Google Corporate Overview- Past and Future


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A corporate backgrounder and overview on Google’s current and future business trends and their impact on the company and its competitive industry- look for Google Presnetation under my slideshare profile

Google Corporate Overview- Past and Future

  1. 1. Corporate Communication AC 413 Term Project Professor Linda Finnerty Tomer Melman May 9th, 2011A corporate backgrounder overview on Google’s current and future business trends and their impact onthe company and its competitive industry.
  2. 2. TABLE OF CONTENTSIntroduction.................................................................................................3Google Industry description, Domestic and International operation andbusiness Challenges.................................................................................4-7Development, trends and impact in the competitive industry.................8-9The Mobile industry Trend – “The Power in Every Pocket”.................9-10Still a Niche but Growing....................................................................10-11Competition, Service, Products and content Leaders..........................11-13Google’s Corporate Communication........................................................13BIBLIOGRAPHY................................................................................14-15 2|Page
  3. 3. INTRODUCTION:Covering an ongoing company which is yet to accomplish its core goal is almost an impossibleeffort. The countless developments, trends, and innovations in the online/technology industryand with Google in particular will make this paper current only about 5 minutes from the point ithad been completed. At this moment when I’m concluding the bibliography and conducting finaledits to the paper, I received 21 Google related news alerts and 2 updates on new serviceimprovements by Google to my mobile Smartphone via one of its real-time news products.Though it’s almost midnight right now and most of Google employees are not in their offices, Ihave learn from the various interviews I conducted with some of Google’s employees thatGoogle doesn’t start at 8Am and ended at 6Pm of the same day. Google is found in their head 24hours a day 7 days a week, and not because they been expected to, but because they want to.Google great success found in its innovation and its innovation comes from its employees whichare the blood which runs in the body of this amazing company. Behind every service or productfound numerous dedicated top of the line employees which came up with the idea, develop it,market it, sales it, maintain and constantly improve, in order to deliver a better, faster, andsimpler usage experience to its costumers.And if you don’t believe me, Google it… 3|Page
  4. 4. GOOGLE INDUSTRY DESCRIPTION, DOMESTIC AND INTERNATIONAL OPERATION AND BUSINESS CHALLENGES Founded by two Stanford University Ph.D. students, Larry Page and Sergey Brin, Googlethe, search engine (originally created under the name BackRub) takes it is name from a play onthe word Googol- the number 1 followed by 100 zeros, a reference to the huge amount of dataonline. Google’s designated mission was:” To organize the words information and make ituniversally accessible and useful.” However, as time past Google expand its dominance todifferent field beyond its designated mission.In the process of achieving its first ongoing goal, today Google operates the leading and mostaccurate search engine with an outstanding online search [1] market share of 65.4%, almost triplethen its search engine industry competitors such as Yahoo’s 17.4%, and Microsoft’s searchengine sites which hold about 11.1% of the online searches activity. While there are many components to Google success when it comes to its search enginesuccess one of the key reasons is its unique PageRank technology which offering targeted fastand quality results from billions of Web pages. Having those features under its belt is directlyconnected to its financial success and popularity. Google generating most of it is revenuethrough its ad sales, which allow advertisers to deliver relevant ads targeted to search queries orWeb content. Although Google’s Flagship product is with no doubt its internet search &navigation services its touch many other fields and industries then the common person wouldknow. Google spread its operation throughout a variety of platforms and subsidiaries whichmany of them are the leading website in their category. Under Google business umbrella foundwebsites and services such as YouTube, a video-sharing website, and DoubleClick, an onlineadvertising provider. In addition to its subsidiaries Google provides Web portal services such as 4|Page
  5. 5. Webmail (Gmail), blogging (Blogger), and photo sharing (Picasa). Other tools Google offersinclude an online image library (Google Images), general news stories (Google News), financialnews (Google Finance), interactive maps (Google Maps), comparison-shopping services (GoogleProduct Search), Interactive TV platform (Google TV), its counter product to Microsoft’s officesoftware, Google’s free web-based word processor, spreadsheet, and presentation (Google Docs),and this is only a partial highlight of some of its 60 plus current products and services. Google isalso engage in the Web browser business with its Google Chrome browser which been advertiselately via a new sophisticated television ad featuring on its “faster then” features. Catering everypossible need via billions of computer screens, the Google experience goes out beyond thetraditional online usage patterns. Reacting to the change in the online usage consumer behavior,the mobile market didn’t slip from Google’s eyes and in fact been one of