financial analysis and website performance of google

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UNITED INTERNATIONAL UNIVERSITY Semester project on “Google” COURSE TITTLE: E BUSINESS COURSE INSTRUCTOR: JINEA AKHTAR COURSE CODE: MGT 3225 SECTION: B NAME ID Sabbir Uddin Ahmed 111 121 506 Tazkia Hossain 111 122 279 Sadman Shoumik Ahmed 111 121 187 Syed Mohibul Hasan 111 121 590

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Page 1: Financial Analysis and Website Performance of Google

UNITED INTERNATIONAL UNIVERSITY

Semester project on “Google”

COURSE TITTLE: E BUSINESS

COURSE INSTRUCTOR: JINEA AKHTAR

COURSE CODE: MGT 3225

SECTION: B

NAME ID

Sabbir Uddin Ahmed 111 121 506

Tazkia Hossain 111 122 279

Sadman Shoumik Ahmed 111 121 187

Syed Mohibul Hasan 111 121 590

Date of submission: 27th August 2014

Page 2: Financial Analysis and Website Performance of Google

Table of Contents

EXECUTIVE SUMMARY.................................................................................................................................3

CHAPTER 1: INTRODUCTION........................................................................................................................5

About the company:................................................................................................................................5

Major activities:.......................................................................................................................................5

How Google search engine works:..........................................................................................................6

How the site works, operating the site:...................................................................................................7

Chapter 2: Financial Performance Analysis................................................................................................11

Revenue Models: How does the site make money?..............................................................................11

Main areas from where Google earns its revenue:................................................................................11

Revenue models by product..............................................................................................................11

Ratio Analysis.........................................................................................................................................13

Items required for Ratio Analysis.......................................................................................................14

Analyze the balance sheet.....................................................................................................................19

Predict the future growth opportunities of the firm with financial information...................................21

Chapter 3 – Analyze the Site Performance................................................................................................22

ALEXA Analysis.......................................................................................................................................22

Site Overview:....................................................................................................................................22

E-commerce Web site features that ANNOY customers:.......................................................................25

The eight most important factors in successful E-commerce site design:.............................................26

CHAPTER 4: MARKETING ANALYSIS...........................................................................................................29

Opportunities:.......................................................................................................................................30

Search Engine Optimization:..................................................................................................................30

Top 10 news on Google:........................................................................................................................32

1. Rockchip and roll:......................................................................................................................32

2. Google's Self-Driving Cars Will Need Steering Wheels - For Now..............................................33

3. Google's audacious Project Loon wants to spread the Net with high-flying balloons:...............33

4. Google for tweens: New growth strategy targets kids under 13:..............................................34

5. Microsoft adds over 50 new U.S. cities to Google Street View-like Bing Maps service:.............34

6. Google Acquires Motorola Mobility...........................................................................................34

7. Google Unveils Ambitious Android Expansion at I/O Conference.....................................................35

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8. Google disruption in China seen as government crackdown.............................................................35

9. Google Alerts British News Outlets about Deleting Their Links............................................................35

10. Siding With Google, Judge Says Book Search Does Not Infringe Copyright...................................35

CHAPTER 5: Conclusion and Recommendation.........................................................................................36

REFERENCE:...............................................................................................................................................38

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EXECUTIVE SUMMARY

Google has been the leading website for many consecutive years and will continue to develop

its worldwide domination of all aspects of the internet, search, multimedia and

telecommunications industries. Even leads the industries and the market regulators the future

of televisions, computers, telephones, gaming devices, musical equipment and data

transmission. Sooner or later Google will be ready on all fronts with the products and services

that are needed to be successful. They will continue to enhance news, mail, chatting, voice

messages, blogs, forums and information sharing of any kind with seamless integration of the

products and services. The problems it seems to face are regarding the external sources of

copyright issues, US government regulation, foreign government intervention, international

cultural issues and privacy issues. If the corporate culture remains open and free flowing with

strong connections to youth, well versed Information Technology remains prevailing in the

industry and educational resources, they should not have a problem with their intentions to the

outside world and their customer base. The search engine companies are in a different category

than most industries and because the core business touches and manipulates a growing

amount of personal information along with government data in the USA and internationally.

