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Google Business Model: Prepared By: Lidya BT Mohd Thani Maziah BT Mutazam Siti Roshaida BT Abd Razak

This document summarizes Google's business model. It discusses Google's founders, history, core business of search, and revenue model of advertising. It analyzes Google's competitive environment and advantages, including its dominant search technology, low costs, talented workforce, and brand recognition. It also covers Google's market strategy, organizational culture of innovation, and management team.

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MBA2010GC
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553 views24 pages

Google Business Model: Prepared By: Lidya BT Mohd Thani Maziah BT Mutazam Siti Roshaida BT Abd Razak

This document summarizes Google's business model. It discusses Google's founders, history, core business of search, and revenue model of advertising. It analyzes Google's competitive environment and advantages, including its dominant search technology, low costs, talented workforce, and brand recognition. It also covers Google's market strategy, organizational culture of innovation, and management team.

Uploaded by

MBA2010GC
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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GOOGLE BUSINESS

MODEL
PREPARED BY:

LIDYA BT MOHD THANI


MAZIAH BT MUTAZAM
SITI ROSHAIDA BT ABD RAZAK
PRESENTATION OUTLINE
COMPANY FOUNDER
GOOGLE HISTORY
GOOGLE CORE BUSINESS
GOOGLE BUSINESS MODEL
1. VALUE PROPOSITION
2. REVENUE MODEL
3. MARKET OPPORTUNITY
4. COMPETITIVE ENVIRONMENT
SUBSTITUTES (MODERATE)
Traditional search options extremely weak compared to
on-line search.

THREAT OF NEW
ENTRANTS SUPPLIER POWER
(HIGH) (LOW)
RIVALRY (HIGH)
The creation Direct and indirect
of new With Internet
competitors content and
technologies
may possibly bandwidth readily
give advantage to available, supplier
new, aspiring power is
entrants extremely weak

BUYER POWER (HIGH)


Internet users, advertisers and licensees are
all buyers of online search products. Buyer
power remains high as there are many
available
5. 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 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 STRATEGY
7. ORGANIZATIONAL
DEVELOPMENT
FORMULA: Smart people + creative environment +
outlet for ideas = innovation
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”.
8. MANAGEMENT TEAM
IT APPLIICATION
LIFE OF A GOOGLE QUERY
SUCCESS STORY/AWARDS
LESSON LEARNT
Google’s business model, IT infrastructure, and innovation strategies
have created the capabilities needed for Google to become the world’s
first global information utility.

The key to Google’s success has been its strategic and innovative use of
IT. Its search engine enables people to search the web for useful
information with Google Search, Google Maps, Google Earth, and other
applications.

Google’s IT infrastructure is the keystone of the entire business


ecology, tying everything together and making it work.

Google faces far less risk in new product development than the usual
firm.

Google’s innovation model can be imitated. The model involves hiring


highly talented people for new product development, focusing R&D on
products while explicitly allowing time for independent research.

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