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Case StudyStrategic Marketing                      DM&T
Company                                 Brief- Search Engine, Cloud computing, Software and Advertising  technologies- Lar...
Case Outline-   Between 2005-2010 extended its websites beyond search functionality, such as    Mobile OS and apps-   Busi...
Industry Analysis• Industry: Internet services and technologies• Major Sectors:   – Advertising   – Search engine   – Clou...
KSFs/Threats of IndustryKey Success Factors                  Threats•   Data mining                      •   Ethical impli...
SWOT AnalysisS                                                WTRENGTHS                                               EAKN...
Core Competitive Spectrum                      Legend:                       “Google are more like                       u...
Google’s Advertising Value Chain   For the last three financial years,   around 97% of Google’s income has   come from adv...
Google’s Advertising Value Chain
Google’s Advertising Value Chain
Google’s Advertising Value Chain
Porter’s 5 Forces                              LEGEND:    Advertising Value Chain
Marketing Strategy• USP: Google facilitate the efficient  organisation, storage and retrieval of  data/information across ...
Key Strategic Areas for GoogleCompetencies                Capabilities                      Resources•   Search           ...
Segmentation & Targeting• The Google company:  – Offers products that generally appeal to a mass market  – Doesn’t matter ...
Positioning Analysis• The Google company is positioned as:  –   Solution-centric  –   Innovative  –   Socially responsible...
Google Brand Value•   Household name•   Verb in Webster’s dictionary•   Interbrand Brand of the year, 2003•   Quantifying ...
Competitive Advantage• Brand image• Infrastructure  – servers, storage systems, hardware• Resource abundance• Scalability•...
Problem DiagnosisKey Issue: Google’s Advertising revenue is under threat• Likely due to a combination of factors• Our stra...
Strategic Options                               More advertising real-                               estate; grow Google(A...
Extend the Google Advertising Network                                  Option A               • Attempt to acquire Wikiped...
Extend the Google Advertising Network                                        Option A• Cost: $2B + $6B (Wiki) = $8B• Time ...
Focus on Tangible Technology                     Option B     • Google Retail Store           •Google focuses on future TA...
Focus on Tangible Technology                                        Option B• Cost: $1.5M + $3B = $3.15B• Time Frame: Shor...
Google B2B Platform           Option C   • Business-to-business trading platform         •The new trading platform for all...
Google B2B platform                                        Option C• Cost: $1B• Time Frame: Medium• Payoff Potential: Low ...
Suggested Strategic Option• How we decided on our option                            Network Expansion    Tangible Store   ...
Extend the Google Advertising Network                                  Option A               • Attempt to acquire Wikiped...
Why Wiki?• Potential for advertising revenue   – 6th most visited website in the world   – An estimated 50 million page hi...
Wiki Strategy•   Maintain many of the same processes•   Retain all current staff•   Public transparency measures in place•...
Suggested Strategy cont’d                     •Promotion                                   •Grow the network    Google Gro...
Financial outlook• Total cost = $8B                  • Must make 4.4c per• Recoup investment                   impression ...
Business Model• Business Model                   • Regardless of  Changes                            Strategic Option  – R...
Questions?
Thankyou!
Company Values          The 10 Google commandments1.   Focus on the user and all else will follow2.   It’s best to do one ...
References•   http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspx•   http...
•   http://www.digitalbuzzblog.com/infographic-first-google-plus-statistics-and-facts/•   http://www.karmasnack.com/about/...
Google’s Innovations       Google glasses – Project Glass       http://www.youtube.com/watch?feature=player_embedded&v=9c6...
Most popular Google sites
Facebook Market Segmentation
Google’s Advertising Programs
Social Network Numbers
Google Innovation Strategy
Pageviews per day•   Wiki – 51M•   LinkedIn – 63M•   MySpace – 800M•   VK – 164,000•   QQ Zone – 21,510•   Dictionary.com ...
Hierarchy of Strategic Focus
Google Strategic Mktg Presentation (2010-2012)
Google Strategic Mktg Presentation (2010-2012)
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Google Strategic Mktg Presentation (2010-2012)

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A presentation on marketing strategy options for Google, based on a 2010 case study.

