Project on business model of Google

“A Study on the Business Model of Google “ 2010

1

A Study

On

The Business Model of Google

MANAGEMENT RESEARCH PROJECT

Submitted to: Submitted by:

Professor Surajit Ghosh Dastidar India Mohanty


2

ACKNOWLEDGEMENT It gives immense gratification to place on records my profound gratitude and sincere appreciation to each and every one of those who have helped me in this Endeavour. I am ineffably indebted to my Faculty Guide Professor Surajit Ghosh Dastidar for his conscientious guidance and encouragement to initiate this study that helped me to accomplish this assignment. I extend my sincere thanks for his cooperation and valuable suggestions from time to time that made my study more meaningful.Any omission in this brief acknowledgement does not mean lack of gratitude.

Indira Mohanty

(08BSHYD0304)


3

1 Contents 1. Methodology ......................................................................................................................................... 6

2. Introduction .......................................................................................................................................... 7

3. Background Note .................................................................................................................................. 8

4. Insight on Google Business Model ...................................................................................................... 10

4.1 Infrastructure Management ....................................................................................................... 11

4.1.1 Parallel Processing .............................................................................................................. 12

4.1.2 Page Rank Technology ....................................................................................................... 13

4.2 Value Configuration .................................................................................................................... 14

4.3 Capability .................................................................................................................................... 15

4.4 Acquisitions and Partnerships ..................................................................................................... 16

4.5 Adwords ‐Revenue Generation Model ................................................................................... 16

4.5.1 Benefits of Adwords ............................................................................................................ 17

4.6 Cost Structure .............................................................................................................................. 22

4.7 Distribution Channel ................................................................................................................... 22

4.8 Ideas ............................................................................................................................................ 23

4.9 Experiments ................................................................................................................................ 23

4.10 Recruitment ................................................................................................................................. 24

4.11 Value Proposition ........................................................................................................................ 24

5 Swot Analysis ...................................................................................................................................... 27

6 Criticisms ............................................................................................................................................. 27

6.1 Click Fraud ................................................................................................................................... 27

6.2 Security ....................................................................................................................................... 27

7 Competitors ........................................................................................................................................ 28

7.1 Google and Microsoft ................................................................................................................. 28

7.2 Google and Apple ........................................................................................................................ 30

7.3 Google and Yahoo ....................................................................................................................... 31

7.4 Google and Amazon .................................................................................................................... 31

7.5 Google And Facebook ................................................................................................................. 32

7.6 Google and Cisco ......................................................................................................................... 33

7.7 Google and IBM ........................................................................................................................... 34


4

7.8 Google and Nokia ........................................................................................................................ 34

7.9 Google and Mozilla ..................................................................................................................... 35

8 The Road Ahead .................................................................................................................................. 36

9 Annexure ............................................................................................................................................. 37

10 References ...................................................................................................................................... 48

5

Googleaccessib

“ Googbuild co

The Fu

“As we really b

Sergey

“A S

's mission ble and use

gle – A modompanies t

uture of M

go forwarbig differen

Brin, Cof

Study on

is "to orgaeful".

dern managthat are tru

Managemen

rd, I hope wnces in how

founder of

n the Bu

anize the w

gement piouly fit for th

nt, Londol

we're goingw people liv

f Google

usiness

world's info

oneer that he 21st cen

l Business

g to continve and wor

Model o

ormation an

has much tury. “

School Pr

ue to use trk.”

of Googl

nd make it

to teach us

rofessor, G

technology

le “ 201

universall

s about how

Gary Ham

y to make

10

ly

w to

mel


6

1. Methodology

Descriptive Case Study- It covers the scope and depth of the case being covered. A theory formulated ahead of time, is reviewed and debated upon, and serves as a design for the descriptive case study. The contexts covered under a descriptive case study are as follows- Initiation and Structure of the Organization • Year of origin, who or what was the main source of support in creation of the organization,

the source of funding, the legal grants, the organizational structure Organizational Evolution • How has the organization transfomed over the years. • What were the events that led to the changes? • What activities have been completed or are currently under way? • The planning and implementation strategies Relationship with other organizations • Mergers, collaborations, partnerships with other organizations. • Competition Relationship with the Government • The organizations relationship with the Government, and how the relationship has affected

the organization Effect on Society • The contribution of the organization to the society. The perception of the society about the

organization. • The corporate social responsibility of the organization Policies • How the organization deals with multiple issues. The policies of the organization with

respect to various social issues.


