Organize the world’s information and make it universally accessible and useful.

Kevin Clay Budimulia Rexson Tan Irfan Budipradipta

Zaid Haritsyah Yohanes Chrisbiyanto

verb.Ex. Let me googling it

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Agenda

o Company History

o Google Business

o Market competition

o Product Compare

o External environment analysis

o Five Force Model Competition

o Strength, Weaknesses,

Opportunities and Threats

o Five Generic Competitive Strategy

o Competitive Position

o Competing in International Market

o Diversification Strategy

o CSR

o Recommendations

o Conclusion

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Company Historyo The development of Google’s search technology began in January

1996 with the founder Larry Page and Sergey Brin.o At first, Larry Page and Sergey Brin named the search engine

BackRub.o In 1998, BackRub would be renamed Googleo In August 1998, Google held the investor’s $100.000 check and at

the end of September the company went on to raise a total of $1million in venture capital

o By year-end 1998, Pc Magazine had named the company to its list of “Top 100 Web Sites and Search Engines for 1998”

o In 2000, the company make innovations with wireless search technology, search capabilities in 10 languages, and Google Toolbar

o In 2004, features added like Google News, Google Product Search, Google Scholar, and Google Local.

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Company Historyo In 2005 Google maps goes Live add satellite views and direction,

Google also launch Google talk. In 2005 Google also release Google Analytics for measuring the impact of websites and marketing

o In 2006 Google launched Google Finance, Google Calendar, Google Translate

o In 2007 Google got Best Companies To Work For (rank #1 of the list 3 other years since). Added traffic information for Google Maps, also launched Street View in 5 U.S Cities ( New York, San Fransisco, Las vegas, Miami & Denver). And the last 2007 Google announce Android

o In 2008 Google launched Google Map Maker, and Street view is available in several cities in Japan and Australia

o In 2009 Google Released google Voice, Google ventures, Google Chrome OS

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Company Historyo In 2010 Google via Youtube introduce TrueViewo In 2011 Google Offers kiks off in beta in Portland, ore. Google

bring Offline Access to Gmail, calendar and Docs for people using Chrome. Google launched Google+ Pages. And also open New office in Paris

o 2012 Chrome launch on Android, Android market becomes Google Play. Launched Google Drive. Begin installing Google Fiber.

o 2013 Google Introduces Enchanced campaigns. Google acquired Waze to help people outsmart Traffic

o 2014 Google introduce the first family of Android One phones in India. And in 2014 Google launched Android Lollipop.

o 2015 Google just Released Google Android M (Marshmallow) for now only available on Android Nexus

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Google Business

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WHAT HOW WHO

WEB BASEDADVERTISING

MONETIZING SEARCH TRAFFIC

CPC PAID

LISTING

ADVERTISER

Google makes 99% of its revenue from advertisings

Google Business

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WHAT BOOST THE BUSINESS

40% of all web searches have a commercial motivation

Efficient AdsMore

AdvertisersMore Revenues

WHAT MAKE SO POWERFUL

No. 1 Search EngineDiversity of Ads

SupportRelevant Advertising

Google Business

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10

Product Compare

User Experience Compare

Market Competition

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U.S. Search Engine Percent of Market Share 2015Source: Netmarketshare.com

10% 10%

70%1% 7.0%

Market Competition

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Worldwide Browser Percent of Market Share 2015Source: http://gs.statcounter.com

17% 16%

52%2% 10%

Market Competition

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U.S. Smartphone Platform Percent of Market Share 2015Source: http://www.idc.com/prodserv/smartphone-os-market-share.jsp

78.0%18.3% 0.3% 2.7%

External Environment

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U.S. Smartphone Platform Percent of Market Share 2015Source: ComScore.com

PR like Political and Regulation factors

Adoption of new technologies

Local authorities blockage (censoring)

E like Economical factors

Stock market Publisher’s numbers

Foreign Exchange rate

S like Social factors

Numbers of users Trends

Brand reputation

T like Technological factors

The evolution of technologies

Internet Network & Infrastructures

Mobile phones market

L like Legal factors

Privacy concernsCompetition law

Five Force Model Competition

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Rivalry

STRONGYahoo, Baidu

New Entrants

WEAKToo Competitive

Buyers / Customers

WEAKRelative to buyer

demand

Substitutes

WEAKNot Readily Available

Ex. Artificial Intelligence

Suppliers

WEAKThere is a surge in the availability of supplyEx. Server Provider

S.W.O.T. Analysis

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STRENGTH WEAKNESS OPPORTUNITIES THREATS

Established brand name

Strong marketing :word by mouth publicity is

doing the job

User-friendly interface with

display of relevant and clear results

Highly competent work: PHD

researchers

Innovative products

A worldwide market share of 70%

Marketers don’t control the cost and

position of their advertisement

Impact of click fraud

practice on the business

No marketing for

many products ,users are

unaware of their existence

Merging with an established mass-

market portal to lock in large number of

users and advertisers.

