presentation on strategies used by google

1. Strategic Management
Presentation

2. Company Overview
MARKET
ANALYSIS
TECHNICAL
ANALYSIS FINANCIAL
ANALYSIS
Company Info
Google enjoyed a
67.7% share of all US
searches in June 2014
• Major web services
includes Gmail, Google
map, Google drive,
Google books, Google
sheets, Google docs etc.
• Google develops
android mobile
operating system and its
smart watches
• Gross Revenue of
$59.8 billion.
• Operating income
of $15.4 billion.
• Shares are worth
$570 in August
2014.
• It was founded in
September 1998
• Google.com is the most
visited website on internet
• Head quarters is located at
mountain view, California
U.S
• Google have around 114000
employees
• Sundhar Pichai is the
current CEO.

3. Summary
1999: Foundation of the company
2004: Google's IPO at $85 per share
2009: Google.com had a 65.6% share of U.S. market
2010: Share price exceeds $600 giving
a $189 billion market value
Leadership in the Search Engine industry
Paid listing evaluation system
Support to create effective ads
Making competition irrelevant
Breaking the value-cost trade off
Pursuit differentiation and low cost

4. Question 1
Google currently enjoys approximately 70% market share of US searches,
and well above 90% in many other countries.
Do you expect search business to become more concentrated
(i.e. dominated by fewer firms)?
Is search is a winner-take-all-business?
• Always been highly concentrated business.
• Google Enjoyed 67.7 % share of US searches in 2014.
• Competitor share has been Stagnant since 2004
• Google has only been growing it’s share since 2004.
• Google-opoly- going where the user goes (Chrome, Android, YouTube, Google home)
• Google is never far away from anyone
• Bing has a slight share- because of integration to Microsoft products worldwide.
• Google has created a habit.
• Inspite of complaints from advertisers publishers etc, they never stopped advertising
• It is a winner take all business. Major reasons; habit, best for paid listing, high integration.
• Only other relevant engine- DuckDuCKGO- reason; privacy focused.

5. Question 2
In renewing its deal with AOL, COULD Google afford to pay AOL
more than 100% of the revenue generated from AOL searches?
How did Microsoft maximum affordable bid for AOLs search traffic compared to Google’s?
Initially in 2002, Google was able to afford paying more than 100% of revenue generated by AOL.
In 2004, AOL contributes to 10% of the income of the search engine.
In 2005, the contribution to the earnings is even higher, helping Google to increase its influence.
We don’t know the exact figures of the bid made by Microsoft, but it is apparentthat the bid
made by Google was very intriguing.
Microsoft was looking to create new relations with AOL while Google wanted to strengthen
the older bonds.
This was a chance for Google to become an industry leader.
In the end, AOL agreed for 5% stake for Google at $1 Billion cash.

6. Question 3
Expansion is necessary to stay longer in the market
Firm has already commenced to form its desktop
E- commerce intermediary such as eBay
Currently 95% plus of Google’s revenue comes from online advertising.
How important it is for Google to pursue alternative revenue streams?
Which alternatives are the most promising?

7. Question 4
Administered by the cofounders and the Chief Executive Officer
Increased confidence of its investors and clients. Structure is extremely unique
Permits increased viewpoints. Firm promotes a spirit of togetherness
Do you view Google’s governance structure, corporate culture and organizational processes
as strength or potential limitations?
Allows the differing parity of authority inside the direction of the firm

8. Thank You