Larry Page and Sergey Brin founded Google in 1996 as a research project at Stanford University called BackRub, which was funded by the National Science Foundation. They incorporated Google as a company in 1998 and launched Google.com in 1999. In 2015, they restructured Google under a new holding company called Alphabet Inc. to address challenges of managing their growing number of ambitious initiatives and subsidiaries beyond the core search business. Alphabet now oversees diverse companies like Google, Calico, Nest, Verily, Waymo, and others to allow more independence and specialization while still providing oversight, shared resources and promoting innovation.

1. 1
Impresario Slides
Google Inc. : What’s the Corporate Strategy
Presented by :- Group 8
Utkarsh Maurya
Vibhu Upadhyay
Vijaya Mishra
Vikas Sinha
Sonal Gupta

2. www.slideproject.com 2
S E C T I O N O N E
2
Google began in 1996 as a research
project by Larry Page and Sergey
Brin, Ph.D. students at Stanford University
Research project, nicknamed
"BackRub" on Exploring mathematical
properties of world wide web. (funded
by National Science Foundation)
Started as google.stanford.edu
Google - How it came?

3. Why “Google”?
• The name came from the word “Googol” which means one followed by hundred
zeroes.
• It reflects Larry and Sergey's mission to organize a seemingly infinite amount of
information on the web.

4. • To organize the world's information and make it
universally accessible and useful.
• To provide access to the world’s information in
one click.

5. 5
Impresario Slides
Jan 1996 - Larry Page and Sergey Brin
began collaborating on a search engine
called Backrub
Sep 1998 - Google Inc. incorporated in
Menlo Park, California hires its first
employee.
Google Timeline

6. 6
Jun’99 – Sept’99 – Receives $25 million funding
Google. Com officially launched
Apr.’04 – Aug.’04
Launch of Gmail
Acquires Picasa Inc.
IPO of GOOG on NASDAQ
2005 – Google Maps and
Google Analytics
Acquisition of Android Inc.
2006 - AdWords launches click-to-pay video ads
Acquisition of You tube
More than 7 million US patents

7. 7
2007 - AdSense for mobile
introduced
Android OS launched
Acquired DoubleClick
2008 - Announcement of
Chrome web browser.
2009 - Google chrome OS announced
2011 – Google+ launched
Acquisition of Motorola Mobility

8. 8
2013-2014
Acquire Calico LLC
Acquired Nest
2016 – Google Allo & Duo

9. Revenue streams
52
15
88
Revenue share 2015(in $ Billion)
Advertisement from own websites Advertisement from AdSense Other revenues
$ 75 billion
PlayStore
Chromebook
Android
Google Apps
Google Cloud
Self Driving cars
Google Glass
Power Plant

10. 10
Advertisement
revenues of
which: 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Google
websites 6332.8 10624.7 14413.8 15723 19444 26145 31221 37422 45085 53357
Google
network
websites 4159.8 5787.9 6714.7 7166 8792 10396 12465 13125 13971 15033
Total
advertising
revenues 10492.6 16412.6 21128.5 22889 28236 36531 43686 50547 59056 68390
Licensing and
other revenues 112.3 18104 667.1 762 1085 1374 2353 4972 6945 7151
Total revenues 10604.9 34516.6 21795.6 23651 29321 37905 46039 55519 66001 75541
Revenue Figures
0
10000
20000
30000
40000
50000
60000
70000
80000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
total revenues

11. 11
Impresario Slides
Google’s hiring policy –
Highly selective
They hire only brightest of
the bright. Strictly followed
bell curve
A dramatically flat and
decentralized organization
Google has boundary less
management system also
called organic system
Small self managing
teams
Maximum team size of 2 to 3
members
Rapid low-cost
experimentation
Google’s “Just-try-it” philosophy is
applied to even company’s most
difficult projects
Why is Google innovative?

12. www.slideproject.com 12
Hotmail vs. Gmail
S E C T I O N F O U R
• 1 TB storage
• No self Domain
• Account expiration in 9 months
• Used SSL cryptography
• Self Domain
• Account expiration in 12
months
• Zippy interface
• Used SSL & TLS cryptography
• Instant search
• First major cloud- based app
capable of replacing
conventional PC software
• Less Spam
• More protection from viruses

13. 13
Impresario Slides
Acquisition of YouTube
• Popularity(45.46%) as compared to others like Myspace video and specially Google
videos(10.25%)
• It was a forward integration so as to bring more users onboard and increase the information
database.
• No. of users were 4 times as compared to Google videos
• More community in YouTube users as compared to google video users.
• Usability & Stickiness was more towards YouTube users as compared to Google video users.
• Opened up a new stream revenue.

