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- Search Engine, Cloud computing, Software and Advertising technologies - Larry Page and Sergey Brin in 1998, initial public offering in 2004 - Chain of products, acquisitions, partnership, offline, desktop and mobile industry - Page Ranking No. 1 in the world - Over 1 Billion search requirements daily - 22,000 full time employees - Rated No.1 of ‘Best company’s to work for’ in the world - Ranking No. 4 of the top 100 brands in the world - May 2012, dominate the search engine world, market share of 87.6%
Between 2005-2010 extended its websites beyond search functionality, such as Mobile OS and apps Business model evolved and expanded to advertising-based revenue AdWords and AdSense generate majority online advertising revenue Strategies to dominate Internet Advertising and aiming No. 1 search engine More than half revenues and traffic generated outside US. Emerging Russia & China Android 2008 Strategic offensive to control Desktop Initiatives to Expand Search Television Internet rivals in US market Concerned issues - Performance – focusing SmartPhone platforms, dominate Cloud Computing, increase advertising revenues, and extending search to television - Censorship in China - Privacy violation against its principle ‘you can make money without doing evil’
Industry Analysis • Industry: Internet services and technologies • Major Sectors: – Advertising – Search engine – Cloud computing • Primary Revenue Source: Advertising (97%) • Constantly evolving Industry definitions .
KSFs/Threats of Industry Key Success Factors • • • • • Data mining Innovation-focus Scalability Reliability & data integrity Strategic portfolio-management • Threats • • Ethical implications (data) Losing market share to other forms of advertising Being cut-out of the value chain by other companies (upstream or downstream) .
S SWOT Analysis • Search engine industry • Executive management • Large cash flow • Loyal and satisfied employees • Loyal customers • Products are very adaptable • Pushing society’s technology • Channels for the phone market • Scalability • Openness TRENGTHS W EAKNESSES • Public perception of Google’s practices • Non-corporation by foreign governments • Decisions being made to progress Google • Advertising revenue growth is slowing down Internal factors O PPORTUNITIES • Secure consumers personal info • Resurrect relationship with Chinese market • Focus into developing tangible technology • Relationship in other websites • Gaps in online market offering • Targeting specific marketschildren or senior citizens • Future expansion for television • Revenue through advertising Positive T HREATS • Copyright lawsuits/issues • Public perception of Google • Microsoft’s growing dislike • Continued insistence by some foreign governments • Microsoft and Yahoo possible partnership • Advertising space is becoming more competitive External factors Negative .
Core Competitive Spectrum Legend: “Google are more like us than anyone we’ve ever competed with”. Bill Gates – Microsoft (2005) .
and advertisers dollars on the other is considered strategic to Google”. around 97% of Google’s income has come from advertising. 2010) . (DMR.Google’s Advertising Value Chain For the last three financial years. “Everything that sits between a users eyeballs on one end.
Google’s Advertising Value Chain .
Google’s Advertising Value Chain .
Google’s Advertising Value Chain .
Porter’s 5 Forces Advertising Value Chain LEGEND: .
customizable. storage and retrieval of data/information across a wide (online) platform.Marketing Strategy • USP: Google facilitate the efficient organisation. The result is a convenient. other main areas is software licencing to businesses . co-creation approach to media sharing for the use of individuals and organisations alike. • Profit formula: Mostly dependent on advertising (97%).
Key Strategic Areas for Google Competencies • • • • • • Search Data warehousing Innovation Software programming Cloud computing Brand management & PR • Capabilities • Recruitment & retention Resources • • • Data warehouse Huge financial resources Expert & motivated personnel of talented staff Facilitation of content cocreation on the web • • • Brand name Search engine Online traffic • • Display network Loyal customers .
Russia. Europe. a ‘home-base’ from which to begin your journey – Target web users all over the world • particularly Nth America. Australasia • Google Advertising: – Targets advertisers whose market frequent the internet – Can be targeted with precision at a local or worldwide level .Segmentation & Targeting • The Google company: – Offers products that generally appeal to a mass market – Doesn’t matter what you are using the web for • Search is the common denominator for everyone.
tasteful advertising Rewarding for all parties (advertiser.Positioning Analysis • The Google company is positioned as: – – – – Solution-centric Innovative Socially responsible Vast networks. host & viewer) . deep knowledge • Google Advertising network – – – – Advertiser-friendly Traceable metrics – Google Analytics Credible.
