Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Google SearchI'm Feeling Lucky Overview Team Venus Spring 2008 ©2008 Google

10,000,000,000,000,000,000,000,000, 000,000,000,000,000,000,000,000, 000,000,000,000,000,000,000,000,000 GOOGOL The American Heritage Dictionary, 3rd Edition “Googol” n. The number 10 raised to the power of 100 (10^100) [A coinage] Merriam Webster Collegiate Dictionary, 2006 Oxford English Dictionary, 2006 v. “To use the Google search engine to obtain information on the Internet.”

Web-based Portal Definition Portal - “Doorway” A Web site or service that offers a broad array of resources and services, such as: , forums, search engines, online shopping malls. Web Images Maps News Shopping Gmail more What is a Web-based Portal? Type Subsidiary of Time Warner Founded in 1985 (as Quantum Computer Service) Headquarters New York Type Public (NASDAQ:YHOO) Founded Santa Clara, CA 1995 Headquarters Sunnyvale, CA Type Search Engine Founded 1996 Headquarters Oakland, CA

Google does search Google believes in instant gratification “The perfect search engine would understand exactly what you mean and give back exactly what you want.” »Larry Page, Co-Founder Google

Google History Stanford University, Sergey Brin -Larry Page PageRank Algorithm that solved the problem of spam Google Inc. With $1.1 million initial investment, Google was Incorporated on September 7, 1998 History Web Images Maps News Shopping Gmail more Sergey Brin Born: August 21, 1973 (age 34) Moscow, Soviet Union Occupation:Co-founder and President of Technology of Google Salary: USD 43,726 (2005)[1][2] Net worth: ▲ US$18.7 billion[2] Spouse: Anne Wojcicki[3] Website: Stanford.edu/~sergey/ Larry Page Born: March 26, 1973 (age 35) East Lansing, Michigan Occupation: Co-Founder & President of Products of Google Inc. Salary: $25,045 USD (2005)[1][2] Net worth: ▲ $18.6 billion USD (2008)[3] Spouse: Lucinda Southworth

TypePublic (NASDAQ: GOOG), (LSE:GGEA) FoundedMenlo Park, CA (September 7, 1998) HeadquartersMountain View, CA Key People »Eric Schmidt, CEO/Director »Serge Brin, Co-Founder, Technology President »Larry Page, Co-Founder, Products President »George Reyes, CFO Industry Internet, Computer Software RevenueUS $ billion [UP]56% (2007) Net IncomeUS $4.203 billion [UP] 25% (2007) Total AssetsUS $ billion (2007) Total EquityUS $ billion (2007) Employees19,156 (March 31, 2008) Websitewww.google.com

PageRank (Core Competence) Created when web-based search engines were becoming popular (Patent granted on September 4, 2001) Eric Schmidt joined Google in 2001 –Sun Microsystems –Novell Earned revenue Licensed search technology to Yahoo! and other 3 rd -party sites First Paid Listings on December 1999 –CPC “cost per click” –CTR “click through rate” Web Images Maps News Shopping Gmail more Key Factors Behind Early Success Type Public (NASDAQ: JAVA) Founded 1982 Headquarters Santa Clara, CA Industry Diversified computer systems Products Computer servers, workstations, storage, software, services Rev ▲US$ billion (FY07) OI ▲US$309 million (FY07) NI ▲US$473 million (FY07) Employees 33,350 (2008)

Web Images Maps News Shopping Gmail more Key Factors Behind Early Success Word of Mouth No money spent on advertisements Became popular via word of mouth Industry Trend Setter -In 2003, Lauched contextual paid listing, which was followed by Overture - Expanded domain beyond web search Unique Culture Cost-per-Impression Started 1999 Google’s 1st paid listing. Charged a fixed amount each time client’s ad was viewed, regardless of whether viewer clicked on the ad Weighted CPC bids Started 2002 Weighted CPC bids by the ratio of an ad’s actual click through rate (CTR) to its statistically-derived expected CTR Helped ensure that users saw the most relevant ads first Maximized revenue since there would be more paid-listings with higher CTR

Dual-class equity structure Class A shares - 1 votes Class B shares - 10 votes Immunity …from replacement Web Images Maps News Shopping Gmail more Governance

Google SearchI'm Feeling Lucky Analysis of Market

Better algorithm User data validation trust score Established search engine sites Capital Web Porter’s Five Barriers to Entry

After announcing the IPO plans –Acceleration of product development plans (IPO August 2004) –By 2005 some of Google’s advertiser charged the company of neglecting customer service. Despite this company continue to grow. –Google is colliding with nearly every company in the information technology industry. Web Images Maps News Shopping Gmail more How is the Market?

Web Images Maps News Shopping Gmail more Who are Google’s Competitors? Yahoo! –Internet Portal who invested early in Google –2006 Yahoo and Google were competitors –Main difference between Yahoo & Google. AltaVista AlltheWeb GoodSearch Rectifiti

Microsoft –Develop its in-house search engine in 2005 –Courted AOL as a ventured partner –Google’s new products Live Search A9.com Tafiti Ms. Dewey Web Images Maps News Shopping Gmail more Who are Google’s Competitors?

eBay Searches are the beginning of e-commerce (eBay owns 25%) Craig’s List Amazon Google’s Wallet Competing with eBay’s pay pal Google’s BASE Web Images Maps News Shopping Gmail more Expanding

Google SearchI'm Feeling Lucky Google’s Future and Recommendations

Google’s Options Continue to develop highly effective algorithms that generate superior search solutions. Branch into other arenas like e-commerce or become a portal like Yahoo! Venture in developing new products to compete against Microsoft. Consider venturing out with AOL and pay only up to 100% of the searches generated by AOL. Web Images Maps News Shopping Gmail more What should Google do?

Google Has the best search engine Threat to Microsoft and Yahoo! Biggest threat is your cellphone (Business Week April 28, 2008) Distinctive Culture & Organizational Scheme has been what makes this company unique and successful Web Images Maps News Shopping Gmail more Where is Google Now?

Web Images Maps News Shopping Gmail more Known Products Gmail Search and personalize your computer Picasa Explore the world from your computer YouTube Business info, news, and interactive charts Desktop Find and connect with businesses from your phone, for free Orkut Meet new people and stay in touch with friends

Earth Explore the world from your computer Finance Business info, news, and interactive charts GOOG-411 Find and connect with businesses from your phone, for free Special Searches Search within specific topics Scholar Search scholarly papers Web Images Maps News Shopping Gmail more Other Products by Google

Web Images Maps News Shopping Gmail more List of Products