Becoming a mass-market portal like Yahoo and MSN, where portals contain added

attractions for users.

Providing private search services to

businesses

Targeting the hand held mobile devices

marketBuilding the world's

biggest digital library and online

bookstore

Emergence of many competitors,

or merging of existing ones

Google’s advertising policy

could disappoint its advertisers and

start loosing many of them

Copyright issues

Privacy and security concerns

Antitrust and competition lawsInability to adapt the infrastructure

to the quick growth

Five Generic Competitive Strategy

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LOW COST PROVIDER

Reduce price of advert

BROADDIFFERENTIATION

FOCUSEDLOW COST

Create new segment of advertisement, for middle-low level company

Innovate, more and more technology

Five Generic Competitive Strategy

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FOCUSEDDIFFERENTIATION

Provide company the information about their website activities

BEST COSTPROVIDER

Tracking, Counting, and Predicting all the keywords that related to advertisement

Competitive Position

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OFFENSIVEBasis for Competitive Attack

LEAPFROGGING COMPETITORS

Being first to market with next-generation products

PRODUCT INNOVATION

Pursuing continuous product innovation to draw sales and market share away from

less innovative rivals

Competitive Position

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HORIZONTAL MERGER AND AQUISTION STRATEGIES

Extending the company’s business into new product categories

Gaining quick access to new technologies or

complementary resources and capabilities

Leading the convergences of industries whose

boundaries are being blurred by changing

technologies and new market opportunities

Competitive Position

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MERGER AND AQUISTION COMPANIES

Competing in International Markets

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GLOBALThink Global, Act Global

Competing in International Markets

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SERVER

SERVER

SERVER

SERVER

Google uses the Global strategy, which in the implementation, standardization in terms of security and centralized servers into one and all policies issued from one source.

Competing in International Markets

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ADVANTAGE DISADVANTAGE

All directed from one server

So the output that all parties or people received will be the same with the output that has company

gave in accordance with the policies issued.

Google as a global company could not be immediately accepted by

the public.

So that there should be an adjustment of the user, and the worst is like in China where the

engines are highly accepted and become competitors Google is

Baidu

ADJUSTMENT

Localized Domain

Localized Language

Diversification Strategy

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Diversity Into Related Business

Mobile AdvertisingDouble Click, Invite Media

SecurityGoogle Books

Mobile AdvertisingDouble Click

Photo EditingPicasa

Image OrganizerPicasa, Blogger

Diversification Strategy

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Diversity Into Related Business

Restaurants ReviewGoogle Places, Google Map

Video EditingYoutube

GPS Navigation Soft.Google Map

Video SharingYoutube

Mobile SoftwareAndroid

CSR

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Google Grants is an in-kind donation program awarding free AdWords advertising to select charitable organizations. Since its inception, we have supported hundreds of organizations in advocating and promoting their causes, from animal rights and

literacy to abandoned children and HIV education.

Room to Read, which educates children in Vietnam, Nepal, India and Cambodia, attracted a sponsor who clicked on its AdWords ad. He has donated funds to

support the education of 25 girls for the next 10 years.

The US Fund for UNICEF’s e-commerce site, Shop UNICEF, has experienced a 43 percent increase in sales over the previous year.

CoachArt, supporting children with life-threatening illnesses through art and athletics programs, has seen a 60 to 70 percent increase in volunteers.

In the aftermath of the Sichuan earthquake in China, Google Grants also supported the China Red Cross, China Charity Federation, China Youth Development

Foundation, China Children and Teenager’s Fund and other organizations with free in-kind advertising of over 6 million RMB. Now, Jet Li’s One Foundation and his umbrella organizations have also started using Google Grants to promote the

cause of corporate philanthropy.

Recommendations

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ACCURACY ACCURACY MORE USERS MORE ADVERTISERS

Fight spammers - Impact on search quality and accuracy

CLICK FRAUD ISSUE

Resolve the click fraud issue – Impact on advertising business

PROVIDE PRIVATE SEARCH

Provide private search services to companies using its superior technology

FIGHTSPAMMERS

Thank You