Veröffentlicht in: Business, Technologie
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Google Strategic Mktg Presentation (2010-2012)

  1. 1. Case StudyStrategic Marketing DM&T
  2. 2. Company Brief- Search Engine, Cloud computing, Software and Advertising technologies- Larry Page and Sergey Brin in 1998, initial public offering in 2004- Chain of products, acquisitions, partnership, offline, desktop and mobile industry- Page Ranking No. 1 in the world- Over 1 Billion search requirements daily- 22,000 full time employees- Rated No.1 of ‘Best company’s to work for’ in the world- Ranking No. 4 of the top 100 brands in the world- May 2012, dominate the search engine world, market share of 87.6%
  3. 3. Case Outline- Between 2005-2010 extended its websites beyond search functionality, such as Mobile OS and apps- Business model evolved and expanded to advertising-based revenue- AdWords and AdSense generate majority online advertising revenue- Strategies to dominate Internet Advertising and aiming No. 1 search engine- More than half revenues and traffic generated outside US. Emerging Russia & China- Android 2008- Strategic offensive to control Desktop- Initiatives to Expand Search Television- Internet rivals in US market- Concerned issues - Performance – focusing SmartPhone platforms, dominate Cloud Computing, increase advertising revenues, and extending search to television - Censorship in China - Privacy violation against its principle ‘you can make money without doing evil’
  4. 4. Industry Analysis• Industry: Internet services and technologies• Major Sectors: – Advertising – Search engine – Cloud computing• Primary Revenue Source: Advertising (97%)• Constantly evolving Industry definitions
  5. 5. KSFs/Threats of IndustryKey Success Factors Threats• Data mining • Ethical implications (data)• Innovation-focus • Losing market share to other forms of advertising• Scalability • Being cut-out of the value chain• Reliability & data integrity by other companies (upstream• Strategic portfolio-management or downstream)
  6. 6. SWOT AnalysisS WTRENGTHS EAKNESSES • Search engine industry • Public perception of Google’s • Executive management practices • Large cash flow • Non-corporation by foreign • Loyal and satisfied employees governments Internal • Loyal customers • Decisions being made to progress factors • Products are very adaptable Google • Pushing society’s technology • Advertising revenue growth is • Channels for the phone market slowing down • Scalability • OpennessO TPPORTUNITIES HREATS • Secure consumers personal info • Copyright lawsuits/issues • Resurrect relationship with • Public perception of Google Chinese market • Microsoft’s growing dislike External • Focus into developing tangible • Continued insistence by some factors technology • Relationship in other websites foreign governments • Microsoft and Yahoo possible • Gaps in online market offering partnership • Targeting specific markets- • Advertising space is becoming children or senior citizens • Future expansion for television more competitive • Revenue through advertising Positive Negative
  7. 7. Core Competitive Spectrum Legend: “Google are more like us than anyone we’ve ever competed with”. Bill Gates – Microsoft (2005)
  8. 8. Google’s Advertising Value Chain For the last three financial years, around 97% of Google’s income has come from advertising. “Everything that sits between a users eyeballs on one end, and advertisers dollars on the other is considered strategic to Google”. (DMR, 2010)
  9. 9. Google’s Advertising Value Chain
  10. 10. Google’s Advertising Value Chain
  11. 11. Google’s Advertising Value Chain
  12. 12. Porter’s 5 Forces LEGEND: Advertising Value Chain
  13. 13. Marketing Strategy• USP: Google facilitate the efficient organisation, storage and retrieval of data/information across a wide (online) platform. The result is a convenient, customizable, co-creation approach to media sharing for the use of individuals and organisations alike.• Profit formula: Mostly dependent on advertising (97%), other main areas is software licencing to businesses
  14. 14. Key Strategic Areas for GoogleCompetencies Capabilities Resources• Search • Recruitment & retention • Data warehouse• Data warehousing of talented staff • Huge financial resources• Innovation • Facilitation of content co- • Expert & motivated• Software programming creation on the web personnel• Cloud computing • Brand name• Brand management & PR • Search engine • Online traffic • Display network • Loyal customers
  15. 15. Segmentation & Targeting• The Google company: – Offers products that generally appeal to a mass market – Doesn’t matter what you are using the web for • Search is the common denominator for everyone; a ‘home-base’ from which to begin your journey – Target web users all over the world • particularly Nth America, Europe, Russia, Australasia• Google Advertising: – Targets advertisers whose market frequent the internet – Can be targeted with precision at a local or worldwide level
