Google case study


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Google case study

  1. 1. Google Case Study<br />The Force<br />
  2. 2. 2<br />Group Introduction<br />Abhijit Dey S - 1<br />Abhishek Sahi S – 2<br />Aiban Khraw S – 3 <br />Alankar Amritraj S – 4 <br />Amit Lakra S – 5 <br />Amlan Mukherjee S – 7 <br />Anesh Demoli S – 8 <br />
  3. 3. 3<br />From Dorm Room to Board Room<br />Founders – Stanford graduates<br />Larry Page<br />Sergey Brin<br />“Google” a mathematical term representing 10 to the hundredth power.<br />Now being used as a Verb - Have you ever googled anyone? <br />Creation of BackRub – Data Centre in Page’s Dorm Room.<br />Andy Bechtolsheim, the founder of Sun Microsystems, invested $100000 in Google which later ballooned to almost a third of Billion Dollars.<br />Google Inc. officially opened in 1998<br />
  4. 4. 4<br />From Dorm Room to Board Room<br />Google listed as “ Top 100 Web Sites and Search Engines ” in 1998<br />Handling Half a Million searches a day in 1999<br />Set up Office, Googleplex, in Mountain View, California.<br />Became the world’s largest search engine in 2000, conducting 18 million searches a day.<br />The Figure catapulted to 100 Million Searches by 2001.<br />The Collaborative environment spawned a slew of new innovations and rapid multinational expansion.<br />
  5. 5. 5<br />Google - The Search Engine<br />What is Search Engine?<br />An algorithm that understands exactly what you mean and give back exactly what you want.<br />Search ALGO used by Google’s Competitors<br />Google’s competitor’s summarized information by creating an Index. This is matched with the Input query and the results are displayed.<br /> The results were either too voluminous or inaccurate.<br />
  6. 6. 6<br />The MAGIC formula - PageRank<br />ALGO used by Google<br />PageRank sorts the results according to their perceived importance.<br />Initial values are assigned to all the pages that are a HIT.<br />Value of the page is increased depending upon linkage to other sites.<br />The final scores are ranked based in a meaningful way and the page with the highest perceived relevance is displayed first. <br />Companies tried to manipulate the Page rank but Google has been successful in Foiling that effort by updating their search methodology regularly.<br />
  7. 7. 7<br />High on Web Business <br /><ul><li>Google refused to accept kickbacks clearly distinguishing itself from a paid advertisements and results generated by user searches.
  8. 8. Initial revenue was generated by Selling Banner Ads but it did not satiate the aspirations and incurred R&D Costs.
  9. 9. Bluechip organizations began inquiring about the possibility of licensing it for their own websites.</li></ul>AdWords - Revenue Breakthrough<br />An advertising program that allows online businesses to place ads next to related search results. Advertisers can place their bids online by opening an account for $5.<br />It played an integral role to turn Google in a Profit in year 2001. <br />Further enhancement was done by instituting a usage based pricing model that charges advertisers based on the number of hits, their Ads receive.<br />
  10. 10. 8<br />Diversification <br />Google has rapidly been expanding in Product Offerings and enhancing search capabilities. <br />Google PhoneBook – An Online Telephone Directory<br />Google News Headlines – Service that recaps the latest headlines<br />Google Toolbar – eliminates the need to visit the Google site<br />GMail – E-Mailing Service<br />Google Catalog search – Allows users to pursue more than a thousand catalogs that were not previously available online <br />Froogle – Enables price comparison for the same product available at different e-tailers. <br />
  11. 11. 9<br />Competitors Psyche <br />Yahoo! – Actively upgrading their search engines by allowing users to customize their searches by blocking certain sites and highlighting others and by creating their own home pages.<br />eBay – Feels threatened by Google’s AdWords.<br />Amazon – Has introduced A9 in competition to Google’s Froogle. <br />Microsoft – Introduced MSN Search Beta which proved less accurate than Google in a test by the Washington Post.<br />
  12. 12. 10<br />The Triumph of Achievement <br />Despite many efforts from their competitors Google still is the Numero Uno in Search Engines.<br />In 2004 Google became a Public Company by floating an IPO,<br />The share price which opened on $85 the closing was $100<br />The Founders, Page and Brin had a total of 41 Million shares and held on to $4 Billion. <br />Andy Bechtolsheim investment of $ 100000 ballooned a third of a billion <br />
  13. 13. 11<br />The 10 Commandments <br />Focus on User and all else will follow.<br />It’s best to do one thing really really well.<br />Fast is better than slow.<br />Democracy on Web works. <br />You don’t need to be at your desk to need an answer. <br />You can make money without doing Evil.<br />There is always more information out there. <br />The need of information crosses all borders.<br />You can be serious with a suit.<br />Great just isn’t good enough.<br />
  14. 14. Component of Marketing Concept<br />Customer orientation<br />continuous monitoring of consumer need ,want and preferences<br />Competition Orientation<br />to understands the short-term strengths and weaknesses and long-term capabilities and strategies of both the key current and potential competitors.<br />Profitability<br />to achieve ultimate goal of organization that is profit<br />
  15. 15. Customers Orientation<br />Focus on Customer –Mantra<br />Identifying customers need and deliver accordingly .What you want is what you get.<br />Simplifying the usage <br />Making it even for small and large businesses alike<br />account creation in $5<br />Make money without being evil<br />
  16. 16. Competition Orientation<br />Continuous Innovation <br />open floor communication and collaborative environment leads to innovation<br /> Expansion in Product offerings<br />Google Phone book,Google news Headlines ,Google toolbar,Google Desktop,Gmail,Gtalk,Froogle ,Google Wave,Orkut<br />Increasing reach by opening offices across world and supporting 88 languages by 03<br />Technology<br />swift and accurate search in matter of second<br />Integrity-Making money without doing evil<br />Hiring Top Talent<br />
  17. 17. Profitability<br />Banner Adds<br />Add words<br />Simplicity in placing bid online<br />Affordability-Usage based pricing model<br />IPO in 2004<br />
  18. 18. Challenge for Google Growth-Competition<br />With increasing Product range Google entering into the teritory of major giants like Microsoft , Amazon etc. which will definitely leads to interesting battle. <br />Competitor upgrading their capability and spending heavily on the marketing of their search engine<br />Like Amazon came up with A9,Microsoft with Bing<br />In Terms of AD dollar, Google is competing not only with E Bay but with TV, Radio, Print media<br />
  19. 19. In the far future if Facebook manages to fairly significant portion of the internet, then they may take a portion of revenue from Google.<br />If closed systems like Facebook which has a huge user base, and start with search option ,can be a threat for Google growth in long run.<br />a search competitor like Baidu or Yandex (the market winners in China and Russia, respectively) might also be threats for Google as other markets become more important players in the world economy<br />17<br />
  20. 20. 18<br />The Key External Microenvironment Forces<br />Opportunities<br /> Strong Technical & Creative Background.<br /> Continuous look out / development of newer and better product offerings to its multitude of users.<br /> Widespread reach out in order to become indispensable. <br />
  21. 21. 19<br />The Key External Microenvironment Forces<br />Threats <br /> Newer better technological advancements from the competitors<br /> Losing Focus of enhancing its older products with continuous increase in its product line.<br /> Overdosing the users with too much and overlooking their bare minimum requirements.<br />
  22. 22. 20<br />Google’s strategy to expand product mix…<br />Objective <br /> Being more customer focussed<br /> More Value adds to users – all related things in one place<br /> To be clearly ahead of competition<br />Created a blue ocean with unique products & services<br />