Google marketing case

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    Google marketing case - Presentation Transcript

    1.  
    2. Problem Statement
      • Google’s future growth strategy?
      • How is Google going to deal with growing competition?
      • How is Google going to manage innovation in the future?
    3. Google Inc.
      • Mission:
      • Organize the world's information and make it universally accessible and useful.
      • Google Inc. – Founded 1998
        • Sergey Brin and Larry Page
        • PageRank
      • IPO in August 2004
    4. Situation Analysis
      • Industry
        • Massive internet industry with many competitors
        • Major competitors include Yahoo!, MSN, and eBay—all well known internet portals.
        • Huge opportunity for Google by offering paid listings and advertisement opportunities
      • Google – Q3 2005
        • 37% of U.S. search traffic
        • 68% of International search traffic
        • 60% of U.S. search-related revenue
    5. Core Competence
      • PageRank technology to index information based upon relevance
      • Google’s brand strength
      • Google’s innovative culture and employees
    6. Business Model
      • Two initial opportunities for generating revenue:
        • Search services
        • Advertising
      • Advertising products that generate majority of revenues:
        • Google AdWords
        • Google AdSense
      • Business solutions starting to grow:
        • Google Apps provide powerful tools for organizations
        • Google Search Appliance
      • Unconventional approaches for managing innovation:
        • New areas are explored, and ideas are prototyped
    7. Target Market
      • Advertisers
        • “ Google AdWords” drives qualified traffic to advertisers’ sites
      • Site Owners
        • “ Google AdSense” delivers ads targeted to relevant search results on publishing partners’ sites.
      • Businesses
        • “ Google Apps” provides simple, powerful tools for organizations without the usual hassle and cost.
        • Google Search Appliance is a scalable and secure appliance that delivers accurate search results across intranets.
    8. Products – Internet Customers
    9. Products – Business Solutions
    10. Pricing
      • Revenue is dependent on four factors:
        • Listing’s coverage rate
        • Click-through rate
        • Average cost per click
        • Revenue split (sharing)
      • In late 2003, cost per click (CPC):
        • Overture’s average estimated to be $0.40
        • Google’s average was $0.30
    11. Place & Promotion
      • Predominantly web based applications, tools, and services
      • Some downloadable desktop products like Picasa, Google Earth, Google Toolbar, and Web accelerator
      • Word of mouth from satisfied users
      • Cross-promotion strategy in some areas
    12. Strengths
      • The most efficient search engine on the Internet
      • Brand equity - most recognized brand of 2003
      • Default search engine for many
      • Innovative culture
      • Comprehensive product mix
    13. Weaknesses
      • Eccentric practices confuse and anger investors
      • Produces less relevant hits than subject-specific subscription databases
      • Poor product marketing
      • Not focusing core competency on core customers - advertisers
    14. Opportunities
      • Computer literacy is on the rise
      • U.S trend towards telecommuting and at-home-businesses
      • Increasing demand for information
      • International market
      • Expand profits with diversification
    15. Threats
      • Legal challenges
      • Specialized search engines (Gale, Lexis-Nexis, ProQuest)
      • Multi industry competition
      • Click fraud
    16. Main Competitor – Yahoo! Inc.
      • Founded in February 1994 by David Filo and Jerry Yang
      • Acronym “Yet Another Hierarchical Officious Oracle”
      • Reached 1 millionth hit in fall of 1994
      • March 1995, Filo and Yang incorporated Yahoo!
      • IPO in April 1996 with 49 employees
      • Yahoo! now services more than 345 million users
    17. Yahoo!
      • Google’s PageRank software used by Yahoo!
      • $5.3 billion and has 300 million monthly visitors
      • Offers many current products that rival Google’s
      • Ranks lower in market share compared to Google
      • Yahoo! is a portal, Google is not
    18. SPM – Google Inc. (in millions)
    19. Alternative 1: Market Penetration
      • Improve search engines
      • Partnerships to increase exposure
        • Higher number of paid listings (CPCs)
        • Higher CPC rates
      • Positives
        • Capitalize on core competencies in a known market
      • Negatives
        • Google’s large market share limits growth
    20. Alternative 2: Market Development
      • Partner or acquire other companies to enter new markets
      • License search engine to desktop applications
      • Positives
        • Additional areas for growth
      • Negatives
        • How to monetize?
    21. Alternative 3: Diversification
      • Portal – i Google
      • E-commerce
      • “ Web-ized” desktop applications
      • Positive
        • New markets for growing core products
      • Negative
        • New products = high risk
        • Could hurt Google’s reputation
    22. Recommendation: Integrated Strategy
      • Integrate core competencies into new markets and products without deviating from the mission which increases its revenue through search engine and also through Ads.
      • Positive
        • Increased exposure of core products
        • Utilize existing paid listing model
      • Negative
        • New product = risks
        • Over-exposure or under-performance
    23. Got We’ve got
    24. Google Today
      • “ We’re not competing with newspapers , we’re not competing with television stations , and we’re not competing with the Viacoms of the world, we are trying to partner with them. ”
      • Eric E. Schmidt, CEO Google
      • Business Week Magazine 2007
    25. Google Today
      • Offers many new products
        • Google Documents
        • Images, videos, news, maps, mail, calendar, blogger, orkut, products
      • New initiatives:
        • Acquired YouTube for $1.65 billion in late 2006
        • Acquired DoubleClick for $3.1 billion in April 2007—offers more marketing and advertising opportunities
        • Google OpenSocial code (LinkedIn, Myspace and more)
        • Google Open Handset Alliance (ANDROID)
    26. Google Today
      • Partnerships :
        • EchoStar and Astound Cable on a TV Ads
        • Clear Channel and New support for Google AdSense for radio ads
        • Working with Salesforce.com to give companies better tools to build their business online .
        • Partnered with Four US states (CA, Utha, AZ, Va) in bringing all the government web sites under one roof
    27. Google Today Source:

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