International Business

1. A term paper presentation on
Google
Prepared By
Kazi Ismat Jahan
B1405145

2. 2
Started
Started as a research project
between Sergey Brin and
Larry Page, two Stanford
University Ph.D students
Initially called BackRub
A search engine that used links to
determine the importance of
individual webpages
Background of the
company
Located
Google's headquarters are in
Mountainview, California

3. 3
Impresario Slides
GDP is increasing annually at the average rate of 3.20% reaching a high level of 17.20% at
times
Countries like South Africa, India, China and United Kingdom have had increases in their
GDP each year since the 70’s
With the stable and continued growth of those countries, Google’s internal and external
investments will always be high in numbers.
Users search more; hence more advertisements are put on Google’s search engines
The amount of users around those counters can impact positively and lead them to establish
better services and more products for their users leading the it being strength a economically.
Economic Factor

4. 4
Political and legal environment
Formal institutions have
not significantly affected
Google’s operations,
although Google has
faced pressure from the
Department of Justice to
relinquish archived
search terms.
Google’s “Don’t be evil”
mantra has been put to
the test as users ask
whether cooperation
with governments
undermines their privacy
and freedoms.
In 2008, Google
responded to customer
concerns when it added a
privacy link to its home
page. This link took users
to a Privacy Center
where they could learn
about Google’s policies in
regard to political and
legal issues
Google has also faced
concern on copyright
issues because the
company stores copies of
third party web pages
and images on their
servers. They have
responded to this
criticism by releasing a
copyright information
page

5. 5
Impresario Slides
Culture in google
Encourages employee risk taking and
innovation
Decisions at Google are made in teams
The company management is in the hands of
a triad: Eric Schmidt acting CEO of the
company
Leading the company by consensus
No formal outfit

6. 6
Impresario Slides
AdSense Network
In addition to featuring search
advertising on its own sites,
Google’s AdSense program
enables non-Google websites to
incorporate Google display
advertising on their pages.
AdSense ads work similarly to
Google’s own onsite advertising
but are displayed on Google
approved sites anywhere on the
Internet
AdWords and Search
Advertising
The bulk of Google’s $75
billion revenue in 2015 came
from its proprietary advertising
service, Google AdWords. Of
that revenue, over 77% – or
just over $52 billion – came
from Google’s own websites.
The Business of Google

7. 7
Reasons of a Success
Social Social SocialSocial
Social Social
Google company
Google's search
engine has
always had
strong global
appeal,
Easy service,
easy to manage
American
impact
Google
dependence
phenomenon
(Gmail, Blogger,
Picasa,
YouTube)

8. 8
Rivalry factors
 Few players of relatively
smaller size industry is
growing at rapid scale
 Switching cost zero
Buyer bargaining power
 Buyer size and volume
small
 Change cost very low
 Service importance high
 Price sensitivity high
 Product differentiation
high
Supplier bargaining power
Entry barrier
 High due to brand identity
Substitution threat
 Mobile Search
 Switching cost low
 Supplier concentration low
 Switching power low
 Threat of forward integration
low
Porter’s 5 forces model

9. 9
Impresario Slides
Weaknesses
o Excessive Reliance on Secrecy
o Falling Ad Rates
o Overdependence on
Advertising
o Lack of Compatibility with
next generation devices
Threats
o Competition from Facebook
o Mobile Computing
SWOT Analysis
Strengths
o Market Leader in Search
Engines
o Ability to Generate User Traffic
o Revenue from Advertising and
Display
o Introduction of Android and
Mobile Technologies
Opportunities
o Android Operating System
o Diversification into non-Ad
Business Models
o Google Glasses and Google
Play
o Cloud Computing

10. Conclusion
Google’s mission is to organize
the world’s information and
make it universally accessible
and useful