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A WONDERFULL WORLD
OUTLINE
 Organizational Structure
 What’s a Google?
 History
 Facts & Figures
 Products & Services
 SWOT Analysis
 How Google Makes Money
 Reasons Behind Financial Success
 Google Conspiracy
 Recap
 Conclusions
 References
ORGANIZATIONAL STRUCTURE
    Top Management:
      Larry Page, Co-Founder & President, Products



      Sergey Brin, Co-Founder & President, Technology



      Eric Schmidt, Chairman of the Board and CEO
WHAT’S A GOOGLE?

"Googol" is the mathematical term for a 1 followed by 100
 zeros. The term was coined by Milton Sirotta, nephew of
         American mathematician Edward Kasner.


Google's play on the term reflects the company's mission to
organize the immense amount of information available on
                         the web.
HISTORY

    Founded at Stanford in 1996 as a research
    project
    Incorporated in 1998 with $1.1M in funding
    Worth $23B after initial public offering in
    2004
    Market Cap currently over $100B
FACTS & FIGURES

 Growing at a rate of 20% per month.
 More than 365 million visitors use google.

 More than 150 million queries per day.

 Offers search services in 28 different languages.

 Answered within half second.
CURRENT PRODUCTS

 Web Search
  Search billions of web pages
 Google Chrome

  A browser built for speed, stability and security
 Images

  Search for images on the web
 Scholar

  Search scholarly papers
CURRENT PRODUCT

 Alerts
Get email updates on the topics of your choice
 Groups

  Create mailing lists and discussion groups
 Youtube

 Google plus

 Gmail

 Google map
Images
                       Desktop
Froogle
          Search
                       Earth
SWOT ANALYSIS
STRENGTHS
   Google's speed and user friendliness
    Dominates online advertising market
       Ad Words (ads in search), Ad Sense (ads
       on sites)
    Fortune’s #1 Best Company to Work For
    Market Cap over $100,000,000,000
    Innovative, collaborative environment
WEAKNESSES

   Ads still make up 99 percent of Google’s
   revenue
   High level executives jumping ship
   No distinct leader of trio of top management
   Spreading itself thin with new ventures
OPPORTUNITIES
    Android: first open source mobile operating
    system
     T-Mobile G1 announced, first phone built
       forAndroid OS
      Providing free mobile service using ad revenue.
    Make Google Chrome browser profitable
    Advertising on radio or billboards.
THREATS

   Competition from Yahoo and Microsoft
   Doubt about information security and user
   privacy
   Face book stealing more execs, social
   networking competition
   Copyright lawsuits
   Possibility of censorship
WHY HAS GOOGLE GROWN SO FAST?


                            Customers

                Marketing



   Innovation




                                        16
HOW GOOGLE MAKES MONEY

 Google makes money through Sites Revenues.
 Google makes money through Network
  Revenues.
 Google makes money through International
  Revenues
GOOGLE’S REVENUES ($US BILLIONS)
                   30

                   25
 $ Billions (US)




                   20                                                        MS OSB
                                                                             AOL
                   15                                                        Yahoo
                                                                             eBay
                   10                                                        Amazon
                                                                             Google
                   5

                   0
                        2002 2003 2004 2005 2006 2007 2008e 2009e
                                              MS OSB – Microsoft Online Systems Business
                                              Annual Calendar Year Revenues
                                              Sources: Techviser and Annual Reports
                                                                                        18
                                              e - Analyst Estimates from Yahoo! Finance
AVERAGE ANNUAL REVENUE GROWTH (%)
 80.0%

 70.0%

 60.0%

 50.0%

 40.0%                                                     Past 5 Years
 30.0%                                                     Next 5 Years

 20.0%

 10.0%

 0.0%
         Google   Amazon   Yahoo!    Microsoft   eBay


                                    Source: Yahoo! Finance Oct 2008
                                                                          19
PROFITABILITY (%) OPERATING
PROFIT/REVENUES
  45%
  40%
  35%
  30%
  25%
  20%
                                                           Profit Margin
  15%
  10%                                                      Operating Margin
   5%
   0%




                  Source: Yahoo! Finance Oct. 2008
                  Based on trailing 12 months from Sept 08, except Microsoft June 08.

                                                                                        20
REASON BEHIND FINANCIAL SUCCESS

                      ONLINE
                  ADVERTISING AND
                    PROMOTION



   CORPORATE OR
  MARKETING WEB                     WEB COMMUNITIES
       SITE




                   CONDUCTING
                   E-MARKETING
ADWORDS AND ADSENSE
GOOGLE’S SUCCESS
  Efficient                         Vast Customer
                Clever People
Innovation*                         Collaboration




 Big Visions*   Financial Savvy      Trusted Brand




                                  * Pictures Courtesy Google
GOOGLE STORY
CONCLUSION

 Realistic, rational, viable business strategy
 Impact on IT Industry

 Focus

 Honest Brand
REFERENCES
   v Chaffey, D. (2007) “Google case study-covering Google business strategy and
    technology case”. Available from: (http://www.davechaffey.com/E-commerce-Internet-
    marketing-case-studies/Google-case-study/) Accessed on 12-11-2009.

   v Chan, J. (2007) “Google’s Acquisition Strategy” Available from:
    (http://fishtrain.com/2007/09/13/googles-acquisition-strategy/) Accessed on 12-11-2009

   v Dwivedi, J. (2008) “Google’s robust strategy and business model”. Available from:
    (http://www.iproceed.com/blog/2005/02/googles-robust-strategy-business-model.html)
    Accessed on 12-11-2009.