7

Research questions A descriptive case study methodology will be undertaken .The case would broadly focus on the following aspects:

• A detailed approach to the business model of Google. • Revenue generator model of Google. • The changes in the business model of Google over the years alongside with increased

competition. • Insights into the business models of its major products, and their relative contribution to

the revenue generated • Comparative analysis of Google’s Business model with its competitors.

2. Introduction

Google Inc. is an American public corporation , earning revenue from advertising related to its Internet search, e-mail, online mapping, office productivity, social networking, and video sharing services as well as selling advertising-free versions of the same technologies. The Google headquarters, the Googleplex, is located in Mountain View, California. The company is running millions of servers worldwide. Who would have predicted that two friends with an idea, working in a garage, would one day revolutionize internet search advertising?

Google was founded by Larry Page and Sergey Brin while they were students at Stanford University and the company was first incorporated as a privately held company on September 4, 1998. The initial public offering took place on August 19, 2004, raising $1.67 billion, implying a value for the entire corporation of $23 billion. Presently it has a market capitalization of 179.41$bn.1

Whenever a company becomes wildly successful in a brief span of time, it becomes an object of fascination for corporate executives, students and even general public. It becomes a new role model for business success. Google is still an young company and it has yet to be tested by adversity. By taking a close look at Google’s business model, important insights can be deciphered. Most of Google’s success can be traced to three innovations, firstly a brilliant insight into the organization of information, secondly, a creative act of imitation, and lastly a breakthrough in the engineering of computer systems.

8

3. B E

So

Google bstudents relationshthat exis"BackRu

The domincorporaThe nam10100, theraised foAndy Beother siteParkway since, an

“A S

Backgro

Exhibit I

ource: telegraph

began as a rat Stanford hip between

sted at that ub" because t

main googleated as Googe "Google" oe number repor the new cechtolsheim,es, the comp

from Silicod the comple

Study on

ound No

h.co.uk

research proUniversity,

n websites wotime were dthe system c

e.com was gle Inc. on 4originated frpresented bycompany am, one of the pany leased aon Graphics ex has since

n the Bu

ote

oject by LarCalifornia. Tould producdeeply flaw

checked back

registered 4 Septemberrom a commy a 1 followe

mounted to afounders o

a complex o(SGI) in 20come to be

usiness

rry Page anThey believee better resu

wed. Their sek links to est

on 15 Sepr 1998 at a fr

mon misspellied by one hualmost $1.1 f Sun Micro

of buildings i03. The comknown as th

Model o

d Sergey Bred that a sea

ults. They reaearch engintimate the im

ptember 199friend's garaging of the woundred zerosmillion, inc

osystems. Ain Mountain

mpany has rehe Googleple

GoogleWojcicMargar

of Googl

rin in 1996,arch engine alised that th

ne was origimportance of

97, and thege in Menlo ord "googols. The total icluding a $1fter quickly

n View at 16emained at tex.

e sets up woki's garage

rita, Menlo Pa

le “ 201

, who were that analyse

he search eninally nicknaf a site.

e company Park, Califo", which refeinitial invest00,000 checoutgrowing

600 Amphiththis location

orkspace in at 232

ark (Sept 199

10

both ed the gines amed

was ornia. fers to tment ck by g two heatre n ever

Susan Santa

8)

9

Exhibit I

Google hsearch bowants to user wanSergey B

The Goowho likeof a buskeywordloading sbidding sprocess. computernumbers over its cbe foughthe servic

“A S

I

has a simpleox - easy anget is simpl

nts a generaBrin, the Goo

gle search ed its simple siness modes. The ads wspeed. Keywstarting at 5 Another impr system. Hoand proces

competitors ht as much onces.

