Google Strategy & Business Model


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Google Strategy & Business Model

  1. 1. Content Company profile PEST analysis Five forces analysis Value chain Canvas model Core problem Differentiation matrix Canvas model +5 Strategy
  2. 2. Mission & Vision Google's mission is to organize the world's information and make it universally accessible and useful. Google's vision is to make search engines so powerful that they ‘understand everything in the world’
  3. 3. Company profile Started in 1996 by Brin and Page, founded as Google in 1998 57% American kids say Google as their first word 620 Mln visitors daily 2013 consolidated revenu 50 bln, double digit growth every year
  4. 4. PEST analysis Political Social Political stability Entrepreneurial spirit Intellectual property protection Culture (gender roles) Anit-trust laws Demographics Taxes Skill of workforce Growth market due to more and more internet usage Economical Level of education/Skill of workforce Technological Exchange rates Innovation Financial market stability High costs Government intervention free market Rate of technological diffusion Impact on VP in value chain
  5. 5. Five forces analysis Threat of new entrants – MODERATE (high cash and infrastructure) Threat of substitutes – LOW (no substitute for the internet) Bargaining power of customers – STRONG (threat of substitutes in search and software) Bargaining power of suppliers – LOW (strong market dominance) Intensity of rivalry – MODERATE (Yahoo, MSN, IOS/Apple) Complementors – LOW (Google is a self developer, Licensing)
  6. 6. Market Life Cycle
  7. 7. Value chain Model
  8. 8. Canvas Model
  9. 9. SWOT analysis Strenghts – brand value, data mining, human capital Weaknesses – privacy, Google+, one source of profit Opportunities – web services, acquisitions, mobile internet Threats – unprofitable products, litigation, excessive integration
  10. 10. Confrontation matrix SWOT Service Acquisit Mobile Profit Legal Integration Brand ++ o ++ ++ - + Data ++ o ++ ++ -- o HC ++ ++ ++ ++ ++ ++ Privacy o o -- - -- -- G+ o o o -- o -- Profit S ++ ++ + -- -- ++
  11. 11. Core problem Some of its core strengths (data mining, product integration) are making Google more and more unpopular. People do not like monopolies
  12. 12. Canvas Model +5
  13. 13. Strategy Google must continue its position as market leader Google Must cancel unprofitable and unpopular products (hardware?) Google must develop new sources of income (web services) Google must fight of any attack made by rivals Google must make adds usefull (comparing prices, etc.) Google must oppose intelligence agencies openly Google must reduce legal expenses by 11% by 2016 Google must continue its acquisition strategy Google must invest heavily to keep and acquire human capital Google must maintain shareholder voting rights (80%) to keep strategic advantage