This new ground of storage, manipulation and usage of possibly sensitive or personal data over

the internet to a variety of output sources is continuing to grow into something to not trust and

to evaluate continually. The fact that it is more than a simple data base but a search engine that

seemingly may become a device of artificial intelligence is nothing to ignore. Google will have to

continue to address the privacy issues from all aspects and be strong supporters of standards

for privacy and needs to get to the bottom of all the copyright issues along with more cultural

issues and they continue to grow into the international community. These cultural issues are as

important as privacy issues because the end result is the customer base needs to feel loyal to

them and if they feel violated in any way, they may lose large markets. Google’s approach of

making fast internet services available to the general public and also bring archival data to the

fore front of our society is an incredible long reaching enterprise. It is interesting that historical

research will greatly benefit from the undertakings of a high technology company. The issue of

personal data coupled with the potential artificial intelligence aspects of the search engines and

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federal and international government intrusions is something that will require continued

extremely close scrutiny. Hopefully Google will continue to get it all right and also protect us all

from any problems

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CHAPTER 1: INTRODUCTION

Google is one of the largest companies of the world. Within just 1years it became world’s top

ranked website too. Google has succeeded to become the most user friendly website, within

few years. It has become an integral part of most of the people’s lives and the word has

become a verb as Google are often heard to say let’s “Google” it. A brief overview of the

company has been stated below:

About the company:

Formation year September 4, 1998.

Founder name Larry Page and Sergey Brin.

Country of origin Menlo Park, California, USA

Source: Wikipedia, 2014.

Major activities:

The successful Android mobile operating system is one the major activities, which is

reporting 400,000 activations per day (April 2011).

Picasa photo organization, it is an image organizer and image viewer for organizing and

editing digital photos, plus an integrated photo-sharing website, originally created by a

different company but owned by Google since 2004

Google ‘Earth’ the 3D view of the earth technology that was initially the

startup Keyhole.

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Google Energy that is developing and investing in renewable energy projects such as

wind farms in North Dakota.

Google Driverless Car that uses Google Street View with artificial intelligence

technology.

The law of abundance is evident here if you want a glimpse of the facts and the

staggering global statistics for Google in its search engine and associated online

properties such as YouTube, Android and other associated subsidiaries and technologies

Source: Slide Share, 2014.

How Google search engine works:

Figure 1: How Google operates.

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Source: Sunmade, 2014.

Every computer these days are linked with internet facilities, thus every computer is also

backed by a search engine as its browser home page. Without search engines, it would be hard

to find the information one need while browsing the Web.

Google's search engine is a powerful tool. It has its own set of search index as its inventory. This

search index comprises of all possible keywords mapped to the websites which contain those

keywords. Google does not save the webpage url to the index, but a unique document ID that

identifies those urls in a separate database. Like other search engines, Google uses a

special algorithm to generate search results.

Google uses automated programs called spiders or crawlers, just like most search engines.

What sets Google apart is the most famous page ranking algorithm throughout the world -Page

Rank algorithm. Google does its ranking very simply just by relevance. There are a variety of

factors that is considered while ranking the matching pages. These include keyword density,

keyword proximity, keyword prominence and link popularity. Link popularity has emerged as

the most popular factor in ranking since it can act as a replacement for quality and reliability.

After ranking the search results, Google displays results on its search engine results page

(SERP).

How the site works, operating the site:

Google has the most simple and neat home page, as it has been developed to be user friendly,

it does not contain anything except the Google logo and the search box.

Figure 2: Google search engine preview.

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Source: Google, 2014

Figure 3: How to use google.

Source: Google, 2014

When searched for a certain word on Google, it tends to show some of the most searches done

by the specific IP address. Not only the most searches top the list, Google also gives priority to

the most linked pages. If a specific web page is sponsored Google also ranks the page as the top

most searches

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If provided with the most specific keyword. Google has the capability to satisfy every search of

every user at anytime, anywhere and anyplace. As it built the most powerful system of search

till now

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Chapter 2: Financial Performance Analysis

Revenue Models: How does the site make money?

