This document provides an overview of Google's business strategies and operations in 2011. It discusses Google's mission to organize the world's information and make it universally accessible. It outlines Google's various products and services in 2011 such as Search, Maps, Gmail, Android, and YouTube. It also examines Google's strategies to dominate internet advertising and control more of the internet through new ventures and expanding advertising channels. Finally, it analyzes Google's competitive position and financial performance in 2011.

1. CASE STUDY:
GOOGLE STRATEGY
Ali Baran
Yavuz Karagül
IN 2011
Nihal Alsat

2. OUTLINE
 About Google  Google’s Strategies
 Mission statement  Competitive Position
 Vision  Strategic Offensive to Control
 General Information  Google’s Internet Rivals
 Brief History  Financial Performances
 Initial Public Offerings  Vertical Analysis Income Statement
 Performance of Google’s Stock Price  Balance Sheet
2004-2011
 Revenue Summaries
 Google Feature Additions 2005-2011
 10 Principles of Google’s Corporate
Philosophy
 Google’s Businesses
 Google’s Business Models
 Google Services and Tools in 2011
 Google Search Appliance
 Adwords
 Adsense
 Google Apps
 Search to T.V.
 Business Ethics

3. Founders
 Larry Page and Sergey Brin met at
Stanford University in 1995. By
1996, they had built a search engine
(initially called BackRub) that used links
to determine the importance of individual
webpages.

4. About Google
 Larry and Sergey named the search engine they built
“Google” a play on the word “googol” the mathematical
term for a 1 followed by 100 zeros. Google Inc. Was born in
1998, when Sun co-founder Andy Bechtolsheim wrote a
check for $100,000 to that entity –which until then didn’t exist.

5. Mission statement
 The Company’s mission to “organize the
worlds information and make it universially
accessible and useful.”

6. 10 principles of
Corporate Philosophy
1. Focus on the user and all else will follow.
2. It’s best to do one thing really, really well.
3. Fast is better than slow.
4. Democracy on the web works.
5. You don’t need to be at your desk to need an answer.
6. You can make money without doing evil.
7. There’s always more information out there.
8. The need for information crosses all borders.
9. You can be serious without a suit.
10. Great just isn’t good enough.

7. CEO and Chairman
 Larry Page, Google’s original CEO until 2001, took up the title
again in April 2011. Eric Schmidt, now our executive
chairman, served in the role for 10 years.

8. Google’s Culture
 Multiculture
 employs more than 19,000 people around the world.
 Favors ability over experience
 Hires people who are smart and determined
 Googolplex:
 Several café stations where employees can gather to eat
free food and have conversations
 Snack rooms stocked with goodies ranging from candy to
healthy foods like carrots and yogurt
 Exercise rooms
 Game rooms with video games, football, pool tables and
ping-pong
 A baby grand piano for those who enjoy tickling the ivories

9. Google’s Culture
 Benefits package
 medical and dental coverage
 tuition reimbursement,
 a child care center,
 adoption assistance services,
 an on-site doctor,
 financial planning classes
 lots of opportunities to gather with coworkers at
special corporate events.
 Non-profit works

10. Google Locations
 The headquarters in Mountain View, California, the
Googleplex
 70 offices in more than 40 countries around the globe.

11. What we do?
 Advertise on Google  Optimize your website
 Adwords  AdSense
 Adwords Express  DoubleClick
 Learn with google  +1 Button
 Google Offers  Webmaster Central
 Google Engage  Website Optimizer
 Improve how you work  Managing
 Google Apps; online e-  Chrome for Business
mail, calendar, docs  Google Payments
 Google Analytics

12. General business definition,
 Business Model basen CPI (Cost per
Impression) or CPC (Cost per Click)
 Search results and Adv. Revenues $+28.2
billion in 2010
 New ventures were becoming a growing
priority with Google management.

