PREPARED BY:

idrees waris

GOOGLE BUSINESS MODEL

PRESENTATION OUTLINEPRESENTATION OUTLINE

COMPANY FOUNDERCOMPANY FOUNDER

GOOGLE HISTORYGOOGLE HISTORY

GOOGLE CORE BUSINESSGOOGLE CORE BUSINESS

GOOGLE BUSINESS MODELGOOGLE BUSINESS MODEL

1. VALUE PROPOSITION 1. VALUE PROPOSITION

2. REVENUE MODEL2. REVENUE MODEL

3. MARKET OPPORTUNITY 3. MARKET OPPORTUNITY

4. COMPETITIVE ENVIRONMENT4. COMPETITIVE ENVIRONMENT

SUBSTITUTES (MODERATE)Traditional search options extremely weak compared to on-line search.

SUPPLIER POWER (LOW)

With Internet content and

bandwidth readily available, supplier

power isextremely weak

THREAT OF NEW ENTRANTS

(HIGH)The creation

of new technologiesmay possibly

give advantage tonew, aspiring

entrants

BUYER POWER (HIGH)Internet users, advertisers and licensees are all buyers of online search products. Buyer

power remains high as there are many available

RIVALRY (HIGH)Direct and indirect

competitors

5. COMPETITIVE ADVANTAGE5. COMPETITIVE ADVANTAGE

The PageRank system and hardware innovations facilitated Google’s initial growth and established Google as a dominant search engine technology.

Google technology provides for low marginal costs, which could be used to dissuade competitors.

Google’s dedication to providing users with the preeminent search product facilitated. Google’s work environment attracts some of the most talented people in the industry. Over 60 of Google’s 800 employees have a doctorate.

The company reportedly receives over 1,000 resumes per day and employee turnover is close to zero percent.

5. COMPETITIVE ADVANTAGE5. COMPETITIVE ADVANTAGE

 Google has become one of the most recognized Internet brand names; more impressive is that this brand equity has come simply through word of mouth advertising (Google brand synonymous with search ).

Google Ventures is Google's venture capital arm, and is the primary source of Google's venture investments.

Commitment to innovation depends on every one being comfortable sharing ideas and opinions.

6. MARKET STRATEGY6. MARKET STRATEGY

7. ORGANIZATIONAL DEVELOPMENT7. ORGANIZATIONAL DEVELOPMENT

Smart people: Hire the best Including 50 PhD.s, originated with strong ties to universities (especially

Stanford). Also hire range of people with broad experience and non-traditional talents

such as expert in Italian travel, machine learning, etc. Mostly looking for .enthusiasm and creativity. Very flat organizational structure, not very much hierarchy

Creative Environment:Creative office design. Looks like mix between college campus and

playground with toys.Called the “GooglePlex”.

Smart people: Hire the best Including 50 PhD.s, originated with strong ties to universities (especially

Stanford). Also hire range of people with broad experience and non-traditional talents

such as expert in Italian travel, machine learning, etc. Mostly looking for .enthusiasm and creativity. Very flat organizational structure, not very much hierarchy

Creative Environment:Creative office design. Looks like mix between college campus and

playground with toys.Called the “GooglePlex”.

FORMULA: Smart people + creative environment + outlet for ideas = innovation

8. MANAGEMENT TEAM8. MANAGEMENT TEAM

IT APPLIICATION IT APPLIICATION

LIFE OF A GOOGLE QUERYLIFE OF A GOOGLE QUERY