Google’s major internet services include online advertising technologies, search, cloud

computing, and software. Google also partners with its communication hardware

manufacturers to build mobile phones such as Nexus and Motorola. Google’s infrastructure

remains a crucial area of investment. In 2012, a fiber-optic infrastructure was installed

in Kansas City, USA to facilitate fiber broadband service. The primary source of revenue for

Google is advertising. Advertising is provided through AdWords service which consists of

products such as Search Ads, Display Ads, Mobile Ads and YouTube Ads.

Main areas from where Google earns its revenue:

1) Sites Revenues – Google’s very own sites such as Google Search, Google Finance, Google

Hotel Finder, Google Flight Search and Google Image Search made 62.6% of the total

revenues.

2) Network Revenues – Google’s partner sites are part of the advertising network created

through AdWords and AdSense. Google earns 20.9% of its revenues through this network.

3) Other revenues – In this segment, Google provides other services that are not directly

related to its advertising business model. These services include products and services such

as Google News, Google Translate, Android OS and Chrome. Google earns 9.8% of its total

revenue from these sources.

4) Motorola Mobile – Google acquired Motorola Mobility for $12.5 billion in May 2012. This

was the largest ever acquisition undertaken by Google to this day. Motorola Mobility is an

American telecommunications equipment corporation headquartered in Chicago, Illinois. It

produces smartphones and tablets using Google’s Android Operating System. It also makes other

equipment such as set-top boxes for television sets. Google earned 7.5% of its revenue from this

source, although it has now announced that it would sell a major part of Motorola Mobility to

Chinese PC maker Lenovo.

Revenue models by product

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AdWords –The advertising business of Google is like no other in the market. Advertisements in

traditional media such as radio or television can’t portray how well each company is doing in

the market. A single ad through TV or radio can reach only a limited number of people. Through

the internet Google can’t reach almost anyone using the internet. The ad business in Google

works on a Cost per Click (CPC). This means the moment a Google user accesses a page on

which an ad appears, Google charges the company that placed the ad. The company only has to

only pay based on the number of clicks. The amount per click is minimal; hence the money

Google makes depends on the web traffic.

The amount per click is not fixed as it is based on auction. This is good for the company’s

business as the high bidders shelling out large amounts of cash are very profitable. Would-be

buyers of AdWords bid for the right to use a particular ad, or phrase. If the bidder pays a high

price, then Google enjoys a high percentage of profit. If the bidder underbids, then it loses the

ad space to a more motivated seller willing to pay more money.

Pricing structure of AdWords

Method Description

Pay per Click (PPC) or Cost per Click (CPC) Company pays for each time a user clicks.

Cost per Mille (CPM) or cost per thousand

impressions.

Company pays for every 1000 user views of

the ad.

Google earns around 70% of its revenue from AdWords and another 20% from AdSense. In total

Google earns 90% of its revenue from advertising. Advertising is driving force of Google’s

growth in business.

AdSense – AdSense is a sister concern of AdWords. It is a similar to AdWords but offers a

different type of service. Rather than having ads appear on search pages accessed upon visiting

Google.com, AdSense allows owners of other websites to join Google's network and run

Google-branded ads. The ad publishers within the Google Network of content sites can run

modified advertisements targeted to audiences based on their psychographic factors. The

advertisements are maintained by Google and they can generate revenue on a per-click basis.

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DoubleClick – It is an online advertising technology. Display advertising comprises of video,

text, images, and other interactive ads. Display ads appear on YouTube, Google Finance, and

Google Network member websites.

YouTube – This is a free video sharing web platform where users can upload their own videos

and share it with everyone. It is the most popular video sharing site as the people from around

the world use it. The uploaders can become members and create their own channels. They can

share videos and receive feedback from anybody having a google account. According to

estimates, Google makes around $4 billion per year by putting ads on top of user-uploaded

videos. The video uploader also makes money on this web site. Google operates on a profit-

sharing system where the user receives a part of the revenue raised from the ads on their

videos. Once the videos are uploaded for viewing, the uploader receives 55% of the advertising

revenue generated through videos, via an automatic payment each time his or her outstanding

earnings top £60.

If the video is set up to roll in the beginning of the video, the uploader gets paid only if the user

watches 75% of the advertisement.

Google’s main product might just be a search engine, but it invests heavily in research and

development to create new products and improve existing products. It invests a significantly in

infrastructure and patents that help it to provide innovative services and products to users.

