Team 10 Tara Ferguson JT Lehotsky Taylor Skidmore Phuong To

ORGANIZATION OF GOOGLE

History of Google Began March 1996 as a Stanford research project by Larry Page and Sergey Brin. PageRank: pages with the most links to them from other relevant web pages must be the most important pages associated with the search. Formally incorporated as Google Inc., on September 4, In 2000, began selling advertising based on search keywords. By 2004 they made their first initial public stock offering.

Google’s Mission “Organize the world's information and make it universally accessible and useful.” – New approach to online search that quickly spread to information seekers around the globe. – Google focuses on using its mission to connect it’s users to their core business, the search engine. Code of conduct--“Don’t be evil.” – “We believe strongly that in the long term, we will be better served, as shareholders and in all other ways, by a company that does good thing for the world even if we forgo some short term gains.”

Google’s Core Business Advertising – Google receives demand for advertising mainly from businesses that sell a large range of consumer products, and services. – AdWords: Advertisers select their own target keywords and only pay when customers click on their ads. – Google’s main revenue is generated by providing online advertising, at over $10 billion a year.

Google’s Core Business Search – Google’s main focus is developing the best search engine possible. – Company developers provided the fastest, most accurate results requiring a new kind of server setup. – Google uses a system created by the company’s founders called PageRank, which is meant to help rank web pages that match a certain search query.

Environmental Factors Geography – Google’s main headquarters are located in Mountain View, CA. – Competes internationally in Asia Pacific, the Middle East, Latin America, Canada, and Europe. Social – Most common age distribution  35-44: 22.93% – Affluent users – Important consumer of Google consists of their business to business operations.

Technology Stands out from competitors through processes such as information technology, analytical decisions, and product development. Google rapidly comes up with new ideas to expand their offering  mobile phones, social networks, operating systems, blogging, etc. Organization structure is suited to implementing an entire product-development life cycle quickly and efficiently. Google simultaneously tests and markets the products to the user community.

Political Copyright Accusations – Faced with an anti-monopoly inquiry from the Department of Justice. – Scanning copyrighted books from libraries for use in its book search service was a violation of copyrights.

Political Privacy Standards – Stop the merger of Google and the online advertising firm, Doubleclick. – Interest groups filed a complaint with the FTC, and they agreed to conduct an anti-trust review of the deal. – Wanted more transparent information on how their personal information is collected and used.

Political Censorship Laws – Announced that they would follow internet censorship laws in the People’s Republic of China. – Firewall allows for self-imposed censorship of certain keywords that are on a blocked list maintained by the government. – They feel providing some information is more consistent with their mission then providing none at all.

Political Google has a lot of influence on American politics. – They have a large control over the distribution of information. – Google Public Policy. Includes their views on net neutrality, censorship, innovation regulation, immigration, R&D, national security, and trade. – Online video debates of presidential candidates. – NetPAC: supports candidates who promote an open and free Internet for users.

Organizational Structure Google’s Organizational Chart

Organizational Structure Cont. Flat Structure – Has few levels of executives between employees and management. – Allows for ease of communication with upper management and quick decision making. – Important to the company to maintain the feel of a small organization. – Committed to every employee, they each have something important to contribute, and everyone that works there is valuable to their success.

ANALYSIS OF GOOGLE

SWOT Analysis of Google StrengthsWeaknesses -PageRank system -AdWords -Cloud Computing -No metadata to filter search results -Privacy issues OpportunitiesThreats -Social network industry -Expanding services to Mac and Linux -Increasing competition leads to revenue decrease -Intellectual property rights

Hedgehog Concept What Google is deeply passionate about What drives Google's economic engine What Google can be best in the world at

4 Action Framework Google's Current Value Curve REDUCE: - Employees - R&D Costs CREATE: - Web browser - Apps RAISE: - New ad formats - Needs of users - Global access - Search tools (Google.com) ELIMINATE: - Pop-ups - Payments for search results - Newspaper and radio ad units

Google’s Globalization Drivers Google's Globalization Potential Market Drivers - Evolution of customer needs - Global customers Cost Drivers - Nature of industry - Economies of scale - Differences in country costs Competitive Drivers - Globalization of competitors - Interdependence between countries Government Drivers - Regulatory climate - Technology - Standards

INDUSTRY AND COMPETITORS

YAHOO! INC 1994, Jerry Yang and David Filo - Stanford University making a guide on the campus trailer “Jerry and David’s Guide to the World Wide Web” “Yahoo!” = Is the acronym for “Yet Another Hierarchical Officious Oracle”

Way to the breakthrough 1996: 1 st I.P.O. of $1billion : acquired different companies and services (Y!Mail, Y!Messenger, GeoCities, Flickr, del.icio.us…) Went into Asia Never had a search engine until 2003

But failed in the end : several attempts from Microsoft : 3 times CEO changed Jul 2009: Microsoft $20billion for Y! search engine (stock price $ to $ ) Shifts to displaying ads and online services Last 4 years: 92x decrease in operating income, 4.5x decrease in total income,

Baidu Inc a Chinese language Internet search provider Provides an index of over 740 million web pages, 80 million images, and 10 million multimedia files & 57 search and community services Inspired by a poem written more than 800 years ago during the Song Dynasty. The poem compares the search for a retreating beauty amid chaotic glamour with the search for one's dream while confronted by life's many obstacles The first Chinese company listed on the Basdaq list 62.1 percents of Chinese market (Google - 29 percents) Last 4 years: 20x cash flow, 4x assets, 4x equity, 12x revenue, 40x operating income

AOL : WebCrawler, NetFind, Netscape 1999: AOL Search 2001: merger with Time Warner 2005: Google got 5% of stocks : profits decrease (-$13 mil in 2008) 2009: split

MSN & Bing 1998: MSN search 2009: bing – disease in Chinese? very certain to respond? Or just bing!? Pay per click – on mobile phones 10 years agreement with Yahoo! – 23% market share Decision engine instead of search engine/Innovation Quicktabs Interactive/smart (flight number, usb tracking number) Photos and videos Microsoft Advertising Intelligence (provides keyword expansion, research, pricing, and KPI data allowing you to maximize marketing ROI for your paid search and content ad campaigns )

Online Advertising Industry: View from the top Highly competitive High customers’ purchasing power Hard to enter Best defense: brand name power Basic formula: when there is a high brand recognition, there is a higher numbers of users and subscribers (and vice versa); and when there are both of the characteristics above for an online ad provider, there will be more customers and profits to the provider. Not so basic: innovation (Google and PageRank; bing and excitement) Think a new company can enter that industry?

FORMING A STRATEGY

Revised 4 Action Framework Google's Current Value Curve REDUCE: - Search engine - Advertising - Cookies on user's computers CREATE: - Chrome OS - Google Internet RAISE: - Mobile devices and services ELIMINATE: - Google Earth

Value Curve

The Future is Here!

THE END!!!