group 2 google

8/11/2019 Group 2 Google

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Case Study onGoogle Inc.

Submitted by,

Harjas Kaur 231062

Kanika Jain 231073

Mahak Agrawal 231084

Naveen Suman 231094

Priyanshu Jain 231104

Pranay Goyal 231114


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1. KEY FACTORS BEHIND

GOOGLES EARLY SUCCESS EXPANSION: Since its IPO, Google launched a flurry of products that

expanded its domain beyond web search. These included Gmail,Google maps, Google books and so on.

Google launched book search, maps, email, calendering,document management systems threatening ebay, amazon, MSoffice, windows

Google tried to maximise its services.

CLICK THROUGH RATE(CTR): Google weighted CPC bids by theratio of an ads actual click-through rate to its expected CTR.This maximised googlesrevenue since an ad with high CPC bid

but a low CTR offered low revenue Googles network offered more search traffic and allowed lower

minimum CPC bids.


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CONTEXTUAL PAID LISTINGS AND FROOGLE: Google expandedbeyond search advertising by launching Adsense and Froogle- aproduct search service that identified merchants for speceficproducts along with their prices.

Google added paid listings to its various services like maps too. Google prevailed in a series of key deals in competing to buy

placements on partner sites.eg- 2005 bidding war with MS for theright to show googlesads on AOL search results.

PERSONALISED SEARCH: Googles engineers constantly fine tunedsearch algorithms. In 2004, google launched personalised searchwhich ordered results by analysing a users prior searches andclicks.

Google realised there was a oppurtunity in attracting more localadvertisers since google could focus their ads on right regions.

GOOGLE ANALYTICS: Google improved its advertiser features by

offering advertisers free software to optimize paid listingcampaigns.

Google followed unconventional methods to manage innovationand had strong & distinctive corporate values.


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2. Will Google employ the

winner take all approach?

In Search Engine Business: Chances are High.

Market Share of Search Engines :

Google: 90%

MS Bing: 4.5% Yahoo: 3.2%

Baidu: 0.7%

Others: 1.6%


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Other Major Products:

Mobile

Web browser

Video host (You tube)

News

Docs


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3. Bid for AOLGoogle VS Microsoft

In 2005 Microsoft and Google entered into a bidding war for an alliance withAOL where both were bidding to gain from AOLs sales team and to provide the

search engine platform to AOL

Google won the battle and bought 5% stake in AOL for $1billion.

Google also provided AOL $300 million credit to post its display ads on

Google's search engine thereby helping it promote its business.

Why Google over Microsoft?

Association- In 2002 AOL trusted Google and announced a switch to Google

for its algorithmic search results and paid listings.

Google was a company that was rapidly increasing and within few years of itsinception overtook the established players like Yahoo and Microsoft. Google

started in 1999, surpassed market share of Yahoo in 2004 and as of 2009 had

65.6% market share of search engines.

AOL would be able to make use of the Google platform to boost the traffic on

AOL network.


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4. GOOGLES DISTINCTIVE CORPORATE

CULTURE AND STRUCTURE AS

STRENGTHS

No Googler hesitates to pose questions directly to Larry orSergey in the weekly all-hands meetings. Every employee is a

hands-on contributor, and everyone wears several hats.

Googles mission statement and corporate culture reflect a

philosophy that you can make money without doing evil and

that work should be challenging and the challenge should be

fun.

Work Culture at Google -focus on creating a university

environment within the office.

Quality of Work life is aimed at Google by providing Freedom

to flex work hours to accommodate family life while still

meeting organizational goals; freedom to have a healthy work-

life balance; freedom to do things differently .


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Presenting Ideas Before Hierarchy -Google believes that ideas and

innovation can come from anywhere. Physical spaces like shared

offices, long caf tables, and break-out areas are specifically

designed so ideas tossed around during casual conversation could

become one of the next big projects for the company.

Freedom to Innovate: criteria of building innovation into

management.

It encourages creativity allowing all its engineers to spend 20% timeon the product of their choice.

They know how to set the priorities right. Management used

70/20/10 rule for allocating time and efforts wherein 70% time to

web search which is the core business, 20% to the projects that

extended the core and 10% on fundamentally new business.

Google believes in democracy on the web works, , thus allowing

sharing of links on its websites


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5. Google have 4 Alternatives to

Venture into

Portal Building

Consolidating content

Up to date and subjective searches

Classified by relevance

Focus on Comparative Advantage:

Develop superior search solutions + monetizing throughtargeted advertising

Make it the trusted third part info escrow agent for all

the world businessIn line with its aim of organizing all of the worldsinformation


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Extend Functionality

Compete head on with Microsoft as rumored

Desktop searches, office alternatives (provide support todevelopment of open source initiatives like Open Office)

Provide interfaces compatible with Linux users to extendmarket base

E-commerce

Build trusted networks to provide intermediary functionas an online payment inter phase (like PayPal)

Extending to purchasing journals, copyright articles viaGoogle Channels.


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Why build their own portal?

Google has enough expertise to enter portal business.

Portal can be use as a complement service to their search

engine.

May be a relatively easy investment.


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Why not focus on ecommerce?

Already has big player PayPal and eBay

Next big thing

Have enough capabilities to create a payment service

Because Google Wallet is coming out Competitors are not into it yet

Why focus on ecommerce?


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Why not build their own OS? Not consistent with Googles philosophy

Its best to do one thing really, really well Google does search best

Difficult to compete with Microsoft Microsoft already has positive feedback loop

High installed base of users High switching cost

Possible in the long run

Given that Google gain the technology

Why build their own OS?


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Google : Porters 5 Force

Model Bargaining Power of Suppliers: Low

Bargaining power of suppliers should remain low as

long as Google maintains market dominance.

Generates most of income from Ads, both the

advertiser and the receivers are clients of Google.

Suppliers have faith in Google because of its amazing

products and services, like Android OS, Moto Series,

Nexus series, Youtube, Google Earth, etc.


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Google : Porters 5 Force Model

Cont Bargaining Power of Buyers: High

Buyers power is High in both Internet and Software

industries as there are many competitors who

provides same services as Google does.

Due to open source products, Google mainly rely onadvertisement for its revenue and hence a drop in

buyers may cause in drop in advertisement clients.


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Cont Competitive Rivalry: Moderate

Google has competitors in search engine like, Yahoo,

MSN, but still Google is the most popular search

engine. With innovations like Google Earth, Street

view, Google owns large majority of Internet services. After launch of Android OS, Google came into

competition with Apples iPhone.


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Cont Threat of Substitutes: Low

The Internet has become the primary source ofinformation and in current scenario, there is nosubstitution for Internet. With such a commandingpresence, Google has itself positioned for long termsuccess on the internet.

Threat of New Entrant: Low

Google has low risk of new entry threat as there is

high level of entry barriers. Requires massive starting capital to build a startup

network infrastructure to compete with all productsand services of Google.


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THANK YOU

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