Services such as Google earth, maps, Gmail, Docs and Google + were created to drive more and

more people towards Google – which is the ultimate goal of its business. The vast array of

products from Google makes users spend more time on its site to generate more web traffic

which ultimately results in more revenue from advertising.

Ratio Analysis

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Page 15: Financial Analysis and Website Performance of Google

Items required for Ratio Analysis

ItemEarnings (millions of dollars) by year

2011 2012 2013

Revenue 37,905 50,175 59,825

Cost of Revenue 13,188 20,670 25,858

Gross Profit 24,717 29,505 33,967

Net Income available

to shareholders9,737 10,737 12,920

Total Assets 72,574 93,798 96,692

Common Stock Equity 20,264 22,835 23,429

Earnings per share 8.22 8.62 9.91

Market Share Price 645.9 707.38 1120.71

Source: Google, 2014.

1. Gross Profit

2011 2012 2013

Gross Profit

Margin65.21% 58.8% 56.78%

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2011 2012 201352.00%

54.00%

56.00%

58.00%

60.00%

62.00%

64.00%

66.00% 65.21%

58.80%

56.78%

Gross Profit Margin

Gross Profit MarginTrend

The gross profit margin for Google has been decreasing for the past 3 years which is largely due

to the increase in the cost of revenues. Revenue has been increasing year on year on a

consistent basis as the revenues grew by 19% during 2013. Cost of revenue for the years 2012

and 2013 increased 56% and 25% respectively. This has contributed to a decrease in gross profit

margin.

2. Net Profit

2011 2012 2013

Net Profit Margin 25.69% 21.4% 21.6%

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2011 2012 20130.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%25.69%

21.40% 21.60%

Net Profit Margin

Net Profit MarginTrend

The net profit margin decreased during 2012 and increased a bit during 2013. Net profit in 2012

increased 10% and net profit in 2013 increased 20% in 2013. Although net profit increased, it

couldn’t keep the pace with increase in revenue due to rise in Research & Development costs.

3. Return on Assets (ROA)

2011 2012 2013

ROA 13.42% 11.45% 13.36%

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2011 2012 201310.00%

10.50%

11.00%

11.50%

12.00%

12.50%

13.00%

13.50%

14.00%13.42%

11.45%

13.36%

Return on Assets (ROA)

ROATrend

The ROA during 2011 was high as the asset level was much lower during that time. In 2012, the

return decreased even though the net profit increased. The reason for this is that assets had

increased during 2012, but the net profit did not increase proportionately to the total assets.

4. Return on Equity (ROE)

2011 2012 2013

ROE 48.1% 47.02% 55.15%

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2011 2012 201342.00%

44.00%

46.00%

48.00%

50.00%

52.00%

54.00%

56.00%

48.10%47.02%

55.15%

Return on Equity (ROE)

ROETrend

The ROE decreased a little due to an increase in equity. ROE increased steadily during 2013

largely due to a healthy net profit of $12.9 billion. Net profit increased by 20% contributing to

the rise in ROE.

5. Price/Earnings (P/E) Ratio

2011 2012 2013

P/E Ratio 78 82 113

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2011 2012 20130

20

40

60

80

100

120

78 82

113

Price/Earnings (P/E) Ratio

P/E RatioTrend

The P/E ratio suggests how expensive the value of the firm is. The share price and earning per

share of the firm are related in this ratio. The ratio means to show how many times a

shareholder is willing to pay for each dollar earned by the firm. The ratio increased significantly

during 2013 due to a high share price at the end of the year.

Analyze the balance sheet

The cash position of Google looks very healthy as it was $15.4 billion at the end of 2013. The

increase in cash reserve is not as dramatic as it was in 2012, as cash increased by almost $5

billion from 2011 to $14.7 billion in 2012.

The accounts receivables position looks much better than before as Google is collecting money

in lesser time from its customers. The accounts receivable increased to $7.8 billion in 2012 from

2011’s $5.4 billion. In 2013, the accounts receivable has decreased even though it was by a

small number.

During the end of 2011 the inventories were only $35 million, but in 2012 it increased to $505

million. This is not a good sign as Google is spending lot of money on inventory. This could also

be a reason why the cost of revenue has increased so much. In 2013, this figure increased

further to $648 million.

