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Talent is transforming ....
Google's vision is to organize the world's information and make it universally accessible and useful. Its mission focuses on innovation and the user experience. Google identifies its primary competitors as Microsoft and Yahoo, and aims to gain a major share of the worldwide web. It generates most of its revenue from search and advertising, such as AdWords and AdSense. To maintain dominance, Google needs to continuously innovate, find new revenue sources, focus on growing markets like BRIC nations, and potentially make more acquisitions in areas like social networking and video.
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- 1. GOOGLE Strategic Analysis Sandeep Dutta
- 2. The Vision Tomake search engines so powerful they would understand "everything in the world". The Mission To organize the world's information and make it universally accessible and useful. The Focus Google continues to focus on innovation and on the user experience.
- 3. Google Strategy •It’s the same as of Capgemini, IBM, HP, Microsoft etc…. • All these companies have major share in world products & services share of Engines and IT domain • Google wants world wide web’s major share.
- 4. QUESTION? • ISGOOGLE IN THE RIGHT INDUSTRY? Let’s Analyze the Industry
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- 6. Country Analysis CountryUsers (Mn) Usage Growth (2006-2012) US 210.00 120.80% China 162.00 620.00% Japan 86.30 83.30% India 63.00 992.00% Brazil 39.15 682.8% World 1173.00 225.00%
- 7. QUESTION? IS GOOGLEIN THE RIGHT BUSINESS? Lets Look at Products and Rev Model.
- 8. Google Products (>60) Standalone Applications AdWords Editor Gmail Notifier Hello Pack Photo Screensaver Picasa Secure Access GTalk SketchUp Desktop Extension Blogger Web Comments Browser Sync Dashboard Widgets Send to Phone Toolbar Communication & publishing 3D Warehouse Blogger Calendar, Docs& Spreadsheets Dodgeball FeedBurner Gmail, Orkut YouTube Reader Mobile Products Blogger Mobile Calendar Gmail News iGoogle Reader Maps Mobile Web Search Maps Ride Finder Analytics Directory Google Mini SMS Search Mash Advertising AdSense AdWords Audio Ads Click-to-Call Grants TV Ads
- 9. Core Products &Revenue Model • Core Products – Search and Adwords. • Revenue Sources - • Contextual Ads - Adsense. • Adwords. • Licensing Google search. • Approx – 100 Billions Dollars.
- 10. Internet Advertising Trend and Predictions Global - By Zenith Optimedia
- 11. Global Market Share in Search Total search in year 2006 99.57 Bn Google is doing 138.1 Mn search per day
- 12. QUESTION? • WHATMAKES GOOGLE? ANDAR KI BAAT
- 13. Leadership • Dr.Eric Schmidt, • Chairman of the Board and Chief Executive Officer • Larry Page, Co-Founder & President, Products • Sergey Brin, Co-Founder & President, Technology
- 14. Philosophy of Google • Focus on the user and all else will follow. • It's best to do one thing, and do it well. • Fast is better than slow. • Democracy on the web works. • You don't need to be at your desk to need an answer. • You can make money without doing evil. • There's always more information out there. • The need for information crosses all borders. • You can be serious without a suit. • Great just isn't good enough.
