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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