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Property and Equipment has increased to $11.8 billion in 2012 from $9.6 billion in 2011. In

2013, this figure increased to $12.3 billion. This is quite understandable that Google is trying

expanding its business since infrastructure remains the core area of investment.

Overall, the total assets have increased to $96.7 billion in 2013 from $72.6 billion in 2011 which

shows that the company has grown.

The accounts payable has increased drastically from $588 million in 2011 to more than $2

billion in 2012. This means that Google is delaying payments in order to use the supplier’s

money in its business. It is not necessarily a bad thing as it is only a result of increasing revenue.

The accounts payable figure increased to $2.1 billion in 2013.

Google’s short term debt has increased from $1.2 billion in 2011 to $2.5 billion in 2012. Once

again, this shows that the revenue is Google is increasing and it needed this money to fund the

daily operations. This amount has decreased to $2.1 billion in 2013.

The accrued expenses have increased by an alarming rate from $1.4 billion in 2011 to $3.3

billion in 2012. This amount decreased to $3 billion in 2013.

The long term debt for 2011, 2012 and 2013 are almost close to $3 billion each. It remained

very consistent throughout the last 3 years.

The current assets of Google are almost 6 times that of current liabilities. The current assets

during 2011 were $52.7 billion and current liabilities were $8.9 billion. In 2013 the current

assets were $62.8 billion and current liabilities were $13.2 billion. This shows Google’s overall

liquidity position is very sound.

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Predict the future growth opportunities of the firm with financial information

Google has clearly improved its performance in 2013 from 2012 as the revenue has

increased by 20% to $59.8 billion and the net income has also increased by 18% to $12.9

billion. The performance forecast for 2014 looks good as the company is the world’s most

popular search engine. During 2013, the firm has earned $9.9 per share. The investors have

a lot of confidence in Google as the share price is now $590. The future prospect looks

promising for the company as they rolling out new products that are more innovative and

good for businesses around the world.

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Stock price from 2012 to 2014

Date

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Chapter 3 – Analyze the Site Performance

ALEXA Analysis

Site Overview:

Engagement Metrics:

Alexa ranks google.com as the number one site both in the USA as well as in the entire world.

This is not surprising given Google’s increasing popularity and an endless list of interesting

services. The ranking is calculated based on the average daily visitors to the site and page views

of the site for the past 3 months. So far the statistics have been very consistent:-

Criteria Value Description

Daily Page views per visitor 23.49Estimated daily page views on

the site per visitor

Daily Time on site (mm:ss) 18:49Estimated daily usage of site

per visitor

Source: Alexa,2014.

Audience Demographics:

Gender – Both males and females have an equal presence in using this site. The number of

people from both the genders is similar to the general internet population.

Education – Being less or more literate is no barrier for people to use the internet these days.

People with no education browse the site as much as people do from graduate school, although

statistics have very slight variations.

Browsing Location – People browsed the site most at home and the least in school.

Audience Geography:

Country Percent of Visitors Rank in Country

1. United States 30.1% 1

2. India 9.0% 2

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3. Japan 3.3% 3

4. Russia 3.3% 4

5. Brazil 3.1% 3

Source: Alexa, 2014.

Maximum number of visitors is located in USA. And as the table clearly shows, most of the

users of Google are from the developed countries of the world. Even though India is not a fully

developed country, the vast urban population has wide access to Internet. Hence, a staggering

9% of Google’s users are located in India.

Where do Google.com’s visitors come from?

Search Traffic – This indicates the percentage of search traffic that has come to this site from a

search engine over the past 3 months. It is 2.4% now. This means that 2.4% of traffic has come

through search in Google.

Top search keywords sending traffic to this site:

Keyword Percent of Search Traffic

1. Gmail 11.32%

2. Google 5.28%

3. AdSense 2.89%

4. Translate 2.88%

5. Google translate 2.25%

Source: Alexa, 2014.

Upstream Sites – Which sites did people visit immediately before this site?

Facebook.com

Youtube.com

Yahoo.com

Wikipedia.org

Twitter.com

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What sites link to google.com?

