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Prepared By: Hatem Kameli

 Digital Marketing Trainer & Consultant
iCLICK, Co – founder & Director
Agenda



   Google World
   Google Products & Services
   Google Financial Situation
   Google Strategy
   Strategic Evaluation ( vision, mission & objectives )
   PEST Analysis
   Five Forces Model
   Benchmarking
   SWOT Analysis
   BCG for Google Products Portfolio
   Recommendations
Introduction




 Search Engine, Cloud computing, Software and Advertising
  technologies
 Larry Page and Sergey Brin in 1998
 Page Ranking No. 1 in the world
 Over 1 Billion search requirements daily
 22,000 full time employees
 Rated No.1 of ‘Best company’s to work for’ in the world
 Ranking No. 2 of the top 100 brands in the world
 May 2012, dominate the search engine world, market share of 87.6%
 Total revenue more than 50 Billion $, 2012
 Primary Revenue Source: Advertising (97%)
Google History & Services
Services By Google
Google Financial Situation
Differentiation




Google primary strategy is to focus on Search Engine Marketing . Indexing every website on the
web, giving faster results with accuracy.

Google’s Ad-Sense and Ad-Word helped Google to generate huge revenue form the Internet
Market

Differentiation Factors
 Robust Data Centers around the world
 Unique Page Search Algorithm
 Ad-Sense & Ad-Word




           Primary Strategy                                  Secondary Strategy
Innovation




Google secondary strategy is to focus on other related segments with innovative product
development like - Social Media, Gmail, Google Books, Mobile Computing & Cloud Computing
etc.


Growth Strategy
Google’s growth strategy – Merges & Acquisitions (Example – YouTube, Android, Motorola)

This strategy is preferred because it allows Google to quickly adopt new technologies and
process rather than trying to develop them internally




           Primary Strategy                                   Secondary Strategy
Alliances




Google & AOL enters into Strategic Alliance to expand business globally, Some key note of this
strategic alliance are:
      Creating Global Advertising Partnership
      Google to Invest $1 Billion for a 5% Stake in AOL
      Companies to Collaborate on Online Video Offering and Make More AOL Content
       Available to Google Users
      Google Talk Instant Messaging Software to Communicate With AIM Users




           Primary Strategy                                   Secondary Strategy
Google Vision & Mission




                Mission: Organize the world's information and
                make it universally accessible and useful




        Matched                                         Unmatched
-Flexibility                                      -Market segment
-Fewer than 100 words                             -Transparency
-why they exist                                   -Philosophy
-Reachable
Google Goals & Objective




Objectives                           Specific   Measureable       Achievable   Realistic   Timed




Increase Acquisitions by 5% yearly




Increase search advertising market
share 5% yearly


Increase total revenue 10% yearly
External Scan




                 Political
                and legal




Technology     GOOGLE         Economical




                 Social




        PEST Analysis Model
External Scan




         Political                Economical                   Technology                     Social

• Google is worldwide      • Google's focus on highly   • Technology is obviously   • The world is increasingly
  companies so it has to     targeted, measurable         always improving and        becoming more
  face the constraints       advertising makes it         Google has taken            connected due to the
  impose by different        more recession-proof         specific measures to        means of
  countries.                 than many other              make sure it does not       communication
                             businesses in tech           fall behind.                available through the
• although Google is       • technology companies                                     internet.
  present in most            like Google are            • Internet search is
  countries around the       relatively isolated from     applicable to most        • most new cell phones
  world, it has to cope      period of recession          cultures all over the       are internet capable
  with internal rules.       because search and           world freeing Google        devices.
                             consequently internet-       from geographic
                             based advertisements         dependence.
                             has become a staple to
                             the world society and
                             economy.




                                         PEST Analysis Model
Competitive Analysis




             Bargaining
                               Threat of New
              Power of
                                  Entrants
               Buyers



Bargaining                                      Threat of
 Power of                                      Substitute
 Suppliers                                       Product
                      Competitive
                      Rivalry with
                       in Industry




         Michael Porter’s Five Forces Model
Competitive Analysis




  Supplier’s Power        Barriers to Entry      Competitive Rivalry    Threat of Substitutes       Buyer Power

