Strategic Management and Business Policy :

Case Study

Google Case Study was written in

2005

All case questions have already been answered

This is what I will present you today...

1998 : Garage Day

Larry Page and Sergey Brin accept a $100,000 check from Sun Microsystems incorporate Google Inc. on Sept. 7. The Stanford University graduate students work from a garage in Menlo Park, Calif., for six months.

First version of Google.com

1999: VCs feel lucky

AltaVista, Excite, Lycos, and Yahoo dominate Internet search, but Google scores $25 million in its first round of venture capital funding, which values the startup at $100 million. Google moves out of its garage to an office building in nearby downtown Palo Alto.

Credit : Business Week

2000: The word is AdWords

Google indexes more than a billion Web pages to become the world's largest search engine. In June, Yahoo inks a deal for Google to supply its search results for four years In October, Google launches AdWords, which sells textbased ads next to search results.

Credit : Business Week

2001: Adult supervision

Eric Schmidt replaces cofounder Larry Page as chief executive in August. Annual revenue: $86.4 million Profits: $6.99 million Employees: About 250

Credit : Business Week

2002: AOL chooses "the champ of search"

AOL Time Warner COO Bob Pittman chose Google as their search provider. Annual revenue: $439 million Profits: $99 million Revenue growth: 409% Employees: About 500

Credit : Business Week

2003: Start making AdSense

Google introduces AdSense in June to deliver ads to third-party sites. Annual revenue: $1.47 billion Profits: $106 million Revenue growth: 234% Employees: About 1,300
Googlers celebrate AdSense , rumors of an IPO heat up and analysts estimate that Google is worth up to $25 billion.

Credit : Business Week

2004: The IPO of the decade

Google goes public on Aug. 19 at $85 a share. By the end of the year, Google's stock spikes to $195. Annual revenue: $3.19 billion Profits: $399 million Revenue growth: 118% Employees: 3,021
Credit : Business Week

2005: Power player

Google spars with the software giant in court over the hiring of a former Microsoft executive, Kai-Fu Lee , to run Google's China operations Annual revenue: $6.14 billion Profits: $1.47 billion Revenue growth: 92.5% Employees: 5,680
Credit : Business Week

2006: The Google of video

Google spent $1.65 billion for its largest acquisition to date: YouTube, an 18-month old video-sharing site Google also strikes a threeyear, $900 million deal to run text-based ads on MySpace Annual revenue: $10.6 billion Profits: $3.08 billion Revenue growth:: 72.8% Employees: 10,674
founded by Steven Chen and Chad Hurley
Credit : Business Week

2007: A tale of two workplaces

Google acquired DoubleClick (online ads company) for $3.1 billion. Stock price hit an all-time high of $741 in November. Annual revenue: $16.6 billion Profits: $4.2 billion Revenue growth: 56.5% Employees: 16,805
Google tops Fortune's Best Company to Work For rankings

Credit : Business Week

2008: Taking on Microsoft

Google also strikes a search partnership with Yahoo, which Microsoft also wanted. Google launches its own Web browser, Chrome. Revenue: $10.6 billion (first half of 2008) Profits: $2.56 billion (first half of 2008) Revenue growth: 39% (full-year estimate) Employees: 19,604 (as of June 30)
Credit : Business Week

How big is Google today?

Ford Motors

General Motors

$11bn

$7.5bn

Google

$138bn

Advertising

99% of Revenue come from

BIG Steps

Google Map

Location-awareness

Google Chrome

Google Search Appliance

Competitor of iPhone , Symbian , Windows Mobile

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