As of 25th August 2014 a total of 3,366,704 sites link to google.com. Some of the sites that link

to google.com are:-

Youtube.com

Baidu.com

Yahoo.com

Antpedia.com

Taobao.com

What sites are related to google.com?

These are sites that are related to this site in some way. For example, they receive traffic from

similar keywords, have a similar audience, or are frequently cited together on web pages. Some

of the related links are:-

Amazon.com

Wikipedia.org

Statcounter.com

Myspace.com

Linkedin.com

Imdb.com

Where do visitors go on google.com? :

This list shows the subdomains that visitors visited most within Google:-

Subdomain Percent of Visitors

Google.com 72.45%

Mail.google.com 52.00%

Accounts.google.com 27.36%

Docs.google.com 12.32%

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Plus.google.com 12.32%

Source: Alexa, 2014.

Site comparison

Google vs Yahoo

Google Yahoo

Global Ranking 1 4

Source: Alexa, 2014.

Google vs Yahoo vs Bing

Google Yahoo Bing

Global Ranking 1 4 23

Source: Alexa, 2014.

E-commerce Web site features that ANNOY customers:

Serial Web site features that ANNOY customers Yes/No

1 Pop-up ads No

2 Requiring installation of extra software to view site No

3 Dead links No

4 Confusing navigation No

5 Requirement to register and log-on before viewing site No

6 Slow-loading pages No

7 Content that is out of date No

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8 Ineffective site search tool No

9 Inability to use browser’s back button No

10 No contact information available(Web form only) No

11 Overdone sites(Unnecessary splash/flash screens or animation) No

12 Text that moves Yes (sometimes

the logo moves)

13 Poor appearance- color, fonts, format No

14 Music or other audio that plays automatically No

15 Opening a new window for a link Yes(if required)

The eight most important factors in successful E-commerce site design:

Serial Factor Description

1 Functionality Google created its home page simple so that it loads quickly

works fast, and points users to the website.

2 Informational Easily links to any desired information of the customers.

3 Ease of use Google consists of simple fool-proof navigation.

4 Reductant navigation Alternative navigation to the same content.

5 Ease of purchase One or two clicks to purchase.

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6 Multi browser functionality Site works with the most popular browser.

7 Simple graphics Google does not have distracting obnoxious graphics and

sounds that the user cannot control. It is rather user

friendly.

8 Legible text Google avoids backgrounds that distort text or make it

illegible. And has a neat background.

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CHAPTER 4: MARKETING ANALYSIS

Google clearly states its mission as,

“To organize the world’s information …. And make it universally accessible and useful”.

Source: www.google.com

Google explains that it believes that the most effective, and ultimately the most profitable, way

to accomplish the mission is to put the needs of the users first. Offering a high-quality user

experience has led to strong word-of-mouth promotion and strong traffic growth.

Google philosophy for marketing is:

Focus on the user and all else will follow.

It’s best to do one thing really, really well.

You can make money without doing evil (the founders are well known and chastised for

making this statement).

The user prioritized industry has three basic commitments done to serve the customers are:

We will do our best to provide the most relevant and useful search results possible,

independent of financial incentives. Our search results will be objective and we will not

accept payment for inclusion or ranking in them.

We will do our best to provide the most relevant and useful advertising. Advertisements

should not be an annoying interruption. If any element on a search result page is

influenced by payment to us, we will make it clear to our users.

We will never stop working to improve our user experience, our search technology and

other important areas of information organization”.

The company explains the system followed by them to provide customer value as they serve

their users by developing products that can be quickly and easily found, created, organized, and

helps share information. Placing premium products that matter to many people and have the

potential to improve their lives tops the customer value list.

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Some of the key benefits that they tend to look after are: Comprehensiveness and Relevance;

Objectivity; Global Access; Ease of Use; Pertinent, Useful Commercial Information; Multiple

Access Platforms and Improving the Web.

