Google. The history of Google

1.

“To organize the world’s information, and
make it universally accessible and useful.”
---Made by Boris

2.

Contents
• Company overview
• Google company analysis
• Conclusion
• Q&A

3.

The history of Google
Sergey Brin(left)Larry Page(right)
• Google began in 1996 as a
project by Larry Page and
Sergey Brin when they
were both studying at
Stanford University
California
• It was founded in 1998
and now turns into the
most powerful search
engine and one of the
leading internet
technology and advertising
companies all over the
world.

4.

Products of Google
Google Book Search The tool can
search the book you want to read
from the internet, then you will
save your money and time
Google Toolbar Google toolbar is
a free IE plug-in, the function is
that you can search and browse
the page information anytime

5.

Products of Google
Google Notebook it’s a service
that Google provides which allow
users to easily store and the
information collected from the
web site
Google Desk Search you can
search the document in your disk
through this tool

6.

Products of Google
Google News Provide more
than 20 nations news
information
Google Video the service can
search kinds of video files or
the broadcast on TV recently

7.

Products of Google
iGoogle Google provide the
function of creating the personal
page, so you are able to browse
important information on the
internet quickly
Google Earth the most familiar
product to us, you can find your
city, house or even your car on it

8.

Financial Information
Period
Ending
12/31/201 12/31/201 12/31/200 12/31/200
0
0
9
8
Total
revenue
$37,905M $29,321M
$23,651M
$21,795M
Net
Income
$9,737 M
$6,520M
$4,226M
Total
Assets
$ 72,574M $57, 851M $40,497M $31,767M
$8,505M

9.

Five Force For Google
Barriers to
Entry(Potenti
al for new
market
entrants)
Competitive
Rivalry
(Degree of
Rivalry)
GOOGLE
Treat of
Substitutes
(Product &
Technology
Development)
Buyer
power

10.

Potential New Entrants
• The barriers to entry in the internet search market
are high.
• Require
• thousands of servers deployed in locations all over the
world
• accumulated many years worth of data about user
habits
• better search results at very fast speeds to compete in
this highly competitive market.
• The market now, however, is more mature with a necessary
path dependency to gather data on both the content of
webpages and the search history of users.
• Therefore, the threat of new entrants in the internet
search market is relatively

11.

• Google’s ad system is a reliable source of income
because both the ad-making partner and adreceiving individual are both customers of Google’s.
• So as long as Google maintains its market
dominance with the search product, supplier
bargaining power will remain low.

12.

Google’s internet Rivals
com Score Core Search Report
April 2010 VS April 2011
Total U.S-Home/Work/University Locations
Source: com Score q Search 2.0
Core Search
Entity
Share of Searches(%)
April-11 2010
April-11 2011
Point Change
(April-11 2010
VS April-11
2011
Google
87.44%
79.84%
-7.6%
Yahoo
5.43%
8.70%
3.27%
Bing
4.20%
8.59%
4.39%
Ask
1.79%
1.64%
-0.15%
AOL
1.14%
1.22%
0.08%
Other
0.01%
0.01%
0

13.

Search Engine Market Share
(Jan 2010-Apr 2011)

14.

Current Competitors
• The competitive rivalry is strong and
ongoing in this industry because large
amounts of advertising dollars flow to the
website that has captured the largest
volume of searches.

15.

Customers
• No single buyer has a controlling interest.
– No single account contributes more than 3%
to net revenue
– Less than 5% of the revenue is generated by
any given network partner site
• Attract both large companies and small
“mom-and-pop shops” keeping buyer
power low.

16.

Potential Substitutes
• There really is no suitable substitute for
search.
• A substitute product may be invented in the
future, but there are no obvious substitutes to
organizing information on the Internet.
• Information can be organized in different
ways including categories and sorted by
date, but Google provides tools to complete
these tasks as well as conduct searches.

17.

• Google has positioned itself well to
weather each of Porter’s Five Forces of
Competition as well as stay afloat in a
turbulent external environment. Google’s
ability to please its stakeholders will
continue to define the success of the
venture and the future of the company.

18.

SWOT analysis for Google
Strengths
Significant brand image
Strong infrastructure base
Robust financials
Weaknesses
Opportunities
Lack of product integration
Threats
Intense competition
Exchange rate fluctuations
Hacking and related security issues
New products and services
Strategic acquisition
Growing mobile advertising market
Positive outlook for Android smart
phones

19.

Strengths
Significant brand
image
Google is one of the premier internet
brands in the world. Google’s brand
was valued at $100billion
The company holds strong market
position
Strong
infrastructure
base
Comprising online, software and
hardware resources. Google’s
websites which generate advertising
revenues.
Which can provide substantial
computing resources at low cost
Robust financials
Its revenues have increased from
$16594 million in FY2007 to
$23650.6million in FY2009
Healthy balance sheet with strong
cash and cash equivalents and equity
position

20.

Weaknesses
• ---Lack of product integration
• Google’s products lack integration with other
products
• Google now has a large number of new products,
some of them innovative, but which seemingly
having little in common with each other
• Furthermore, there are many uses have been
unaware of its new products because they are
embedded so deeply within Google’s sites

21.

Opportunities
New products
and services
&Android 2.2
Code named
by Froyo
&Google TV
Growing mobile
advertising
market
The mobile
advertising
market is
forecast to
record
strong
growth in
coming
years
Strategic
acquisition
On May 2010,
completed
the
acquisition of
Admob.(a
mobile display
ad technology
provider

22.

Threat
eBay
WebMD
Google
YaHoo
Microsoft’s
Bing
Facebook

23.

• So, what’s the Google
strategy
• What’s behind all the actions
we have seen Google take over
the years?

24.

Expand places to show ads
• Google’s revenue is based on advertising.
• You Tube, Gmail have been developed to attract
audiences for its ads.

25.

Business model
1. Google introduces a smart, innovative and quite risky
business model-Adwords.
2. Still today Adwords is the main source of revenues
of Google Inc.

26.

Brand building
Google worked very hard on Brand Building. It
seems that brand building was much more important
to them than just revenues and profits
The strategy worked. And it was a key asset in the
subsequent IPO(Initial Public Offering) at the
Nasdaq.

27.

Personalization
1.Search engineers have spent the last 40years working
on it, but now it’s time to focus on the searcher!
2.The Google toolbar can report search terms and Web
site.
3.Google Analytics reports all activity on a Web site.
4.Google Website Optimizer knows which variations of
your message work best.

28.

Value Chain of Google
Nobody pays to use Google. So we are not Google’s customer,
if we are not Google’s customer, and search is not Google’s
product, then what is?
• How can we even get the payers straight? Well advertisers,
specifically users of Google’s Ad Words service, are Google ‘s
customer. And traffic delivered to customer websites is the
product. And the ability to explicitly control what traffic ends
up on what websites is the whole of Google’s value chain
Sales and
marketing
Customer
service

29.

conclusion
• Keep the leader search engine position.
• Be being perfect their service and
products.
• Take more attention with their
customers’ individual privacy.
• Freedom is limited, please do in Rome as
Rome does.

30.

success=inspiration+persistence