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Corporate Strategy - Case Study - Google

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Corporate Strategy - Case Study of Google including PESTEL Analisis - ESCP Europe

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Corporate Strategy - Case Study - Google

  1. 1. Case Study : Google Vincent ARGENTON Gil DGHAILI Yana ILIEVA
  2. 2. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
  3. 3. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
  4. 4. Google Business <ul><li>What are they selling ? </li></ul><ul><li>Web-based advertising </li></ul><ul><li>How ? </li></ul><ul><li>Monetizing search traffic (CPC, Paid listing) </li></ul><ul><li>To whom ? </li></ul><ul><li>Advertisers </li></ul>Google makes  99% of its revenue from advertisings
  5. 5. Google Business <ul><li>What boosts the busine $$ ? </li></ul><ul><li>Efficient Ads  More Advertisers  More revenues </li></ul><ul><li>What makes Google’s ads so powerful ? </li></ul><ul><li>N°1 Search Engine </li></ul><ul><li>Diversity of ads support </li></ul><ul><li>Relevant advertising </li></ul>« 40% of all web searches have a commercial motivation  »
  6. 6. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
  7. 7. Competition « Who’s afraid of Google ? Everyone. » What are the main competitors ?
  8. 8. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
  9. 9. External Environment <ul><li>PR like Political and Regulation factors </li></ul><ul><li>Adoption of new technologies </li></ul><ul><li>Local authorities blockage (censoring) </li></ul>Organizing the world’s information might be difficult in some countries
  10. 10. External Environment « Investors expressed reservation about Google’s unusual top management trio » <ul><li>E like Economical factors </li></ul><ul><li>Stock market </li></ul><ul><li>Publisher’s numbers </li></ul><ul><li>Foreign Exchange rate </li></ul>
  11. 11. External Environment <ul><li>S like Social factors </li></ul><ul><li>Numbers of users </li></ul><ul><li>Trends </li></ul><ul><li>Brand reputation </li></ul>Internet users : 500 millions in 2003, 1 billion in 2009
  12. 12. External Environment « Google has persistently pushed the limits of existing technology  » <ul><li>T like Technological factors </li></ul><ul><li>The evolution of technologies </li></ul><ul><li>Internet </li></ul><ul><li>Network & Infrastructures </li></ul><ul><li>Mobile phones market </li></ul>
  13. 13. External Environment L like Legal factors <ul><li>Competition law </li></ul><ul><li>Privacy concerns </li></ul>Google Street View Legal threats to Google are important
  14. 14. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
  15. 15. Strategy Strategy ties the company to its environment
  16. 16. Strategy Market environment
  17. 17. Strategy <ul><li>Google’s mission </li></ul><ul><li>1 0000000000000000000000000 00000000000000000000000000000 00000000000000000000000000000000000 00000000000 </li></ul><ul><li>Google’s mission is to organize the world’s information and make it universally accessible and useful </li></ul>Company
  18. 18. Google’s strategy Google’s values <ul><li>Don’t be evil </li></ul><ul><li>Technology matters </li></ul><ul><li>It’s best to do one thing really, really well </li></ul><ul><li>Great just isn’t good enough </li></ul>Company
  19. 19. Strategy <ul><li>Resources and skills </li></ul><ul><li>Innovative technology </li></ul><ul><li>Skilled work force </li></ul><ul><li>Corporate culture </li></ul>Company
  20. 20. Strategy Key success factors Corporate Culture Innovative technology Brand Name Company
  21. 21. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
  22. 22. <ul><li>Established brand name </li></ul><ul><li>Strong marketing :word by mouth publicity is doing the job </li></ul><ul><li>User-friendly interface with display of relevant and clear results </li></ul><ul><li>Highly competent work: PHD researchers </li></ul><ul><li>Innovative products </li></ul><ul><li>A worldwide market share of 70% </li></ul><ul><li>Reliance on top management trio ? </li></ul>Strength
  23. 23. <ul><li>Marketers don’t control the cost and position of their advertisement </li></ul><ul><li>Impact of click fraud practice on the business </li></ul><ul><li>Reliance on top management trio ? </li></ul><ul><li>No marketing for many products ,users are unaware of their existence </li></ul>Weaknesses
  24. 24. <ul><li>Merging with an established mass-market portal to lock in large number of users and advertisers. </li></ul><ul><li>Becoming a mass-market portal like Yahoo and MSN, where portals contain added attractions for users. </li></ul><ul><li>Providing private search services to businesses </li></ul><ul><li>Targeting the hand held mobile devices market </li></ul><ul><li>Building the world's biggest digital library and online bookstore </li></ul>Opportunities
  25. 25. <ul><li>Emergence of many competitors, or merging of existing ones </li></ul><ul><li>Google’s advertising policy could disappoint its advertisers and start loosing many of them </li></ul><ul><li>Copyright issues </li></ul><ul><li>Privacy and security concerns </li></ul><ul><li>Antitrust and competition laws </li></ul><ul><li>Inability to adapt the infrastructure to the quick growth </li></ul>Threats
  26. 26. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
  27. 27. <ul><li>Google should continue on improving the accuracy of the search results </li></ul><ul><li>ACCURACY  MORE USERS  MORE ADVERTISERS </li></ul><ul><li>Fight spammers - Impact on search quality and accuracy </li></ul><ul><li>Resolve the click fraud issue – Impact on advertising business </li></ul><ul><li>Provide private search services to companies using its superior technology </li></ul>Recommendations
  28. 28. Agenda <ul><li>Google Business </li></ul><ul><li>Market competition </li></ul><ul><li>External environment analysis </li></ul><ul><li>Strategy overview </li></ul><ul><li>Strength, Weaknesses, Opportunities and Threats </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
  29. 29. Conclusion <ul><li>Focus on the search engine business service quality </li></ul><ul><li>Portal business is not an opportunity </li></ul><ul><li>Reinforce its core competencies : </li></ul><ul><ul><ul><ul><ul><li>Cutting edge search technology </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Highly qualified workforce <==>innovation </li></ul></ul></ul></ul></ul>« Competition is only one click away »

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