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Google strategy evaluation , i click hatem kameli


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Google strategy evaluation , i click hatem kameli

  1. 1. Prepared By: Hatem Kameli Digital Marketing Trainer & ConsultantiCLICK, Co – founder & Director
  2. 2. Agenda Google World Google Products & Services Google Financial Situation Google Strategy Strategic Evaluation ( vision, mission & objectives ) PEST Analysis Five Forces Model Benchmarking SWOT Analysis BCG for Google Products Portfolio Recommendations
  3. 3. Introduction Search Engine, Cloud computing, Software and Advertising technologies Larry Page and Sergey Brin in 1998 Page Ranking No. 1 in the world Over 1 Billion search requirements daily 22,000 full time employees Rated No.1 of ‘Best company’s to work for’ in the world Ranking No. 2 of the top 100 brands in the world May 2012, dominate the search engine world, market share of 87.6% Total revenue more than 50 Billion $, 2012 Primary Revenue Source: Advertising (97%)
  4. 4. Google History & Services
  5. 5. Services By Google
  6. 6. Google Financial Situation
  7. 7. DifferentiationGoogle primary strategy is to focus on Search Engine Marketing . Indexing every website on theweb, giving faster results with accuracy.Google’s Ad-Sense and Ad-Word helped Google to generate huge revenue form the InternetMarketDifferentiation Factors Robust Data Centers around the world Unique Page Search Algorithm Ad-Sense & Ad-Word Primary Strategy Secondary Strategy
  8. 8. InnovationGoogle secondary strategy is to focus on other related segments with innovative productdevelopment like - Social Media, Gmail, Google Books, Mobile Computing & Cloud Computingetc.Growth StrategyGoogle’s growth strategy – Merges & Acquisitions (Example – YouTube, Android, Motorola)This strategy is preferred because it allows Google to quickly adopt new technologies andprocess rather than trying to develop them internally Primary Strategy Secondary Strategy
  9. 9. AlliancesGoogle & AOL enters into Strategic Alliance to expand business globally, Some key note of thisstrategic alliance are:  Creating Global Advertising Partnership  Google to Invest $1 Billion for a 5% Stake in AOL  Companies to Collaborate on Online Video Offering and Make More AOL Content Available to Google Users  Google Talk Instant Messaging Software to Communicate With AIM Users Primary Strategy Secondary Strategy
  10. 10. Google Vision & Mission Mission: Organize the worlds information and make it universally accessible and useful Matched Unmatched-Flexibility -Market segment-Fewer than 100 words -Transparency-why they exist -Philosophy-Reachable
  11. 11. Google Goals & ObjectiveObjectives Specific Measureable Achievable Realistic TimedIncrease Acquisitions by 5% yearlyIncrease search advertising marketshare 5% yearlyIncrease total revenue 10% yearly
  12. 12. External Scan Political and legalTechnology GOOGLE Economical Social PEST Analysis Model
  13. 13. External Scan Political Economical Technology Social• Google is worldwide • Googles focus on highly • Technology is obviously • The world is increasingly companies so it has to targeted, measurable always improving and becoming more face the constraints advertising makes it Google has taken connected due to the impose by different more recession-proof specific measures to means of countries. than many other make sure it does not communication businesses in tech fall behind. available through the• although Google is • technology companies internet. present in most like Google are • Internet search is countries around the relatively isolated from applicable to most • most new cell phones world, it has to cope period of recession cultures all over the are internet capable with internal rules. because search and world freeing Google devices. consequently internet- from geographic based advertisements dependence. has become a staple to the world society and economy. PEST Analysis Model
  14. 14. Competitive Analysis Bargaining Threat of New Power of Entrants BuyersBargaining Threat of Power of Substitute Suppliers Product Competitive Rivalry with in Industry Michael Porter’s Five Forces Model
  15. 15. Competitive Analysis Supplier’s Power Barriers to Entry Competitive Rivalry Threat of Substitutes Buyer Power• Google have the • Yahoo & Microsoft • Not a big • very big number of • Limited choices in power to buy out have radically competition in ad substitutes of search engine any ad-technology improved their technologies mobile technology • Limited Choices in they wish search engines • Currently there are online ad only a few rivals • Ad Technologies: technology.• Suppliers of • Online Marketing (Microsoft, Yahoo) Many of the • Limited Choice in telecommunication governing rules are so the degree of important ad- mobile OS infrastructure may still evolving which rivalry is more technologies are • good amounts of change contracts may affect Google’s oriented to an owned by Google choices when and relationships Strategy oligarchy but other useful selecting a browser. • Brand identity ones exist• Google Products may not perform well with new software release from Microsoft & Apple Michael Porter’s Five Forces Model
  16. 16. BenchmarkingSearch Engine Market Share, 2012
  17. 17. Benchmarking Mobile Market Share, 2012 0% 4% 2% Android (Google) 4% 5% iOS(Apple) BlackBerry Symbian (NOKIA)17% Windows Phone 7 (Microsoft) Linux 68% Others
  18. 18. Benchmarking
  19. 19. SWOT AnalysisS TRENGTHS W EAKNESSES •One source of income ( 97% of• Search engine leader•Management Style revenue from advertising)• Effective advertising model•Loyal customers •Unprofitable products•Innovation•Brand name•Smartphone king•Best work environment•Financial Situation ($50 B revenue,2012)
  20. 20. SWOT AnalysisO PPORTUNITIES T HREATS•Sustainable growth in search advertising •Strong competition (Apple, Microsoft,•Fast growing Social Media market Facebook )•New products and services •Microsoft and Yahoo possible partnership•Strategic acquisitions •Microsoft and Nokia possible partnership•Growing mobile advertising market • Advertising space is becoming more competitive •Political Risk and EU antitrust Law
  21. 21. BCG Matrix for Google High Market Growth star Question Mark YouTube Google Doc Android Google Shopping Google+ Google Drive GmailLow HighMarket MarketShare Share Cash Cow Dogs Search Engine Google News Advertising Google Group Technology Google Site Low Market Growth
  22. 22. Recommendations Increase ad spending in foreign markets specially in the Asia-Pacific market Invest more in mobile technology (android) Expanding the income sources Improve Cloud services such as (Google drive, Google Docs) Enhancing Google ecommerce capability (Google wallet, Google Shopping) Transparency and clarify their vision Invest more social media market and integrate Google plus and YouTube with other Google services