Study on

e, clean, clend fast to loly that: just alistic portalogle Executiv

ngine attractdesign and

el. In 2000, were text-baswords were s

cents per clportant reasoused in muls transactionMicrosoft a

n the power

n the Bu

ar, minimaload. Bottoma search eng

l, he goes toves, underst

ted a loyal fuseful resulGoogle be

sed to maintasold based onick. It imitaton for Googltiple data cens at an ext

and Yahoo. Tand the effic

usiness

istic user inm line is: If t

gine - searcho a portal, nood this, and

following amts. But just s

egan selling ain an unclun a combinated the concgle’s succesentres arountremely rapiThe future cciency of the

Model o

nterface. no the user vish engine whinot to a sead this was w

mong a growserving free

advertisemuttered page dation of pricecept from Gos is the desi

nd the world,d pace. Thi

competition eir machiner

of Googl

frills, just thits a search ich is fast anarch engine.

what they deli

wing number search resu

ments associadesign and te bid and clioto, but Gooign of its pa, the system s has given among thesery, as on the

GoogleMountCalifor

le “ 201

he logo anengine, wh

nd reliable. I Larry Pageivered.

of Internet uults was not mated with seto maximize ickthroughs,ogle perfectearallel proceis able to crGoogle an

e companiese attractivene

eplex, tain Viernia

10

nd the hat he If the e and

users, much earch page

, with ed the essing runch edge

s will ess of

ew,

10

4. I

Exhibit I

Source-http

Exhibit I

Prod

CustInter

InfraMan

“A S

nsight o

II- Nine Bri

://www.hec.unil.

V

duct

tomer rface

astructure agement

Study on

on Goog

icks Buisnes

.ch/aosterwa/Ph

Value Propo

Target Cust

Distribution

Relationship

Value Confi

Capability

n the Bu

gle Bus

ss Model

hD/Osterwalder_

osition Abc

tomer Tw

n Channel At

p Te

iguration Tat

Aac

usiness

iness M

_PhD_BM_Onto

A Value Proposbundle of producustomer.

The Target Cuswants to offer v

A Distribution the customer.

The Relationshestablishes betwThe Value Conactivities and rethe customer.

A capability is actions that is ncustomer.

Model o

Model

ology.pdf

sition is an overucts and service

stomer is a segmvalue to.

Channel is a me

hip describes theween itself and nfiguration descesources that ar

the ability to exnecessary in ord

of Googl

rall view of a coes that are of va

ment of custome

eans of getting

e kind of link a the customer. ribes the arrang

re necessary to c

xecute a repeatader to create val

le “ 201

ompany's alue to the

ers a company

in touch with

company

gement of create value for

able pattern of lue for the

10

r

11

Fina

Source: http

4.1 In

Google rcomputermultiple has thousis done balancinlinks, CPmaximizthe larges

Exhibit V

“A S

ncial Aspects

p://www.hec.unil

nfrastructu

requires largr attempts tIP addresse

sands of servto send the

ng is a technPUs, hard de throughpust and most

V

Study on

Partnership

Cost Structu

Revenue Mo

l.ch/aosterwa/Ph

ure Manag

ge computatito connect ts, and the cvers and once queries tonique to distrdrives, or o

ut, minimize complex con

n the Bu

p Aac

ure Tm

odel Tm

hD/Osterwalder

gement

ional resourto Google, slient is direc

ce the client ho the least lribute worklother resour

response timntent deliver

usiness

A Partnership iagreement betwcreate value for

The Cost Structmeans employe

The Revenue Mmoney through

r_PhD_BM_Onto

ces in orderseveral DNScted to diffehas connecteloaded web load evenly rces, in ordme, and avory networks.

Model o

s a voluntarily iween two or mor the customer.

ture is the repreed in the busine

Model describesh a variety of revology.pdf

r to provide S servers reerent Googleed to the ser

server. In across two

der to get ooid overload

of Googl

initiated cooperre companies in

esentation in moss model.

s the way a comvenue flows.

their servicsolve www

e clusters. . Arver addition

computer nor more com

optimal resod. This make

Load balanctraffic efficnetwork serv

le “ 201

rative n order to

oney of all the

mpany makes

ce. When a c.google.comA Google cl

nal load balannetworking, mputers, netource utilizaes Google o

cing distributciently amonvers so that n

10

client m into

luster ncing load

twork ation, ne of

tes ng no

12

4.1.1 P

Google rout fast calculatiohas three

• G• T

i• T

t

E

Googleb

Googlebohands th

“A S

Parallel Proc

runs on a disparallel pr

ons can be pe distinct par

Googlebot, a The indexer tin a huge dat

The query prthe documen

Exhibit VI

ot, Google’s

ot is Googlehem off to t

Study on

cessing

tributed netwrocessing. Pperformed simrts:

web crawlerthat sorts evtabase. rocessor, whnts that it con

s Web Craw

e’s web crathe Google

n the Bu

work of thouarallel procemultaneousl

r that finds avery word on

hich comparnsiders most

wler

awling robotindexer. It

usiness

usands of lowessing is a ly, significan

and fetches wn every page

es your seart relevant.