13. B2B business solutions
 Advertise Online Publishers
 Earth and Maps enterprise  Google Offers
 Google Ads  Google Affiliate
 Earth and Maps  Google Shopping
Network
 Conversion Optimizer Enterprise
 Google Wallet
 Search Ads  Maps API for the
 Google Trusted Stores
 For Agencies Business
 Display Ads  Commerce APIs
 Google Engage  Search Solutions for
 Mobile Ads  Analytics
Business
 Video and YouTube  Agency Toolkit
 Google Analytics
 Search Appliance
Ads  Google Apps  Content Analytics
 Commerce Search
 TV Ads  For Business  Mobile Analytics
 Site Search
 Google Affiliate  For Education  Conversion Analytics
 Documentation
Network
 For Government  Social Analytics
 Cloud services
 For Publishers
 Become an Apps  Advertising Analytics
 Google Cloud Platform
 AdSense Reseller  Webmaster Tools
 Google App Engine
 DoubleClick  Consumer Surveys  Webmaster Central
 Google Cloud Storage
 AdMob  Google Consumer  +1 Button
 Chrome
 TV Ads for Publishers Surveys  Website Optimizer
 Google+ for Business
 Video Ads For  Submit Your Content

14. Google’s strategy and competitive
position in 2011
 Google’s strategy is to dominate internet advertising by promoting new ventures and
expanding advertising channels such as;
 Google maps,
 local search,
 airline travel information,
 weather,
 Book search,
 Gmail,
 Blogger,
 other features increased traffic to Google sites and gave the company more opportunities to
serve ads to internet users.

15. Google’s Services and Tools in
2011
 Search features:
 Alerts: Get email updates on the topics of your choice.
 Blog Search: Find blogs on your favorite topics.
 Books: Search the full text of books.
 Checkout: Complete online purchases more quickly and securely.
 Google Chrome: A browser built for speed, stability and security
 Custom Search: Create a customized search experience for your community.
 Desktop: Search and personalize your computer.
 Directory: Search the web, organized by topic or category.
 Earth: Explore the world from your computer.
 Finance: Business info., news, and interactive charts.
 GOOG-411: Find and connect with businesses from your phone.
 Google health: Organize your medical records online.
 iGoogle: Add news, games and more to your Google homepage.
 Images: Search images on the web.
 Maps: View maps and directions.
 News: Search thousands of news stories.
 Patent Search: Search the full text of U.S. Patents.

16. Google’s Services and Tools in
2011
 Search features:
 Product Search: Search for stuff to buy.
 Scholar: Search scholarly papers.
 Toolbar: Add a search box to your browser.
 Trends: Explore past and present search trends.
 Videos: Search for videos on the Web.
 Web Search: Search billions of Web pages.
 Google Tools and Web Applications:
 Code: Developer tools, APIs and resources.
 Labs: Explore Google’s technology playground.
 Blogger: Share your life online with a blog.
 Calender: Organize your schedule and share events with friends.
 Docs: Create and share your online documents, presentations and spreadsheets.
 Google Mail: Fast, searchable email with less spam.

17. Google’s Services and Tools in
2011
 Groups: Create mailing lists and discussion groups.
 Knol: Share what you know.
 Picasa: Find, edit and share your photos.
 Reader: Get all your blogs and news feeds fast
 Google Tools and Web Applications:
 Sites: Create Web sites and secure group wikis.
 SketchUp: Build 3D models quickly and easily.
 Talk: IM and call your friends through your computer.
 Translate: View Web pages in other languages.
 Youtube: Watch, upload and share videos.
 Google Mobile Applications:
 Google Play…

18. Cloudcomputing
 Google also pursuing a cloud computing systems to
change market productivity via such applications,
 Word processing,
 Spreedsheets,
 Presentation software
 As technological analysits claims that these
applications improve the cloud computing experience
and thus, it cumulatively expected to grow to $95
billion by 2013.

19. Cloudcomputing in the future
 Google’s senior management believed that, in very near future, most
computer software programs used by businesses would move from local
hard drives or intranets to the internet.
 Many information technology analysts agreed that could computing would
become a common software platform and could grow to a $ 95 billion
market by 2013.
 Moving software applications to the cloud offered many possible benefits
to corporate users, including
 lower software acquisition costs,
 lower computing support costs,
 easier collobration among employees in different locations.

20. Rivals
 Google has wide variety of businesses, so they have lots of
rivals ranging from
 AT&T to Microsoft to Apple…
 In order to sustain Googles impressive growths, the firm also
concerning about new ventures and to be continue to grow in
the digital arenas.

