Nurintan Nauli P.S1306357182Raden Ahmad Idham 1306357264Reza Mustafa1306420301Rissa Delania1306420333Rizky Septiandy1306420346Samuel Krissandi1306357453Sarah Afifah1306357466Googles Strategy in 2013KELOMPOK 3Kelas J131

s History2004200720052006199619992000Renamed to GoogleRaised fun up to $1 million from family, friends, & other angel investor Handling 10,000 search queries per day Top 100 Website & Search Engine by PC MagazineFirst Name : Backrub Larry Page & Sergey Brin, Stanford University Graduate Student develop a new search engine1998First Search Customer Red Hat as first search customer Serve 500,000 queries per day $25 million funding from Silicon Valley venture capitalMillenium Innovation Wireless Search technologies Search in 10 languages Google Toolbar browser pluginThe IPO 18% rose on 1st trading day Brin & Pages share worth to $3.8 billion Acquire Keyhole, Digital Mapping Company Google EarthGoogle Earth & Google Maps LaunchedAcquire YoutubeGoogle Street View on Goggle Maps2008Acquire DoubleClick Advertising Revenue in Banner Ads Licensing Fee on Google Apps document, spreadsheet, & presentation2012Acquire Motorola Mobility $12.5 billionAndroid Lead Mobile OS 50.9% Market Share

2. How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years?Munculnya cloud computing technologyBerkembangnya perusahaan lain di bidang search engineFitur internet dalam mobile device

Persaingan ketat antara Google dan MicrosoftPersaingan juga muncul diantara berbagai search engine, seperti Yahoo dan Bing.Perkembangan mobile search/advertising. Fitur internet service. Akuisisi Motorola market and design Googles own lineAndroid system.2. How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years?

Personalised dan customized search engine.Cina sebagai target market di search engine industry.Regulasi pemerintah Cina membatasi hasil dari pencarian melalui search engine.Market share Baidu (search engine dari Cina) yang sudah sangat besar dan mendominasi2. How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years?

3. What are the key factors that define success in the industry? What are the key resources and capabilities required of successful search engine companies? How do these compare to the key success factors of the smart phone industry?

Key Factors of Search Engine Industry

Key Success & Capabilities for CompanyQuick search resultAccuracy of search resultLocal searchIncludes huge number of websitesSufficient traffic to attract internet advertiserAlso can be used by mobile banking

Search Engine Industry vs Smartphone Industry Success Factor Comparison

Search EngineSmartphoneFocusSoftware & AlgorithmHardware & SoftwareUser InterfaceSimpleSophisticatedSupply ChainNo needFor process & cost efficiencyCustomer LoyaltyNo switching costSwitching cost occurred

5) Have Googles business model and strategy proven to be successful? Should investors be impressed with the companys financial performance?

How does the companys financial performance compare to that of Microsoft, Apple, and Yahoo? Conduct a financial analysis to support your positionyou should calculate relevant financial ratios in doing your financial analysis of the company.

Googles Financial SummaryStrategi dan model bisnis Google telah terbukti sukses secara finansial.

Pendapatan Google dari tahun 2005 2012 tumbuh secara sustainable 35 % Pertumbuhan ini sejalan dengan expansi masif Google sehingga pengeluaran juga tumbuh 37%, namun Net Income secara tetap tumbuh 30%.

Googles Financial Summary Strategi google untuk mulai berekspansi dengan layanan license fee untuk perangkat cloud bagi korporasi juga sukses, dimana kontribusinya tumbuh 37% walau masih berporsi < 5% dari pendapatan

Strategi Google lainnya dengan Search-Based Ads melalui Google Website juga mengalami pertumbuhan yang tinggi dan berkelanjutan, yakni 21%

Googles Stock Summary Bagi Investor, Net Income per share dari Google yang tumbuh sustainable di angka 30% ini akan meningkatkan valuasi harga sahamnya

Hal ini terbukti dimana jika dibandingkan S&P 500 index, Google masih lebih tinggi returnnya

Compare with Apple & Microsoft

6. What are the companys key resources and competitive capabilities? What competitive liabilities and resource weaknesses does it have? What opportunities exist? What threats to its continued success are present?

Key Resources and competitive capabilites, which makes distictive different with competitors characteristic is that it cannot be imitated. Technology and InnovationThis is capabilities that started the companyGoogle never stops making technology & innovationAlways new technology, hard to imitateMicrosoft failed in creating BingYahoo also made Adwords & Adsense for advertising but not satisfying Key Resource and Competitive Capabilities

Human ResourceTech and innovationarethebaseofGoogleadvertising, but HR is guaranteefortechnicalresourcesGoogle spent a lot of money to make nice and comfort working environmentThe best working environment among companiesLuxurious remuneration for employeeCreativity thinking from 20% of working time leads to some success Google productsBrandBecause of its brand, Google offered so many cooperationLoyal usersKey Resource and Competitive Capabilities

WeaknessesLosing on product focus due to excess of product differentiationCopy right abuse in Google Book SearchPrediction of slowing growth, because of 85% revenue generated based on Ads. Investors need more diversification.Bleeding in acquisition of motorolaSo many failed Googles productI GoogleGoogle WaveJaikuGoogle Print Ads dan Google Audio Ads Google BuzzGoogle Health

Opportunity and Threats

7. What recommendations would you make to Googles top-management team to sustain its competitive advantage in the search industry? How should it best capitalize on its strategic initiatives in smart phones and other ventures?

How to sustain its competitive advantage in the search industry?Google harus tetap terus fokus pada kelebihannya dalam search industry dengan tetap melakukan differentiation strategy dan inovasi serta riset pengembangan untuk produk-produk, seperti :

Produk GoogleKompetitorGoogle Search EngineBING, BAIDUGoogle ChroomInternet ExploreGoogle+FacebookGoogle CloudSky DriveGoogle TVTV Digital/TV StreamingAndroid OSTeizen, Windows Mobile, IOSGoogle AppsMicrosoft Offices Series

2. Google harus berhati-hati dalam membuat bisnis baru seperti pada smart phone atau produk hardware yang bukan menjadi basis bisnisnya, dan fokus pada keberlangsungan ekosistemnya.