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- 2. Contents: I. Introduction. II. Overallmarket size and its main segments. III. Main competitors: market share and focus. IV. Main distribution channels/distributors: market share and focus. V. Major macro and global environmental influences on the market. VI. Identification and justification of a market entry/growth opportunity.
- 3. Introduction In 1995, twostudents Larry Page and Sergey Brin from Stanford university begin working on a search engine called back rub at that time they were 13 search engines to choose from but none of them had the same potential as back rub did. September 15, 1997 Page and Brin decided to change the name of the search engine, and the inspiration came from the term used for a number with one hundred zeros googol with a slight change in the spelling its now called google. “thanks for the name change no one today is asking did you back rub it“ (Google: The untold story, 2016).
- 4. A - Alphabet/ Android / AdSense / Analytics / Ara / AdMob / Alerts B - Blogger / Boston Dynamics / Books C - Calico / Cardboard / Capital D - Drive / DeepMind / Design / DoubleClick E - Earth / Express F - Fiber / Fi / Flights / FeedBurner / Firebase / Finance G - Google / Gmail / Glass / Groups H - Hangouts I - Images / Ingress / Inbox / Invite Media J - Jump K - Keep L - Life Sciences / Local / Loon M - Maps / My Business / Makani N - Nest / News / Nexus / Now O - Offers P - Plus / Play / Photos / Picasa / Pixate / Patents Q - (Nexus) Q R - Refine / reCaptcha S - Search / Shopping / SageTV /Stackdriver / Skybox / T - Translate / Tango U - N/A V - Voice / Ventures / VirusTotal / Video W - Wallet / Wing X - X Labs Y - YouTube Z - Project Z / Zagat Google is well known for its famous search engine, email service, web browser ,and a great number of applications downloaded into our smart phones ipads and pcs that we use daily at work at home and on the go. How ever most of these services are free ,So how does google make money ?
- 5. Main Segment GoogleAdWords Revenue: $75 billion in 2015.
- 6.
- 7. Trend &projection. Currently over2.7 billion people or around 40 percent of the world population has access to the internet, the total number of search engine users in the united states alone was estimated to be roughly 213.6 million in 2014 and is expected to reach 236.4 million in 2019. During the same period the number of U.S. mobile users is projected to increase to almost 216 million.
- 8. Value and Volume. Advertiserspay Google each time a visitor clicks on an advertisement. A click may be worth anywhere from a few cents to over $50 for highly competitive search terms, including insurance, loans and other financial services. As of 2015 Google had over 1.2million businesses advertising on its search network, in 2015 Google search advertising tools generated $80 billion in economic activity across the U.S. alone. (Gabbert, 2016).
- 9.
- 10. Google’s Main Focus: Makes its major revenue: evaluated at 68% $45 billion AdWords is Google’s focus
- 11. AdWords usemost of Google’s web services. advertisers pays Google each time a person clicks on an advertisement.
- 12. Google’s Competitors: Varietyof Competitors Fiew Share:
- 13. Revenue in August2014 Competitors Revenue in Billions Bing $ 3.5 Yahoo $ 1.8 Ask $ 0.4 Others $ 0.2 Google’s Revenue $ 12.1 billion
- 14. Google competitors MarketShare: In August 2014: Total Revenue of the Search Engines Market
- 15. Market Share inAugust 2014 Competitors Market Share Bing 19 % Yahoo 10 % Ask 2 % Others 1 %
- 16. Competitors: Market Share 68% 19% 10% 2%1% Google Bing Yahoo Ask Others
- 17.
- 18. Main Types ofDistribution Direct Distribution Partnership Distribution Opaque Distribution Distribution by Intermediaries Dual Distrbution
- 19. Google’s Distribution Channelsfor Services Selling Through Intermediaries: A marketing channel where intermediaries such as wholesalers and retailers are utilized to make a product available to the customer is called an indirect channel. AdMob YouTube Android Inc. Vevo LLC
- 20. Google’s Distribution Channels forProducts Partnership Distribution: When you partner with a related, non-competing business, you offer your services within the framework of the partner's operations. NEXUS
- 21.
- 22. Political Most politicalfactors like taxations, environement protection laws and employement laws, affect GOOGLE to a very low level if not at all. Few countries set rules and limtations for GOOGLE share of information. One of the dangers, is that GOOGLE stocks cash outside of the USA to avoid high income taxes
- 23. Economic Main revenuescome from advertising The evolution of the internet, made GOOGLE revenues increase from 0.4 Billion $ in 2002, to 74 Billion $ in 2015 GOOGLE has an important amount of cash. GOOGLE invests in future project
- 24. Social Everyone canaccess to GOOGLE products. The company adapts to social trends. Shows advertisings that people in the internet want to see. Social medias as Facebook and Instagram, are reducing the time people spend on GOOGLE's features. Many internauts do not trust GOOGLE.