21. Financial Summary of Microsoft
Online Services Business Unit

22. Financial Summary of Yahoo

23. Location, Location, Location
 Google acquired digital mapping company Keyhole in
2004, and launched Google Maps and Google Earth in 2005.
 Today Maps also features live traffic, transit directions and
street-level imagery, and Earth lets you explore the ocean
and the moon.

24. Maps
 They believe that, the development of new internet applications offering
advertising opportunities.
 Google Maps allowed Internet users to search and view satellite
images of any location in the world. Then, they added,
 Real estate listings and short personal messages could also be
linked to Google Maps locations.
 Location based promotional businesses have great opportunity
(expected to reach over 60 billion in 2016), thus this makes
streetfight within the strongest rivals Apple & Google.

25. Google Search Engine
 They expanded their search logic and
improved search experience with adding
specific searchs;
 Book Search,
 Music Search,
 Video Search,
 Google News to include archived news articles
dating to 1900.

26. Search Engine Rankings

27. Google’s Search-based
Strategies
 Google’s search-based ads could be delivered to internet users in
41 different languages, more than 50 percent of the company’s
2010 revenues and traffic were generated from outside the
U.S., and the percentage of sales from outside the U.S. Was
expeceted to grow as Google entered emerging markets such as
Russia, and China.
 China was a particularly attractive market for Google. Since it had
more internet users than any other country in the world. (+300
million)

28. Adsense
 The AdSense program served content-relevant Google
text ads to pages on Google Network websites.
 60 percent of advertising dollars generated from tha ads.
 Google’s AdSense program also allowed mobile phone
operators to share in Google revenues if text and image
ads were displayed on mobile handsets.

29. Adwords
 Create text-based ads that would appear alongside Google search results.
 It’s a keyword targeting program that suggested synonyms for keywords
entered by advertisers, a traffic estimator that helped potential advertisers
anticipate charges, and multiple payment options that included charges to
credit cards, etc.
 Larger advertisers were offered additional services such as,
 To offer suggestions for targeting potential customers and identifying relevant
keywords,
 Google’s advertising specialists helped develop ads for customers that would
increase click-throug rates and purchase rates.
 The bids could be made on CPI or CPC based.

30. AdWords
 In 2000, Google introduced AdWords, a self-
service program for creating online ad
campaigns. Today our advertising
solutions, which include
 display,
 mobile and
 video ads as well as
 the simple text ads

31. Google Will Change Web
Marketing in 2012
 Google is poised to completely alter how
websites market themselves over the next
year. While easing users into changing search
results pages, Google has also designed a
new method for websites to structure data so
that its crawler can better pull information.
 Semantic searchs will become the strongest
point in web marketing searches. (Web 3.0)

32. Other revenue sources,
 Youtube (acquired 2006)
 Google’s business model was further
expanded in 2008 to include licensing fees
paid by users of its web-based Google Apps
document and spreadsheet software.

33. Android
 In 2008, Google had launched Android.
 Android was not a phone but an operating system that Google made available free to
any phone manufacturer wishing to market mobile devices with internet capability.
 Android core applications included Wi-Fi capability, e-mail, a web based
calender, google earth maps, a browser, and GPS.
 Android is a mobile operating system which allowed wireless phones manufactures
such as LG, HTC, Nokia, Samsung to produce smartphone businesses. (as Apple’s
rival iphone –iOs-)
 In 2011, Android 38.1 percent market share.

34. The little green robot arrives:
ANDROID
 Investments in mobile businesses;
 Google announced Android and the Open Handset Alliance, in
2007.
 In 2011, Google acquired Motorola Mobility for $12.5 billion, to
gain advantage on patents & rights in order to enter smartphone
& tablet computer industries.
 The growing mobile business allows new way of doing the
business, such as,
 Banner ads and video ads display on mobile phones.

35. Mobile business opportunities
 In 2010, 5 billion people worldwide used mobile phones.
 The smartphone penetration is;
 %70 percent in U.S.
 %35 in Turkei
 Recently, Windows and Nokia targeted the basic phone customers and focus on to
produce and distribute cheaper smartphones in order to reach mass basic phone
users, thus they may expand their businesses both software platform and hardware
tools & phone sells by opening new segments in the market.
 The growing percentages worldwide accessed the internet from mobile devices, and
a rapidly growing number of mobile phone users were exchanging basic mobile
phones for smartphones.

