Google is the dominant search engine and generates most of its revenue from advertising. It has a strong brand, loyal customers, and innovative products and services like Android, Gmail, and YouTube. However, it faces threats from competitors in mobile (Apple) and search (Microsoft). The recommendations are to expand advertising in foreign markets, invest more in mobile and cloud technologies, and integrate social media properties.

1. Prepared By: Hatem Kameli
Digital Marketing Trainer & Consultant
iCLICK, Co – founder & Director

2. Agenda
 Google World
 Google Products & Services
 Google Financial Situation
 Google Strategy
 Strategic Evaluation ( vision, mission & objectives )
 PEST Analysis
 Five Forces Model
 Benchmarking
 SWOT Analysis
 BCG for Google Products Portfolio
 Recommendations

3. Introduction
 Search Engine, Cloud computing, Software and Advertising
technologies
 Larry Page and Sergey Brin in 1998
 Page Ranking No. 1 in the world
 Over 1 Billion search requirements daily
 22,000 full time employees
 Rated No.1 of ‘Best company’s to work for’ in the world
 Ranking No. 2 of the top 100 brands in the world
 May 2012, dominate the search engine world, market share of 87.6%
 Total revenue more than 50 Billion $, 2012
 Primary Revenue Source: Advertising (97%)

4. Google History & Services

5. Services By Google

6. Google Financial Situation

7. Differentiation
Google primary strategy is to focus on Search Engine Marketing . Indexing every website on the
web, giving faster results with accuracy.
Google’s Ad-Sense and Ad-Word helped Google to generate huge revenue form the Internet
Market
Differentiation Factors
 Robust Data Centers around the world
 Unique Page Search Algorithm
 Ad-Sense & Ad-Word
Primary Strategy Secondary Strategy

8. Innovation
Google secondary strategy is to focus on other related segments with innovative product
development like - Social Media, Gmail, Google Books, Mobile Computing & Cloud Computing
etc.
Growth Strategy
Google’s growth strategy – Merges & Acquisitions (Example – YouTube, Android, Motorola)
This strategy is preferred because it allows Google to quickly adopt new technologies and
process rather than trying to develop them internally
Primary Strategy Secondary Strategy

9. Alliances
Google & AOL enters into Strategic Alliance to expand business globally, Some key note of this
strategic alliance are:
 Creating Global Advertising Partnership
 Google to Invest $1 Billion for a 5% Stake in AOL
 Companies to Collaborate on Online Video Offering and Make More AOL Content
Available to Google Users
 Google Talk Instant Messaging Software to Communicate With AIM Users
Primary Strategy Secondary Strategy

10. Google Vision & Mission
Mission: Organize the world's information and
make it universally accessible and useful
Matched Unmatched
-Flexibility -Market segment
-Fewer than 100 words -Transparency
-why they exist -Philosophy
-Reachable

11. Google Goals & Objective
Objectives Specific Measureable Achievable Realistic Timed
Increase Acquisitions by 5% yearly
Increase search advertising market
share 5% yearly
Increase total revenue 10% yearly

12. External Scan
Political
and legal
Technology GOOGLE Economical
Social
PEST Analysis Model

13. External Scan
Political Economical Technology Social
• Google is worldwide • Google's focus on highly • Technology is obviously • The world is increasingly
companies so it has to targeted, measurable always improving and becoming more
face the constraints advertising makes it Google has taken connected due to the
impose by different more recession-proof specific measures to means of
countries. than many other make sure it does not communication
businesses in tech fall behind. available through the
• although Google is • technology companies internet.
present in most like Google are • Internet search is
countries around the relatively isolated from applicable to most • most new cell phones
world, it has to cope period of recession cultures all over the are internet capable
with internal rules. because search and world freeing Google devices.
consequently internet- from geographic
based advertisements dependence.
has become a staple to
the world society and
economy.
PEST Analysis Model

14. Competitive Analysis
Bargaining
Threat of New
Power of
Entrants
Buyers
Bargaining Threat of
Power of Substitute
Suppliers Product
Competitive
Rivalry with
in Industry
Michael Porter’s Five Forces Model

15. Competitive Analysis
Supplier’s Power Barriers to Entry Competitive Rivalry Threat of Substitutes Buyer Power
• Google have the • Yahoo & Microsoft • Not a big • very big number of • Limited choices in
power to buy out have radically competition in ad substitutes of search engine
any ad-technology improved their technologies mobile technology • Limited Choices in
they wish search engines • Currently there are online ad
only a few rivals • Ad Technologies: technology.
• Suppliers of • Online Marketing (Microsoft, Yahoo) Many of the • Limited Choice in
telecommunication governing rules are so the degree of important ad- mobile OS
infrastructure may still evolving which rivalry is more technologies are • good amounts of
change contracts may affect Google’s oriented to an owned by Google choices when
and relationships Strategy oligarchy but other useful selecting a browser.
• Brand identity ones exist
• Google Products
may not perform
well with new
software release
from Microsoft &
Apple
Michael Porter’s Five Forces Model

16. Benchmarking
Search Engine Market Share, 2012

17. Benchmarking
Mobile Market Share, 2012
0%
4% 2% Android (Google)
4%
5% iOS(Apple)
BlackBerry
Symbian (NOKIA)
17%
Windows Phone 7
(Microsoft)
Linux
68%
Others

18. Benchmarking

19. SWOT Analysis
S TRENGTHS
W EAKNESSES
•One source of income ( 97% of
• Search engine leader
•Management Style revenue from advertising)
• Effective advertising model
•Loyal customers •Unprofitable products
•Innovation
•Brand name
•Smartphone king
•Best work environment
•Financial Situation ($50 B revenue,2012)

20. SWOT Analysis
O
PPORTUNITIES
T HREATS
•Sustainable growth in search advertising •Strong competition (Apple, Microsoft,
•Fast growing Social Media market Facebook )
•New products and services •Microsoft and Yahoo possible partnership
•Strategic acquisitions •Microsoft and Nokia possible partnership
•Growing mobile advertising market • Advertising space is becoming more
competitive
•Political Risk and EU antitrust Law

21. BCG Matrix for Google
High Market Growth
star
Question Mark
YouTube
Google Doc
Android
Google Shopping
Google+
Google Drive
Gmail
Low High
Market Market
Share Share
Cash Cow
Dogs
Search Engine
Google News
Advertising
Google Group
Technology
Google Site
Low Market Growth

22. Recommendations
 Increase ad spending in foreign markets specially in the Asia-Pacific market
 Invest more in mobile technology (android)
 Expanding the income sources
 Improve Cloud services such as (Google drive, Google Docs)
 Enhancing Google ecommerce capability (Google wallet, Google Shopping)
 Transparency and clarify their vision
 Invest more social media market and integrate Google plus and YouTube
with other Google services