  16. 16. Positioning Analysis• The Google company is positioned as: – Solution-centric – Innovative – Socially responsible – Vast networks, deep knowledge• Google Advertising network – Advertiser-friendly – Traceable metrics – Google Analytics – Credible, tasteful advertising – Rewarding for all parties (advertiser, host & viewer)
  17. 17. Google Brand Value• Household name• Verb in Webster’s dictionary• Interbrand Brand of the year, 2003• Quantifying Brand Value – $55B (Interbrand, 2011) – $111B (Brandz, 2011)• Google offerings are largely free – Customer feelings - Love, Loyalty, Share of heart
  18. 18. Competitive Advantage• Brand image• Infrastructure – servers, storage systems, hardware• Resource abundance• Scalability• Wide knowledge base – Ability to branch off into other areas
  19. 19. Problem DiagnosisKey Issue: Google’s Advertising revenue is under threat• Likely due to a combination of factors• Our strategic options tackle this issue head-on
  20. 20. Strategic Options More advertising real- estate; grow Google(A) Extend the Google sites through acquisition; grow Advertising Network Google Display Network Focus our future (B) Focus on Tangible competitive strategy on tangible technology Technology to make up for lost advertising revenue Develop our own version of E-Bay for (C) Google B2B Platform businesses. Will lead to more traffic & advertising potential
  21. 21. Extend the Google Advertising Network Option A • Attempt to acquire Wikipedia •6th Most popular website in the world •Wide market appeal •Trusted resource •Currently run as a NFP company •Bid $6B •Promotion •Grow the networkGoogle Group Display Network Invest $2B in 5 new potential promotion of Google partners identified. group products, such They all feature in as Google Voice, the Top 100 most YouTube Live, & visited websites in Google+ the world.
  22. 22. Extend the Google Advertising Network Option A• Cost: $2B + $6B (Wiki) = $8B• Time Frame: Short-medium term• Payoff Potential: Medium• Risk Factor: Low• Best Case Scenario: Acquire Wikipedia, grow display network, G+/YTL/Voice grow traffic, advertising revenues double• Worst Case Scenario: Wikipedia deal doesn’t eventuate, G+/YTL/Voice do not grow traffic, network proposals knocked back
  23. 23. Focus on Tangible Technology Option B • Google Retail Store •Google focuses on future TANGIBLE technology •These technologies are displayed for everyone to see •Store allows the public to use and ‘experience’ these innovations •The world sees where the future is leading •Products will be available to order and buy •Decreasing dependence on adv. Rev. (80%) •Product Innovation •Store Development $3B to be invested into •Located in New York City research and development •Free for public to for new product designs, experience such as Google glasses, •Hype is generated through Google TV, Google phone, Google’s online platforms Google Driverless Car •$1.1M to rent, $0.4M for renovations and set-up
  24. 24. Focus on Tangible Technology Option B• Cost: $1.5M + $3B = $3.15B• Time Frame: Short-medium term• Payoff Potential: Low-medium• Risk Factor: Medium• Best Case Scenario: Google store is successful, products are purchased, more innovations developed, revenue increases 75%• Worst Case Scenario: Google store isn’t popular, no products get ordered/purchased, Google receives negative brand image
  25. 25. Google B2B Platform Option C • Business-to-business trading platform •The new trading platform for all levels of businesses •Allow companies trade globally on the new platform •Utilize Google+ and all related products as tools in communication •The first and only international based B2B platform for all businesses •Product Expansion •Integrated usage Invest $1 B in developing Create convenience for and designing the new businesses in trading, website and features and and increase traffic by on promotion throughout using Google+ and its Google+ and Youtube, etc. related products to integrate the functions
  26. 26. Google B2B platform Option C• Cost: $1B• Time Frame: Medium• Payoff Potential: Low – Medium• Risk Factor: Medium• Best Case Scenario: New platform for B2B trading, increase advertising revenue and usage of related Google products• Worst Case Scenario: If fails, the B2B platform idea could be pursued by Google+ Brand and Google+ Business
  27. 27. Suggested Strategic Option• How we decided on our option Network Expansion Tangible Store Global B2B Cost $2 - $8 Billion $1.5M+$3 Billion $1 Billion Risk Factor Low Medium Medium Payoff Potential Medium Low - Medium Low - Medium Time Frame Short - Medium Short - Medium Medium• OPTION A – ‘Extend the Advertising Network’ – best likelihood of success – promising reward – directly pertains to our key issue.