36. Smartphone Rankings

37. Google’s ecosystem strategy emerges as
Google Play, replacing the Android Market
 Google has just announced that the Android Market is out, at
least in name, replaced by the more wide-reaching Google
Play.
 They’ve since added Google Books, Google Music, and
Movies to the foray, and wanted a way to consolidate those
efforts under a single brand name.

38. Google Chrome : the comic
heard
 Word got out about Google Chrome a day ahead of schedule
when a comic book introducing our new open source browser
was shipped.(2008)

39. Google Chrome business
 In this sense, Google Chrome operating system launched in
2009 were developed specifically to accomodate cloud
computing applications.
 With this software, google deliver relevant search-based ads
to internet users.
 Google had entered into agreements with Acer, HP, and
Lenovo to begin producing netbooks that would use the
Chrome OS and Chrome browser to access the cloud-based
Google Apps productivity software.

40. Browser Market Rankings

41. Gmail
 In 2004, Google launched Gmail. The approach to email
included features
 Speedy search
 Huge amounts of storage
 Threaded messages (SMS etc.)
 Integrated services for free… (actually, as they said:
“there’s no free lunch.”)

42. Google +
 In 2011, Google introduced the Google + project aimed at
bringing the nuance and rtichness of real-life, sharing to the
web, and making all of Google better by including
people, their relationships and their interests.
 Afterwards, Facebook imitated the features and applied in
next patches, thus recent facebook features are picked from
the Google+’s abilities.

43. Broadcast yourself: Youtube
 In 2006, Google acquired online video sharing
site YouTube. Today 60 hours of video are
uploaded to the site every minute.
 Cat videos,
 Citizen journaism,
 Political candidacy,
 Double rainbows have never been the same.

44. Lobbying U.S.
 Google also lobbied heavily during 2009 and 2010 to
encourage the Obama administration to adopt a “Net
neutrality” policy that would require internet providers to
manage traffic in a manner that would not restrict high-
bandwidth services such as internet television.
 The company was also testing and ultrafast broadband
network in several cities across the U.S. That was as much
as 100 times faster than what was offered…

45. Struggles in China
 Google complied with government censorship requirements until
early 2010, when cyberattacks originating in China stole proprietary
from the Gmail accounts of several Chinese human rights activists.
 To avoid breaking Chinese law prohibiting the distribution of
information not authorized by the govenment, Google agreed in
June 2010 to stop the automatic redirects to its Hong Kong site.
 In 2009, 64 percent of internet searches in China were performed
by Baidu, while Google held a 31 percent of share of searches in
that country.

46. International strugglties
 Google for aiding China in its internet cencorship practices since its
2006 entry into China, authorities
 in the U.S., Canada, Australia, Germany, Italy, U.K., and Spain were
conducting investigations into Google’s street View data collection
practices.
 In late 2011, Google entered into a $500 million settlement agreement
with the U.S. Justice department to avoid prosecution on charges that it
knowingly accepted hundreds of millions of dollars in adv. From online
pharmacies in Canada that unlawfully shipped controlled substances to
U.S. consumers.

47. Initial Public Offering
 19,605,052 shares of Class A common stock
took place on Wall Street in 2004

48. IPO, the issue added more than $4 billion
to Googles liquid assets.

49. Google Search based business
model improvement process
 Google’s business model had evolved since they begun.
1. The 2000 development of keyword-targeted advertising.
2. Placement of highly targeted text-only sponsor ads
3. Targeting specific users based on the user’s browsing
history
4. Mobile searching logic, thus
 location based ads.
 Highly accurate

50. Key success factors

51. Financial State of Company
Google is in a situation in which it
can resist the economic crisis Performanc
and find new revenue e $35bn
sources, both advertising and advertising
Licenses
non-advertising and other During a
revenues crisis, performa
Explosion of nce advertising
Internet gains market
mobile the non-
advertising shares.
revenues
Monetization of
Online video
the internet
$20bn mobile audience
YouTube
moneytization
increases
Revenue Revenue
s s 2012

52. Financial State of Company

53. Financial State of Company

54. Financial State of Company

56. İnfographics of 2011
 http://geek-freemarketing.com/wp-
content/uploads/2012/11/google-statistics.png

57. THANK YOU FOR LISTENING
