An interpretation of Google Search's Business Model Canvas as taught by Steve Blank, after the new Google Stories on Search. This is open to constructive criticism and discussion!
3. Key Partners:
● Network of Companies/ Websites that use Google Ads through Google Adwords.
Some of the popular revenue generating Partners are:
○ Uline – $35.1 Million in 2011[1]
○ VistaPrint – $26.9 Million in 2011[1]
○ Office Depot – $17.3 Million in 2011[1]
○ Staples – $15.2 Million in 2011[1]
○ United – $14.3 Million in 2011[1]
○
● Network of Companies/Websites/ Web Pages that show Google Ads as a network.
Some of them would be:
○ Google search sites such as Google Shopping, Maps, Images, and Groups.[2]
○ Site directory pages.[2]
○ Search results pages.[2]
○ Internal search results and product pages on sites like eBay, Amazon, Walmart,
Target.[2]
Citation: [1] https://www.wordstream.com/articles/google-earnings
[2] https://www.highervisibility.com/blog/what-are-google-search-partners-and-why-do-they-matter/
4. Key Activities:
● Maintaining the current Search Algorithm, technology stack and infrastructure.
● Re-building or Improving the current Search algorithm, technology stack and
infrastructure, with new advanced technologies or better implementations of current
technologies.
● Maintaining Google Search Services, such as (These groups are self-created):
○ Google Ad Services: Adwords and Adsense
○ Google User Services: News, Images, Weather, Translate, etc.
○ Google Special Services: Stock Quotes, PhoneBook with Android, etc.
● Innovating with new features, such as the recent ‘Story’ feature for popular public
figures, potentially introduced using ‘Knowledge Graphs’ integrated within Google
Search Engine, that dynamically creates Story content and displays, without explicitly
decreasing latency of search because of high memory utilization.
5. Key Resources:
● Intellectual Resources:
○ Technical Expertise: Google is popular for its technical expertise in using
technologies that they use:
■ Software: Search Algorithm, Natural Language Processing for Google
Translate, Knowledge Graphs for Google Stories, etc.
■ Hardware: Assistive technologies for differently abled, special hardware
required for any specific Search function, etc.
○ Patents
■ Google is popular for its Intellectual Property in the form of multiple patents
such as: Advertising, Design, Game, Video, Image Processing, Translate, etc.
● Human Resources: Thousands of intelligent Google employees that Google spends a
lot on for recruitment as well as retaining through HR programs.
● Financial Resources: Google’s approximately 90 Billion revenue in 2018 are well spent
on Research & Development and other activities as a resource for development.
● Physical Resources: Google’s 70 Offices in 50 countries[3], 900k servers[4], R&D sites
and all other physical places or resources are enlisted under this type of resource.
Citation: [3] google.com ; [4] datacenterknowledge.com
6. Value Proposition:
As discussed in class, Value Propositions are directly related to the target users of any product.
Therefore, let us analyze value propositions for major customer segments:
● Value for ‘Advertisers’:
○ High quality and quantity of targeted users for Advertising agents, is the main
value proposition that Google provides to Advertisers.
○ Google provides various useful services for Advertisers to publish ads on Google,
mainly through Adwords services.
○ Many tutorials and assistance to advertisers to learn how to use Adwords.
○ Adwords certification program to help users learn how to use Adwords.
● Value for ‘Websites/ Web pages Managers and/or Webmasters’:
○ Enable them to monetize/ earn money through content on their websites/ pages/etc.
○ Enabling bloggers without websites using Blogger.com service.
○ Webmasters with sites use Adsense, easy to use and resources to learn usability.
● Value for ‘End-User Consumers’:
○ High quality and content of search results.
○ Innovative new interactive search options: Image search, News, Videos, Stories,
Google Translate, Calculator, Language specific search, local search, etc.
○ Useful Targeted ads that help them find useful resources.
7. Customer Relationship:
Google Search always maintains Good relationships with its customers through various
services and offers that Google has to ensure that the customers are happy.
● Sales and Support: Through various good Sales and Support services to
Advertisers, Webmasters and end-user consumers, Google maintains a good
relationship with their customers.
● Global Support Organization: A dedicated Global trained Support Team functioning
24/7 on all language platforms ensures that the customer relationships are well
maintained.
● Google Events: Google organizes various big and small events both globally and
locally such as Google I/O (Global) and Google local events where they invite local
potential and current customers
● Google Developers Relations Team and Google Developer Groups: This team
specializes in maintaining direct and good relations with the future and current
consumers and developers internationally.
● Special Programs and Scholarships: Using their CSR responsibly, Google
organizes special programs like Grace Hopper Sponsorships and Women
Techmakers to create an overall good standing and reputation with current/future
customers.
8. Channels:
As discussed in class, a channel is a medium through which an organization can educate
its chosen customer segments about the products and services, provides customers with:
an opportunity to study and evaluate the organization value propositions, facility to buy
their chosen products or services, the Value Proposition and after sales services.[5]
● Google Display Network.
● Web/Online channel through the Google.com page.
● Online tutorials, help sections for teaching how to use Google Search options and
services, using YouTube or textual content.
● Good User Interface for various other Google Search provisions like Calculator,
Translate, etc.
● Integrated Google Search in other Google services like Google Docs, Google Slides,
etc.
● Special Search options through various sections like, Images, Videos, News, etc.
Citation: [5] https://www.cleverism.com/selecting-managing-channels-business-model-canvas/
9. Customer Segments:
● Advertisers:
○ This segment can be defined as anyone who has the purchasing ability and desire to
publish ads on Google.
○ They usually use Adwords service by Google.
○ As advertisements contribute to most of the Google’s Revenue, this customer
segment is the most important revenue-generating customer segment for Google.
● Websites/ Web pages Managers and/or Webmasters:
○ This segment is defined as Content owners for anything available on the internet, and
they desire to earn money using Google Adsense.
○ These also contribute directly to Google’s Revenue so these are also directly
revenue-generating customer segment for Google.
● End-User Consumers:
○ These are customers who use Google Search and are target customers for
advertising agents, without these target customers, advertisers will not pay for Google
Ads and Google will not be able to generate revenue.
○ These are very important yet indirect revenue-generating customers for Google.
10. Cost Structure:
Google Search’s Cost structure is considered ‘Value Driven’ as extracted from the Company’s
mission and annual costs. Major sectors in which the company incurs costs are:
● Research and Development
● Sales and Marketing
● Administrative
● Human Resource
● Acquisitions
11. Revenue Streams:
Google Search’s Revenue Streams are mostly governed by advertising revenue as they
generate most revenue through their ads, especially for the Search product. Major revenue
streams are:
● Advertising Revenue, through:
○ Google Websites
○ Google Network Member Websites
○ Other Advertisement Revenue through Adwords
○ Revenue from Adsense
● Data Resources:
○ Occasionally, Google sells search data to businesses at high prices
● Acquisitions