t, which finfunctions m

Model o

w-cost compmethod of cntly speeding

web pages. e and stores

rch query to

nds and retrimuch like a

of Googl

puters and cacomputationg up data pr

the resulting

o the index

ieves pages web browse

le “ 201

an therefore n in which mocessing. Go

g index of w

and recomm

on the weber, by sendi

10

carry many oogle

words

mends

b and ing a


13

request to a web server for a web page, downloading the entire page, then handing it off to Google’s indexer.Googlebot finds pages in two ways: through an add URL form, www.google.com/addurl.html, and through finding links by crawling the web

Google Indexer

Googlebot gives the indexer the full text of the pages it finds. These pages are stored in Google’s index database. This index is sorted alphabetically by search term, with each index entry storing a list of documents in which the term appears and the location within the text where it occurs. This data structure allows rapid access to documents that contain user query terms.

Google’s Query Processor

The query processor has several parts, including the user interface (search box), the “engine” that evaluates queries and matches them to relevant documents, and the results formatter. PageRank is Google’s system for ranking web pages. A page with a higher PageRank is deemed more important and is more likely to be listed above a page with a lower PageRank.

4.1.2 Page Rank Technology

We've developed an interesting trick that speeds up the first step: instead of storing the entire index on one very powerful computer, Google uses hundreds of computers to do the job. Because the task is divided among many machines, the answer can be found much faster. To illustrate, let's suppose an index for a book was 30 pages long. If one person had to search for several pieces of information in the index, it would take at least several seconds for each search. But what if you gave each page of the index to a different person? Thirty people could search their portions of the index much more quickly than one person could search the entire index alone. Similarly, Google splits its data between many machines to find matching documents faster. How do we find pages that contain the user's query? Let's return to our civil war example. The word "civil" was in documents 3, 8, 22, 56, 68, and 92; the word "war" was in documents 2, 8, 15, 22, 68, and 77. Let's write the documents across the page and look for those with both words.

civil 3 8 22 56 68 92 war 2 8 15 22 68 77 both words 8 22 68

Arranging the documents this way makes clear that the words "civil" and "war" appear in three documents (8, 22, and 68). The list of documents that contain a word is called a "posting list,"


14

and looking for documents with both words is called "intersecting a posting list." (A fast way to intersect two posting lists is to walk down both at the same time. If one list skips from 22 to 68, you can skip ahead to document 68 on the other list as well.)

Ranking

Google uses many factors in ranking. Of these, the PageRank algorithm might be the best known. PageRank evaluates two things: how many links there are to a web page from other pages, and the quality of the linking sites. With PageRank, five or six high-quality links from websites such as www.cnn.com and www.nytimes.com would be valued much more highly than twice as many links from less reputable or established sites.

If a document contains the words "civil" and "war" right next to each other, it might be more relevant than a document discussing the Revolutionary War that happens to use the word "civil" somewhere else on the page.

Also, if a page includes the words "civil war" in its title, that's a hint that it might be more relevant than a document with the title "19th Century American Clothing." In the same way, if the words "civil war" appear several times throughout the page, that page is more likely to be about the civil war than if the words only appear once.

Running a search engine takes a lot of computing resources. For each search that someone types in, over 500 computers may work together to find the best documents, and it all happens in under half a second.

4.2 Value Configuration

Google is different. Google is expanding its area of participation in the value chain. In other words, its search technology and infrastructure is merely a utility that allows it to do what really bring over 90% revenue and income - advertising. Google is primarily an advertising company, simply because it is the only company that allows any business to start advertising online without any need for professional copy writers or graphic designers or help from any advertising salesperson.

Nearly everything that the company does , including building big data centres, buying optical fibers, promoting free wifi access, fighting copyright restrictions, supporting open source


15

software, and giving away web services and data is aimed at reducing the cost and expanding the scope of internet use. Simply put, Google wants information to be free.

