Strategic management MBA Google diversification google strategy google vision & mission google future statement google chrome google android system recommendations google recent progress

1. B A L Q E E S A L M A K H M A R I
GOOGLE INC. CASE STUDY

2. CORPORATE PROFILE
• Google Inc. is a Delware Corporation, started as an
internet search engine technology provider.
• Started in 1996 by Brin and Page, founded as Google in
1998.
• Now it has grown to be a large collection of products and
services.
• April 2004 Google filed IPO with U.S. Securities and
Exchange Commission, which became effective on
August 2004.

3. STRATEGY TIES THE COMPANY TO ITS
ENVIRONMENT

4. GOOGLE’S PRESENT STATEMENTS
MISSION:
To organize the
world’s
information and
make it
universally
accessible and
useful
VISSION
To make search
engines so
powerful that they
‘understand
everything in the
world’

5. THE WAYS GOOGLE HAS ACHIEVED ITS
MISSION:
• Expansion to many global areas
• Diversification by acquisitions (ex. Android, Motorola
Mobility)
• Innovation, creativity, and entrepreneurial initiative
• Simplicity (google logo, no ads)
• Developed its advertising based revenue model
• Fast decision making process to grab opportunities

6. GOOGLE’S FUTURE STATEMENTS
MISSION:
• Provide access to the
society to information
by adapting itself to all
IT innovations
• Focusing on
advertising
• Avoiding government
threats concerning
privacy issues
• Leading worldwide IT
sector
VISSION
• Bases strategy on
diversification to be
more competitive
• Still focused on
making information
more accessible and
global

7. IS GOOGLE ACHIEVING IT’S MISSION?
• Google is taking a long term approach with a lot of their products
• It has taken a number of years to build a steady user base and has
been patient at monetizing it, for example:
- Android has become world’s most popular mobile OS
- YouTube on the other hand, was loss making for years and has
turned profitable only in last couple of years
• Cultural values imposed by Google align with its strategy:
- “Don’t be evil” : widely used in everyday work to aid ethical
decision making in Google culture
- “technology innovation is life board” : build world’s best
technology and products; apply creativity to solve problems

8. DOES IT HAVE A CLEAR VISION OF
WHAT IT WANTS TO BECOME?
• Google acquisitions are adding more costs than revenue
opportunities (ex. Motorola)
• It should become more consolidated and focused in
strengthening its business model
• Aims for depth and specialization
• Therefore, focused on seven major business areas: search,
advertising, social networking, Android, Chrome, YouTube and
local mobile commerce
• Also plan ahead the exact purpose of each of its product, how
profitable it can potentially be and what degree of synergy it
offers to other Google products and its strategy
• Google should still be leader focused on improving ways
people connect with information

9. GOOGLE
DIVERSIFICATION
Google
core feature
• Insinuate
development
beyond the
business of
web search
Google
mission
• Achieving its
mission
through
diversification
into new
products with
various
purposes
Deliver
quality
• Enable people
to search
variety of info
& deliver
quality to
empower
computing
power &
advances
software

10. REASONS FOR
GOOGLE DIVERSIFICATION
• Google corporate culture
• Potential increase to income
• 30% of the total work time of each employee is
dedicated around experimentation and research.
• Google have a lot of products & they give access to it for
free

11. GOOGLE CHROME
• launched in 2008 , September
• it has a 45% worldwide usage share of
web browsers
• “ Google’s entire business is people using a browser to
access us & the web
• Reasons of success
Open
Sources
Technology
Esthetic to
make it
remain
ergonomic

12. USAGE SHARE OF WEB BROWSER

13. ANDROID
& MOBILE TELEPHONY
• It was acquired by it in the year 2005, to
develop "smarter mobile devices that are more aware of
its owner's location and preferences“
• Reasons of success
Flexible
, Fast &
stable
Free
&Open
source
Realistic
view of
future
market

14. WORLD WIDE SMARTPHONE SALES

15. WORLDWIDE SMARTPHONE OS
MARKET SHARE
Figure 2. Worldwide smartphone OS market share (in percentages)
Period Android iOS Windows
Phone
BlackBerry
OS
Others
Q2 2015 82.8 13.9 2.6 0.3 0.4
Q2 2014 84.8 11.6 2.5 0.5 0.7
Q2 2013 79.8 12.9 3.4 2.8 1.2
Q2 2012 69.3 16.6 3.1 4.9 6.1

16. THE MOTOROLA
ACQUISITION
• On August 15, Google announced an agreement
to acquire Motorola Mobility for 12,5 billions $.
• Consider it as a good deal :
Good
financial
deal
Protect
android
ecosystem
Innovation

17. ANDROID DEVICE MARKET

18. • Vision of what it wants to become:
- It bases its strategy on diversification and challenges in
order to be still more competitive.
To conclude, its main goal is to make information still
accessible and global, whatever diversification it has to
do.

19. DOES GOOGLE NEED TO REFOCUS?
• Should Google delineate its corporate boundaries and
which businesses or products should they invest in?

20. OUR VIEW AND
RECOMMENDATIONS
• Step (1):
• Google should continue investing Time, Effort & funds in the
core business ( Search engine and paid listings)
• Why?
• The highest percentage of revenues comes from the core
business
• Innovation in the industry needs to keep improving
(competitive advantage)
• Will help Google ensure the dominant position in the market

21. WHERE DOES GOOGLE’S REVENUE
COME FROM ?

22. GLOBAL MARKET SHARE

23. OUR VIEW AND RECOMMENDATIONS
CONT..
• Step (2):
• Google should look to expand to new areas given the deep
analysis of the products which have a positive NPV
• Why?
• Business industry is dynamic and requires the firms to adapt
to any market changes and be aware of customer preference
fluctuation. Focus on areas which high growth potential.
• Leverage their competitive advantage (Andriod platform)
• Leverage Google’s Brand Equity while introducing new
brands for better acceptance and trust on quality

24. OUR VIEW AND RECOMMENDATIONS
CONT..
• Step (3):
• Reinforce their strengths and be consistent with the corporate
mission and vision

25. CLOSING NOTES
• Keep maintaining the strengths and work on
developing the weaknesses into strengths.
• Be up to date with the Industry changes and make
the company culture to be vibrant enough to adapt to
them
• Grab any opportunity that add to the competitive
advantage of the firm

26. RECENT PROGRESS
• Google is focusing on doing anything and everything that will make
your life easier, more convenient and less overwhelming.
• Google's artificial intelligence, machine learning and natural
language processing technologies are impressive.
• Google-home: a voice-controlled speaker powered by the search
engine's smarts.
• Appo: a smart messaging app which learns over time to make
conversations easier, more expressive and more productive.”
Google touted Allo's ability to scan your texts, understand the
context and supply readymade human-like responses for you
• The company's new tools promise to give us richer, more accurate
search results to vaguer and less-informed queries

27. RECOMMENDATIONS

28. THANKS