- 15. Google’s Culture •Heart of Small Company • Hand’s on contribution to the Products by each employee • Flat Hierarchy • Each employee having several responsibilities in different departments • Hiring Policy – Non Discriminatory – Preference of ability over experience • Multilingual company environment • Multidomestic culture • Recreation along with work • Common café for all employees
- 16. Google’s Global Presence •21 countries at present
- 17. Uniqueness about Google SEARCH • Speed, Accuracy, Objectivity and Ease of use of. • Fit between their technology and the consumer behavior. • Page Rank technology – Orkut merged • Solved the scale up problem • Positioned as “Fastest Crawling Technique” • Keeps the search “Up to date”
- 18. Uniqueness about Google • 1st to get it right advantage • Advertisers tie up as “CPC” • Trade off between “Speed” & “Compression” • Best asset utilization (Efficient storage space) • R&D expenditure = 50% Net Income(10% of Revenue)
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- 20. Biz Model •User Info • Social Networking • Page Rank • Relative Importance • Customization • Contextual Advertising
- 21. • competitive advantagecomes from its core competencies in computer hardware and software engineering
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- 23. Dynamic View Resource Endowments Resource Commitment Activities Buying many sites, Opening offices in many Countries, Huge investment in R&D, Continuous investment in increasing Database Searching for various avenues, Continuous innovation, Developing people, learning new technologies
- 24. QUESTION? • WHATIS GOOGLE PITTED AGAINST? THE BATTLE ZONE
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- 27. Competitive Landscape VideoBlogging
- 28. Competitive Landscape SocialNetworking
- 29. QUESTION? • HOWWOULD GOOGLE CLASSIFY THESE PLAYERS AND WHO ARE THE TOP COMPETITORS? THE BATTLE ZONE – Part Deux
- 30. Direct Competitors ORComplementors? • Internet companies, • web search providers, • Internet access providers, • Internet advertising companies
- 31. Indirect Competition OrComplementors? • Competition from traditional media companies. • Most large advertisers have set advertising budgets, a very small portion of which is allocated to Internet advertising.
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- 33. Google Identifies Top2 • Primary competitors - Microsoft and Yahoo! Inc. • Both Microsoft and Yahoo have more employees than Google. – Microsoft 6 times. • Microsoft also has significantly more cash resources. • Longer operating histories and more established relationships with customers and end users. • Microsoft and Yahoo also may have a greater ability to attract and retain users - because they operate Internet portals with a broad range of content products and services.
- 34. Strengths Analysis WeaknessesAnalysis
- 35. Threats Analysis CommonOpportunities • BRIC Countries •Computer literacy is on the rise •Telecommuting and at-home-businesses growth •Mobile technologies offer another opportunity. •Cheaper global telecommunication costs open new markets Google Yahoo Microsoft Traditional ad domain Office Suites Other Software Apps. Pay Per Use office Internet Ads
- 36. Competitor Analysis •Google – Aim – To make everything free for the Virtual User.
- 37. QUESTION? • SOWHAT IS GOOGLE DOING AND WHAT SHOULD IT DO? ACTION ITEMS
- 38. Inorganic Growth -List of Google acquisitions 2004 2005 2006 2007 2008 Xunlei Adscape – Video Game advertising Trendalyzer Tonic Systems Marratech GreenBorder Panoramio FeedBurner PeakStream Zenter Grand Central – VOIP dMarc Broadcasting– Radio Advertising Measure Map Upstartle @Last Software Orion Neven Vision JotSpot YouTube- Video Sharing Endoxon 2Web Technologies Phatbits Urchin S/W Inc. Dodgeball Reqwireless Current Comm. Group Android Skia Akwan InfoTech AOL (5% stake) -Internet
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- 40. 5 year Performance • R&D -> More than 10% increase Y/Y since 2002 – Continuous Innovation, creating new products. – New products every year, Need Based Positioning, Depth rather than Breadth. – Ready to deal with dramatic change. • Cost of Revenue – around 40% increase Y/Y since 2003 – Find new sources of Revenue, margins reducing.
- 41. Recommendations • Diversifyearnings not products Country Revenue % US 61% UK 14% Rest Of 25% World
- 42. The Growth ShareMatrix
- 43. Recommendation • Search: Competition from both big web companies and well-funded startups will force Google to remain focused on continuing to innovate in search. • Contextual Ads – Continue good work • Other Ad formats - With Google clearly intent on spreading its advertising platform to the offline world, go for more acquisitions. • Video – Continue Good work. Consolidate position. • Social Networking – Acquire other players. • Office Suite – Continuous R&D
- 44. Recommendations • BeMulti-domestic company • Find new sources of revenue. • Continuous Innovation is the key to maintain dominance in such an aggressive environment. • Concentrate on BRIC nations.
- 45. Recommendations • BalanceScorecard
- 46. Have we leftany QUESTIONS unanswered? “THE POWER OF GOOGLE IS ENPOWERMENT.”