Source: Smart Insight

Opportunities:

In China, a massive internet market, Google possesses 16.6% of the market, second by a

large margin to Baidu, so the company still has a lot of room to grow in this massive

market

Just recently Google acquired Motorola Mobility, and with it the company's large

portfolio of intellectual property; but the true opportunity is found in rumors that

Google is planning to sell Android devices directly to the consumer

If Google could handle both the hardware and software sides of the Android devices,

like Apple does with its iOS and iPhone, Google would rake in much greater profits

Google+ puts Google’s foot in the fast-growing social media market, and should allow

the company to create more advertising revenue

Google has a long history of acquiring companies to help advance its innovation

prospects, and it seems inevitable that sooner or later the company will strike again

Google has many strengths, weaknesses, opportunities, and threats in its business; however in

the end appears to be a strong company with a bright future. The world is relying more and

more on the internet each day and at the forefront of this revolution is Google, making it a

tremendous investment for the future

Source:The Moty Fool

Search Engine Optimization:

Basically, in business optimization refers to finding an alternative with the most cost effective or

highest achievable performance under the given constraints, by maximizing desired factors that

is trying to attain the highest or maximum result without extra expense and minimizing

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undesired ones. Practice of optimization is restricted by the lack of full information, and time to

evaluate what information is available.

As a top Internet marketing strategy, SEO considers how search engines work, what people

search for, the actual search terms or keywords typed into search engines and which search

engines are preferred by their targeted audience. And the search engine optimization indicates

the process of increasing visitors in a specific website which is done by increasing

the site's visibility in search engine results. Websites can improve search engine optimization by

editing its content, HTML and associated coding to both increase its relevance to specific

keywords and to remove barriers to the indexing activities of search engines including

required content, making sure that the pages are able to be indexed correctly, and ensuring

that the content is unique. Going through the search engine optimization process

typically leads to more traffic for the site because the site will appear higher in search results

for information that look for in the site's offerings. It also includes Promoting a site to increase

the number of backlinks, or inbound links, is another SEO tactic.

Methods followed by google as a search engine optimization:

Getting indexed

The leading search engines, such as Google, along with others, uses crawlers to find pages for

their algorithmic search results which is `Two other major directories, require manual

submission and human editorial review even where known to be formerly operating a paid

submission service that guaranteed crawling for a cost per click this was discontinued in 2009,

whereas Google offers Google Webmaster Tools, for which an XML Sitemap feed can be

created and submitted for free to ensure that all pages are found, especially pages that cannot

be found by automatically following links. Google crawlers look at a number of different factors

when crawling a site. Not every page is indexed by the search engines. Distance of pages from

the root directory of a site may also be a factor in whether or not pages get crawled.

Preventing crawling

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To avoid undesirable content in the search indexes, webmasters can instruct spiders not to

crawl certain files or directories through the standard robots.txt file in the root directory of the

domain. Additionally, a page can be explicitly excluded from a search engine's database by

using a Meta tag specific to robots. When a search engine visits a site, the robots.txt located in

the root directory is the first file crawled. The robots.txt file is then parsed, and will instruct the

robot as to which pages are not to be crawled. As a search engine crawler may keep a cached

copy of this file, it may on occasion crawl pages a webmaster does not wish to be crawled.

Pages typically prevented from being crawled include login specific pages such as shopping

carts and user-specific content such as search results from internal searches. In March 2007,

Google warned webmasters that they should prevent indexing of internal search results

because those pages are considered search spam.

Increasing prominence

A variety of methods can increase the prominence of a webpage within the search

results. Cross linking between pages of the same website to provide more links to most

important pages may improve its visibility. Writing content that includes frequently searched

keyword phrase, so as to be relevant to a wide variety of search queries will tend to increase

traffic. Updating content so as to keep search engines crawling back frequently can give

additional weight to a site. Adding relevant keywords to a web page's meta data, including

the title tag and meta description, will tend to improve the relevancy of a site's search listings,

thus increasing traffic. URL normalization of web pages accessible via multiple urls, using

the canonical link element or via 301 redirects can help make sure links to different versions of

the url all count towards the page's link popularity

Source: Wikipedia,2014

Top 10 news on Google:

1. Rockchip and roll:

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Google's attempt at building a modular smart phone. Project Ara, is gathering pace with the

announcement that Google is building a custom processor. Paul Eremenko, who heads

up Project Ara for the website posted that Google has kicked off the development of a mobile

system on a chip (SoC) with Chinese brication-less semiconductor developer Rockchip. Few

specifics were given about the processor, but Eremenko did announce it would feature a UniPro

high-speed interface so that it could function in Ara modules without needing bridge chips.

