Organize the world’s information and make it universally accessible and useful.
Kevin Clay Budimulia Rexson Tan Irfan Budipradipta
Zaid Haritsyah Yohanes Chrisbiyanto
Agenda
o Company History
o Google Business
o Market competition
o Product Compare
o External environment analysis
o Five Force Model Competition
o Strength, Weaknesses,
Opportunities and Threats
o Five Generic Competitive Strategy
o Competitive Position
o Competing in International Market
o Diversification Strategy
o CSR
o Recommendations
o Conclusion
3
Company Historyo The development of Google’s search technology began in January
1996 with the founder Larry Page and Sergey Brin.o At first, Larry Page and Sergey Brin named the search engine
BackRub.o In 1998, BackRub would be renamed Googleo In August 1998, Google held the investor’s $100.000 check and at
the end of September the company went on to raise a total of $1million in venture capital
o By year-end 1998, Pc Magazine had named the company to its list of “Top 100 Web Sites and Search Engines for 1998”
o In 2000, the company make innovations with wireless search technology, search capabilities in 10 languages, and Google Toolbar
o In 2004, features added like Google News, Google Product Search, Google Scholar, and Google Local.
4
Company Historyo In 2005 Google maps goes Live add satellite views and direction,
Google also launch Google talk. In 2005 Google also release Google Analytics for measuring the impact of websites and marketing
o In 2006 Google launched Google Finance, Google Calendar, Google Translate
o In 2007 Google got Best Companies To Work For (rank #1 of the list 3 other years since). Added traffic information for Google Maps, also launched Street View in 5 U.S Cities ( New York, San Fransisco, Las vegas, Miami & Denver). And the last 2007 Google announce Android
o In 2008 Google launched Google Map Maker, and Street view is available in several cities in Japan and Australia
o In 2009 Google Released google Voice, Google ventures, Google Chrome OS
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Company Historyo In 2010 Google via Youtube introduce TrueViewo In 2011 Google Offers kiks off in beta in Portland, ore. Google
bring Offline Access to Gmail, calendar and Docs for people using Chrome. Google launched Google+ Pages. And also open New office in Paris
o 2012 Chrome launch on Android, Android market becomes Google Play. Launched Google Drive. Begin installing Google Fiber.
o 2013 Google Introduces Enchanced campaigns. Google acquired Waze to help people outsmart Traffic
o 2014 Google introduce the first family of Android One phones in India. And in 2014 Google launched Android Lollipop.
o 2015 Google just Released Google Android M (Marshmallow) for now only available on Android Nexus
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Google Business
7
WHAT HOW WHO
WEB BASEDADVERTISING
MONETIZING SEARCH TRAFFIC
CPC PAID
LISTING
ADVERTISER
Google makes 99% of its revenue from advertisings
Google Business
8
WHAT BOOST THE BUSINESS
40% of all web searches have a commercial motivation
Efficient AdsMore
AdvertisersMore Revenues
WHAT MAKE SO POWERFUL
No. 1 Search EngineDiversity of Ads
SupportRelevant Advertising
Market Competition
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U.S. Search Engine Percent of Market Share 2015Source: Netmarketshare.com
10% 10%
70%1% 7.0%
Market Competition
12
Worldwide Browser Percent of Market Share 2015Source: http://gs.statcounter.com
17% 16%
52%2% 10%
Market Competition
13
U.S. Smartphone Platform Percent of Market Share 2015Source: http://www.idc.com/prodserv/smartphone-os-market-share.jsp
78.0%18.3% 0.3% 2.7%
External Environment
14
U.S. Smartphone Platform Percent of Market Share 2015Source: ComScore.com
PR like Political and Regulation factors
Adoption of new technologies
Local authorities blockage (censoring)
E like Economical factors
Stock market Publisher’s numbers
Foreign Exchange rate
S like Social factors
Numbers of users Trends
Brand reputation
T like Technological factors
The evolution of technologies
Internet Network & Infrastructures
Mobile phones market
L like Legal factors
Privacy concernsCompetition law
Five Force Model Competition
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Rivalry
STRONGYahoo, Baidu
New Entrants
WEAKToo Competitive
Buyers / Customers
WEAKRelative to buyer
demand
Substitutes
WEAKNot Readily Available
Ex. Artificial Intelligence
Suppliers
WEAKThere is a surge in the availability of supplyEx. Server Provider
S.W.O.T. Analysis
16
STRENGTH WEAKNESS OPPORTUNITIES THREATS
Established brand name
Strong marketing :word by mouth publicity is
doing the job
User-friendly interface with
display of relevant and clear results
Highly competent work: PHD
researchers
Innovative products
A worldwide market share of 70%
Marketers don’t control the cost and
position of their advertisement
Impact of click fraud
practice on the business
No marketing for
many products ,users are
unaware of their existence
Merging with an established mass-
market portal to lock in large number of
users and advertisers.