• Google have the      • Yahoo & Microsoft      • Not a big             • very big number of    • Limited choices in
  power to buy out       have radically           competition in ad       substitutes of          search engine
  any ad-technology      improved their           technologies            mobile technology     • Limited Choices in
  they wish              search engines         • Currently there are                             online ad
                                                  only a few rivals     • Ad Technologies:        technology.
• Suppliers of         • Online Marketing         (Microsoft, Yahoo)      Many of the           • Limited Choice in
  telecommunication      governing rules are      so the degree of        important ad-           mobile OS
  infrastructure may     still evolving which     rivalry is more         technologies are      • good amounts of
  change contracts       may affect Google’s      oriented to an          owned by Google         choices when
  and relationships      Strategy                 oligarchy               but other useful        selecting a browser.
                                                • Brand identity          ones exist
• Google Products
  may not perform
  well with new
  software release
  from Microsoft &
  Apple




                                  Michael Porter’s Five Forces Model
Benchmarking


Search Engine Market Share, 2012
Benchmarking


                  Mobile Market Share, 2012
                    0%

                4% 2%                             Android (Google)
           4%
      5%                                          iOS(Apple)

                                                  BlackBerry

                                                  Symbian (NOKIA)
17%

                                                  Windows Phone 7
                                                  (Microsoft)
                                                  Linux
                                 68%
                                                  Others
Benchmarking
SWOT Analysis




S    TRENGTHS

                                            W      EAKNESSES




                                            •One source of income ( 97% of
• Search engine leader
•Management Style                           revenue from advertising)
• Effective advertising model
•Loyal customers                            •Unprofitable products
•Innovation
•Brand name
•Smartphone king
•Best work environment
•Financial Situation ($50 B revenue,2012)
SWOT Analysis




O
  PPORTUNITIES

                                            T   HREATS




•Sustainable growth in search advertising   •Strong competition (Apple, Microsoft,
•Fast growing Social Media market           Facebook )
•New products and services                  •Microsoft and Yahoo possible partnership
•Strategic acquisitions                     •Microsoft and Nokia possible partnership
•Growing mobile advertising market          • Advertising space is becoming more
                                            competitive
                                            •Political Risk and EU antitrust Law
BCG Matrix for Google


                           High Market Growth




                                                  star
            Question Mark
                                        YouTube
         Google Doc
                                        Android
         Google Shopping
                                        Google+
         Google Drive
                                        Gmail

Low                                                                      High
Market                                                                   Market
Share                                                                    Share


                                                Cash Cow
                 Dogs
                                        Search Engine
         Google News
                                        Advertising
         Google Group
                                        Technology
         Google Site




                           Low Market Growth
Recommendations




   Increase ad spending in foreign markets specially in the Asia-Pacific market
   Invest more in mobile technology (android)
   Expanding the income sources
   Improve Cloud services such as (Google drive, Google Docs)
   Enhancing Google ecommerce capability (Google wallet, Google Shopping)
   Transparency and clarify their vision
   Invest more social media market and integrate Google plus and YouTube
    with other Google services
Google strategy evaluation , i click hatem kameli

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Google strategy evaluation , i click hatem kameli

