1. GOOGLE -mania
Strategic Analysis

2. The Vision The Mission The Focus
To make 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 Honda & Sony
Both these companies have major share in world manufacture share of Engines and Electronic Goods
Google wants world wide web’s major share.

4. Let’s Analyze the Industry
QUESTION?
IS GOOGLE IN THE RIGHT INDUSTRY?
Let’s Analyze the Industry

5. The Industry Stats

6. Country Analysis Country Users (Mn) Usage Growth (2000-2007) US 210.00
120.80%
China
162.00
620.00%
Japan
86.30
83.30%
India
42.00
740.00%
Brazil
39.15
682.8%
World
225.00%

7. QUESTION? IS GOOGLE IN THE RIGHT BUSINESS?
Lets Look at Products and Rev Model.

8. Standalone Applications Communication & publishing
Google Products (>60)
Web
Search
Maps
Ride Finder
Analytics
Directory
Google Mini
SMS
Search Mash
Advertising
AdSense
AdWords
Audio Ads
Click-to-Call
Grants
TV Ads
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
Maps Mobile

9. Core Products & Revenue Model
Core Products – Search and Adwords.
Revenue Sources -
Contextual Ads - Adsense.
Adwords.
Licensing Google search.
Approx – 10 Billions Dollars.

10. Internet Advertising - 2007
Global - By E-Marketer
Number 1 – Advertising Medium in terms of growth rate.
Ad spending on the Web should net out at $21.7 billion this year VS $20.4 billion on radio.
E-Marketer predicts that online advertising will reach $28.2 billion next year (an increase of 30 percent)
Online advertising will account for a nearly twice as many dollars - constituting a hefty $44 billion market

11. Internet Advertising Trend and Predictions
Global - By Zenith Optimedia

12. Internet Advertising Trend and Predictions
Global - By Zenith Optimedia - continued
The internet will grow six times faster than traditional media between 2006 and 2009 and increase its share of the ad market from 5.8% to 8.7%.
All of the fastest-growing ad markets are in the Middle East and Central & Eastern Europe
These regions are growing at double-digit rates, compensating for an under performing North America
World Adspend to grow 5.2% in 2007, on par with long-term trend
Olympics, elections and football to lift growth to 6.2% in 2008.

13. Global Market Share in Search
Total search in year 2006  Bn
Google is doing Mn search per day

14. Porter’s Five Forces Model for Google Search
Supplier bargaining power :
Supplier concentration is low
Switching costs is low
Threat of forward integration is low
Importance of volume to suppliers is high
Rivalry factors:
Few players of relatively smaller size industry is growing at rapid pace
Product differentiation is low
Switching cost is low
Exit barrier is low
Switching cost zero
Informational Complexity due to secrecy of internal algorithms
Substitution threat:
Mobile search. But due to less sophisticated technology threat is far away few years
Switching cost is LOW
Entry barrier:
Entry barriers due to brand identity and scales is high
Buyers bargaining power:
Buyer size/volume is very small
Change cost/frequency is very low.
product/service importance is high.
Ability to backward integrate is very less.
Price sensitivity is high
Product differentiation is low

15. QUESTION?
WHAT MAKES GOOGLE?
ANDAR KI BAAT

16. Leadership Dr. Eric Schmidt,
Chairman of the Board and Chief Executive Officer
Larry Page, Co-Founder & President, Products
Sergey Brin, Co-Founder & President, Technology

17. 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.

18. 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

19. Google’s Global Presence
21 countries at present

20. 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”

21. 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)

22. Continuous Innovation

23. Biz Model
User Info
Social Networking
Page Rank
Relative Importance
Customization
Contextual Advertising

24. competitive advantage comes from its core competencies in computer hardware and software engineering

25. Value Chain

26. Dynamic View 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
Resource Commitment
Resource Endowments
Activities

27. WHAT IS GOOGLE PITTED AGAINST?
QUESTION?
WHAT IS GOOGLE PITTED AGAINST?
THE BATTLE ZONE

28. Competitive Landscape
Search

29. Competitive Landscape
Advertising

30. Competitive Landscape
Video Blogging

31. Competitive Landscape
Social Networking

32. THE BATTLE ZONE – Part Deux
QUESTION?
HOW WOULD GOOGLE CLASSIFY THESE PLAYERS AND WHO ARE THE TOP COMPETITORS?
THE BATTLE ZONE – Part Deux

33. Direct Competitors OR Complementors?
Internet companies,
web search providers,
Internet access providers,
Internet advertising companies

34. Indirect Competition Or Complementors?
Competition from traditional media companies.
Most large advertisers have set advertising budgets, a very small portion of which is allocated to Internet advertising.

35. Top Competitors

36. Google Identifies Top 2
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.

37. Strengths Analysis
Weaknesses Analysis

38. Threats Analysis Common Opportunities Computer literacy is on the rise
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

39. Competitor Analysis
Google – Aim – To make everything free for the Virtual User.

40. SO WHAT IS GOOGLE DOING AND WHAT SHOULD IT DO?
QUESTION?
SO WHAT IS GOOGLE DOING AND WHAT SHOULD IT DO?
ACTION ITEMS

41. Inorganic Growth - List of Google acquisitions
2004
2005
2006
2007
2008
2Web Technologies
Phatbits
Urchin S/W Inc.
Dodgeball
Reqwireless
Current Comm. Group
Android
Skia
Akwan InfoTech
AOL (5% stake) -Internet
dMarc Broadcasting– Radio Advertising
Measure Map
Upstartle
@Last Software
Orion
Neven Vision
JotSpot
YouTube- Video Sharing
Endoxon
Xunlei
Adscape – Video Game advertising
Trendalyzer
Tonic Systems
Marratech
GreenBorder
Panoramio
FeedBurner
PeakStream
Zenter
Grand Central – VOIP

42. 5 year Performance

43. R&D -> More than 10% increase Y/Y since 2002
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.

44. Recommendations Diversify earnings not products Country Revenue % US
61% UK
14%
Rest Of World
25%

45. The Growth Share Matrix

46. 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

47. Recommendations Be Multi-domestic company Find new sources of revenue.
Continuous Innovation is the key to maintain dominance in such an aggressive environment.
Concentrate on BRIC nations.

48. Recommendations
Balance Scorecard

49. Have we left any QUESTIONS unanswered?
“THE POWER OF GOOGLE IS ENPOWERMENT.”