3. OUTLINE
Organizational Structure
What’s a Google?
History
Facts & Figures
Products & Services
SWOT Analysis
How Google Makes Money
Reasons Behind Financial Success
Google Conspiracy
Recap
Conclusions
References
4. ORGANIZATIONAL STRUCTURE
Top Management:
Larry Page, Co-Founder & President, Products
Sergey Brin, Co-Founder & President, Technology
Eric Schmidt, Chairman of the Board and CEO
5. WHAT’S A GOOGLE?
"Googol" is the mathematical term for a 1 followed by 100
zeros. The term was coined by Milton Sirotta, nephew of
American mathematician Edward Kasner.
Google's play on the term reflects the company's mission to
organize the immense amount of information available on
the web.
6. HISTORY
Founded at Stanford in 1996 as a research
project
Incorporated in 1998 with $1.1M in funding
Worth $23B after initial public offering in
2004
Market Cap currently over $100B
7. FACTS & FIGURES
Growing at a rate of 20% per month.
More than 365 million visitors use google.
More than 150 million queries per day.
Offers search services in 28 different languages.
Answered within half second.
8. CURRENT PRODUCTS
Web Search
Search billions of web pages
Google Chrome
A browser built for speed, stability and security
Images
Search for images on the web
Scholar
Search scholarly papers
9. CURRENT PRODUCT
Alerts
Get email updates on the topics of your choice
Groups
Create mailing lists and discussion groups
Youtube
Google plus
Gmail
Google map
12. STRENGTHS
Google's speed and user friendliness
Dominates online advertising market
Ad Words (ads in search), Ad Sense (ads
on sites)
Fortune’s #1 Best Company to Work For
Market Cap over $100,000,000,000
Innovative, collaborative environment
13. WEAKNESSES
Ads still make up 99 percent of Google’s
revenue
High level executives jumping ship
No distinct leader of trio of top management
Spreading itself thin with new ventures
14. OPPORTUNITIES
Android: first open source mobile operating
system
T-Mobile G1 announced, first phone built
forAndroid OS
Providing free mobile service using ad revenue.
Make Google Chrome browser profitable
Advertising on radio or billboards.
15. THREATS
Competition from Yahoo and Microsoft
Doubt about information security and user
privacy
Face book stealing more execs, social
networking competition
Copyright lawsuits
Possibility of censorship
16. WHY HAS GOOGLE GROWN SO FAST?
Customers
Marketing
Innovation
16
17. HOW GOOGLE MAKES MONEY
Google makes money through Sites Revenues.
Google makes money through Network
Revenues.
Google makes money through International
Revenues
18. GOOGLE’S REVENUES ($US BILLIONS)
30
25
$ Billions (US)
20 MS OSB
AOL
15 Yahoo
eBay
10 Amazon
Google
5
0
2002 2003 2004 2005 2006 2007 2008e 2009e
MS OSB – Microsoft Online Systems Business
Annual Calendar Year Revenues
Sources: Techviser and Annual Reports
18
e - Analyst Estimates from Yahoo! Finance
19. AVERAGE ANNUAL REVENUE GROWTH (%)
80.0%
70.0%
60.0%
50.0%
40.0% Past 5 Years
30.0% Next 5 Years
20.0%
10.0%
0.0%
Google Amazon Yahoo! Microsoft eBay
Source: Yahoo! Finance Oct 2008
19
20. PROFITABILITY (%) OPERATING
PROFIT/REVENUES
45%
40%
35%
30%
25%
20%
Profit Margin
15%
10% Operating Margin
5%
0%
Source: Yahoo! Finance Oct. 2008
Based on trailing 12 months from Sept 08, except Microsoft June 08.
20
21. REASON BEHIND FINANCIAL SUCCESS
ONLINE
ADVERTISING AND
PROMOTION
CORPORATE OR
MARKETING WEB WEB COMMUNITIES
SITE
CONDUCTING
E-MARKETING
26. REFERENCES
v Chaffey, D. (2007) “Google case study-covering Google business strategy and
technology case”. Available from: (http://www.davechaffey.com/E-commerce-Internet-
marketing-case-studies/Google-case-study/) Accessed on 12-11-2009.
v Chan, J. (2007) “Google’s Acquisition Strategy” Available from:
(http://fishtrain.com/2007/09/13/googles-acquisition-strategy/) Accessed on 12-11-2009
v Dwivedi, J. (2008) “Google’s robust strategy and business model”. Available from:
(http://www.iproceed.com/blog/2005/02/googles-robust-strategy-business-model.html)
Accessed on 12-11-2009.
v Reuters (2009) “Google drives into navigation market”. Available from:
(http://www.independent.co.uk/life-style/gadgets-and-tech/news/google-drives-into-
navigation-market-1811289.html) Accessed on 13-11-2009
Principles of Marketing by kotler armstrong by prentice hall of india