. External Environment « Investors expressed reservation about Google’s unusual top management trio » <ul><li>E like Economical factors </li></ul><ul><li>Stock market </li></ul><ul><li>Publisher’s numbers </li></ul><ul><li>Foreign Exchange rate </li></ul>
    11. 11. External Environment <ul><li>S like Social factors </li></ul><ul><li>Numbers of users </li></ul><ul><li>Trends </li></ul><ul><li>Brand reputation </li></ul>Internet users : 500 millions in 2003, 1 billion in 2009
    12. 12. External Environment « Google has persistently pushed the limits of existing technology  » <ul><li>T like Technological factors </li></ul><ul><li>The evolution of technologies </li></ul><ul><li>Internet </li></ul><ul><li>Network & Infrastructures </li></ul><ul><li>Mobile phones market </li></ul>
    13. 13. External Environment L like Legal factors <ul><li>Competition law </li></ul><ul><li>Privacy concerns </li></ul>Google Street View Legal threats to Google are important
    14. 14. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
    15. 15. Strategy Strategy ties the company to its environment
    16. 16. Strategy Market environment
    17. 17. Strategy <ul><li>Google’s mission </li></ul><ul><li>1 0000000000000000000000000 00000000000000000000000000000 00000000000000000000000000000000000 00000000000 </li></ul><ul><li>Google’s mission is to organize the world’s information and make it universally accessible and useful </li></ul>Company
    18. 18. Google’s strategy Google’s values <ul><li>Don’t be evil </li></ul><ul><li>Technology matters </li></ul><ul><li>It’s best to do one thing really, really well </li></ul><ul><li>Great just isn’t good enough </li></ul>Company
    19. 19. Strategy <ul><li>Resources and skills </li></ul><ul><li>Innovative technology </li></ul><ul><li>Skilled work force </li></ul><ul><li>Corporate culture </li></ul>Company
    20. 20. Strategy Key success factors Corporate Culture Innovative technology Brand Name Company
    21. 21. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
    22. 22. <ul><li>Established brand name </li></ul><ul><li>Strong marketing :word by mouth publicity is doing the job </li></ul><ul><li>User-friendly interface with display of relevant and clear results </li></ul><ul><li>Highly competent work: PHD researchers </li></ul><ul><li>Innovative products </li></ul><ul><li>A worldwide market share of 70% </li></ul><ul><li>Reliance on top management trio ? </li></ul>Strength
    23. 23. <ul><li>Marketers don’t control the cost and position of their advertisement </li></ul><ul><li>Impact of click fraud practice on the business </li></ul><ul><li>Reliance on top management trio ? </li></ul><ul><li>No marketing for many products ,users are unaware of their existence </li></ul>Weaknesses
    24. 24. <ul><li>Merging with an established mass-market portal to lock in large number of users and advertisers. </li></ul><ul><li>Becoming a mass-market portal like Yahoo and MSN, where portals contain added attractions for users. </li></ul><ul><li>Providing private search services to businesses </li></ul><ul><li>Targeting the hand held mobile devices market </li></ul><ul><li>Building the world's biggest digital library and online bookstore </li></ul>Opportunities
    25. 25. <ul><li>Emergence of many competitors, or merging of existing ones </li></ul><ul><li>Google’s advertising policy could disappoint its advertisers and start loosing many of them </li></ul><ul><li>Copyright issues </li></ul><ul><li>Privacy and security concerns </li></ul><ul><li>Antitrust and competition laws </li></ul><ul><li>Inability to adapt the infrastructure to the quick growth </li></ul>Threats
    26. 26. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
    27. 27. <ul><li>Google should continue on improving the accuracy of the search results </li></ul><ul><li>ACCURACY  MORE USERS  MORE ADVERTISERS </li></ul><ul><li>Fight spammers - Impact on search quality and accuracy </li></ul><ul><li>Resolve the click fraud issue – Impact on advertising business </li></ul><ul><li>Provide private search services to companies using its superior technology </li></ul>Recommendations
    28. 28. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
    29. 29. Conclusion <ul><li>Focus on the search engine business service quality </li></ul><ul><li>Portal business is not an opportunity </li></ul><ul><li>Reinforce its core competencies : </li></ul><ul><ul><ul><ul><ul><li>Cutting edge search technology </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Highly qualified workforce <==>innovation </li></ul></ul></ul></ul></ul>« Competition is only one click away »

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