B A L Q E E S A L M A K H M A R I

GOOGLE INC. CASE STUDY

CORPORATE PROFILE

• Google Inc. is a Delware Corporation, started as an

internet search engine technology provider.

• Started in 1996 by Brin and Page, founded as Google in

1998.

• Now it has grown to be a large collection of products and

services.

• April 2004 Google filed IPO with U.S. Securities and

Exchange Commission, which became effective on

August 2004.

STRATEGY TIES THE COMPANY TO ITS ENVIRONMENT

GOOGLE’S PRESENT STATEMENTS

MISSION:

To organize the

world’s

information and

make it

universally

accessible and

useful

VISSION

To make search

engines so

powerful that they

‘understand

everything in the

world’

THE WAYS GOOGLE HAS ACHIEVED ITS MISSION:

• Expansion to many global areas

• Diversification by acquisitions (ex. Android, Motorola

Mobility)

• Innovation, creativity, and entrepreneurial initiative

• Simplicity (google logo, no ads)

• Developed its advertising based revenue model

• Fast decision making process to grab opportunities

GOOGLE’S FUTURE STATEMENTS

MISSION:

• Provide access to the society to information by adapting itself to all IT innovations

• Focusing on advertising

• Avoiding government threats concerning privacy issues

• Leading worldwide IT sector

VISSION

• Bases strategy on diversification to be more competitive

• Still focused on making information more accessible and global

IS GOOGLE ACHIEVING IT’S MISSION?

• Google is taking a long term approach with a lot of their products

• It has taken a number of years to build a steady user base and has been patient at monetizing it, for example:

- Android has become world’s most popular mobile OS

- YouTube on the other hand, was loss making for years and has turned profitable only in last couple of years

• Cultural values imposed by Google align with its strategy:

- “Don’t be evil” : widely used in everyday work to aid ethical decision making in Google culture

- “technology innovation is life board” : build world’s best technology and products; apply creativity to solve problems

DOES IT HAVE A CLEAR VISION OF WHAT IT WANTS TO BECOME?

• Google acquisitions are adding more costs than revenue opportunities (ex. Motorola)

• It should become more consolidated and focused in strengthening its business model

• Aims for depth and specialization

• Therefore, focused on seven major business areas: search, advertising, social networking, Android, Chrome, YouTube and local mobile commerce

• Also plan ahead the exact purpose of each of its product, how profitable it can potentially be and what degree of synergy it offers to other Google products and its strategy

• Google should still be leader focused on improving ways people connect with information

GOOGLE DIVERSIFICATION

Google

core feature

• Insinuate development beyond the business of web search

Google

mission

• Achieving its mission through diversification into new products with various purposes

Deliver

quality

• Enable people to search variety of info & deliver quality to empower computing power & advances software

REASONS FORGOOGLE DIVERSIFICATION

• Google corporate culture

• Potential increase to income

• 30% of the total work time of each employee is

dedicated around experimentation and research.

• Google have a lot of products & they give access to it for

free

GOOGLE CHROME

• launched in 2008 , September

• it has a 45% worldwide usage share of

web browsers

• “ Google’s entire business is people using a browser to

access us & the web

• Reasons of success

Open Sources

Technology

Esthetic to make it remain

ergonomic

USAGE SHARE OF WEB BROWSER

ANDROID & MOBILE TELEPHONY

• It was acquired by it in the year 2005, to

develop "smarter mobile devices that are more aware of

its owner's location and preferences“

• Reasons of success

Flexible , Fast & stable

Free &Open source

Realistic view of future market

WORLD WIDE SMARTPHONE SALES

WORLDWIDE SMARTPHONE OS MARKET SHARE

Figure 2. Worldwide smartphone OS market share (in percentages)

Period Android iOS Windows

Phone

BlackBerry

OS

Others

Q2 2015 82.8 13.9 2.6 0.3 0.4

Q2 2014 84.8 11.6 2.5 0.5 0.7

Q2 2013 79.8 12.9 3.4 2.8 1.2

Q2 2012 69.3 16.6 3.1 4.9 6.1

THE MOTOROLAACQUISITION

• On August 15, Google announced an agreement

to acquire Motorola Mobility for 12,5 billions $.

• Consider it as a good deal :

Good financial

deal

Protect android

ecosystem Innovation

ANDROID DEVICE MARKET

• Vision of what it wants to become:

- It bases its strategy on diversification and challenges in

order to be still more competitive.

To conclude, its main goal is to make information still

accessible and global, whatever diversification it has to

do.

DOES GOOGLE NEED TO REFOCUS?

• Should Google delineate its corporate boundaries and

which businesses or products should they invest in?

OUR VIEW AND RECOMMENDATIONS

• Step (1):

• Google should continue investing Time, Effort & funds in the

core business ( Search engine and paid listings)

• Why?

• The highest percentage of revenues comes from the core

business

• Innovation in the industry needs to keep improving

(competitive advantage)

• Will help Google ensure the dominant position in the market

WHERE DOES GOOGLE’S REVENUE COME FROM ?

GLOBAL MARKET SHARE

OUR VIEW AND RECOMMENDATIONS CONT..

• Step (2):• Google should look to expand to new areas given the deep

analysis of the products which have a positive NPV

• Why?• Business industry is dynamic and requires the firms to adapt

to any market changes and be aware of customer preference fluctuation. Focus on areas which high growth potential.

• Leverage their competitive advantage (Andriod platform)

• Leverage Google’s Brand Equity while introducing new brands for better acceptance and trust on quality

OUR VIEW AND RECOMMENDATIONS CONT..

• Step (3):

• Reinforce their strengths and be consistent with the corporate

mission and vision

CLOSING NOTES

• Keep maintaining the strengths and work on developing the weaknesses into strengths.

• Be up to date with the Industry changes and make the company culture to be vibrant enough to adapt to them

• Grab any opportunity that add to the competitive advantage of the firm

RECENT PROGRESS

• Google is focusing on doing anything and everything that will make your life easier, more convenient and less overwhelming.

• Google's artificial intelligence, machine learning and natural language processing technologies are impressive.

• Google-home: a voice-controlled speaker powered by the search engine's smarts.

• Appo: a smart messaging app which learns over time to make conversations easier, more expressive and more productive.” Google touted Allo's ability to scan your texts, understand the context and supply readymade human-like responses for you

• The company's new tools promise to give us richer, more accurate search results to vaguer and less-informed queries

RECOMMENDATIONS

THANKS