PowerPoint Presentation

GROUP MEMBER:

SITI NAJWA IZZATI ABDUL HAMIDDEWI ZAFIRAH ABU BAKARNUR ZULLAIKHA MOHD REDZUANAMIDATUL ADILA ABDULLAH

CURRENT PERFORMANCE Google was founded in 1998 by Larry Page and Sergey Brin, PhD students at Stanford University.

Google Inc. became a global technology leader focused on improving the ways people connect with information.

CURRENT PERFORMANCE Google web site become a top internet property and the brand one of the most recognized in the world.

Google maintains a large index of web sites and other online content.

The main revenue generation of Google is by delivering relevant, cost-effective online advertising.

GOOGLES STRATEGIC POSITION Googles Chairman of Board and CEO, Eric Schimdt, is committed to the continuous growth of Google as a premium Internet- search company while at the same time striving to further expand beyond just the Internet search-based services the company offered. In Googles website www.google.com or one of more than 150 other Google domains. With Google you can find anything what you need.

Google regularly explores all three manners of diversification :with new start-upswith acquisition with strategic alliances.

GOOGLES STRATEGIC POSITION

GOOGLES STRATEGIC POSITION Googles vision :

Is to organize the worlds information and make it universally accessible and useful.

GOOGLES STRATEGIC POSITION Google s Mission :

Doing the best to provide the most relevant and useful search results possible, independent of financial incentives. The search results will be objective, and we do not accept payment for search result ranking or inclusion.Doing the best to provide the most relevant and useful advertising. Advertisements should not be an annoying interruption. If any element on a search result page is influenced by payment, it will be made clear to the users.Will never stop working to improve user experience, search technology, and other important areas of information organization. Believe that user focus is the foundation of success to date and this focus is critical for the creation of long-term value and not intend to compromise user focus for short-term economic gain.

BOARD OF DIRECTORS

Larry PageCEO and Co FounderEric E. SchmidtExecutive ChairmanSergey BrinCo-FounderDavid C. DrummondSenior Vice President, Corporate Development and Chief Legal OfficerPatrick PichetteSenior Vice President and Chief Financial Officer

CORPORATE GOVERNANCEThe company has grown to more than 20,000 employees worldwide, with a management team that represents some of the most experienced technical professionals in the industry. Therefore Google inc practice : Corporate culture Continuous innovation requires a new kind of people management

Corporate Culture Comfortable sharing ideas and opinions. Googles hiring policy is aggressively non discriminatory and favored ability over experience. Google has people on staff to manage the 70/20/10 rule.

Continuous Innovation Requires a New Kind of People Management The extraordinary marketplace success of Google is beginning to force many business leaders to take notice and to come to the realization that there is now a new path to corporate greatness. New path firms dominate by producing continuous innovation Executives are beginning to learn that continuous innovation cannot occur until a firm makes a strategic shift toward a focus on great people managementSocietal EnvironmentInternet search is applicable to most cultures all over the world this gives Google geographic independenceGoogle is well positioned in demographics because it has a relatively young user baseInternet search doesnt depend on factors like gender, religion etc. therefore Google has an advantage over other businesses. ECONOMYGoogles focus on highly targeted, measurable advertising makes it more recession-proof than many other businesses in the technical sector. The crucial need to stay informed and constantly connected keeps such services vibrant despite the parched surroundings. TECHNOLOGYTechnology is obviously always improving and Google has taken specific measures to make sure it does not fall behind. SOCIO-CULTURALThe world is increasingly becoming more connected due to the means of communication available through the internet.most new cell phones are internet capable devices. People will use these devices for driving directions, to locate restaurants, check sports scores, download music, and even quick research. POLITICAL LEGALGoogle has also faced concern on copyright issues because the company stores copies of third party web pages and images on their servers

Societal EnvironmentPorters 6 Forces analysis is a framework for industry analysis and business strategy development relative to the competitors of a firm.POTENTIAL NEW ENTRANTS Googles business is rapidly evolving and intensely competitive, and is subject to changing technology, shifting user needs and frequent introductions of new products and services. There are many competitors in different industries, including traditional search engines, vertical search engines and e-commerce sites, social networking sites, traditional media companies, and providers of online products and services.SUPPLIERS Googles ad system is a reliable source of income because both the ad making partner and ad-receiving individual are both customers of Googles. So as long as Google maintains its market dominance with the search product, supplier bargaining power will remain low. Task Environment: Porters 6 forces (Forces Driving Industry Competition)CURRENT COMPETITORSGoogles main competitors are Yahoo, AOL and MSN. Presently, Google has nearly 60% of US market against their search engine. This large market share helps them to improve the quality of their search results and get ads more quickly than their competitors. Yahoo and Microsoft lag behind Google in market shares.CUSTOMERS- The customers of Google are mainly the ad providers. Ads providers are continuously looking for the search engines which the people use the most to attract the target customers.- Google is number one as the usage of this search engine is the most depending on its fast and reliable search results and simplicity of the website. Task Environment: Porters 6 forces (Forces Driving Industry CompetitionPOTENTIAL SUBSTITUTESThe internet has become the mode chosen by millions of people all over the world to request and retrieve informationGoogles ability to please its stake holders will continue to define the success of the venture and the future of the company.RELATIVE-POWER OF STAKE-HOLDERSIn Googles case the main power is on the hand of the investors and other partnersThe increase in stock price proves that the company has a very good reputation and the financial condition is sound.