2011) • Google offerings are largely free – Customer feelings .Love. 2011) – $111B (Brandz. Share of heart . Loyalty. 2003 Quantifying Brand Value – $55B (Interbrand.Google Brand Value • • • • Household name Verb in Webster’s dictionary Interbrand Brand of the year.
hardware • Resource abundance • Scalability • Wide knowledge base – Ability to branch off into other areas .Competitive Advantage • Brand image • Infrastructure – servers. storage systems.
Problem Diagnosis Key Issue: Google’s Advertising revenue is under threat • Likely due to a combination of factors • Our strategic options tackle this issue head-on .
Strategic Options (A) Extend the Google Advertising Network More advertising realestate. grow Google Display Network (B) Focus on Tangible Technology Focus our future competitive strategy on tangible technology to make up for lost advertising revenue (C) Google B2B Platform Develop our own version of E-Bay for businesses. Will lead to more traffic & advertising potential . grow Google sites through acquisition.
such as Google Voice. YouTube Live. They all feature in promotion of Google group products.Extend the Google Advertising Network Option A • Attempt to acquire Wikipedia •6th Most popular website in the world •Wide market appeal •Trusted resource •Currently run as a NFP company •Bid $6B Google Group •Promotion Invest $2B in Display Network •Grow the network 5 new potential partners identified. & Google+ the Top 100 most visited websites in the world. .
Extend the Google Advertising Network Option A • Cost: $2B + $6B (Wiki) = $8B • Time Frame: Short-medium term • Payoff Potential: Medium • Risk Factor: Low • Best Case Scenario: Acquire Wikipedia. network proposals knocked back . advertising revenues double • Worst Case Scenario: Wikipedia deal doesn’t eventuate. grow display network. G+/YTL/Voice do not grow traffic. G+/YTL/Voice grow traffic.
Google Driverless Car •Hype is generated through Google’s online platforms •$1. $0. (80%) •Product Innovation $3B to be invested into research and development for new product designs. Rev. Google TV.4M for renovations and set-up .1M to rent.Focus on Tangible Technology Option B • Google Retail Store •Google focuses on future TANGIBLE technology •These technologies are displayed for everyone to see •Store allows the public to use and ‘experience’ these innovations •The world sees where the future is leading •Products will be available to order and buy •Decreasing dependence on adv. Google phone. •Store Development •Located in New York City •Free for public to experience such as Google glasses.
15B • Time Frame: Short-medium term • Payoff Potential: Low-medium • Risk Factor: Medium • Best Case Scenario: Google store is successful. no products get ordered/purchased. Google receives negative brand image .Focus on Tangible Technology Option B • Cost: $1. products are purchased.5M + $3B = $3. more innovations developed. revenue increases 75% • Worst Case Scenario: Google store isn’t popular.
and increase traffic by using Google+ and its related products to integrate the functions . and designing the new website and features and on promotion throughout Google+ and Youtube.Google B2B Platform Option C • Business-to-business trading platform •The new trading platform for all levels of businesses •Allow companies trade globally on the new platform •Utilize Google+ and all related products as tools in communication •The first and only international based B2B platform for all businesses •Product Expansion Invest $1 B in developing •Integrated usage Create convenience for businesses in trading. etc.
Google B2B platform Option C • Cost: $1B • Time Frame: Medium • Payoff Potential: Low – Medium • Risk Factor: Medium • Best Case Scenario: New platform for B2B trading. increase advertising revenue and usage of related Google products • Worst Case Scenario: If fails. the B2B platform idea could be pursued by Google+ Brand and Google+ Business .
Medium Tangible Store $1.Medium Global B2B $1 Billion Medium Low . .Medium Short .Suggested Strategic Option • How we decided on our option Network Expansion Cost Risk Factor Payoff Potential Time Frame $2 .Medium Medium • OPTION A – ‘Extend the Advertising Network’ – best likelihood of success – promising reward – directly pertains to our key issue.5M+$3 Billion Medium Low .$8 Billion Low Medium Short .
. YouTube Live. & Google+ the Top 100 most visited websites in the world. They all feature in promotion of Google group products. such as Google Voice.Extend the Google Advertising Network Option A • Attempt to acquire Wikipedia •6th Most popular website in the world •Wide market appeal •Trusted resource •Currently run as a NFP company •Bid $6B Google Group •Promotion Invest $2B in Display Network •Grow the network 5 new potential partners identified.
Why Wiki? • Potential for advertising revenue – 6th most visited website in the world – An estimated 50 million page hits per day • Great longevity in Wiki – Great brand. complimentary to ours – People will use this resource well into the future • Boost Google brand value – – – – Great credibility Consistent with Google’s approach of co-creation Open platforms Organising information for public use .
