Strategic Management and Business Policy :
Case Study

Google Case Study was written in
2005

All case questions
have already been answered

This is what I will present you today...

1998 : Garage Day
• Larry Page and Sergey Brin
accept a $100,000 check
from Sun Microsystems
incorporate Google Inc. on
Sept. 7.
• The Stanford University
graduate students work
from a garage in Menlo
Park, Calif., for six months.

First version of Google.com

1999: VCs feel lucky
• AltaVista, Excite, Lycos, and
Yahoo dominate Internet
search, but Google scores
$25 million in its first round
of venture capital funding,
which values the startup at
$100 million.
• Google moves out of its
garage to an office building
in nearby downtown Palo
Alto.
Credit : Business Week

2000: The word is AdWords
• Google indexes more than a
billion Web pages to become
the world's largest search
engine.
• In June, Yahoo inks a deal for
Google to supply its search
results for four years
• In October, Google launches
AdWords, which sells text-
based ads next to search
results.
Credit : Business Week

2001: Adult supervision
•Eric Schmidt replaces co-
founder Larry Page as chief
executive in August.
•Annual revenue: $86.4
million
•Profits: $6.99 million
•Employees: About 250
Credit : Business Week

2002: AOL chooses \"the
champ of search\"
• AOL Time Warner COO Bob
Pittman chose Google as
their search provider.
•Annual revenue: $439
million
•Profits: $99 million
•Revenue growth: 409%
•Employees: About 500
Credit : Business Week

2003: Start making AdSense
•Google introduces AdSense
in June to deliver ads to
third-party sites.
•Annual revenue: $1.47
billion
•Profits: $106 million
•Revenue growth: 234%
•Employees: About 1,300 Googlers celebrate AdSense ,
rumors of an IPO heat up and analysts estimate that
Google is worth up to $25 billion.
Credit : Business Week

2004: The IPO of the decade
•Google goes public on Aug.
19 at $85 a share.
•By the end of the year,
Google's stock spikes to
$195.
• Annual revenue: $3.19
billion
•Profits: $399 million
•Revenue growth: 118%
•Employees: 3,021
Credit : Business Week

2005: Power player
•Google spars with the
software giant in court over
the hiring of a former
Microsoft executive, Kai-Fu
Lee , to run Google's China
operations
• Annual revenue: $6.14
billion
•Profits: $1.47 billion
•Revenue growth: 92.5%
•Employees: 5,680
Credit : Business Week

2006: The Google of video
• Google spent $1.65 billion for
its largest acquisition to date:
YouTube, an 18-month old
video-sharing site
• Google also strikes a three-
year, $900 million deal to run
text-based ads on MySpace
• Annual revenue: $10.6 billion
• Profits: $3.08 billion
• Revenue growth:: 72.8%
• Employees: 10,674 founded by Steven Chen and Chad Hurley
Credit : Business Week

2007: A tale of two
workplaces
• Google acquired ‘DoubleClick’
(online ads company) for $3.1
billion.
• Stock price hit an all-time high of
$741 in November.
• Annual revenue: $16.6 billion
• Profits: $4.2 billion
• Revenue growth: 56.5%
• Employees: 16,805
Google tops Fortune's Best Company
to Work For rankings
Credit : Business Week

2008: Taking on Microsoft
• Google also strikes a search
partnership with Yahoo, which
Microsoft also wanted.
• Google launches its own Web
browser, Chrome.
• Revenue: $10.6 billion (first half
of 2008)
• Profits: $2.56 billion (first half
of 2008)
• Revenue growth: 39% (full-year
estimate)
• Employees: 19,604 (as of June Credit : Business Week
30)

How big is Google today?
General
Ford Motors
Motors
$11bn $7.5bn
Google $138bn

99% of Revenue come from
Advertising

BIG Steps

Google Map Location-awareness

Google Chrome

Google Search Appliance

Google Mobile
Competitor of iPhone , Symbian , Windows Mobile