Task Environment: Porters 6 forces (Forces Driving Industry CompetitionThe internal environment analysis mainly involves the strength and weaknesses of an organization. Here the strength and weaknesses are found according to Google Inc.s current situation.STRENGTH :Profitable business model (S1)User friendliness, reliable and fast search (S2)Brand equity (S3)Innovative initiatives (S4) Work-force & corporate culture (S5)WEAKNESS :Dependency of advertising business (W1)Has products customers dont know that it even exists(W2)

Internal Environment AnalysisThe external environment analysis involves the opportunity and threats of an organization. Here the opportunities and threats are chosen according to Google Inc.s current situation and future possibilitiesOPPORTUNITY :Increasing internet users (O1)Technological change (O2)Expanding to profit making opportunities (O3)THREATS:Increased competition in the search engine market (T1)Business model imitators (T2)New media of advertising (T3)Data privacy (T5)

External Environment Analysis

NoInternal strategic factorsweightratingWeight scorecomments12345strengthsS1Profitable business model 0.1240.48Search engine, advertising, business solution, third party website etc. S2User friendliness, reliable and fast search0.23.20.64Related search resultsS3Brand equity0.1840.72Large number of usersS4 innovative initiatives0.123.50.42Google earth, Google news etc.S5 Workforce & corporate culture0.0830.24Helps create innovation business ideasweaknessesW1Dependency on advertising business0.230.6Most revenue comes from Google Ad WordsW2Has products customers dont know that it even exists0.120.2Google catalogue, Google translate, Google wireless etc.Total score13.3NoExternal strategic factorsweightratingWeight scorecomments12345OpportunitiesO1Increasing internet users0.1550.75Internet dependencyO2Technology change0.0520.1Increase in use of mobile google launches nexusO3Expanding to profit making opportunities0.153.50.525New internet devices and advertising platformsThreatsT1Increased competition in the search engine market0.251Local search engines are more popular in markets like chinaT2Business model imitations0.051.20.06Google catalogue, Google translate, Google wireless etc.T3New media of advertising0.1520.3Might create threat initially if its not internet relatedT4Concerns from investors0.1540.46Positive now, but as its a public company investors are importantT5Data privacy0.11.50.15Government regulationsTotal score13.485

ANALYSIS OF STRATEGIC FACTORS

Google has three strategic alternatives namely- defending current market share, market modification & product modification.

Out of the above mentioned strategies, market modification strategy must be adopted. As Google can only grow its impressions by increasing:The frequency of searches by existing users, New searchers that didn't use search engines before, and Users that migrate from other search enginesSTRATEGIC ALTERNATIVES

PROSCONSHELP TO SURVIVE IN THE TOUGHCOMPETITIONNEEDS HUGE INVESTMENTSHELP TO OVERCOME THE CURRENTPRODUCT PROBLEMSOVERLYING ON ANY STRATEGY CANLEAD TO STATEGIC MYOPIA.Development of a Google browser or closer and more partnerships with browser companiesDevelopment of Google database software or partnerships with database companiesDevelopment of server hardware and software to continue technological advancements and security for Google data systemsContinued R&D in phones, music, television, computer, telecommunications, gamingDevelopment of artificial intelligence and applications that would use this. analysis of what these systems can or cannot do.R&D into 3D messaging products and image recognitionCreate search systems and products with interfaces geared toward specific markets such as children, visually impaired or new users such as many senior citizens and rural foreign markets

RECOMMENDED STRATEGY

Have R&D of browsers, databases and servers continue along with evaluation of purchasing or partnering with companies that offer what is neededHire more high tech people to fulfil many R&D ideasDesign demographic search sitesHave a lobbyist in Washington, DC and California or any high technology state that has many technology issues percolating into laws and regulations for the new breed of digital technology issues. Become involved with all watchdog privacy issue organizations.Do as complete as possible study of international data issues along with cultural taboos or sensitivities to help the company stay out of the hot seat with more legal issuesEmphasize the usage of data containing information with permission and have open discussion on how to protect people as well as their own business.Create and promote an image of an ethically and socially responsible company that believes in respecting peoples privacy.Implement enhanced operational and management systems that will provide the real time results clients.

IMPLEMENTATION

Examine the long term costs of the browser, databases and server technologies along with evaluation of what it financially will bring to the bottom line. Keep in mind many databases and browsers are offered free.Continuing to hold contests and other creative means to evaluate a potential future employees skill set will enable hiring managers to get people that can hit the ground running. Continued relationships with many universities may help cater educational programs to be configured to Googles future needs.Determine costs to implement demographic search sites and study the long term maturity issues involved when the children users are older and use to the Google way of doing things. Also for older users, determine the increased development costs verses income for things such as visually enhanced sites. Sound and voice could become easily integrated into this type of site.Stay abreast with the rules and regulations regarding privacy and all legal technology issues. Take a moral high ground as to how they will define and handle these issues and apply that to all customers and users world-wide no matter what the laws are. If they can help define these usage issues at the national and international level it will enable them to base their business on a known rather than an unknown.

EVALUATION & CONTROL

Nowaday, Google is the most popular global search engine. Its realiability and user friendliness attract users from all over the world. The brand value of Google is higher than its competitors, but it doesnot mean that this will remain always. Google needs to take strategies to be the market leader as there are always new competitors in the search industry. The strategies need to be updated due to frequent technological change.

conclusion