Google Case Study

The Force

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Group Introduction

Abhijit Dey S - 1

Abhishek Sahi S – 2

Aiban Khraw S – 3

Alankar Amritraj S – 4

Amit Lakra S – 5

Amlan Mukherjee S – 7

Anesh Demoli S – 8

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From Dorm Room to Board Room

Founders – Stanford graduates

Larry Page

Sergey Brin

“Google” a mathematical term representing 10 to the hundredth power.

Now being used as a Verb - Have you ever googled anyone?

Creation of BackRub – Data Centre in Page’s Dorm Room.

Andy Bechtolsheim, the founder of Sun Microsystems, invested $100000 in

Google which later ballooned to almost a third of Billion Dollars.

Google Inc. officially opened in 1998

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From Dorm Room to Board Room

Google listed as “ Top 100 Web Sites and Search Engines ” in 1998

Handling Half a Million searches a day in 1999

Set up Office, Googleplex, in Mountain View, California.

Became the world’s largest search engine in 2000, conducting 18

million searches a day.

The Figure catapulted to 100 Million Searches by 2001.

The Collaborative environment spawned a slew of new innovations

and rapid multinational expansion.

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Google - The Search Engine

What is Search Engine?

An algorithm that understands exactly what you mean and give back exactly

what you want.

Search ALGO used by Google’s Competitors

Google’s competitor’s summarized information by creating an Index. This is

matched with the Input query and the results are displayed.

The results were either too voluminous or inaccurate.

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The MAGIC formula - PageRank

ALGO used by Google

PageRank sorts the results according to their perceived importance.

Initial values are assigned to all the pages that are a HIT.

Value of the page is increased depending upon linkage to other

sites.

The final scores are ranked based in a meaningful way and the

page with the highest perceived relevance is displayed first.

Companies tried to manipulate the Page rank but Google has been

successful in Foiling that effort by updating their search

methodology regularly.

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High on Web Business

AdWords - Revenue Breakthrough

An advertising program that allows online businesses to place ads next to related

search results. Advertisers can place their bids online by opening an account for $5.

It played an integral role to turn Google in a Profit in year 2001.

Further enhancement was done by instituting a usage based pricing model that

charges advertisers based on the number of hits, their Ads receive.

Google refused to accept kickbacks clearly distinguishing itself from a paid

advertisements and results generated by user searches.

Initial revenue was generated by Selling Banner Ads but it did not satiate the

aspirations and incurred R&D Costs.

Bluechip organizations began inquiring about the possibility of licensing it for

their own websites.

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Diversification

Google has rapidly been expanding in Product Offerings and

enhancing search capabilities.

Google PhoneBook – An Online Telephone Directory

Google News Headlines – Service that recaps the latest headlines

Google Toolbar – eliminates the need to visit the Google site

GMail – E-Mailing Service

Google Catalog search – Allows users to pursue more than a

thousand catalogs that were not previously available online

Froogle – Enables price comparison for the same product available

at different e-tailers.

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Competitors Psyche

Yahoo! – Actively upgrading their search engines by allowing users

to customize their searches by blocking certain sites and

highlighting others and by creating their own home pages.

eBay – Feels threatened by Google’s AdWords.

Amazon – Has introduced A9 in competition to Google’s Froogle.

Microsoft – Introduced MSN Search Beta which proved less

accurate than Google in a test by the Washington Post.

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The Triumph of Achievement

Despite many efforts from their competitors Google still is the

Numero Uno in Search Engines.

In 2004 Google became a Public Company by floating an IPO,

The share price which opened on $85 the closing was $100

The Founders, Page and Brin had a total of 41 Million shares and

held on to $4 Billion.

Andy Bechtolsheim investment of $ 100000 ballooned a third of a

billion

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The 10 Commandments

Focus on User and all else will follow.

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

Fast is better than slow.

Democracy on Web works.

You don’t need to be at your desk to need an answer.

You can make money without doing Evil.

There is always more information out there.

The need of information crosses all borders.

You can be serious with a suit.

Great just isn’t good enough.

Component of Marketing Concept

Customer orientation

continuous monitoring of consumer need ,want and preferences

Competition Orientation

to understands the short-term strengths and weaknesses and long-term capabilities and strategies of both the key current and potential competitors.

Profitability to achieve ultimate goal of organization that is profit

Customers Orientation

Focus on Customer –Mantra

Identifying customers need and deliver accordingly .What you want is what you get.

Simplifying the usage

Making it even for small and large businesses alike

account creation in $5

Make money without being evil

Competition Orientation

Continuous Innovation

open floor communication and collaborative environment leads to innovation

Expansion in Product offeringsGoogle Phone book,Google news Headlines ,Google toolbar,Google

Desktop,Gmail,Gtalk,Froogle ,Google Wave,Orkut

Increasing reach by opening offices across world and supporting 88 languages by 03

Technology

swift and accurate search in matter of second

Integrity-Making money without doing evil Hiring Top Talent

Profitability

Banner Adds

Add words

Simplicity in placing bid online

Affordability-Usage based pricing model

IPO in 2004

Challenge for Google Growth-Competition

With increasing Product range Google entering into the teritory of

major giants like Microsoft , Amazon etc. which will definitely leads

to interesting battle.

Competitor upgrading their capability and spending heavily on the

marketing of their search engine

Like Amazon came up with A9,Microsoft with Bing

In Terms of AD dollar, Google is competing not only with E Bay but

with TV, Radio, Print media

In the far future if Facebook manages to fairly significant portion of

the internet, then they may take a portion of revenue from Google.

If closed systems like Facebook which has a huge user base, and

start with search option ,can be a threat for Google growth in long

run.

a search competitor like Baidu or Yandex (the market winners in

China and Russia, respectively) might also be threats for Google as

other markets become more important players in the world economy

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The Key External Microenvironment Forces

Opportunities

Strong Technical & Creative Background.

Continuous look out / development of newer and better product

offerings to its multitude of users.

Widespread reach out in order to become indispensable.

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The Key External Microenvironment Forces

Threats

Newer better technological advancements from the competitors

Losing Focus of enhancing its older products with continuous increase

in its product line.

Overdosing the users with too much and overlooking their bare

minimum requirements.

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Google’s strategy to expand product mix…

Objective

Being more customer focussed

More Value adds to users – all related things in one place

To be clearly ahead of competition

Created a blue ocean with unique products & services