2. Google's Self-Driving Cars Will Need Steering Wheels - For Now

Google unveiled a prototype car with no brakes and no steering wheel. And said it will modify it

to comply with California Department of Motor Vehicles regulations governing testing of

“autonomous” cars on public roads in the state. Those new rules require, among other things,

that a test driver be in the vehicle and be able to take “immediate physical control” in case

something goes wrong.

"During our testing we are equipping the vehicles with manual controls such as a steering

wheel, brake pedal, and accelerator pedal. With these additions, our safety drivers can test the

self-driving features, while having the ability to take control of the vehicle if necessary,” a

Google spokesperson said in a statement to NBC News. Later this year, the California DMV is

scheduled to issue another regulation that governs the “operation” of fully autonomous (no

driver, steering wheel, brake or accelerator) vehicles on public roads.

3. Google's audacious Project Loon wants to spread the Net with high-flying

balloons:

Google wants to send legions of balloons up to 60,000 feet—twice the altitude of commercial

airplanes—where they’ll be free to harness the natural energies of the wind and the sun to

create a world-wide web of connectivity. Google’s massive computing power, mixed with

government wind direction data, will theoretically help navigate the balloons around the globe,

delivering 3G (or better!) speeds to the masses no matter where the masses are.

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4. Google for tweens: New growth strategy targets kids under 13:

Google is bringing forward a brand new system for the first time that would allow children

under the age of 13 to create their own accounts, but parents would have ultimate control over

how their kids use the features due to legal issues and the Children's Online Privacy Protection

Act, which imposes strict restrictions on how outsiders collect information on children under 13

While Google doesn't officially offer its Gmail and YouTube features to children, there isn't

much to keep kids from posing as teens or adults to create an account.

5. Microsoft adds over 50 new U.S. cities to Google Street View-like Bing Maps

service:

Google Street View is a system that helped finding out a specific place that one does not know

on the other side of the globe becomes very tricky, but computers can make that task a whole

lot easier by giving a view of any cities or spots that user might want to visit.

6. Google Acquires Motorola Mobility

Google Inc. announced that the acquisition of Motorola Mobility Holdings, Inc. has closed, with

Google acquiring MMI for $40.00 per share in cash. The acquisition will enable Google to

supercharge the Android ecosystem and will enhance competition in mobile computing.

Motorola Mobility will remain a licensee of Android and Android will remain open. Google will

run Motorola Mobility as a separate business.

Source: www.1stheadlines.com

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7. Google Unveils Ambitious Android Expansion at I/O Conference

In June 25, 2014 Google annual conference for software developer held. Their unveiled

plans to expand Android, its mobile operating system, for new categories like wearable

computers and automobiles.

Source: www.nytimes.com

8. Google disruption in China seen as government crackdown

When Yi Ran is working on new designs for his Yinshen Clothing company, he often turns to

Google to search for pictures to use as inspiration. "The results are more complete and

objective than Chinese search services," the 30-year-old from Guangzhou said.

Source: www.mercurynews.com

9. Google Alerts British News Outlets about Deleting Their Links

A number of British media outlets, including the BBC and The Guardian, say that they have

received notification from Google explaining which of their online articles will no longer show

up in European online searches.

Sources: www.nytimes.com

10.Siding With Google, Judge Says Book Search Does Not Infringe Copyright

Google’s idea to scan millions of books and make them searchable online seemed audacious

when it was announced in 2004. But fast-forward to today, when people expect to find almost

anything they want online, and the plan seems like an unsurprising and unavoidable part of

today’s Internet.

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CHAPTER 5: Conclusion and Recommendation

Over the last sixteen years Google has contributed a major foundation to the internet world

especially in the online advertisement sector and nevertheless in search engine. It has created

the biggest online business platform starting from advertisement to any kind of marketing via

web. Virtually anybody can now promote business from any part of the world through this

website.. Because Google offers the easiest search system and maintains its simplicity it has

gather users of all ages throughout the world. The company according to their taken oath

maintains their commitment to serve the users. Move over, besides their number of

approaches to serve the users makes Google stands to dominate the online industry. Google

information system is now a tool which most people can afford and understand.

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