14. Impresario Slides
Android and Mobile Telephony
• Acquired Android Inc. in 2005 estimated at $50 million.
• Launched Android Mobile Development platform in 2007.
• Intention of eclipsing existing operating system from Microsoft ,Symbian etc.
• Profits from mobile ads displayed on Android Phones (97% revenue from
advertising- $19.1 Billion Revenue in 2016. ).
• In Q2,2016, Android had 86.2 % market share. iOS has 12.9% market share.
• In 2007 Google entered the Federal Communication Commission’s auction of
700 MHz.
• Auction was won by AT&T and Verizon but real winner was Google.
• Google was able to offer its Android system and Mobile Internet services
without any investment.

15. A look at its empire !!

Market Share

16. The Motorola Acquisition
• Acquired Motorola Mobility for $12.5 billion in 2011 and sold to Lenovo for $2.91
billion in 2014.
• Acquired more than 20,000 patents.
• Google’s android was vulnerable when Apple and Microsoft purchased more than
6,000 patents from Nortel Notebook.
• Ability to control both hardware and software – Controlling experience from end
to end
• Presence in Mobile Internet
• Implication on other Android Partners

17. 17
Impresario Slides
• Google's mobile strategy is to get Android onto as many phones as
possible, as almost all of the company's revenue comes from
advertising, including on mobile devices.
• Google wanted Motorola for the patents, not for the manufacturing
Why Google acquired Motorola?
Why Google divested Motorola?
• Google never ran Motorola with an eye toward profit.
• It was their to promote stack Android.
• Google kept 17,000 patents bought from Motorola

18. 18
Impresario Slides
Was it a Loss ?
Bought in 2011 for
$12.5 billion
Divested in 2014 for
$2.91 billion
• Samsung has been the driving force behind Android’s meteoric growth and put Google mobile devices in pole position.
BUT…..
• Samsung wanted too much credit. It did this using ‘TouchWiz’, the company’s proprietary skin which painted over all aspects of
Android leaving it unrecognizable. To the casual consumer they were buying ‘a Samsung’, Google’s role was largely
unrecognized.
• Moreover Samsung started coming out with its own app an reviews of Android started getting spoiled.
SO…..
• Google bought Motorola and rolled out Moto X, Moto G and Nexus which have stock Android and no-one, not even Samsung,
could afford to subsidize their cost as Google can leveraging its mammoth advertising revenue.
THEREFORE
• On 27 January 2014 Google and Samsung signed a wide-ranging global patent deal which will last a decade
• Samsung would tone down TouchWiz, refocus on core Android apps over its own customizations and cancel more radical
customizations such as its ‘Magazine UX’ interface

19. 19
Impresario Slides
Google Chrome
• Google launched Chrome web browser on Sep, 2008.
• Google’s strategic intention was not simply a superior user experience but to compete against version 8 of Microsoft’s IE which
allowed Protection Mode.
• Difficult to track user’s browsing habits. Limit information for targeted advertising.
• Google’s Chrome OS launched in 2011 has seen as strike against the core of Microsoft’s market strength.
Launched
in 2008
Competition to
Internet Explorer
In 3 years time Competition to
Windows
Launched Chrome
OS

20. Search Engine Market share
20
2014
2015
2016

21. 21
Impresario Slides
Porters 5 forces
Competitive
rivalry: High
competition
Buyers’
power:
Moderate
buying
power
Threat of
new
entrants:
Low
Suppliers’
power:
Moderate
supplier
power
Threat of
substitutes:
Moderate
Low switching costs : Search engine
share of Google decreased in 2014
App developers, websites
• Yahoo Bing Network,
Facebook, Amazon
• 33% of online shoppers start
directly on Amazon
• Facebook allows users to
connect with news,
companies, products, people
Dominated by Google.
Others players are Yahoo, Bing, Baidu
Amazon, Apple, Facebook

22. www.slideproject.com
SWOT Analysis
2222
Strengths Weakness
Threats Opportunities
S W
OT
• Competition from Amazon, Facebook, Apple
• Privacy
• Antitrust
• Patent infringement claims
Opportunities
• Allo and Duo
• Google Home
• Cloud computing
Threats
• Several services are not profitable
• Too much reliance on advertisement revenue
Weakness
• Market leadership in search engine
• Organizational Culture
• Ecosystem of various services
• AdSense and AdWord
Strengths

23. 23
Impresario Slides
Time to scale back Google’s ambitions and draw boundaries
around Google’s corporate strategy?
• With so many changes going on nobody was able to comprehend where the company is heading
towards.

24. 24
Impresario Slides
Larry Page and Sergey Brin played it very nicely by forming Alphabet Inc. on October 2nd,2015
Restructuring
Ref : https://www.theguardian.com/technology/2015/aug/11/google-alphabet-why-change-restructuring-what-it-means

25. 25
Impresario Slides
Why Alphabet Inc. ?
A Message To Shareholders
A Message to Analysts
A Path toward More Ambitious Initiatives
Addressing the Challenges of Diversification
Borrowing Best Practices

26. www.slideproject.com 26