Successfully reported this slideshow.

Competitive analysis of Online Revenue Market Share

912 views

Published on

Competition Analysis of Google with others in Advertising Revenue generated online

  • Be the first to comment

Competitive analysis of Online Revenue Market Share

  1. 1. AnuragVerma : 35413 Amol Surwade : 35407 SushantJog : 35481
  2. 2. Industry Google Google SWOT Analysis Google Porter Five Forces Model Facebook Facebook SWOT Analysis Facebook Porter Five Forces Model Competitive Analysis QnA 2 Agenda
  3. 3.  Online Advertising Revenue Generation through Free Products Revenue Generation through Search Engine Marketing Revenue Generation through Social Media 3 Industry
  4. 4. Started in January 1996 by Larry Page and Sergey Brin – Stanford University Ph.D. Students Domain name registered on September 15, 1997, and the company was incorporated on September 4, 1998. The company's mission statement "to organize the world's information and make it universally accessible and useful“ 4 About Google
  5. 5. Name Microsoft Corporation GeographicAreas Covered WorldWide Headquarter U.S. Current CEO Satya Nadella Employees 99,000 Major Competitors Google, Apple, IBM, Oracle, Adobe etc 5 About Google
  6. 6. 6 About Google What does Google do to sustain
  7. 7. SWOT Analysis Strengths
  8. 8. 8 SWOT Analysis : STRENGTHS
  9. 9. 9 SWOT Analysis : STRENGTHS
  10. 10. 10 SWOT Analysis : STRENGTHS
  11. 11. 11 SWOT Analysis : STRENGTHS
  12. 12. 12 SWOT Analysis : STRENGTHS
  13. 13. 13 SWOT Analysis : STRENGTHS
  14. 14.  Increased dominance in Android Market 14 SWOT Analysis : STRENGTHS
  15. 15.  Financial position 18 Market Cap 403 billion Share Price $ 1199 (Approx) Cash, Cash Equivalent and Marketable securities $ 56.62 billion
  16. 16.  Relies on one source of income  More than 90% of revenue from Online Advertising  Market for personal computers is growing slowly.  Desktop search engine market will be impacted  Unprofitable Products  Patent Litigations  Costly and time consuming.  Distract the company from innovating 19 SWOT Analysis :WEAKNESSES
  17. 17.  Growing no. of mobile internet users  More than 90% of revenue from Online Advertising  Patents through Acquisitions.  Got 17000 patents from Motorola.  Driverless electronic cars  Technology can be a huge hit in future and it can sell licenses to car manufactures  Extremely Fast Internet  Targeting high speed internet speed of 1Gbps in US citities 20 SWOT Analysis : OPPORTUNITIES
  18. 18.  Growing no. of mobile internet users  Less space to place adds  Add costs less than usual  AntiTrust Laws  Accused by EU for its dominating position in search engine.  Competition from MS, FB, Twitter, Yahoo  Windows 8 for Mobile  Search engines from Yahoo, MS  Add sharing 21 SWOT Analysis :THREATS
  19. 19. 22 Five Forces Model Competitive Rivalry with in Industry Bargaining Power of Suppliers Bargaining Power of Buyers Threat of New Entrants Threat of Substitute Product Michael Porter’s Five Forces Model
  20. 20. 23 Five Forces Model Michael Porter’s Five Forces Model
  21. 21. 24
  22. 22.  Facebook is a social networking website  Facebook® was founded in 2004 by Harvard student Mark E. Zuckerberg with help from his roommates Dustin Moskovitz and Chris Hughes.  Facebook® was originally developed for Harvard students then expanded to other colleges then to anyone over the age of 18, and now currently to anyone 13 years of age or older.  Company Overview: “Facebook's mission is to give people the power to share and make the world more open and connected.” 25 About Facebook
  23. 23.  Facebook’s initial public offering (IPO) less effective than anticipated  Profit earned through B2B advertising services  Businesses benefit through the use of analytical software built into pages  Independently developed applications ensure constant consumer interaction with site 26 About Facebook
  24. 24. Name Facebook Inc Industries Served Internet GeographicAreas Covered WorldWide Headquarter U.S. Current CEO Mark Zuckerberg Employees 6337 Major Competitors Google, LinkedIn,Yahoo,Twitter 27 About Facebook
  25. 25. 28 About Facebook
  26. 26. 29 About Facebook In January 2013, the countries with the most Facebook users were:  United States with 168.8 million members  Brazil with 64.6 million members  India with 62.6 million members  Indonesia with 51.4 million members  Mexico with 40.2 million members
  27. 27. SWOT Analysis Strengths
  28. 28. Relevant and unique services, which surpass competitors like Google+ and MySpace SWOT Analysis : STRENGTHS
  29. 29. SWOT Analysis : STRENGTHS Date Users (Millions) Growth August 26, 2008 100 178.38 …… …….. ……. May 30, 2011 700 3.45% September 22, 2011 800 3.73% April 24, 2012 900 1.74% September 14, 2012 1000 2.33% March 31, 2013 1110 1.5% Dec 31st, 2013 1230 0.97%
