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Google Corporate Strategy
- 1. 1 Impresario Slides Google Inc.: Whatās the Corporate Strategy Presented by :- Group 8 Utkarsh Maurya Vibhu Upadhyay Vijaya Mishra Vikas Sinha Sonal Gupta
- 2. www.slideproject.com 2 S EC T I O N O N E 2 Google began in 1996 as a research project by Larry Page and Sergey Brin, Ph.D. students at Stanford University Research project, nicknamed "BackRub" on Exploring mathematical properties of world wide web. (funded by National Science Foundation) Started as google.stanford.edu Google - How it came?
- 3. Why āGoogleā? ā¢ Thename came from the word āGoogolā which means one followed by hundred zeroes. ā¢ It reflects Larry and Sergey's mission to organize a seemingly infinite amount of information on the web.
- 4. ā¢ To organizethe world's information and make it universally accessible and useful. ā¢ To provide access to the worldās information in one click.
- 5. 5 Impresario Slides Jan 1996- Larry Page and Sergey Brin began collaborating on a search engine called Backrub Sep 1998 - Google Inc. incorporated in Menlo Park, California hires its first employee. Google Timeline
- 6. 6 Junā99 ā Septā99ā Receives $25 million funding Google. Com officially launched Apr.ā04 ā Aug.ā04 Launch of Gmail Acquires Picasa Inc. IPO of GOOG on NASDAQ 2005 ā Google Maps and Google Analytics Acquisition of Android Inc. 2006 - AdWords launches click-to-pay video ads Acquisition of You tube More than 7 million US patents
- 7. 7 2007 - AdSensefor mobile introduced Android OS launched Acquired DoubleClick 2008 - Announcement of Chrome web browser. 2009 - Google chrome OS announced 2011 ā Google+ launched Acquisition of Motorola Mobility
- 8. 8 2013-2014 Acquire Calico LLC AcquiredNest 2016 ā Google Allo & Duo
- 9. Revenue streams 52 15 88 Revenue share2015(in $ Billion) Advertisement from own websites Advertisement from AdSense Other revenues $ 75 billion PlayStore Chromebook Android Google Apps Google Cloud Self Driving cars Google Glass Power Plant
- 10. 10 Advertisement revenues of which: 20062007 2008 2009 2010 2011 2012 2013 2014 2015 Google websites 6332.8 10624.7 14413.8 15723 19444 26145 31221 37422 45085 53357 Google network websites 4159.8 5787.9 6714.7 7166 8792 10396 12465 13125 13971 15033 Total advertising revenues 10492.6 16412.6 21128.5 22889 28236 36531 43686 50547 59056 68390 Licensing and other revenues 112.3 18104 667.1 762 1085 1374 2353 4972 6945 7151 Total revenues 10604.9 34516.6 21795.6 23651 29321 37905 46039 55519 66001 75541 Revenue Figures 0 10000 20000 30000 40000 50000 60000 70000 80000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 total revenues
- 11. 11 Impresario Slides Googleās hiringpolicy ā Highly selective They hire only brightest of the bright. Strictly followed bell curve A dramatically flat and decentralized organization Google has boundary less management system also called organic system Small self managing teams Maximum team size of 2 to 3 members Rapid low-cost experimentation Googleās āJust-try-itā philosophy is applied to even companyās most difficult projects Why is Google innovative?
- 12. www.slideproject.com 12 Hotmail vs.Gmail S E C T I O N F O U R ā¢ 1 TB storage ā¢ No self Domain ā¢ Account expiration in 9 months ā¢ Used SSL cryptography ā¢ Self Domain ā¢ Account expiration in 12 months ā¢ Zippy interface ā¢ Used SSL & TLS cryptography ā¢ Instant search ā¢ First major cloud- based app capable of replacing conventional PC software ā¢ Less Spam ā¢ More protection from viruses
- 13. 13 Impresario Slides Acquisition ofYouTube ā¢ Popularity(45.46%) as compared to others like Myspace video and specially Google videos(10.25%) ā¢ It was a forward integration so as to bring more users onboard and increase the information database. ā¢ No. of users were 4 times as compared to Google videos ā¢ More community in YouTube users as compared to google video users. ā¢ Usability & Stickiness was more towards YouTube users as compared to Google video users. ā¢ Opened up a new stream revenue.
- 14. Impresario Slides Android andMobile Telephony ā¢ Acquired Android Inc. in 2005 estimated at $50 million. ā¢ Launched Android Mobile Development platform in 2007. ā¢ Intention of eclipsing existing operating system from Microsoft ,Symbian etc. ā¢ Profits from mobile ads displayed on Android Phones (97% revenue from advertising- $19.1 Billion Revenue in 2016. ). ā¢ In Q2,2016, Android had 86.2 % market share. iOS has 12.9% market share. ā¢ In 2007 Google entered the Federal Communication Commissionās auction of 700 MHz. ā¢ Auction was won by AT&T and Verizon but real winner was Google. ā¢ Google was able to offer its Android system and Mobile Internet services without any investment.
