Strategic Management

Presentation
Group Members:
Aditya Ashok (19DM016) Ammar Mustafa Vaghjipurwala (19DM028)
Arushi Kerni (19DM051) Harshita Gautam (19DM077)
Manikant Jaiswal (19DM102) Nihal Ahmed Kuniyal (19DM124)
 Company Overview

TECHNICAL
Company Info FINANCIAL
• It was founded in MARKET ANALYSIS
September 1998
ANALYSIS • Major web services ANALYSIS
• Google.com is the most includes Gmail, Google
• Gross Revenue of
visited website on internet map, Google drive, $59.8 billion.
• Head quarters is located at Google enjoyed a Google books, Google
67.7% share of all US • Operating income
mountain view, California sheets, Google docs etc.
searches in June 2014 of $15.4 billion.
U.S • Google develops
• Google have around 114000 • Shares are worth
android mobile $570 in August
employees operating system and its
• Sundhar Pichai is the 2014.
smart watches
current CEO.
 Summary

1999: Foundation of the company Leadership in the Search Engine industry

2004: Google's IPO at $85 per share Paid listing evaluation system
2009: Google.com had a 65.6% share of U.S. market Support to create effective ads
2010: Share price exceeds $600 giving
a $189 billion market value

Making competition irrelevant

Breaking the value-cost trade off
Pursuit differentiation and low cost
 Question 1
Google currently enjoys approximately 70% market share of US searches,
and well above 90% in many other countries.
Do you expect search business to become more concentrated
(i.e. dominated by fewer firms)?
Is search is a winner-take-all-business?
• Always been highly concentrated business.
• Google Enjoyed 67.7 % share of US searches in 2014.
• Competitor share has been Stagnant since 2004
• Google has only been growing it’s share since 2004.
• Google-opoly- going where the user goes (Chrome, Android, YouTube, Google home)
• Google is never far away from anyone

• Bing has a slight share- because of integration to Microsoft products worldwide.

• Google has created a habit.
• Inspite of complaints from advertisers publishers etc, they never stopped advertising
• It is a winner take all business. Major reasons; habit, best for paid listing, high integration.
• Only other relevant engine- DuckDuCKGO- reason; privacy focused.
 Question 2
In renewing its deal with AOL, COULD Google afford to pay AOL
more than 100% of the revenue generated from AOL searches?
How did Microsoft maximum affordable bid for AOLs search traffic compared to Google’s?

Initially in 2002, Google was able to afford paying more than 100% of revenue generated by AOL.
In 2004, AOL contributes to 10% of the income of the search engine.
In 2005, the contribution to the earnings is even higher, helping Google to increase its influence.

We don’t know the exact figures of the bid made by Microsoft, but it is apparentthat the bid
made by Google was very intriguing.
Microsoft was looking to create new relations with AOL while Google wanted to strengthen
the older bonds.
This was a chance for Google to become an industry leader.
In the end, AOL agreed for 5% stake for Google at $1 Billion cash.
 Question 3
Currently 95% plus of Google’s revenue comes from online advertising.
How important it is for Google to pursue alternative revenue streams?
Which alternatives are the most promising?

Expansion is necessary to stay longer in the market

Firm has already commenced to form its desktop

E- commerce intermediary such as eBay

 Question 4
Do you view Google’s governance structure, corporate culture and organizational processes
as strength or potential limitations?

Administered by the cofounders and the Chief Executive Officer

Increased confidence of its investors and clients. Structure is extremely unique

Permits increased viewpoints. Firm promotes a spirit of togetherness

Allows the differing parity of authority inside the direction of the firm
Thank You