Even though the business model spells-out how a company makes money, and the value propositions are what the company offers, not all value propositions have the purpose to generate direct revenues. Reasons can be to, increase the value of existing intellectual assets and capabilities, get access to new assets and capabilities, create momentum for a new technology, lower cost of development, reduce risks, build new markets, attract the best people, etc. Google as an example Google generated 99% of total revenues 2007, and 97% of total revenues in 2008 from advertising, still most of Google's value propositions are not directed towards its advertisers. Exhibit VII Users A very large number of value propositions, often provided for free Network Partners

Revenues in return for relevant ads on their sites

Organizations Money saving propostion by outsourcing IT needs to Google. Developers Providing platforms such asGWT for free to enable development of rich

content Employees Working conditions, "own time", job security Google owners

Growth , financial performance

Society Free tools such as blogs and localized versions of Google in developing countries

4.3 Capability

Complementary Advantage

Complements are any products and services that tend to be consumed together.For Google anything that happens on the internet is a compliment to its main business.The more the people use internet, the more ads they see, and the more money.The vast breadth of Google’s compliments and its ability to push the price of the compliments to zero , is what sets it apart from other firms. It faces far less risk in product development than other usual business does.It routinely introduces half finished products and services as online “betas”, because it knows that


16

even if the offering fails to win a big share of the market, they will still generate advertising revenue.

The real secret to Google’s mystique is that of a company that understands the possibilities of technological change, and where to look for the small companies with big ideas that will change established business models. And in that way, it is following in the time-worn footsteps of other acquisitive giants like Cisco Systems and Microsoft. Like any other giant multinational, Google knows that if it needs to constantly add new products and services to its business.

4.4 Acquisitions and Partnerships

. Since 2001, Google has acquired many companies, mainly focusing on small venture capital companies. In 2004, Google acquired Keyhole, Inc. The start-up company developed a product called Earth Viewer that gave a 3-D view of the Earth. Google renamed the service to Google Earth in 2005. Two years later, Google bought the online video site YouTube for $1.65 billion in stock. On 13 April 2007, Google reached an agreement to acquire DoubleClick for $3.1 billion, giving Google valuable relationships that DoubleClick had with Web publishers and advertising agencies. Later that same year, Google purchased GrandCentral for $50 million. The site would later be changed over to Google Voice. On August 5 2009, Google bought out its first public company, purchasing video software maker On2 Technologies for $106.5 million.

4.5 Adwords Revenue Generation Model

Most search engines provide two types of results listings in response to the same user query: organic (also called "natural" or "free") listings, and paid listings (i.e., advertisements). Google keeps these two types of listings separate, and ads are noted by the phrase "Sponsored Links" appearing above them. On Google, although both organic and paid results appear in response to the same user query, the results are independent of each other. The ranking of an organic search result has no bearing on the ranking of any ads, and vice versa. This makes it possible for an advertiser to perform well in the paid listings and have an ample online presence, even if their site isn't present in the top organic search results.

Google introduced a smart, innovative and quite risky business model - Adwords - and the pay per click concept. The risk proved winning, and the innovative business model worked. Today Adwords is Google main source of revenues. AdWords analyzes every Google search to determine which advertisers get each of up to 11 "sponsored links" on every results page. It's the world's biggest, fastest , a never-ending, automated auction.

Thousands of advertisers worldwide use the Google Adwords program to promote their products and services on the web. Advertisers bid in an open and competitive auction to have their ads


17

appear alongside the search results for particular keywords. They can specify the geographic location and time of the day for their ads to appear .The adwords program includes local , national and international distribution.

4.5.1 Benefits of Adwords

Relevance

One of the biggest benefits AdWords offers is the ability to precisely target ads to users based on their interest, as well as a number of other factors like location, language, and demographic. The result is that the user sees highly relevant ads, which they are more likely to click on. And because ads on search engines show only in response to a user's query, the user is also more likely to be further along in the buying cycle, and more likely to be ready to convert.

Return on Investment (ROI)

Online advertising is thoroughly measurable, making it easy to tell whether or not you're meeting your advertising goals. Every user's click is tied to a particular ad, keyword, and search query, all of which you can track and decide to improve whenever you like. If you spot a trend, you can create, modify, or delete keywords, ads, and campaign targeting selections within seconds. This allows you to be more responsive and more in control when it comes to improving your ROI.

Reach

Every day, Internet users conduct millions of searches on Google. When you use Google AdWords, you have the opportunity to capture any segment of that broad worldwide audience that's actively looking for products, services, information, and websites. By giving your products or services a presence during relevant user searches, you're ensuring that you're visible in a crucial point in the customer's buying cycle -- when the user is actively searching for what you're offering.

