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GOOGLE INC.
Google Inc. was co-founded by Larry Page and Sergey Brin in 1999. Its major dominance is in
Internet search and online advertising. It is a public corporation and as of year-end 2008, the
company had 20,164 employees.
Raised an IPO of nearly $1.7 billion in 2004 ( at $65 per share ).Post IPO it started rapid
expansion by acquiring companies like Writely, JotSpot, YouTube, dMark, etc.
Google's Mission Statement: "to organize the world's information and make it universally
accessible and useful
Corporate Governance: Dual class equity share structure, giving more power to Class B shareholders
(Sergey, Larry and Eric controlled 80% voting majority)
Corporate Values:
Googles core philosophy include values such as (1) dont be evil, (2) technology matters, (3) we
make our own rules, (4) Democracy works, (5) Focus on the user, etc.
Co-founders attitude towards the employees same as when they are a start-up
20% rule: Engineers encouraged to spend 20% of their time on projects of their own choice
Team size not more than 3-5 members in order to keep productivity high
70/20/10 rule: Only 70% time to be spent on the core business, rest 30% on projects of own choice
and fundamentally new projects
Not shy to invest in projects with high risk, high reward portfolio
Complained of improper charges for clicks that didnt occurred or lacked user interest
Competitor could deplete a companys advertising budget by clicking on the ad several times
A hacker could hijack third party PCs and repeatedly click on ads
NEWS PUBLISHERS
USERS
Users personal data and history available to google, revealing all sorts of their interest
Gmail launched with 1 GB storage space, 20-30 times better than competition
Faced criticism for advertising which was based on words of users email
Expanded into real time and voice communication (Gchat and Google Voice)
YouTube was losing $470 million in 2009 high bandwidth cost and low advertising revenue
Books arrived through either (1) Google Boks partner program or (2) Library Project
Privacy Issues
One could access every Google service with the help of cloud: Google Reader, Google Calendar,
Gmail, Photos, etc.
Google Docs were increasing concern for Microsoft offices mainstay products
In July 2009, launched Google Chrome OS, competing directly with Windows
COMPETITORS
Yahoo!
Main competitor in search business but market share has been continuously decreasing
Full fledged internet portal. Content ranging from Finance, Sports, Travel etc.
Microsoft
eBay
Others
Amazon
Simple white page without ads/editorial content was used for fast searches
Later moved to a better model by altering Cost Per Click in which they introduced a ratio of
actual CPC and expected CTR.
2.
3.
Currently Google uses a very innovative search style which lets users see the indexed result of
their search keywords.
Google now taking 85% market share, it certainly seems that its a winner-take- all industry
Competitors who wish to beat Google, will now have to focus on the needs which have not
been addressed by Google and thus come up with another solution using upcoming
disruptive technologies
There is always a challenge to keep on providing new and innovative solutions to the
users. This challenge will keep on attracting new players to experiment and come up with
new solutions
POSSIBLE ALTERNATIVES
1.
2.
Desktop searches, office alternatives (open source initiatives like Open Office)
Provide interfaces compatible with Linux users to extend market base
3.
Providing functions like purchasing journals and copyright articles via Google Channels
Pros
THANK YOU