- 25. Technological GOOGLE isone of the most innovative companies. The dominance of smartphones reduces the number of people using GOOGLE's website features. Phone application's being easy to develop is dangerous for the firm.
- 26. Laws Few countrieshave regulations on the internet's share of information These last few years, GOOGLE is trying to enter new sectors, like finance, telecomunication and insurance wich would break GOOGLE's freedom of management.
- 27. Environmental The internetindustry does not need big factories. Otherwise, the company has big data centers that work all the time, leading to a massive electricty and consumption. That is why the company is incited to use ecological ways of energy production, wich is very costly. Mandatory energy production rules could be a big danger to the company, leading to loosing a lot of money in this sector.
- 28.
- 29. Strengths 1. Easy acces. 2.Number one search engine worldwide. 3. Strong competitor of Apple. 4. User's trust
- 30. Weaknesses 1. Reliance onadvertising. 2. Decrease in ad revenue. 3. Diffliculty to filter the quality of the content. 4. Unstability of employees. 5. Variety of features not used.
- 31. Opportunities 1. Emerging intonew businesses. 2. Working on future life items. 3. GOOGLE has the power to buy upcoming companies with a lot of potential.
- 32. Threats 1. GOOGLE's maincompetitors trying to avoid touch with GOOGLE. 2. Rules and regulations of some countries. 3. AdBlockers. 4. Companies targeting social medias to show their advertisings.
- 33.
- 34. 1. Market entry: identification : Google entred the market with a search engine which is : • Clear • Simple • The minimise use of interfaces
- 35. Google’s strategy Personalization Googleaccount toolbar Report web site visited Geotargeting Deliver content based on your location checkout Knows what gets bought Gmail Private discussions
- 36. 2. Growth opportunity: Co-founders Larry Page and Sergey Brin stated in a press conference that they intend to continue their expanse into foreign markets to provide a fully satisfying internet experience to the entire world. Main targets : India (402 million internet user ) 1. Youtube • IPL live stream 2. Android devices China (721 million I. user) 1. Moto 360 • Chumenwenwen • Power voice search
- 37. Reference List. Alba,A. (2015) Google creates alphabet, institutes Sundar Pichai as CEO. Available at: http://www.nydailynews.com/news/world/google-restructures-institutes-sundar-pichai-new-ceo-article-1.2320941 (Accessed: 7 January 2017). Boundless (2016) Types of marketing channels. Available at: https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/marketing-channels- 11/marketing-channels-in-the-supply-chain-76/types-of-marketing-channels-387-4051/ (Accessed: 3 January 2017). Google goes global with addition of 10 languages (2000) Available at: http://www.google.com/press/pressrel/pressrelease22.html (Accessed: 27 December 2016). Google opens new content distribution channel on AdSense – news announcements – news from Google – Google (2007a) Available at: https://googlepress.blogspot.com/2007/10/google-opens-new-content- distribution_09.html (Accessed: 7 January 2017). Google opens new content distribution channel on AdSense – news announcements – news from Google – Google (2007b) Available at: https://googlepress.blogspot.com/2007/10/google-opens-new-content- distribution_09.html (Accessed: 7 January 2017). Hitt, M., Duane Ireland, R., Michael Camp, S, Sexton, D., 2001. Entrepreneurial strategies for wealth creation, Strategic Management Journal, Vol 22, Issue 6-7, pp. 479-491. Kim, L. (2016) How does Google make money? The most expensive Keywords in AdWords. Available at: http://www.wordstream.com/blog/ws/2011/07/18/most-expensive-keywords-google-adwords (Accessed: 7 January 2017).