its main focuses duringthe past years. As part of its goal of entering and gaining power in the mobile industry, Googledeveloped the Android operating system (operates software and online applications mainlytargeted for mobile devices which compete with Microsofts Windows system), along withreleasing the Nexus One, Google’s First Smartphone. More recently Google is expected torelease it is flight search tools which is part of it is $700 million acquisition of the flight searchsoftware maker ITA. The technology industry demands constant innovation, and Google has been nothingshort of relentless in its efforts to develop or acquire new services and products in order to stayahead of some of its U.S based rivals such as Yahoo! and Microsoft. Even though Google’s U.Soperation has been accounted for approximately 48% of it is revenue in 2010, as a onlinecompany which is one of the biggest and strongest resident of the global village we live in, itbeen constantly increasing it international operation in order to lead and exceed it rivals by 5|Page
  6. 6. maximizing the other 52% of Google’s revenue which found in the world wide web outside ofthe U.S “online borders”. Beyond “Uncle Sam land” Google face many cultural and governmental barrier alongwith an aggressive competition from both its U.S based and international rivals; while it holds arespectful international online reach providing products and services in more than 100 languagesin more than 50 countries, regions, and territories, Google faced a blizzard of controversyEuropean countries. In Germany Google acknowledged it had been recording information fromunsecured wireless networks this along with other privacy matters lead to broader challenges inEurope as regulators in France, Germany and Italy said they would examine whether Google andApple violated privacy rules by tracking the location of users. Those any other controversies maylead to many restriction moves to both companies which may cost a portion in revenue. Theprivacy and censorship obstacles have decrease its revenue and dominance preventing Googlefrom offering its full ability of its products. In many countries such Australia, Egypt, France,Libya, Russia, South Korea, Turkey, United Arab Emirates, and Venezuela many of the onlineoperation and services are being censor by the government a factor which prevent manycompanies and Google in particular to offer the Google experience. While countries such asAustralia and France which only conduct s prevention on the way that Google collect its usersinformation, in other countries which found in the Enemies of the Internet List such as Cuba,Iran, North Korea, Saudi Arabia, Syria, Uzbekistan, Vietnam, and one of the most important andalmost unreachable country – China, where the some of the service of companies such as Googleand Facebook is only available through a third party websites which makes the profit of theonline traffic. China has been the market which many of the online tycoons such as FacebookApple and Google been trying to crack and sink its dominance. In the fourth quarter of 2010 the 6|Page
  7. 7. value of the Chinese search market reached $585 million, nearly doubling from a year earlier.China’s online population increased 19.1 percent in 2010 to 457 million users, with nearly 82percent of them using search engines in order to conduct different online activities. With thismarket value, personal visits in the Chinese nation of CEO’s such as Mark Zuckerberg,Facebook’s CEO, president, and founder, makes a perfect sense as part of his and othercompanies’ efforts to strengthen or improve the business relation with that region. Consideringthe fact that China represents a full 20% of the worlds population, dominating its market can bea key factor toward increasing every company international reach and overall revenue, which isone of the Google’s key efforts. Not like in the U.S where Google holds a strong presences in the search engine market, inChina Google Chinese website came only third with about 17% of the search engine marketshare followed by, while on the top of the search engine pyramid sits the almostabsolute Chinese market leader with 75.5% of search engine uses in the third quarterof 2010. The challenges does not found only with its Chinese competitors, more than any othercounty in the Enemies of the Internet list in China Google’s activity is subject to manycensorship and limitations which are set by the government as part of its control in what itcitizens can read, search, and discuss. After a long feud with the Chinese government over thesecensorship issues, in 2010 Google and China reached a compromise, and Google beganpublishing a link on it is government approved ".cn" domain ( to an uncensoredwebsite based in Hong Kong ( 7|Page
  8. 8. DEVELOPMENT, TRENDS AND IMPACT IN THE COMPETITIVE INDUSTRY Google set it is focused on improving the ways people connect with information byconstantly creating and building products which improve and simplify people lives around theglobe. Similar to it is competitors Google following the business pattern of expanding it is reachto different industries as possible, collecting online behavior informational patterns in order todeliver more accurate and suitable results to each one of it is service users while maintainingstrong dominance and primarily focus in main key areas such as: search, advertising, operatingsystems and platforms, and enterprise. Nevertheless Google and its industry competitors shiftmany of their resources and attention toward constant growing trends such as the mobileSmartphone’s industry by making their variety of services and applications compatible to thedifferent devices which found in the market. While Google offer many services and productswhich interact with