Google's business model relies on advertising revenue through services like Google Adwords and Adsense. Its business strategy focuses on cloud computing and continuing to generate most revenue from advertising. For a strategy to be successful, it must be well-executed through specific and realistic objectives, adequate resources, and strong management. A business's strategy can lead it to change its underlying business model, such as if Google were to start charging subscriptions for online publications or selling hardware directly to consumers.

1. BUSINESS MODEL VS BUSINESS STRATEGY

2. What is a business model?

3. The proprietary method used to acquire, service, and retain customers

4. Let’s explore Google

5. What’s Google Business Model? It’s a leading Internet based company offering online based services globally. They also developed cutting edge applications for users Leverages on the advertising model - Google Adwords Google Adsense Google Search Technology

6. What makes Google GREAT… The Internet most visited website (63m visitors per day with website value close to US$8.4bn) Net Income of US$6.5bn in 2009 Whopping US$175bn in market capitalization Most dominant search engine in US with market share of 66% (2009)

7. Behind this GREAT success, there’s strategy What’s business strategy in brief? A plan of action intended to accomplish a goal Google’s context (Taken from its 2010 strategy) Cloud computing would be the centerpiece Advertising would continue to form the lion’s share

8. Once strategy in place, next step is to EXECUTE Example of strategies include new product, new market, restructuring or divestment According to Ernst and Young 2005, 66% of corporate strategy is NEVER executed So, it’s critical to execute strategy WELL i.e. have specific yet realistic objectives, have the best resources and have in place strong management to execute the desired strategy

9. Business strategy can link to business model Example #1 If Google ventures into online publications segment - information databases/magazines, business model may change to subscription model Example #2 If Google ventures into selling their innovative hardware over the Internet, they may change their business model to retail like Amazon etc