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PRESENTED BY:

Tayyaba Latif
GOOGLE’s MISSION
Organize the world’s information and make it universally
accessible and useful
GOOGLE INC.
 American search engine company, founded in 1999 by

Sergey Brin and Larry Page.

 Its headquarter is in Mountain View, California.

 Company completed its IPO (initial public offering) in

August 2004 at $85 per share

 Google.com enjoyed a 65.6% share of all US searches in

2009
Google began as an online search firm, but it now offers more than 50
Internet services and products, from e-mail and online document creation
to software for mobile phones and tablet computers.

GOOGLE
PRODUCTS

Google Nexus
Google Google Google Google
Gmail Calendar mobile
Maps Book Finance Docs
& device
checkout
GOOGLE PRODUCTS
Nexus mobile device: In January 2010, Google launched an
elegant touch screen phone that added comprehensive voice
recognition to reduce dependence on keyboard style text entry

Gmail along with personalization features offered on Google’s


homepage , moved the company towards portal like Yahoo and
Microsoft MSN

Book Search , Maps and Checkout suggested google was


entering the traditional stronghold’s of e-commerce giants like
e-Bay and Amazon

Acquisitions of You tube and Double Click had expanded


Google’s presence in online video and display advertising
GOOGLE HISTORY
 The need for search services grew with the expansion of the world wide web

 As the web grew, directory classification became infeasible

 New automated search engine was introduced, relying on software ‘crawlers’ known as Alta Vista.

 It is a popular search engine on the Web. In addition to full-text searches, AltaVista can also search

graphic images and tell you who is linked to your own Web pages. AltaVista's search robot, known as

Scooter, can look at and collect data from three million Web pages per day.
Yahoo! Added this algorithmic search engine but

in 1998 replaced Alta Vista with Inktomi, which

used parallel-processing to offer faster processin

g and a larger index.


GOOGLE HISTORY
 Website developers exploited search algorithms by
repeating keywords on their pages, searches returned
irrelevant listings “spam” that frustrated users. Sergey
Brin and Larry Page tackled this problem

 In June 1999, Brin and Page announced first-round


funding for their start-up, Google, from elite venture
capital firms Sequoia and Kleiner Perkins.

 Google’s index of one billion web pages surpassed all


rivals and Google replaced Inktomi as Yahoo’s search
engine
Rise of Paid Listings
 Paid Listings, as opposed to Natural Listings or Organic Listings, are
sites that appear on a Results Page because money was paid to the search
engine for inclusion and/or position.

 Overture is a pioneer in keyword advertising on the Web. Overture Services


was one of the first Web search engines that included relevant ads on the
results page based on the words being searched.

 Overture supplied ads to the three largest portals (Yahoo!, MSN, and AOL
mail)
 Advertisers bid for keywords, and bids
determined the top –to-bottom ordering
of ads on search results pages

 Paid listings were typically sold on a


“per-click” basis i.e advertiser paid only
when a user actually clicked on the
advertiser’s listing
Overture’s success built on several factors.
Search
engine Cost per
effectivenes click
s
Their leads were often Ordering paid listing

more effective than according to CPC auctions

banner ads on other yielded substantial revenues

websites to overture.

For an advertiser a higher


position on a search-results
70% of e-commerce
page would yield greater
transactions originated
through web search visibility, more clicks & more
sales
PAID LISTING AT GOOGLE

 In December 1999, Google introduced its first paid listings

 In 2002, Google adopted a variant of Overture’s cost per click model

 Google weighted CPC bids by the ratio of an ad’s actual click through rate

(CTR) to its expected CTR

 This method maximized Google’s revenue, because an ad with a high CPC bid

but a low CTR offered low revenue

 In May 2002, AOL switched to Google for both algorithmic search results and paid

listings.
PAID LISTING AT GOOGLE
 In late 2002,Google launched Froogle - a product that identified

merchants for specific product , along with their prices.

 In 2003, Google launched “Contextual” paid listings named as

AdSense. Contextual listings presented advertisements on web

pages that featured primarily editorial content rather than pages

that showed search results


FACTORS AFFECTING PAID LISTING REVENUES

• Referred to the share of queries for which at


Coverage rate least one paid-listing was sold

• It tended to increase over time as advertisers


Click-through rate improved their keyword targeting technique

Average cost per • Increases with the size of the paid-listing


provider’s advertiser base; additional bidder
click drove up keyword prices

• The percentage of ad revenue were determined


by the parties relative bargaining strengths and
Revenue split by the intensity of the rivalry among listing
providers
IMPROVING SEARCH AND ADVERTISING
For improving performance, Google’s engine constantly fine-
tuned search algorithms by
 Launching personalized search –that ordered results by
analyzing a user’s prior searches and clicks.
 Attracted more advertisers, especially local advertiser
 They focused their ads on the right regions
 Improved it’s advertiser features by offering advertisers free
software to optimize paid-listing campaigns
Reasons for Google’s Performance
Cont.

