Post on 18-Jan-2018
description
Trent HemannBunde Walker
James Yost
Industry involvement◦ Internet Industry
Search Engine Online Advertising
◦ Software Industry
◦ Electronic Industry
Industry Analysis
9% of U.S advertising spending
16% increase in 2010
Continue to grow as technology becomes more efficient
Online Advertising Industry
Online Advertising Spending
Year 2000- developed 10 new language versions◦ Eliminated language barriers◦ Expanded customer base greatly
One year later- over 26 total language versions
Global Expansion
Yahoo (2000)◦ Agreed to be default search provider◦ 10,000 searches/day before partnership◦ 500,000 searches/day after partnership
AOL (2002)◦ Had 34 million customer◦ Leader in e-commerce, web brands and internet
technologies
Google’s Partnerships
Urchin Software Corporation (2005)◦ Used by owners of websites◦ Helps understand users’ experience◦ Tracks marketing performance
Milestone for Google’s online advertising◦ Became leading online advertiser in Industry
Acquisitions
Yahoo◦ Offers news, search, messenger and email◦ Created rich content
Allowed users to stream music/videos straight from website
◦ Offers travel applications
Competitors
Apple◦ Safari vs Google Chrome
◦ iTunes vs My Space and Pandora
◦ iPhone vs Android
Competitors
AdWord◦ Helps website owners measure amount of activity◦ Gives feedback on owner’s ad
Shows if click leads directly to purchase or signup◦ Helps owner see strong/weak selling points◦ Strong selling point of Google for customers
Key Success Factors
AdSense
◦ Enables ads on customers website◦ Ads relevant to website content◦ Creates revenue on a “per-click” basis◦ Generated over $2.04 billion in 1st qt 2010
Key Success Factors
Google’s mission is to organize the world‘s information and make it universally accessible and useful.
It’s best to do one thing really, really well. You can make money without doing evil. Great just isn’t good enough.
Google’s mission
Strengths◦ Brand name,Search, Employees, Innovation
Weaknesses◦ Lack of Integration of products
Opportunities◦ Google TV, Android
Threats◦ Bing/Baidu, Apple/Blackberry/Microsoft
SWOT Analysis
Search Ads Android Google TV YouTube Site search Chrome
Google’s Products
No ads on the normal Google search AdWords
◦ Advertisers use to advertise on the side of Google page with key words
AdSense◦ Delivers ads from AdWord program to partner
websites
Search
Mobile and Tablet OS Offered free to manufacturers Only free OS for smartphones and tablets Android Market
Android
Blue Ocean Strategy Includes Google search, Chrome, Android,
Apps, Flash, and other Google products Help integrate Google products
Google TV
More Cash than Current Liabilities Rely on equity rather than Liabilities Always looking for strategic acquisitions
Financial
The right people on the bus 20,000 Employees We love our employees, and we want them
to know it $1,000 Bonus and 10% Raise 20% of Time for Employees
Employees
Strategic Issues Weaknesses that need to be corrected Threats that need to be ignored or
addressed Opportunities that need to be taken
advantage of Continuing Strengths
Lack of Product Integration Advertise Google products on search site. Low Cost Maintains simplicity Pull down menu
◦ Choose what you use the most Implementation
Social Networking Orkut
◦ Developed by Orkut Büyükkökten◦ Brazilians account for 54% of total users
In 2008, fully managed and operated by Google Brazil
Have branches in U.S. and U.K. Implementation
Threats High Levels of competition
◦ search, e-commerce, advertising, etc. Exchange Rate Fluctuations
◦ 53% of Revenue comes from international operations
Security Issues◦ Access to private information
Opportunities New Products and Services
◦ Google TV Strategic Acquisitions
◦ AdMob Growing mobile advertising market Promising future for Android Smartphone
◦ Passed iPhone in U.S. consumer sales
Strengths Brand Image
◦ Global Strong Infrastructure Base
◦ Core of all products◦ Websites that create advertising opportunities
67% of 2009 Revenue◦ Home Grown Software