Becoming a mass-market portal like Yahoo and MSN, where portals contain added
attractions for users.
Providing private search services to
businesses
Targeting the hand held mobile devices
marketBuilding the world's
biggest digital library and online
bookstore
Emergence of many competitors,
or merging of existing ones
Google’s advertising policy
could disappoint its advertisers and
start loosing many of them
Copyright issues
Privacy and security concerns
Antitrust and competition lawsInability to adapt the infrastructure
to the quick growth
Five Generic Competitive Strategy
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LOW COST PROVIDER
Reduce price of advert
BROADDIFFERENTIATION
FOCUSEDLOW COST
Create new segment of advertisement, for middle-low level company
Innovate, more and more technology
Five Generic Competitive Strategy
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FOCUSEDDIFFERENTIATION
Provide company the information about their website activities
BEST COSTPROVIDER
Tracking, Counting, and Predicting all the keywords that related to advertisement
Competitive Position
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OFFENSIVEBasis for Competitive Attack
LEAPFROGGING COMPETITORS
Being first to market with next-generation products
PRODUCT INNOVATION
Pursuing continuous product innovation to draw sales and market share away from
less innovative rivals
Competitive Position
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HORIZONTAL MERGER AND AQUISTION STRATEGIES
Extending the company’s business into new product categories
Gaining quick access to new technologies or
complementary resources and capabilities
Leading the convergences of industries whose
boundaries are being blurred by changing
technologies and new market opportunities
Competing in International Markets
23
SERVER
SERVER
SERVER
SERVER
Google uses the Global strategy, which in the implementation, standardization in terms of security and centralized servers into one and all policies issued from one source.
Competing in International Markets
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ADVANTAGE DISADVANTAGE
All directed from one server
So the output that all parties or people received will be the same with the output that has company
gave in accordance with the policies issued.
Google as a global company could not be immediately accepted by
the public.
So that there should be an adjustment of the user, and the worst is like in China where the
engines are highly accepted and become competitors Google is
Baidu
ADJUSTMENT
Localized Domain
Localized Language
Diversification Strategy
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Diversity Into Related Business
Mobile AdvertisingDouble Click, Invite Media
SecurityGoogle Books
Mobile AdvertisingDouble Click
Photo EditingPicasa
Image OrganizerPicasa, Blogger
Diversification Strategy
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Diversity Into Related Business
Restaurants ReviewGoogle Places, Google Map
Video EditingYoutube
GPS Navigation Soft.Google Map
Video SharingYoutube
Mobile SoftwareAndroid
CSR
27
Google Grants is an in-kind donation program awarding free AdWords advertising to select charitable organizations. Since its inception, we have supported hundreds of organizations in advocating and promoting their causes, from animal rights and
literacy to abandoned children and HIV education.
Room to Read, which educates children in Vietnam, Nepal, India and Cambodia, attracted a sponsor who clicked on its AdWords ad. He has donated funds to
support the education of 25 girls for the next 10 years.
The US Fund for UNICEF’s e-commerce site, Shop UNICEF, has experienced a 43 percent increase in sales over the previous year.
CoachArt, supporting children with life-threatening illnesses through art and athletics programs, has seen a 60 to 70 percent increase in volunteers.
In the aftermath of the Sichuan earthquake in China, Google Grants also supported the China Red Cross, China Charity Federation, China Youth Development
Foundation, China Children and Teenager’s Fund and other organizations with free in-kind advertising of over 6 million RMB. Now, Jet Li’s One Foundation and his umbrella organizations have also started using Google Grants to promote the
cause of corporate philanthropy.
Recommendations
28
ACCURACY ACCURACY MORE USERS MORE ADVERTISERS
Fight spammers - Impact on search quality and accuracy
CLICK FRAUD ISSUE
Resolve the click fraud issue – Impact on advertising business
PROVIDE PRIVATE SEARCH
Provide private search services to companies using its superior technology
FIGHTSPAMMERS
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