diverse industries and competitors such as Apple and Facebook, on thecorporate level Google still believe that it number one rival is the software giant Microsoft. "Wehave a competitor called Microsoft," he said. "Microsoft has more cash, more engineers, moreglobal reach. We see competition from Microsoft every day." Eric Schmidt. Despite the fact that Microsoft primary industry found in the Computer SoftwareDevelopment Tools, and Operating Systems and Utilities Software it wide spider nets spreadover many of Google’s key markets and revenue pipes such as the search engine and mobileindustry. The big reverie among the two corporations have been widely expressed by numerousnew innovative products and services which been presented constantly by both Microsoft andGoogle. In October 2006 Google released Google Docs, web-based Word processorSpreadsheets, and by 2007 added their own Presentation and Form applications to the Google 8|Page
  9. 9. Docs application. With unique sharing and collaboration features Google made a remarkable bitein the “Holy” and almost absolute services of Microsoft the Microsoft office software, one of thecomponent of Microsoft strongest revue channel. The two giants rivalry does not stop in theplatforms and services segment, more lately both companies along with many other gives moreattention to the mobile phone industry, one of the most growing market trends.THE MOBILE INDUSTRY TREND – “THE POWER IN EVERY POCKET” “Today the vast majority of the world’s population has access to mobile phones, and overtwo billion people are connected to the Internet. Sergey Brin and Larry Page Founders’ LetterGoogle 2010 Annual report While advertising revenues made up 96% of its revenues in 2010, Google drift lots ofattention toward the behavior changes in the way people search for information and conduct theirdaily online activities. In recent years there have been a dramatic increases and change on theway people access and search for information as a result of the growth in popularity andaccessibility of new devices such as smartphones, netbooks, tablets, video game consoles, andsmart television devices. In the search to appeal to the growth of the mobile market and lack ofits brand presence, in January 2010 Google released Nexus One, Google’s Flagship Smartphone,which manufactured by HTC and uses Google’s operating system the Android; At the same yearMicrosoft has released its own but not first (Microsoft’s first Smartphone, Windows CE PocketPC OS, was released in 2001) Windows Phone 7 Smartphone which brought together many ofMicrosoft’s popular features from its other platforms, including Xbox, Zune, Office and Bing.Continually capitalizing on advertising a risky move at the time was made by on May 2010 when 9|Page
  10. 10. Google acquire AdMob, a privately-held mobile display ads technology provider, for $750million. Though many have been skeptic in regard to AdMob acquisition, it is forecasts thatGoogle would generate the investment of its acquisition by 2014 and will reach a $6 billon inrevenue by 2020. Further Mobile efforts by Google include Google Voice, freetelecommunications application service by Google, which gives its users one number for all theirphones, voicemail, free US long distance, low rates on international calls, and many other phonefeatures. This move is only one step among many which been done by Google in order toincrease the presence, image, and service of the Google brand in the market. Although thoseinnovative and strategic moves strengthen the Google brand, its facing a tough competition fromsoftware developers companies, such as Microsoft and Apple, and other mobile applications asusers had been increasingly accessing content and e-commerce sites using mobile applicationswhich built in to the operating system of the device. Pattern which decrease Google searchnumbers, product usage, and its advertiser exposure. STILL A NICHE BUT GROWINGAfter the disappointment of the 3D TV’s as the next big thing more companies set their attentiontoward the Smart TV, an interactive way to capture people needs and daily online usage intotheir TV sets. Among the different companies which engage in this new innovative platformfound known companies such Philips, LG, Panasonic, Samsung, Sony Toshiba along withdifferent platform providers such as Internet@TV by Samsung, Vudu by Wal-Mart, Apple TV,Yahoo! GoTV, Mediaroom by Microsoft, and Google TV which is part of a business partnershipwith Sony, Intel and Logitech. The concept of the Smart TV is that each TV has built-incomputer processors and operating software so the TV sets can be tailored with applications 10 | P a g e
  11. 11. similar to computers and Smartphone’s. By offering a Google Smart TV Google could increaseits future reach and synchronize its platform while offering their consumers to shop, surf theWeb, check the weather and traffic, set up customized news pages while having a variety ofsocial networking, photo and video sharing, using the different Google products. Though thisscenario sounds like a interactive utopia, Google is experiencing a not so welcoming greet frommany of the cable and content providers. ABC, Hulu, NBC, and Viacom all blocked Google TVdeceives from accessing it programs and content. Rather if it’s an act in order to protect fromlowering its advertisement rating or just an effort in order to earn time, Google will need to finda solution as the Smart TV will increase in demand and availability. COMPETITION, SERVICE, PRODUCTS AND CONTENT LEADERSOne of Google’s big success in the last few years have been when it entered to the internetbrowsing industry by releasing Google Chrome, Google’s web browser. With a unique approachand a great focus on core values of providing a fast, simple, and secure browser . In less than 3years since its release Google Chrome receive great reviews and a high usage of over 120 millionpeople increasing its market share to 11.9% and climbing to the third place follow by MozillaFirefox and Microsoft’s Internet Explorer. Not like Google Chrome and Apple’s Safari bothMozilla and Internet Explorer experience a decline in their market share, possibly due to anincrease activity of both Apple and Google in the mobile, and tablet industries. With no doubtthe rising of Google browser popularity is connected to its aggressive marketing campaign whichinclude embedded ads on its web pages and as mention previously a new sophisticated andentertaining TV commercial. Still Google is far from its competitors who enjoys theircompetitive lead which base on their business flagship elements and on their long time presence 11 | P a g e