  • 1. Prepared By: Hatem Kameli Digital Marketing Trainer & Consultant iCLICK, Co – founder & Director
  • 2. Agenda  Google World  Google Products & Services  Google Financial Situation  Google Strategy  Strategic Evaluation ( vision, mission & objectives )  PEST Analysis  Five Forces Model  Benchmarking  SWOT Analysis  BCG for Google Products Portfolio  Recommendations
  • 3. Introduction  Search Engine, Cloud computing, Software and Advertising technologies  Larry Page and Sergey Brin in 1998  Page Ranking No. 1 in the world  Over 1 Billion search requirements daily  22,000 full time employees  Rated No.1 of ‘Best company’s to work for’ in the world  Ranking No. 2 of the top 100 brands in the world  May 2012, dominate the search engine world, market share of 87.6%  Total revenue more than 50 Billion $, 2012  Primary Revenue Source: Advertising (97%)
  • 4. Google History & Services
  • 7. Differentiation Google primary strategy is to focus on Search Engine Marketing . Indexing every website on the web, giving faster results with accuracy. Google’s Ad-Sense and Ad-Word helped Google to generate huge revenue form the Internet Market Differentiation Factors  Robust Data Centers around the world  Unique Page Search Algorithm  Ad-Sense & Ad-Word Primary Strategy Secondary Strategy
  • 8. Innovation Google secondary strategy is to focus on other related segments with innovative product development like - Social Media, Gmail, Google Books, Mobile Computing & Cloud Computing etc. Growth Strategy Google’s growth strategy – Merges & Acquisitions (Example – YouTube, Android, Motorola) This strategy is preferred because it allows Google to quickly adopt new technologies and process rather than trying to develop them internally Primary Strategy Secondary Strategy
  • 9. Alliances Google & AOL enters into Strategic Alliance to expand business globally, Some key note of this strategic alliance are:  Creating Global Advertising Partnership  Google to Invest $1 Billion for a 5% Stake in AOL  Companies to Collaborate on Online Video Offering and Make More AOL Content Available to Google Users  Google Talk Instant Messaging Software to Communicate With AIM Users Primary Strategy Secondary Strategy
  • 10. Google Vision & Mission Mission: Organize the world's information and make it universally accessible and useful Matched Unmatched -Flexibility -Market segment -Fewer than 100 words -Transparency -why they exist -Philosophy -Reachable
  • 11. Google Goals & Objective Objectives Specific Measureable Achievable Realistic Timed Increase Acquisitions by 5% yearly Increase search advertising market share 5% yearly Increase total revenue 10% yearly
  • 12. External Scan Political and legal Technology GOOGLE Economical Social PEST Analysis Model
  • 13. External Scan Political Economical Technology Social • Google is worldwide • Google's focus on highly • Technology is obviously • The world is increasingly companies so it has to targeted, measurable always improving and becoming more face the constraints advertising makes it Google has taken connected due to the impose by different more recession-proof specific measures to means of countries. than many other make sure it does not communication businesses in tech fall behind. available through the • although Google is • technology companies internet. present in most like Google are • Internet search is countries around the relatively isolated from applicable to most • most new cell phones world, it has to cope period of recession cultures all over the are internet capable with internal rules. because search and world freeing Google devices. consequently internet- from geographic based advertisements dependence. has become a staple to the world society and economy. PEST Analysis Model
  • 14. Competitive Analysis Bargaining Threat of New Power of Entrants Buyers Bargaining Threat of Power of Substitute Suppliers Product Competitive Rivalry with in Industry Michael Porter’s Five Forces Model
  • 15. Competitive Analysis Supplier’s Power Barriers to Entry Competitive Rivalry Threat of Substitutes Buyer Power • Google have the • Yahoo & Microsoft • Not a big • very big number of • Limited choices in power to buy out have radically competition in ad substitutes of search engine any ad-technology improved their technologies mobile technology • Limited Choices in they wish search engines • Currently there are online ad only a few rivals • Ad Technologies: technology. • Suppliers of • Online Marketing (Microsoft, Yahoo) Many of the • Limited Choice in telecommunication governing rules are so the degree of important ad- mobile OS infrastructure may still evolving which rivalry is more technologies are • good amounts of change contracts may affect Google’s oriented to an owned by Google choices when and relationships Strategy oligarchy but other useful selecting a browser. • Brand identity ones exist • Google Products may not perform well with new software release from Microsoft & Apple Michael Porter’s Five Forces Model
  • 17. Benchmarking Mobile Market Share, 2012 0% 4% 2% Android (Google) 4% 5% iOS(Apple) BlackBerry Symbian (NOKIA) 17% Windows Phone 7 (Microsoft) Linux 68% Others
  • 19. SWOT Analysis S TRENGTHS W EAKNESSES •One source of income ( 97% of • Search engine leader •Management Style revenue from advertising) • Effective advertising model •Loyal customers •Unprofitable products •Innovation •Brand name •Smartphone king •Best work environment •Financial Situation ($50 B revenue,2012)
  • 20. SWOT Analysis O PPORTUNITIES T HREATS •Sustainable growth in search advertising •Strong competition (Apple, Microsoft, •Fast growing Social Media market Facebook ) •New products and services •Microsoft and Yahoo possible partnership •Strategic acquisitions •Microsoft and Nokia possible partnership •Growing mobile advertising market • Advertising space is becoming more competitive •Political Risk and EU antitrust Law
  • 21. BCG Matrix for Google High Market Growth star Question Mark YouTube Google Doc Android Google Shopping Google+ Google Drive Gmail Low High Market Market Share Share Cash Cow Dogs Search Engine Google News Advertising Google Group Technology Google Site Low Market Growth
  • 22. Recommendations  Increase ad spending in foreign markets specially in the Asia-Pacific market  Invest more in mobile technology (android)  Expanding the income sources  Improve Cloud services such as (Google drive, Google Docs)  Enhancing Google ecommerce capability (Google wallet, Google Shopping)  Transparency and clarify their vision  Invest more social media market and integrate Google plus and YouTube with other Google services