  28. 28. Extend the Google Advertising Network Option A • Attempt to acquire Wikipedia •6th Most popular website in the world •Wide market appeal •Trusted resource •Currently run as a NFP company •Bid $6B •Promotion •Grow the networkGoogle Group Display Network Invest $2B in 5 new potential promotion of Google partners identified. group products, such They all feature in as Google Voice, the Top 100 most YouTube Live, & visited websites in Google+ the world.
  29. 29. Why Wiki?• Potential for advertising revenue – 6th most visited website in the world – An estimated 50 million page hits per day• Great longevity in Wiki – Great brand, complimentary to ours – People will use this resource well into the future• Boost Google brand value – Great credibility – Consistent with Google’s approach of co-creation – Open platforms – Organising information for public use
  30. 30. Wiki Strategy• Maintain many of the same processes• Retain all current staff• Public transparency measures in place• Keep it very much a public site – for the public, by the public – Retain many of the public contributors, while at the same time dedicating resources to maintaining the integrity of the data• Running a subtle, tasteful advertising program• Generous offer (double the avg. estimate)
  31. 31. Suggested Strategy cont’d •Promotion •Grow the network Google Group Display Network Invest $2B in 5 new potential promotion of Google partners identified. group products, such They all feature in as Google Voice, the Top 100 most YouTube Live, & visited websites in Google+ the world.• More YouTube Live events • Seek new partnerships• Publicity stunt for G+ • Grow our non-Google Group• Online advertising for G-Voice real estate • An estimated 170M hits per day
  32. 32. Financial outlook• Total cost = $8B • Must make 4.4c per• Recoup investment impression to recoup investment in 1 year – Possible in 1 yr • If we make 4.4c per• Pageviews per day impression, and site 914,195,510 traffic stays constant, this venture willx2 ads per page = 1,828,391,020$8B / 1,828,391020 = 4.375c ea ad make $8B per year impression (CPI)
  33. 33. Business Model• Business Model • Regardless of Changes Strategic Option – Revenue model: is – Constantly improve search accentuated towards function, key resource and advertising catalyst for advertising – Cost structure: can achieve revenue greater advertising – Corporate review: 10 economies of scale with commandments of Google, wider advertising network and Hierarchy of strategic – Channels: Widening our focus channels, and accentuating – Communicate revised vision role of Google Group in our simply to all stakeholders, overall advertising spectrum internal and external
  34. 34. Questions?
  35. 35. Thankyou!
  36. 36. Company Values The 10 Google commandments1. Focus on the user and all else will follow2. It’s best to do one thing, really, really well3. Fast is better than slow4. Democracy on the web works5. You don’t need to be at your desk to get an answer6. You can make money without doing evil7. There’s always more information out there8. The need for information crosses all borders9. You can be serious without a suit10. Great just isn’t good enough (2001)
  37. 37. References• http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspx• http://www.businessinsider.com/jimmy-wales-wikipedia-operations-2010-5• http://www.millwardbrown.com%2Flibraries%2Foptimor_brandz_files%2F2011_brandZ_top100_report• http://support.google.com/adwords/bin/answer.py?hl=en&answer=6104• http://www.davechaffey.com/E-commerce-Internet-marketing-case-studies/Google-case-study• http://www.wordstream.com/articles/google-earnings• http://investor.google.com/earnings.html• http://www.slideshare.net/korhan/google-brand-analysis-presentation• http://www.slideshare.net/kimuh72/google-facts-216737• http://issuu.com/samy20002000fr/docs/google_ksf_en• http://www.google.org• http://screwcable.com/google-vs-apple-vs-amazon-where-should-you-store-your-music/• http://www.minterest.com/60-google-products-services-you-probably-dont-know/• http://www.space.com/15395-asteroid-mining-planetary-resources.html• http://