  12. 12. in the market. Apple’s products which have a strong presence in the computer, phone, and tabletsmarket have the competitive advantage of tailoring most of its services and software’s such as itsinternet browser, Safari, in its products as default choice. Microsoft on the other hand enjoys thesame competitive advantage with their explorer and the Microsoft windows operating systemalong with the advantage of being in the market for many years compare to Google which willcelebrate its 13th birthday on September of this year. This competitive advantage allow bothApple and Microsoft to be stronger in certain categories, however, Google continue to makeefforts to shrink those gaps by different market activity. One noticeable move which may be thebirth of a new product category is the soon to come Samsung Alex, Google’s notebook, which isthe commercial version to Google’s Cr-48 beta notebook that was unveiled last year. A successof Google’s notebook may have a direct affect on it other products and services as the notebookwill most likely to be introduce with most of Google’s services and products as a default option.With a wide products portfolio Google face a difficult struggle in almost every portion of itsbusiness. Beyond competition from web information providers Google face competition withspecialize search engines and e-commerce websites such as Kayak, a traveling search engine,, and EBay as many consumer may skip the use of Google and go directly to thecompeting website in order to conduct their search and business.In the Social network industry website such as Facebook and Twitter play a growing rule forproduct or service referrals rather than seeking information via Google or any other searchengine, people use links which their friends post of links which found on companies Facebookpages. Additional competition to Google comes not only from the different industry companiessuch as Apple, Yahoo, Microsoft, or Facebook. Google’s main revenue comes from itsadvertising solutions and services meaning that one of the ways to increase its revenue is by 12 | P a g e
  13. 13. receiving a greater spenditure from those who already advertise with Google services. Thoseadvertisers also engage in the traditional methods of advertising such as newspapers, magazines,billboards, radio, and television. Doing a better job, delivering good results and revenue to thoseadvertisers may cause by favoring and spending more money with Google over the othertraditional forms. GOOGLE’S CORPORATE COMMUNICATIONGoogle main communication method to it investors, consumers, and media is conducted , Google’s main website and via, Google’s investorrelations website, in addition as required by publicly traded companies Google file and releaseAnnual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Proxy Statements to theSEC and to its investors website, in addition Google is also conducting annual meeting for itsstockholders. Other communication forms include webcast of earnings calls and events whichGoogle participate in or host with the members of its investment community. Additionally,Google provide notifications of news or announcements regarding its financial performance,including SEC filings, investor events, press and earnings releases, and blogs as part of itsinvestor relations website. Investors and others can receive notifications of new informationposted on Google investor relations website in real time by signing up for email alerts and RSSfeeds. On top of all Google communicate with its users using official Facebook page), along with (Google Tweeter page), on (Google LinkedIn page), and using its official blog 13 | P a g e
  14. 14. BIBLIOGRAPHYOnline  Google Inc.  Microsoft Corporation  Google’s view on the future of business: An interview with CEO Eric Schmidt Eric_Schmidt_2229  Googles Biggest Rival is Microsoft: Schmidt  The Google Way: Give Engineers Room  FTC Said To Be Prepping Google Probe  Our Search: Google Technology- The technology behind Googles great results  Yahoo Finance  INDUSTRY CENTER - INTERNET INFORMATION PROVIDERS  Google Investor Relations- 2011 Annual Stockholders Meeting  Better Living through Software: Microsoft Advances for the Home Highlighted at Consumer Electronics Show 2002  February Search Results Are In: Bing Is Up Again, Yahoo Is Down Again 14 | P a g e
  15. 15.  Googles market share dips ever so slightly  comScore Releases August 2010 U.S. Search Engine Rankings earch_Engine_Rankings  Google breaks AdMob even by 2014- makes a $6B killing by 2020: Mobile Advertising  Google Acquires AdMob For $750 Million  Google unveils Chrome OS laptop  Google details the Samsung Alex Chrome OS netbook  Google TV: Upgraded version in the works?  Google Voice officially integrates with Sprint phones Video:  Introducing Google TV  Google Inc. First Quarter 2011 Earnings Conference Call, Thursday April 14, 2011 at 1:30 PM PT 15 | P a g e