Google improved on overture’s policy of

ranking paid listings solely according to CPC

bids.

Google paid listing attracted advertisers

because it offered more search traffic and

allowed lower minimum CPC bids


Organizational Structur
e of Google..
 In March 2001 Erci Schmidt joined Google as a CEO
who was previously Chief Technology Officer of Sun
Microsystems and CEO of Novell

 Brin became President of Technology and Page took t


he charge of President of Products
Cont..
• Google’s management was not in favor of Public offering

• There was a pressure to provide liquidity for investors and to reward employees
holding option

• In 2004, Google announce plans for IPO


Initial Public Offe
ring (IPO)
 Initial Public Offering is the first ti
me that the stock of a private comp
any is offered to the public

 IPOs are often issued by the smalle


r, younger companies seeking capit
al to expand, but they can also be d
one by large privately owned comp
anies looking to become publicly tr
aded
Distinctive Aspects of Google
According to co-founder of
Google
• Google is the perfect sear
ch engine
• It answers quickly
• Better and faster results
Google Statement of Philosophy included
10 distinctive points
 But due to change of technology face of web has changed,
google should focus on these ten principals for future succe
ss.
 According to co –founder Larry Page, Google became succ
essful because it was better and faster at finding the right an
swer than other search engines at the time.
• They should focus on users rather than in
ternal goals.
• Google homepage interface is clear and l
oad instantly.
• It always offers relevant content that is n
ot distracting.
• Their all tools and applications works so
well as compared to competitors.

1- Focus on user
2. Its best to do things really
well
• They focused exclusively on solving search
problems.
• They provided continuous improvement in
services by solving complex issues.
• They made finding information fast
• They had improved their service by developing new products like Gmail and Go
ogle Maps.
• They helped people to access and use more expanding information in their lives.
3. Fast is better than slow
 They focus on saving valuable time of their users by providing
availability of information .

 They are efficient in increasing efficiency of serving environme


nt and they have broken their own speed records.
4. Democracy on the web works
 Google search works because it relies on million of individuals
posting links on websites.

 More than 200 signals and variety of techniques have been used
to assess the importance of every webpage.

 Due to open source development, innovation takes place throug


h collective effort of many programmers.
5. You don’t need to be at your desk to answe
r
• As world is increasingly mobile,google m
ade information available to people when
ever and wherever it is needed.
• They introduced new technologies and o
ffering new solutions for mobile services.
• They are providing free, open source mo
bile platform for android users.
6. You can make money without doing evil
 Google generates its revenue by offering search techno
logy and advertisement on sites across the web.
 They allow relevant adds to be displayed on web.
 They don’t accept pop up advertising.
 Their advertisement is clearly identified as a ‘sponsore
d links’, and does not compromise the integrity of sear
ch results.
 They never manipulate rankings to increase search res
ults.
7. There are more information
out there
• Google search engines turned their atte
ntion to information to that was not rea
dily accessible

• They integrated new databases into sea


rch such as adding phone number and a
business directory.
• They facilitated access to information for the entire
world in every language.

• They have offices in different countries.

• They have maintained more than 150 internet dom


ains to serve people globally.

• They are offering Google’s search interface in mor


e than 110 languages.

8. The need for informati


on crosses all boarders
9. You can b serious without a suit
• Google developed a working culture,
in which creative things are more like
ly to happen.

• In that culture ,employees take challe


nge as a fun.

• They emphasized team achievement


s and individual accomplishments.
10. Great just isn’t good enough.
• Google is focusing on adopting m
ore changes, that can differentiate
them from competitors in future.

• Their constant dissatisfaction with


existing things become deriving fo
rce in developing new things.
Governance
• Google IPO prospectus announced Dual-class Equity

• Giving 10 votes per share to the holders of Class B stock

• One vote per class A share

• Bin, Page and Schmidt retained their class B shares

• The top management will hold one-third of the shares and


control over 80% of votes.
Dual-Class Equity
• The Dual-class equity structure will encourage strategic risk-taking, but it
can also weaken their influence over company’s direction
• Dual-class equity is favored by Page
• Dual-class structure is designed to achieve long term stability by investin
g in google
• Long time bet on team
• Aims to made google an important and significant organization
• It takes time, stability and independence
• Don’t be Evil

Google refusal to compromise their integrity of search res


ults

• Technology Matters

Google invested heavily in infrastructure to support fast re


sults on search

They have custom designed, low cost, Linux based server


architecture was modular and scaled readily

They were running approx. one million servers in 2007

Corporate Values
We make our own rules
• Google’s management don’t exp
ose their information
• They only provide the informatio
n that is required
• They don’t disclose all their stre
ngths, strategies and intensions
Google’s 10 Golden Rules

• Hire by Committee • Encourage creativity


• Cater to their every need • Strive to reach consensu
• Pack them in s
• Make coordination easy • Don’t be Evil
• Eat your own dog food • Data drive decision
• Communicate effectively
• Engineers were encouraged to s
pend 20% of their time working o
n projects of their own choosing
• This flexibility has laid many initia
tives, including Google News and
Orkut, a social networking site.
• Google engineers works in teams
of three to five people
• According to them, productivity c
ant be achieved through large gr
oups

Managing innovation
Cont..
• Setting priority was always a challenge in Google

• Management use 70/20/10 rule for allocating engi


neering efforts

• 70% of engineering time spent on core business

• 20% spent on projects that are extended core e.g.