   v Reuters (2009) “Google drives into navigation market”. Available from:
    (http://www.independent.co.uk/life-style/gadgets-and-tech/news/google-drives-into-
    navigation-market-1811289.html) Accessed on 13-11-2009
    Principles of Marketing by kotler armstrong by prentice hall of india
THANK YOU
   Presentation Prepared By LSPT
                   Students of



                  on the Presentation Week

Call to enquire: 0731-3045876, 99263-70549

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Google case study-incisive indore

  • 1.
  • 3. OUTLINE  Organizational Structure  What’s a Google?  History  Facts & Figures  Products & Services  SWOT Analysis  How Google Makes Money  Reasons Behind Financial Success  Google Conspiracy  Recap  Conclusions  References
  • 4. ORGANIZATIONAL STRUCTURE Top Management: Larry Page, Co-Founder & President, Products Sergey Brin, Co-Founder & President, Technology Eric Schmidt, Chairman of the Board and CEO
  • 5. WHAT’S A GOOGLE? "Googol" is the mathematical term for a 1 followed by 100 zeros. The term was coined by Milton Sirotta, nephew of American mathematician Edward Kasner. Google's play on the term reflects the company's mission to organize the immense amount of information available on the web.
  • 6. HISTORY Founded at Stanford in 1996 as a research project Incorporated in 1998 with $1.1M in funding Worth $23B after initial public offering in 2004 Market Cap currently over $100B
  • 7. FACTS & FIGURES  Growing at a rate of 20% per month.  More than 365 million visitors use google.  More than 150 million queries per day.  Offers search services in 28 different languages.  Answered within half second.
  • 8. CURRENT PRODUCTS  Web Search Search billions of web pages  Google Chrome A browser built for speed, stability and security  Images Search for images on the web  Scholar Search scholarly papers
  • 9. CURRENT PRODUCT  Alerts Get email updates on the topics of your choice  Groups Create mailing lists and discussion groups  Youtube  Google plus  Gmail  Google map
  • 10. Images Desktop Froogle Search Earth
  • 12. STRENGTHS Google's speed and user friendliness Dominates online advertising market Ad Words (ads in search), Ad Sense (ads on sites) Fortune’s #1 Best Company to Work For Market Cap over $100,000,000,000 Innovative, collaborative environment
  • 13. WEAKNESSES Ads still make up 99 percent of Google’s revenue High level executives jumping ship No distinct leader of trio of top management Spreading itself thin with new ventures
  • 14. OPPORTUNITIES Android: first open source mobile operating system T-Mobile G1 announced, first phone built forAndroid OS Providing free mobile service using ad revenue. Make Google Chrome browser profitable Advertising on radio or billboards.
  • 15. THREATS Competition from Yahoo and Microsoft Doubt about information security and user privacy Face book stealing more execs, social networking competition Copyright lawsuits Possibility of censorship
  • 16. WHY HAS GOOGLE GROWN SO FAST? Customers Marketing Innovation 16
  • 17. HOW GOOGLE MAKES MONEY  Google makes money through Sites Revenues.  Google makes money through Network Revenues.  Google makes money through International Revenues
  • 18. GOOGLE’S REVENUES ($US BILLIONS) 30 25 $ Billions (US) 20 MS OSB AOL 15 Yahoo eBay 10 Amazon Google 5 0 2002 2003 2004 2005 2006 2007 2008e 2009e MS OSB – Microsoft Online Systems Business Annual Calendar Year Revenues Sources: Techviser and Annual Reports 18 e - Analyst Estimates from Yahoo! Finance
  • 19. AVERAGE ANNUAL REVENUE GROWTH (%) 80.0% 70.0% 60.0% 50.0% 40.0% Past 5 Years 30.0% Next 5 Years 20.0% 10.0% 0.0% Google Amazon Yahoo! Microsoft eBay Source: Yahoo! Finance Oct 2008 19
  • 20. PROFITABILITY (%) OPERATING PROFIT/REVENUES 45% 40% 35% 30% 25% 20% Profit Margin 15% 10% Operating Margin 5% 0% Source: Yahoo! Finance Oct. 2008 Based on trailing 12 months from Sept 08, except Microsoft June 08. 20
  • 21. REASON BEHIND FINANCIAL SUCCESS ONLINE ADVERTISING AND PROMOTION CORPORATE OR MARKETING WEB WEB COMMUNITIES SITE CONDUCTING E-MARKETING
  • 23. GOOGLE’S SUCCESS Efficient Vast Customer Clever People Innovation* Collaboration Big Visions* Financial Savvy Trusted Brand * Pictures Courtesy Google
  • 25. CONCLUSION  Realistic, rational, viable business strategy  Impact on IT Industry  Focus  Honest Brand
  • 26. REFERENCES  v Chaffey, D. (2007) “Google case study-covering Google business strategy and technology case”. Available from: (http://www.davechaffey.com/E-commerce-Internet- marketing-case-studies/Google-case-study/) Accessed on 12-11-2009.   v Chan, J. (2007) “Google’s Acquisition Strategy” Available from: (http://fishtrain.com/2007/09/13/googles-acquisition-strategy/) Accessed on 12-11-2009   v Dwivedi, J. (2008) “Google’s robust strategy and business model”. Available from: (http://www.iproceed.com/blog/2005/02/googles-robust-strategy-business-model.html) Accessed on 12-11-2009.   v Reuters (2009) “Google drives into navigation market”. Available from: (http://www.independent.co.uk/life-style/gadgets-and-tech/news/google-drives-into- navigation-market-1811289.html) Accessed on 13-11-2009  Principles of Marketing by kotler armstrong by prentice hall of india
  • 28.
  • 29. Presentation Prepared By LSPT Students of on the Presentation Week Call to enquire: 0731-3045876, 99263-70549