Pay per Click Advertising

Pay-Per-Click (PPC) is the best way to send immediate, targeted traffic to your website.. An advertiser has to pay every time his ad receives a click. The Advertisers decide the keywords relevant to their offer that should display their ad and the maximum amount they are willing to pay per click for that keyword.

Categories are ranked by the cost per click that advertisers generally have to pay, weighted by distribution, and then separated into three bundles: high cap, mid cap, and low cap. "The high


18

caps are very competitive keywords, like 'flowers' and 'hotels,'" Tang says. In the mid-cap realm you have keywords that may vary seasonally—the price to place ads alongside results for "snowboarding" skyrockets during the winter. Low caps like "Massachusetts buggy whips" are the stuff of long tails.

Placement Targeting

Placement targeting lets advertisers choose individual sites in the Google Content Network where they'd like their ads to appear. A placement can be an entire website, or it can be a subset of pages or ad units on a site, as defined by the site's publisher. For example, a news site might offer advetisers the chance to place ads across their entire site, only on its front page, or just in ad units on the upper half of its sports pages. Placement targeting gives advertisers even greater flexibility to control exactly where their ads show.

Ad Rank

Ads are positioned on pages based on their Ad Rank, which is a combination of your bid and a relevancy metric called Quality Score. The ad with the highest Ad Rank appears in the first position, and so on down the page.

A Quality Score is calculated every time the advertiser’s keyword matches a search query -- that is, every time the keyword has the potential to trigger an ad. Quality Score is a formula that varies based on the bid type, where the ad is showing, and targeting type. However, the main concept remains the same. Because Quality Score measures relevancy, a high Quality Score generally means that the ads will appear in a higher position and at a lower cost-per-click (CPC).

Adwords cost

Google charges a one-time AdWords activation fee upon account creation to ensure that our advertisers are committed to creating well-targeted advertisements. The fee also helps cover the costs associated with creating, maintaining and, if applicable, cancelling an account.

Google Search Network

It includes Google search pages, search sites, and properties that display search results pages, such as Google Product Search and Earthlink. AdWords ads can appear alongside or above search results, as part of a results page as a user navigates through a site's directory, or on other relevant search pages.

Google Content Network

19

It includhealth, foand The users arewebpage

AdSenseprogram per-clickAdSenselaunchedadvertisecontent, relevant would plfee each sites. Mahelpful fodevelopin

Exhibit V

“A S

des news paood, music, New York T

e actively en if the conte

e is an ad serto enable tex

k or per-th program inc

d in the first ers for displalaunched in to content o

lace ads relatime a user

any websitesfor deliveringng advertisin

VIII

Study on

ages, topic-ssports, tech

Times -- thatngaged with nt and URL

rving prograxt, image an

housand-adscludes AdSequarter of 20ay with searthe first qua

on Google Nted to flower clicks on s use adseng advertisinng sales prog

n the Bu

specific webhnology, travt allows to econtent, notof that page

am run by Gnd, video advs-displayedense for sear002 and is Grch results onarter of 200Network me

ers on that paone of their

nse to moneng revenue tgram and sal

usiness

bsites (art anvel etc)blogsextend the rt just doing e match the k

Google. Websvertisements

basis and rch and AdSeGoogle’s servn the Googl3, distributeembers’ siteage. Google r ads displayetize their cto small weles people.

Model o

nd humanitis, and other each of the searches. A

keywords in

site owners s on their site

the ads arense for convice for distrle Network mes ads from Ges. If the pa

advertisers yed on Goocontent. Ad

ebsites that d

The80%ma

of Googl

ies, businesproperties -ad campaig

AdWords adsthe campaig

or affiliates es. Revenue re administentent. AdSenributing relemembers’ siGoogle’s adge is about are required

ogle Networkdsense has bdo not have

e Google conte% of global aking it the wor

le “ 201

s, entertainm-- such as G

gn to pages ws can appeargn.

can enroll inis generated

ered by Gonse for searchevant ads froites. AdSensdvertisers tha

flowers, God to pay Gook members’been particlthe resource

ent network reainternet user

rld's #1 ad netw

10

ment, Gmail where r on a

n this d on a oogle. h was om its se for at are oogle ogle a web

luarly es for

aches rs --

work


20

Exhibit IX Some of the Partner Sites in Google Content Network

United States CNN,About.com,The New York Times,Hollywood.com,Napster.com,Myspace,Linkedin,Orkut, You tube

Germany Youtube Automotive,Bikersjournel.de, Google Finance, Stockworld, Myvedio, Netlog,Xing

United Kingdom

Herald Tribune,The Independent,Euronews,Afterdawn.com,Softpedia,Last.fm,Lyrics.com

Source: http://www.google.com/adwords/contentnetwork/partners.html#


21

Exhibit X Adwords Terminologies

Keyword The keywords you choose are the terms or phrases you want to prompt your ad to appear. For example, if you deliver fresh flowers, you can use "fresh flower delivery" as a keyword in your AdWords campaign. When a Google user enters "fresh flower delivery" in a Google search, your ad could appear next to the search results.