mysteriousuniverse.org/2012/04/private-spaces-google-goes-to-outer-space-for-new-business-idea/• http://en.wikipedia.org/wiki/Google_driverless_car• http://thenextweb.com/apple/2012/03/13/the-ftc-subpoena-of-apple-could-spell-the-end-of-googles-default-search-status-on-the-iphone/• http://www.mckinseyquarterly.com/Googles_view_on_the_future_of_business_An_interview_with_CEO_Eric_Schmidt_2229• http://www.businessweek.com/articles/2012-04-04/googles-page-apples-android-pique-for-show#p1• http://www.businessinsider.com/jimmy-wales-wikipedia-operations-2010-5• http://answers.yahoo.com/question/index?qid=20081231182156AAyCsro• http://www.centives.net/S/2012/how-much-is-wikipedia-worth/• http://www.google.com/adplanner/static/top1000/• http://en.wikipedia.org/wiki/History_of_Wikipedia#Historical_overview_by_year
  38. 38. • http://www.digitalbuzzblog.com/infographic-first-google-plus-statistics-and-facts/• http://www.karmasnack.com/about/search-engine-market-share/• http://www.artificialbrains.com/google-x-lab• http://www.androidauthority.com/google-glasses-project-glass-competition-alternative-73115/• http://www.davechaffey.com/E-commerce-Internet-marketing-case-studies/Google-case-study• http://www.slideshare.net/guest1e7675/google-172419?src=related_normal&rel=5279067• http://www.slideshare.net/joshs633/strategic-analysis-google• http://searchengineland.com/googles-international-financial-performance-reveals-44-growth-97114• http://www.scribd.com/doc/34389420/2010-Q2-Google-Earnings-Slides• http://www.csmonitor.com/Commentary/the-monitors-view/2010/0325/Google-out-of-China-Doing-no-evil• http://www.reuters.com/article/2011/01/13/us-google-china-idUSTRE70C1X820110113• http://googleblog.blogspot.com.au/2010/08/google-scholarship-program-kicks-off-in.html• http://online.wsj.com/article/SB10001424052702303978104577364333698241936.html?mod=googlenews_wsj• http://www.androidauthority.com/google-play-vs-apple-app-store-2012-76566/• http://www.zdnet.com.au/googles-secret-weapon-webtop-339336545.htm• http://www.fiercewireless.com/story/google-turns-motorolas-webtop-battle-apple-microsoft/2012-04-23• http://www.engadget.com/2012/04/04/motorola-webtop-3-0-beta-leak/• http://thenextweb.com/asia/2012/04/25/google-drive-blocked-in-china-hours-after-launch-leaving-baidu-and-local-players-to-dominate/• http://www.netmarketshare.com/search-engine-market-share.aspx?qprid=6• http://latimesblogs.latimes.com/technology/2011/07/rowling-partners-with-google-snubs-apple-and-paypal.html• http://www.davechaffey.com/E-commerce-Internet-marketing-case-studies/Google-case-study• http://www.minterest.com/60-google-products-services-you-probably-dont-know/• http://www.comscore.com/Press_Events/Press_Releases/2012/1/comScore_Releases_December_2011_U.S._Search_Engine_Rankings• http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspx• http://www.axleration.com/chinas-answer-to-social-networking-infographic/• http://tech.ifeng.com/telecom/special/googlemoto/content-2/detail_2012_03/21/13337628_0.shtml?_from_ralated• http://ausdroid.net/2012/03/15/vodafone-opens-new-store-in-melbourne-containing-galaxy-zone/• http://www.axleration.com/google-vs-facebook-privacy-infographic/• http://www.axleration.com/most-followed-brand-google-plus/• http://www.axleration.com/google-plus-launches-pages-for-businesses/• http://www.axleration.com/google-plus-two-months-old-and-misunderstood/• http://www.webdeveloper.net.au/web-usage/search-engine/google-web-search/
  39. 39. Google’s Innovations Google glasses – Project Glass http://www.youtube.com/watch?feature=player_embedded&v=9c6W4CCU9M4
  40. 40. Most popular Google sites
  41. 41. Facebook Market Segmentation
  42. 42. Google’s Advertising Programs
  43. 43. Social Network Numbers
  44. 44. Google Innovation Strategy
  45. 45. Pageviews per day• Wiki – 51M• LinkedIn – 63M• MySpace – 800M• VK – 164,000• QQ Zone – 21,510• Dictionary.com – (unknown) est. 10,000*TOTAL = 914,195,510 pageviews per daySource http://royal.pingdom.com/2010/01/05/facebook-twitter-myspace-page-views/
  46. 46. Hierarchy of Strategic Focus

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