Wiki Strategy • • • • Maintain many of the same processes Retain all current staff Public transparency measures in place Keep it very much a public site – for the public. by the public – Retain many of the public contributors. estimate) . tasteful advertising program • Generous offer (double the avg. while at the same time dedicating resources to maintaining the integrity of the data • Running a subtle.
& Google+ • More YouTube Live events • Publicity stunt for G+ • Online advertising for G-Voice • Seek new partnerships • Grow our non-Google Group real estate • An estimated 170M hits per day . They all feature in the Top 100 most visited websites in the world. YouTube Live.Suggested Strategy cont’d Google Group •Promotion Invest $2B in promotion of Google group products. such as Google Voice. Display Network •Grow the network 5 new potential partners identified.
4c per impression.828.4c per impression to recoup investment in 1 year • Pageviews per day 914. and site traffic stays constant.391020 = 4.391.375c ea ad impression (CPI) • If we make 4.195. this venture will make $8B per year .828.510 x2 ads per page = 1.020 $8B / 1.Financial outlook • Total cost = $8B • Recoup investment – Possible in 1 yr • Must make 4.
and accentuating role of Google Group in our overall advertising spectrum • Regardless of Strategic Option – Constantly improve search function. internal and external . key resource and catalyst for advertising revenue – Corporate review: 10 commandments of Google. and Hierarchy of strategic focus – Communicate revised vision simply to all stakeholders.Business Model • Business Model Changes – Revenue model: is accentuated towards advertising – Cost structure: can achieve greater advertising economies of scale with wider advertising network – Channels: Widening our channels.
Democracy on the web works You don’t need to be at your desk to get an answer You can make money without doing evil 7. 2. Focus on the user and all else will follow It’s best to do one thing. 9. There’s always more information out there The need for information crosses all borders You can be serious without a suit (2001) 10. Great just isn’t good enough . really. really well Fast is better than slow 4. 6. 3.Company Values The 10 Google commandments 1. 8. 5.
slideshare.net/S/2012/how-much-is-wikipedia-worth/ http://www.net/korhan/google-brand-analysis-presentation http://www.businessinsider.net/kimuh72/google-facts-216737 http://issuu.businessweek.centives.com/jimmy-wales-wikipedia-operations-2010-5 http://answers.org/wiki/History_of_Wikipedia#Historical_overview_by_year .References • • • • • • • • • • • • • • • • • • • • • • • • http://www.aspx http://www.minterest.com/adplanner/static/top1000/ http://en.com/60-google-products-services-you-probably-dont-know/ http://www.html http://www.millwardbrown.mckinseyquarterly.com/earnings.com/articles/google-earnings http://investor.davechaffey.org/wiki/Google_driverless_car http://thenextweb.google.wikipedia.interbrand.google.google.com/question/index?qid=20081231182156AAyCsro http://www.yahoo.com/15395-asteroid-mining-planetary-resources.py?hl=en&answer=6104 http://www.com/Googles_view_on_the_future_of_business_An_interview_with_CEO_Eric_Schmidt_2229 http://www.org http://screwcable.wordstream.com%2Flibraries%2Foptimor_brandz_files%2F2011_brandZ_top100_report http://support.space.com/articles/2012-04-04/googles-page-apples-android-pique-for-show#p1 http://www.com/samy20002000fr/docs/google_ksf_en http://www.google.html http://mysteriousuniverse.businessinsider.com/adwords/bin/answer.org/2012/04/private-spaces-google-goes-to-outer-space-for-new-business-idea/ http://en.com/google-vs-apple-vs-amazon-where-should-you-store-your-music/ http://www.com/apple/2012/03/13/the-ftc-subpoena-of-apple-could-spell-the-end-of-googles-default-search-status-on-the-iphone/ http://www.com/jimmy-wales-wikipedia-operations-2010-5 http://www.com/E-commerce-Internet-marketing-case-studies/Google-case-study http://www.slideshare.wikipedia.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.
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youtube.Google’s Innovations Google glasses – Project Glass http://www.com/watch?feature=playe r_embedded&v=9c6W4CCU9M4 .
Most popular Google sites .
Facebook Market Segmentation .
Google’s Advertising Programs .
Social Network Numbers .
Google Innovation Strategy .
195.Pageviews per day • • • • • • Wiki – 51M LinkedIn – 63M MySpace – 800M VK – 164.000 QQ Zone – 21.510 pageviews per day Source http://royal.000* TOTAL = 914.pingdom.com/2010/01/05/facebook-twitter-myspace-page-views/ .510 Dictionary.com – (unknown) est. 10.
Hierarchy of Strategic Focus .
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