  30. 30. SWOT Analysis : STRENGTHS
  31. 31.  Financial position 34 SWOT Analysis : STRENGTHS Market Cap 170.76 billion Share Price $ 67 (Approx)
  32. 32. SWOT Analysis :WEAKNESSSES - Weak CTR of advertisements - Lack some features such as video chat, dislike button, group chats etc - Lack of website customization - Lacks proven effectiveness in advertising in PC version - Constantly drawn into litigation due to patent and privacy violations - Fails to take advantage of mobile version to draw revenue
  33. 33. SWOT Analysis : OPPORTUNITIES
  34. 34. SWOT Analysis : OPPORTUNITIES • Mobile advertising o Based on current analytic software on PC versions o Larger return for advertisers o Greater investor strength for Facebook
  35. 35. SWOT Analysis : OPPORTUNITIES • Retail service integration with social analytics o Current analytics can contribute to consumer purchases o Large consumer base will lead to stronger feedback on products
  36. 36. Google’s growing social network application Privacy concerns may drive away current consumers As market saturation draws closer, expansion will slow SWOT Analysis :THREATS
  37. 37. SWOT Analysis :THREATS Facebook blocked in China, Iran, Pakistan, Syria, Uzbekistan in 2007, 2008, 2009 Weak business model
  38. 38. 44 Five Forces Model Competitive Rivalry with in Industry Bargaining Power of Suppliers Bargaining Power of Buyers Threat of New Entrants Threat of Substitute Product Michael Porter’s Five Forces Model
  39. 39. Five Forces Model Threats of new entrants Very Low Google+ is the only competitor
  40. 40. Five Forces Model Threat of substitutes Moderate. Recently acquired Whatsapp Not much threat from Skype Advertising
  41. 41. Five Forces Model Bargaining power of Customers Significant Power (Since Google may have same customers)
  42. 42. Five Forces Model Bargaining power of Suppliers Significant Power (Since Users are also its suppliers) Influence ofTelcos
  43. 43. Five Forces Model Intensity of Competitive Rivalry Very Low Not major players who has that much of strong presence G+ has 1/10th Monthly Active Users only
  44. 44. 51 Analysis No. of Users Capabilities Strategy Facebook More than 1 billion monthly active users With more than 1 billion users in database, users can connect in better ways. Facebook markets them as a platform that allows users to connect. Google+ An estimated 343 million monthly active users. G+ integrates youtube and android to gain competitive advantage over Facebook. G+ markets them as an extension to other services(gmail,search,video sharing youtube ,photo sharing - picasa) it provides.
  45. 45. Facebook Revenue $3,000 $2,500 $2,000 $1,500 Facebook Advertising Facebook Other Revenue $241 $218 $214 $256 $213 $1,000 $500 $0 $188 $943 Q4 2011 $186 $872 Q1 2012 $176 $192 $992 $1,086 Q2 2012 Q3 2012 $1,599 $1,329 $1,245 Q4 2012 Q1 2013 Q2 2013 $2,344 $1,798 Q3 2013 Q4 2013
  46. 46. Google Revenue $18,000 $16,000 $14,000 $12,000 Google Advertising $666 Google Other Revenue $1,647 $1,230 $829 $1,049 $1,046 $10,000 $8,000 $6,000 $4,000 $2,000 $0 $410 $420 $10,174 $10,225 Q4 2011 Q1 2012 $439 $10,525 $10,860 Q2 2012 Q3 2012 $12,076 $11,902 Q4 2012 Q1 2013 $14,073 $12,061 $12,542 Q2 2013 Q3 2013 Q4 2013
  47. 47. Facebook v Google - Raw Numbers Facebook Google $18,000 $15,720 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 $10,584 $10,645 $1,131 $1,058 Q4 2011 Q1 2012 $12,905 $11,526 $10,964 $1,585 $1,184 $1,262 Q2 2012 Q3 2012 Q4 2012 $12,951 $1,458 Q1 2013 $13,772 $13,107 $2,585 $1,813 $2,016 Q2 2013 Q3 2013 Q4 2013
  48. 48. Quarter By Quarter Change 35% Facebook Google 30% 25% 20% 15% 10% 5% 0% -5% -10% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
  49. 49. Q4 2011 - Q4 2013 Change Facebook Google 129% 49% Advertising Other Revenue Advertising Other Revenue 149% 28% 38% 302%
  50. 50. Revenue Post-IPO Facebook Advertising Facebook Other Google Advertising Google Other $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Q1 Q2 Q3 Q4 Q5 Q6 Quarters since respective IPOs
  51. 51. Advertising Revenue Methods  PPC (pay per click)- When any one visit your website and make any click on Advertisement, website owner (You) get Rs 10, 12, 15… per click  PPL (pay per Lead)- When any one visit your website and make a click and signup in any Advertisement, You get Rs 20, 30, 40… per click  PPA (pay per Action)- When any one visit your website and Does any shopping from the Advertisement, You get X% commission on that shopping  PPI (pay per Impression)- Some Advertisers want their Brand logo should be seen by visitors on your website, Still they will Pay Rs 10 for 100 visitors, Rs 50 for 500 visitors

×