google case study
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Google Case Study
The Force
2
Group Introduction
Abhijit Dey S - 1
Abhishek Sahi S – 2
Aiban Khraw S – 3
Alankar Amritraj S – 4
Amit Lakra S – 5
Amlan Mukherjee S – 7
Anesh Demoli S – 8
3
From Dorm Room to Board Room
Founders – Stanford graduates
Larry Page
Sergey Brin
“Google” a mathematical term representing 10 to the hundredth power.
Now being used as a Verb - Have you ever googled anyone?
Creation of BackRub – Data Centre in Page’s Dorm Room.
Andy Bechtolsheim, the founder of Sun Microsystems, invested $100000 in
Google which later ballooned to almost a third of Billion Dollars.
Google Inc. officially opened in 1998
4
From Dorm Room to Board Room
Google listed as “ Top 100 Web Sites and Search Engines ” in 1998
Handling Half a Million searches a day in 1999
Set up Office, Googleplex, in Mountain View, California.
Became the world’s largest search engine in 2000, conducting 18
million searches a day.
The Figure catapulted to 100 Million Searches by 2001.
The Collaborative environment spawned a slew of new innovations
and rapid multinational expansion.
5
Google - The Search Engine
What is Search Engine?
An algorithm that understands exactly what you mean and give back exactly
what you want.
Search ALGO used by Google’s Competitors
Google’s competitor’s summarized information by creating an Index. This is
matched with the Input query and the results are displayed.
The results were either too voluminous or inaccurate.
6
The MAGIC formula - PageRank
ALGO used by Google
PageRank sorts the results according to their perceived importance.
Initial values are assigned to all the pages that are a HIT.
Value of the page is increased depending upon linkage to other
sites.
The final scores are ranked based in a meaningful way and the
page with the highest perceived relevance is displayed first.
Companies tried to manipulate the Page rank but Google has been
successful in Foiling that effort by updating their search
methodology regularly.
7
High on Web Business
AdWords - Revenue Breakthrough
An advertising program that allows online businesses to place ads next to related
search results. Advertisers can place their bids online by opening an account for $5.
It played an integral role to turn Google in a Profit in year 2001.
Further enhancement was done by instituting a usage based pricing model that
charges advertisers based on the number of hits, their Ads receive.
Google refused to accept kickbacks clearly distinguishing itself from a paid
advertisements and results generated by user searches.
Initial revenue was generated by Selling Banner Ads but it did not satiate the
aspirations and incurred R&D Costs.
Bluechip organizations began inquiring about the possibility of licensing it for
their own websites.
8
Diversification
Google has rapidly been expanding in Product Offerings and
enhancing search capabilities.
Google PhoneBook – An Online Telephone Directory
Google News Headlines – Service that recaps the latest headlines
Google Toolbar – eliminates the need to visit the Google site
GMail – E-Mailing Service
Google Catalog search – Allows users to pursue more than a
thousand catalogs that were not previously available online
Froogle – Enables price comparison for the same product available
at different e-tailers.
9
Competitors Psyche
Yahoo! – Actively upgrading their search engines by allowing users
to customize their searches by blocking certain sites and
highlighting others and by creating their own home pages.
eBay – Feels threatened by Google’s AdWords.
Amazon – Has introduced A9 in competition to Google’s Froogle.
Microsoft – Introduced MSN Search Beta which proved less
accurate than Google in a test by the Washington Post.
10
The Triumph of Achievement
Despite many efforts from their competitors Google still is the
Numero Uno in Search Engines.
In 2004 Google became a Public Company by floating an IPO,
The share price which opened on $85 the closing was $100
The Founders, Page and Brin had a total of 41 Million shares and
held on to $4 Billion.
Andy Bechtolsheim investment of $ 100000 ballooned a third of a
billion
11
The 10 Commandments
Focus on User and all else will follow.
It’s best to do one thing really really well.
Fast is better than slow.
Democracy on Web works.
You don’t need to be at your desk to need an answer.
You can make money without doing Evil.
There is always more information out there.
The need of information crosses all borders.
You can be serious with a suit.
Great just isn’t good enough.
Component of Marketing Concept
Customer orientation
continuous monitoring of consumer need ,want and preferences
Competition Orientation
to understands the short-term strengths and weaknesses and long-term capabilities and strategies of both the key current and potential competitors.
Profitability to achieve ultimate goal of organization that is profit
Customers Orientation
Focus on Customer –Mantra
Identifying customers need and deliver accordingly .What you want is what you get.
Simplifying the usage
Making it even for small and large businesses alike
account creation in $5
Make money without being evil
Competition Orientation
Continuous Innovation
open floor communication and collaborative environment leads to innovation
Expansion in Product offeringsGoogle Phone book,Google news Headlines ,Google toolbar,Google
Desktop,Gmail,Gtalk,Froogle ,Google Wave,Orkut
Increasing reach by opening offices across world and supporting 88 languages by 03
Technology
swift and accurate search in matter of second
Integrity-Making money without doing evil Hiring Top Talent
Profitability
Banner Adds
Add words
Simplicity in placing bid online
Affordability-Usage based pricing model
IPO in 2004
Challenge for Google Growth-Competition
With increasing Product range Google entering into the teritory of
major giants like Microsoft , Amazon etc. which will definitely leads
to interesting battle.
Competitor upgrading their capability and spending heavily on the
marketing of their search engine
Like Amazon came up with A9,Microsoft with Bing
In Terms of AD dollar, Google is competing not only with E Bay but
with TV, Radio, Print media
In the far future if Facebook manages to fairly significant portion of
the internet, then they may take a portion of revenue from Google.
If closed systems like Facebook which has a huge user base, and
start with search option ,can be a threat for Google growth in long
run.
a search competitor like Baidu or Yandex (the market winners in
China and Russia, respectively) might also be threats for Google as
other markets become more important players in the world economy
17
18
The Key External Microenvironment Forces
Opportunities
Strong Technical & Creative Background.
Continuous look out / development of newer and better product
offerings to its multitude of users.
Widespread reach out in order to become indispensable.
19
The Key External Microenvironment Forces
Threats
Newer better technological advancements from the competitors
Losing Focus of enhancing its older products with continuous increase
in its product line.
Overdosing the users with too much and overlooking their bare
minimum requirements.
20
Google’s strategy to expand product mix…
Objective
Being more customer focussed
More Value adds to users – all related things in one place
To be clearly ahead of competition
Created a blue ocean with unique products & services
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