Gmail

• 10% spent on new business


Pressure on Core Business
 A series of Complaints Started
 Advertisers
 Improper charges
 Click frauds varied widely
 Ads appeared on unapproved sites
 Geico and Google
 Geico Sued Google
 Google Claimed its Permissibility
 As a result there were mixed ruling on
Google's Liability.
.
News Publishers
 Online News Publishers allegations

 Google Defense.

 Google was Just offering access to users that is free of charg


e.
 Users

 Privacy and maintenance of search logs.

 Google stated that they retained information for 18 Months and would make it anonymous after that.

 Google ads were linked to sites that would result in fraudulent activities.
 New Businesses.

 Hosting: Video and Books


A. Google acquisition of You tube.
B. Worth $1.65 Billion acquisition
C. Google Played role of content host
D. Hosting put new legal questions of unauthorized video posting to Google server
Google Digital version of Books
Books were obtained through:

1) Google books partner Program.

2) Google Library Project.


1) Dissatisfied authors claimed copy right i
nfringement.
2) Google's Pay Back ($ 45 Million).
 Communication Application

o Gmail Launched in 2004 01


.

o 1GB of Storage space against 2 MB and 02


4 MB of yahoo and Hotmail. .

03
o Advance user interface

o Successfully Gmail competed 04


o Criticism fraud by Gmail
oQuestions of Privacy.
Google G chat
Features:
 Instant Messaging.

Google Voice helped in grafting to traditional phone systems.

Voice mails could be Tran scripted to e mails, texts.

Easy Conference calls.

Android platform: Provided access to web application of Google


.
Productivity Application
 Cloud Based Application:
i. Allowed easy updates
ii. Deliver fresh data without pauses of installation.
iii. Usable and access able at multiple locations.
iv. Required Internet
v. Privacy issues
vi. Google photos helped in every sharing.
Productivity Application
Google Documents Competing with MS office.
Google Documents omitted many features but was still found satisfactory.

Google Documents MS Office


• Multiple editors could revis • Single Editors
e file • Attachments
• Hyper Links
Other New Systems
2008- Chrome Web Browser.
01 2010- 3rd Place among Browsers.
ChromChrome Omni Bar:
Let use Address or use name i.e. New York Times
02 Chrome Omni Bar:
e Omni Bar:
Let use Address or use name i.e. New York Times
Google effort Protecting Privacy
03
Credit card information was kept confidential.
04
Protection from unwanted Email bombardment.
05 .
Public policy and competition
 In 2008,google opened a Washington office for being informed of public policy questions to Google

 Users can easily access Google services through these communication policies.

 After filling federal communication commision,consumers can easily use wireless spectrum with de

vices services and applications.


Continue…

 Google market share continue to grow in 2009 and its share exceeded to 90

% of search queries in france,germany,spain,switzerland and UK.


Selected Competitors of Google.
 Yahoo
 Microsoft
 EBay
 Amazon
 Face book
Yahoo
 Yahoo was an early investor of Google and had a privileged view of the startup success.

 Its management had recognized competitive threat form Google and growth potential for paid listings

 Its key advantage was its broad reach.

 It offered easy access to third part content and related services organized into channels like finance ,g
ames health, kids, recruitment sites ,movies ,music, shoping,sports and travel.
Continue..
 Yahoo also owned third largest recruitment site known as Hot jobs.

 It also supplies free websites to million of community and special interest groups ,mailing lists
and shopping services.

 But in 2008 and 2009,it appeared unstable due to collapse of its stock price.
Microsoft
 . Microsoft was renamed –from MSN to live Search to Bing.

 Bing offered shortcuts to help users refine their searches .

 Microsoft promoted Bing in an 80 million advertising campaign that included banner, television and radio ads.

 Microsoft also operated branded sites like MSN,featuring portal-style news, entertainment, weather and more
ebay
 Google’s initiatives were a threat to eBay ,search was the first step in many e-com
merce transactions.

 Small companies usually compare eBay’s transaction fees to the cost of generating l
eads through search adds.

 eBay PayPal services faced similar competition from Google checkout.


Other competitors.
Amazon
 Books,
 general merchandise
 cloud computing infrastructure.

Face Book
 Communications
 Pictures
 Hosting
 App platform
What should Google do?
Google should focus on distinctive competencies.
It should develop superior search solutions.
It could expend into full portal like Yahoo! Or MSN.
It could expend its check out functions for facilitating transactions.
It could challenge Microsoft prevalence by developing products to compete with windows and of
fice.

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