- 38. Miller, V.(2015) Quote of the day. Available at: http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/jaysondemers/2015/09/29/the-top-7-online- marketing-trends-that-will-dominate-2016/&refURL=http://www.forbes.com/&referrer=http://www.forbes.com/ (Accessed: 7 January 2017). Moran, M., Abraham, C., Gronlund, J. and Bianchi, D. (2016a) How storytelling can shape the corporate brand and culture. Available at: http://www.biznology.com/2008/03/whats_googles_strategy/ (Accessed: 4 January 2017). Moran, M., Abraham, C., Gronlund, J. and Bianchi, D. (2016b) How storytelling can shape the corporate brand and culture. Available at: http://www.biznology.com/2008/03/whats_googles_strategy/ (Accessed: 4 January 2017). Moran, M., Abraham, C., Gronlund, J. and Bianchi, D. (2016c) How storytelling can shape the corporate brand and culture. Available at: http://www.biznology.com/2008/03/whats_googles_strategy/ (Accessed: 4 January 2017). news from google (2007) Available at: https://googlepress.blogspot.com/2007/10/google-opens-new-content- distribution_09.html (Accessed: 7 January 2017). Our history in depth – company – Google (2014) Available at: https://www.google.com/about/company/history/ (Accessed: 7 January 2017). P Nair, R. (2015) YourStory. Available at: https://yourstory.com/2015/11/india-internet-user-base-2015/ (Accessed: 27 December 2016). Roman, C. (2009) Dorches. Available at: http://www.slideshare.net/Nanor/international-marketing-google-1401312 (Accessed: 27 December 2016). Revolvy, L. (no date) ‘Google nexus’ on Revolvy.Com. Available at: https://www.revolvy.com/main/index.php?s=Google%20Nexus (Accessed: 7 January 2017).
- 39. Rosenberg, E.(2015b) ‘The business of Google (GOOG)’, in Available at: http://www.investopedia.com/articles/investing/020515/business-google.asp (Accessed: 7 January 2017). Rosenberg, E. (2015c) ‘The business of Google (GOOG)’, in Available at: http://www.investopedia.com/articles/investing/020515/business-google.asp (Accessed: 7 January 2017). Rosenberg, E. (2015d) ‘The business of Google (GOOG)’, in Available at: http://www.investopedia.com/articles/investing/020515/business-google.asp (Accessed: 7 January 2017). statista (2017) Search engine market share worldwide. Available at: https://www.statista.com/statistics/216573/worldwide- market-share-of-search-engines/ (Accessed: 7 January 2017). Suthar, M. (2015) All you need to know about Google alphabet company list. Available at: http://celphonews.com/2015/11/all- you-need-to-know-about-googles-a-to-z-alphabet/ (Accessed: 7 January 2017). Truong, A. (2015) Google’s radical restructuring creates a parent company called alphabet and elevates Sundar Pichai to CEO. Available at: https://qz.com/476453/googles-radical-restructuring-creates-a-parent-company-called-alphabet-and-elevates- sundar-pichai-to-ceo/ (Accessed: 7 January 2017). What is direct distribution? Definition and meaning (2017) in Available at: http://www.businessdictionary.com/definition/direct- distribution.html What is PPC? Pay-per-click advertising explained (no date) Available at: https://www.portent.com/services/ppc/pay-per-click- explained (Accessed: 7 January 2017). worldpress (no date) Available at: http://ts-1.eee.hku.hk/ccst9015sp12/open-source/the-secret-android/distribution-channel/ (Accessed: 7 January 2017). Yodhia, A. (no date) Exploring marketing & strategies. Available at: http://www.studymarketing.org/articles/Marketing/Marketing_Strategy_-_Case_Study_of_Google.html (Accessed: 7 January 2017).
Editor's Notes
- #6 The bulk of Google’s $75 billion revenue in 2015 came from its proprietary advertising service, Google AdWords. Of that revenue, over 77% – or just over $52 billion – came from Google’s own websites. When you use Google to search for anything from financial information to local weather, you’re given a list of search results generated by Google’s algorithm. To gain the top spot in Google advertisements, advertisers have to outbid each other.
- #7 Ever since the introduction of Google search in 1997, the world wide market of all search engines has been rather lopsided, Google has dominated the search engine market maintaining an 89.44 percent market share as of the first quarter of 2016.
- #10 In our daily life. Each time we use Google to make a research, it tries to provide the most convenient result among the others on the list. As well as some suggested pages, that Google’s platforms are responsible for controlling them. In fact, Google is not the only company that provides similar services. Google has numerous competitors in the field.
- #11 AdWords is Google’s focus, it is a web program made by Google. AdWords generates the advertisement sector, using different systems and algorithms that are responsible for placing suggested web pages and advertisements according to their value. AdWords makes Google’s major revenue, which was evaluated at 68%, in other words, almost $45 billion out of $66 billion in total revenue in 2014.
- #12 . AdWords use most of Google’s web services. The AdWords department generates every advertisement or recommended websites that appears on the search engine, Gmail, YouTube or any other web services. . The advertisers pay Google each time a person clicks on an advertisement. The clicks value is not fixed, it could start from a dollar to over 50 dollars. However, to place an advertisement in the most convenient spots on Google’s platforms, advertisers needs to outbid each other.
