Google is in the information industry. In fact, its mission statement is "to organize the world's information and make it universally accessible and useful." (Google Corporate Information, 2011) The term “information industry” may seem broad because it is. Companies in this industry are large, profitable, and all offer vast product offerings. In the 90’s information was traditionally collected from search engines but today browsers, mobile phone devices/apps and email are becoming increasingly important.
For groups in the information industry, revenue primarily comes from advertisement sales. Google’s 2010 SEC filings attribute 96% of its revenue to advertisement sales (Google Investor Relations, 2011). AdWords, one of the main streams of this advertising revenue, allows businesses to purchase keywords, words or phrases related to your business. AdSense allows website and blog owners to enroll in a program that allows advertising on their personal sites. This is a clever marketing stream allowing Google to reach outside their search engine offering to practically any website or blog. Buyers in the information industry are generally happy and satisfied.
There are two primary emerging markets for 2011, both of which Google has a presence in due to past acquisitions.-first of these markets is the mobile phone/app market. Apple’s iPhone took the world by storm and led the smartphone market share until this past March. Nielsen ratings show Google’s Android (a company acquired by Google in 2005) has become number one as of March 5, 2011. (Sheenasube, 2011) Microsoft is trying to tap into the smartphone market by releasing the windows mobile platform but has seen little success. Mobile phones are becoming much like personal computers. By having a mobile phone and related software you become a point of entry source to the web and therefore increase your ability to control and collect data. Access to this market allows you enter at a lower price than a personal computer therefore gives companies the opportunities to reach more users and reach them more often. The second market is the social media market, a presence strongly held by Facebook. Google realizes how valuable social media content has become. Its search results now weigh heavily on social media mentions and presence. The Wall Street Journal article “Will Google Survive Facebook” speaks as to how Facebook just recently replaced Google as the number one most visited website. (Stewart, 2011) Facebook visitors are providing content and data at increasing speed. They are using Facebook as a point of entry into the web whereas before this was dominated by search engines like Google. Social media in 2011 will bring great competition. 2012 has the potential to have a completely different industry landscape.
The information industry has received scrutiny in social, legal, ethical, and cultural realms. In order to improve their image (many are labeled as money hungry giants), all have implemented Corporate Social Responsibility Programs. Google.org is a “technology driven philanthropy” started by Google capitalizing on its strengths in order to reach others, in both humanitarian and environmental efforts. Google Crisis Response is worth mentioning in light of recent events. This website details Google’s the Japanese response efforts.Google’s famous motto “Do No Evil” is one part of Google’s 10-part philosophy. This is another way Google tries to position itself in a different light than the industry competitors, indicating there is a way to conduct business and be profitable without compromising others. Google is constantly collecting data from content on the web to content within its cloud computing applications. There is debate as to who owns this information. The information is gathered remains a major target for hackers and other breaches. A recent article from the New York Times discusses a fine against Google for breach of privacy in France (Pfanner 2011). Google admitted and apologized for using its Latitude smartphone application to gather email, computer passwords and other information from private Wi-Fi networks without their permission. This certainly goes against the “Do No Evil” philosophy mentioned above. This time last year Google was affected by the China cyber attacks. It is possibly the 2010 attacks were just the beginning. Gmail has been affected several times in the past few months becoming intermittently unavailable. Google has released the following statement: “There is no technical issue on our side. We have checked extensively. This is a government blockage carefully designed to look like the problem is with Gmail.” We are yet to know if any information was compromised in the attacks. China continues to be threatened by Google and one can imagine the China vs. Google battle will continue in 2011.
Group 3<br />Alex, Rohan, Shelley, John, Hemali, Bryan<br />
Background<br />Located in Mountain View CA<br />Google employs more than 20,000 people worldwide.<br />Revenues and Income Growth<br />Founded in 1998<br />Founders: Larry Page and Sergey Brin<br />CEO: Eric Schmidt<br />Mission Statement: Google’s mission is to organize the world‘s information and make it universally accessible and useful.<br />
Target Market <br /><ul><li>Online web users and business advertisers </li></ul>Products & Services :<br /> Market Share<br />Source: Strategy Analytics<br />Source: Canalys<br />
Differentiation from Competitors<br />New and upcoming features<br />Strategic acquisitions <br />Strong brand and Market position<br />Robust infrastructure<br />Ultra-high speed 1Gbps broadband network<br /> Android Honeycomb <br />Nexus S <br />Google One Pass <br />Google TV<br />Google Online Magazine “Think quarterly”<br />Google Mobile Payment <br />
Information Industry<br />Google’s mission statement<br />”…to organize the world's information and make it universally accessible and useful.” <br />Buyers<br />Advertisers<br />Suppliers<br />Public (user generated content)<br />Industry Characteristics<br />
Originally search engine-focused<br />Now broadened into 2 additional markets<br />Smartphone<br />Social Media<br />State of Technology<br />
Social responsibility programs<br />http://www.google.com/crisisresponse/index.html<br />Privacy and information concerns<br />China cyber attacks<br />Google’s statement<br />“There is no technical issue on our side. We have checked extensively. This is a government blockage carefully designed to look like the problem is with Gmail.” <br />Social/legal/ethical/cultural<br />
Strategic Management<br />Google’s mission<br />organize the world’s information and make it universally accessible <br />Build or acquire strategy<br />Primary service is search<br />Acquisition helps building revenue<br />
Primary service Search<br />Ranking algorithm<br />Best locally relevant results served globally.<br />Keep it simple.<br />No manual intervention<br />Anatomy of search<br /><ul><li>Search the index
Marketing<br />Products, services, and results speak for themselves <br />Google search is website’s main source<br />Places its product higher in search<br />Recently through print and television<br />
Sales<br />Total revenue of $29.3 billion, 96 percent of which is from advertising <br />Technologies to drive advertising and sales.<br />Adwords<br />AdSense<br />Google Display<br />DoubleClick<br />YouTube<br />Google Mobile <br />
Google Enterprise Partner Program<br />Partners provide a range of services and technologies complementing Google products.<br />Google Enterprise Partner Portal<br />Provides resources for sales, technical, and marketing information. <br />Powered by the Google Apps set of technologies <br />Google Enterprise Developer Community<br />Provides set of API’s tools, tutorials, and reference documentation.<br />Alliances and Partnerships<br />
The World is Flat<br />Anti-Trust Issues<br />New Ideas<br />67% of Search market share<br />75% of Internet advertising revenues<br />97% of Revenue is search<br />Core Competency: Search<br />Expand Search<br />M&A<br />Google Earth<br />Android<br />Pending ITA Software Inc Acquisition<br />No Boundaries<br />Car Keys<br />Lost Pets<br />Waldo?<br />Acquiring and Retaining Talent is Compulsory<br />