- 15. A look atits empire !! ļ Market Share
- 16. The Motorola Acquisition ā¢Acquired Motorola Mobility for $12.5 billion in 2011 and sold to Lenovo for $2.91 billion in 2014. ā¢ Acquired more than 20,000 patents. ā¢ Googleās android was vulnerable when Apple and Microsoft purchased more than 6,000 patents from Nortel Notebook. ā¢ Ability to control both hardware and software ā Controlling experience from end to end ā¢ Presence in Mobile Internet ā¢ Implication on other Android Partners
- 17. 17 Impresario Slides ā¢ Google'smobile strategy is to get Android onto as many phones as possible, as almost all of the company's revenue comes from advertising, including on mobile devices. ā¢ Google wanted Motorola for the patents, not for the manufacturing Why Google acquired Motorola? Why Google divested Motorola? ā¢ Google never ran Motorola with an eye toward profit. ā¢ It was their to promote stack Android. ā¢ Google kept 17,000 patents bought from Motorola
- 18. 18 Impresario Slides Was ita Loss ? Bought in 2011 for $12.5 billion Divested in 2014 for $2.91 billion ā¢ Samsung has been the driving force behind Androidās meteoric growth and put Google mobile devices in pole position. BUTā¦.. ā¢ Samsung wanted too much credit. It did this using āTouchWizā, the companyās proprietary skin which painted over all aspects of Android leaving it unrecognizable. To the casual consumer they were buying āa Samsungā, Googleās role was largely unrecognized. ā¢ Moreover Samsung started coming out with its own app an reviews of Android started getting spoiled. SOā¦.. ā¢ Google bought Motorola and rolled out Moto X, Moto G and Nexus which have stock Android and no-one, not even Samsung, could afford to subsidize their cost as Google can leveraging its mammoth advertising revenue. THEREFORE ā¢ On 27 January 2014 Google and Samsung signed a wide-ranging global patent deal which will last a decade ā¢ Samsung would tone down TouchWiz, refocus on core Android apps over its own customizations and cancel more radical customizations such as its āMagazine UXā interface
- 19. 19 Impresario Slides Google Chrome ā¢Google launched Chrome web browser on Sep, 2008. ā¢ Googleās strategic intention was not simply a superior user experience but to compete against version 8 of Microsoftās IE which allowed Protection Mode. ā¢ Difficult to track userās browsing habits. Limit information for targeted advertising. ā¢ Googleās Chrome OS launched in 2011 has seen as strike against the core of Microsoftās market strength. Launched in 2008 Competition to Internet Explorer In 3 years time Competition to Windows Launched Chrome OS
- 20. Search Engine Marketshare 20 2014 2015 2016
- 21. 21 Impresario Slides Porters 5forces Competitive rivalry: High competition Buyersā power: Moderate buying power Threat of new entrants: Low Suppliersā power: Moderate supplier power Threat of substitutes: Moderate Low switching costs : Search engine share of Google decreased in 2014 App developers, websites ā¢ Yahoo Bing Network, Facebook, Amazon ā¢ 33% of online shoppers start directly on Amazon ā¢ Facebook allows users to connect with news, companies, products, people Dominated by Google. Others players are Yahoo, Bing, Baidu Amazon, Apple, Facebook
- 22. www.slideproject.com SWOT Analysis 2222 Strengths Weakness ThreatsOpportunities S W OT ā¢ Competition from Amazon, Facebook, Apple ā¢ Privacy ā¢ Antitrust ā¢ Patent infringement claims Opportunities ā¢ Allo and Duo ā¢ Google Home ā¢ Cloud computing Threats ā¢ Several services are not profitable ā¢ Too much reliance on advertisement revenue Weakness ā¢ Market leadership in search engine ā¢ Organizational Culture ā¢ Ecosystem of various services ā¢ AdSense and AdWord Strengths
- 23. 23 Impresario Slides Time toscale back Googleās ambitions and draw boundaries around Googleās corporate strategy? ā¢ With so many changes going on nobody was able to comprehend where the company is heading towards.
- 24. 24 Impresario Slides Larry Pageand Sergey Brin played it very nicely by forming Alphabet Inc. on October 2nd,2015 Restructuring Ref : https://www.theguardian.com/technology/2015/aug/11/google-alphabet-why-change-restructuring-what-it-means
- 25. 25 Impresario Slides Why AlphabetInc. ? A Message To Shareholders A Message to Analysts A Path toward More Ambitious Initiatives Addressing the Challenges of Diversification Borrowing Best Practices
- 26.