OUTLINE Organizational Structure What’s a Google? History Facts & Figures Products & Services SWOT Analysis How Google Makes Money Reasons Behind Financial Success Google Conspiracy Recap Conclusions References
ORGANIZATIONAL STRUCTURE Top Management: Larry Page, Co-Founder & President, Products Sergey Brin, Co-Founder & President, Technology Eric Schmidt, Chairman of the Board and CEO
WHAT’S A GOOGLE?"Googol" is the mathematical term for a 1 followed by 100 zeros. The term was coined by Milton Sirotta, nephew of American mathematician Edward Kasner.Googles play on the term reflects the companys mission toorganize the immense amount of information available on the web.
HISTORY Founded at Stanford in 1996 as a research project Incorporated in 1998 with $1.1M in funding Worth $23B after initial public offering in 2004 Market Cap currently over $100B
FACTS & FIGURES Growing at a rate of 20% per month. More than 365 million visitors use google. More than 150 million queries per day. Offers search services in 28 different languages. Answered within half second.
CURRENT PRODUCTS Web Search Search billions of web pages Google Chrome A browser built for speed, stability and security Images Search for images on the web Scholar Search scholarly papers
CURRENT PRODUCT AlertsGet email updates on the topics of your choice Groups Create mailing lists and discussion groups Youtube Google plus Gmail Google map
STRENGTHS Googles speed and user friendliness Dominates online advertising market Ad Words (ads in search), Ad Sense (ads on sites) Fortune’s #1 Best Company to Work For Market Cap over $100,000,000,000 Innovative, collaborative environment
WEAKNESSES Ads still make up 99 percent of Google’s revenue High level executives jumping ship No distinct leader of trio of top management Spreading itself thin with new ventures
OPPORTUNITIES Android: first open source mobile operating system T-Mobile G1 announced, first phone built forAndroid OS Providing free mobile service using ad revenue. Make Google Chrome browser profitable Advertising on radio or billboards.
THREATS Competition from Yahoo and Microsoft Doubt about information security and user privacy Face book stealing more execs, social networking competition Copyright lawsuits Possibility of censorship
WHY HAS GOOGLE GROWN SO FAST? Customers Marketing Innovation 16
HOW GOOGLE MAKES MONEY Google makes money through Sites Revenues. Google makes money through Network Revenues. Google makes money through International Revenues
GOOGLE’S REVENUES ($US BILLIONS) 30 25 $ Billions (US) 20 MS OSB AOL 15 Yahoo eBay 10 Amazon Google 5 0 2002 2003 2004 2005 2006 2007 2008e 2009e MS OSB – Microsoft Online Systems Business Annual Calendar Year Revenues Sources: Techviser and Annual Reports 18 e - Analyst Estimates from Yahoo! Finance
AVERAGE ANNUAL REVENUE GROWTH (%) 80.0% 70.0% 60.0% 50.0% 40.0% Past 5 Years 30.0% Next 5 Years 20.0% 10.0% 0.0% Google Amazon Yahoo! Microsoft eBay Source: Yahoo! Finance Oct 2008 19
PROFITABILITY (%) OPERATINGPROFIT/REVENUES 45% 40% 35% 30% 25% 20% Profit Margin 15% 10% Operating Margin 5% 0% Source: Yahoo! Finance Oct. 2008 Based on trailing 12 months from Sept 08, except Microsoft June 08. 20
REASON BEHIND FINANCIAL SUCCESS ONLINE ADVERTISING AND PROMOTION CORPORATE OR MARKETING WEB WEB COMMUNITIES SITE CONDUCTING E-MARKETING
CONCLUSION Realistic, rational, viable business strategy Impact on IT Industry Focus Honest Brand
REFERENCES v Chaffey, D. (2007) “Google case study-covering Google business strategy and technology case”. Available from: (http://www.davechaffey.com/E-commerce-Internet- marketing-case-studies/Google-case-study/) Accessed on 12-11-2009. v Chan, J. (2007) “Google’s Acquisition Strategy” Available from: (http://fishtrain.com/2007/09/13/googles-acquisition-strategy/) Accessed on 12-11-2009 v Dwivedi, J. (2008) “Google’s robust strategy and business model”. Available from: (http://www.iproceed.com/blog/2005/02/googles-robust-strategy-business-model.html) Accessed on 12-11-2009. v Reuters (2009) “Google drives into navigation market”. Available from: (http://www.independent.co.uk/life-style/gadgets-and-tech/news/google-drives-into- navigation-market-1811289.html) Accessed on 13-11-2009 Principles of Marketing by kotler armstrong by prentice hall of india