- #13 There is a variety of Google’s competitors. In fact, only few of them have the same focus as Google. Many search engines exists on the network, in the other hand not all of them are used. The most known and highly ranked competitors are Bing, Yahoo and Ask.
- #14 In August 2014, Google’s revenue was almost $12.1 billion. At the same period: Bing made $3.5 billion. Yahoo made $1.5 billion. Ask made $0.4 billion.
- #15 In August 2014, the total revenue of the searching engines industry was almost $18 billion in total. Google in fact had the largest market share, while Bing was ranked as the second in the list, Yahoo was the third and Ask in the fourth position.
- #16 While Google owned the biggest share In the searching engines market, the competitors were left only with 32 percent to share. The competitors market share of each in August 2014 was approximately as follow: Bing 19 % Yahoo 10 % Ask 2 % Others 1 %
- #17 While Google owned the biggest share In the searching engines market which is 68%, the competitors were left only with 32 percent to share. The competitors market share of each in August 2014 was approximately as follow: Bing 19 % Yahoo 10 % Ask 2 % Others 1 %
- #23 2-One of the few countries that set regulations is China that have launched a survillaince system, watching anything that gets put into GOOGLE 3-USA is trying to force it to enter the money to the country wich could be a big problem.
- #24 1-80% of the revenues. 2-The more people use the internet (and google) the more money google will generate 3-The important amount of cash could be a problem, because if a currency's value falls, it could have a serious effect on the firm's -value. 4-GOOGLE sees future project with potential, like Youtube bought in 2006, and became the number video broadcasting website in the world.
- #25 1-People in third world countries can access Google. 5-People that use Apple products, usually do not trust GOOGLE's projects, and try to avoid any contact with them.
- #26 1-They invented concepts like Google Maps, Google Earth, Google Docs. 2-Especially with a lot of people being addicted to Apple, wich has its own search engines and features. 3-Many companies like to creat their own apps for shopping or infromation sharing, wich reduces the amount of people using GOOGLE.
- #27 1-Wich makes GOOGLE free to manage its content 2-New rules and regulations, and also increase in the company's liabilities and legal costs, alongside with a lot of strong settled competitors,and hard to overthrow.
- #28 -So GOOGLE does not worry about polluting. -Big energy consumption leads to global warming.
- #30 2-With almost 70% of the internet's researches 3-By buying Android, which is utilised in nearly 80% of the world's phones. 4-Google builded a trust in their users as they can save their pictures, emails, datas, and other informations without fearing a leak of these informations.
- #31 1- Represents nearly 85% of Google's income. 2-Due to other plateforms highly visited being applying the advertising method like Facebook abd Instagram. 3-Due to the huge number of pages with the evolution of the internet. 4-The average time an employee spends working with GOOGLE is 1.1 year.
- #32 1-Stop relying on the ads and enter new sectors. 2-Google glasses, cars that don't need drivers, robots ... 3-Like they did with Youtube and Android.
- #33 1-By launching phone applications and using the ads system. 2- Like China.
- #35 Just the google logo and the search box, that makes it easy and faster to load, and that was the key feature to the internet connections of the early 99 that was too slow…most the competitors such as yahoo, ask, bing used and still use a search engine webpage full of ads and banner and publicity wich makes it take a long time to load and that’s annoying for the users.
- #36 Search engineers have spent the last 40 years working on the content, but when google started, its engineers came up with features that focuses more on the searcher. by personalizing the search results based on their customers personalities and previous researches… That’s called personalization and that’s google’s strategy. If you look at wht google has done over the years, it all ads up to finding out more about everyone. Toolbar can report search terms and websites visited Geotargeting identifies the area you’re in the country, the city, the subway ur taking and gives you… Gmail knows what you’re saying even in private. which might allow it to know people’s whereabouts and even more of their behavior. And it’s all tied together with your google Account
- #37 First of all, Google in planning Youtube as a go to destination for sport, music, shows, tv...etc and by that playing the live streaming of the Indian premier league on youtube official channel. Google also is trying to penetrate the Android devices market by providing the indian citizens with a low price device with many features and which cost only 3000 indian rupee compared to the iphone that cost 64,000-100,000 indian rupee. Second, after shuttering its search engine in 2010, the chinese govnmt kept also the other services like Gmail and YouTuve inaccessible. Recently the company made his first ever direct investment in china which is the moto 360, the first android wear device to hit the chinese market. Which provide a search service called Chumenwenwen, which lets users ask for directions or order food, for example. And its also powers voice search directly from this a watch and helps you look for whatever you wish just by saying it out loud .