Placement Like keywords, placements are another way for you to control where your ads appear. A placement is usually a website where you'd like your ad to appear. For example, if you select www.example.com/sports as a placement, your ad could appear on that site.

Image ad A graphical ad, which can be static or animated, that runs on the Google Content Network. Also called a display ad.

Campaign & Ad Group AdWords accounts are organized into campaigns and ad groups. You start with one campaign, which has its own daily budget and targeting preferences. You can have multiple campaigns running and might choose to create one campaign for each product or service you want to advertise. Within each campaign, you have one or more ad groups, which are sets of related ads, keywords, and placements.

Impression (Impr.) The number of impressions is the number of times an ad is displayed on Google or the Google Network. Monitor your impressions to see how many people your ad is shown to.

Click If a customer sees your ad and clicks on it to learn more or to do business with you, it is recorded in your account as a click. Monitor your clicks to see how many people choose to enter your website from your ad.

Clickthrough Rate (CTR) Your clickthrough rate (CTR) is a metric that helps show how your ads are performing. The more relevant your ads are, the more often users will click on them, resulting in a higher CTR. The system calculates your CTR as follows: Number of ad clicks/number of impressions x 100.

Cost-per-click (CPC) Under the cost-per-click (CPC) pricing model, AdWords charges you for each click your ads receive. You won't incur any costs if your ad is displayed and users don't click it. CPC bidding is the default for ads running on Google and the Search Network. Most advertisers also choose it for their campaigns that focus on getting a direct response from their audience, whether a sale, sign-up, or other action.

Maximum cost-per-click (maximum CPC) The highest amount that you are willing to pay for a click on your ad. You can choose to set a maximum CPC for individual keywords or for all the keywords within an ad group.

Cost-per-thousand impressions (CPM) With some campaigns, you can choose to pay for views of your ad rather than clicks. The maximum CPM is the most you're willing to pay for each thousand impressions, or views of your ad. CPM bidding is only available for campaigns that target the Content Network and not Google search or search partner sites.

First page bid estimates Your AdWords account will show a first page bid estimate for each of your keywords. This metric estimates the cost-per-click (CPC) bid needed for your ad to reach the first page of Google search results when the search query exactly matches your keyword. The first page bid estimate is based on the Quality Score and current advertiser competition for that keyword.

Optimization An optimization is the process of creating/editing keywords and ad text (or adjusting other parts of the account) to improve the performance of AdWords ads.

22

4.6 Co

Estimatecost on th

Adsense own; turnGoogle'srevenuesrevenuesGoogle'sonly go tussle to(For an omoney. MGoogle.)almost 84

4.7 Di

“A S

ost Struct

s of the powhe order of U

Cost-The fon over the bu business th. (For the fi.) This bus search resuup as the o lock up sitonline ad neMicrosoft's Google's tr4% of its Ad

istribution

Exhibit XI

Study on

ture

wer required US$2 million

formula is faulk of that r

hat runs ads first three qusiness is lesults. And thether big onl

tes that geneetwork, mor$240 millio

raffic acquisidSense reven

n Channe

n the Bu

for over 450n per month

amiliar: Sellrevenue to tharound othe

uarters of 20ss profitablere are indicaline ad netwerate lots of re traffic eqn bought onition costs--nues in the th

el

usiness

0,000 serverin electricity

ads, in manhe owner of ers' content 007, AdSense than AdWators that ga

work competquality traff

quals more dnly 1.6% ofwhich incluhird quarter.

Model o

s range upwy charges.

ny cases arothe content;and pays th

se accountedWords, whicap will widentitors--Microfic, of whichdata equals f Facebook, ude fees paid

of Googl

wards of 20 m

ound conten; repeat until

he owners thd for 35% oh runs targn. The costsosoft, Yahooh there are abetter targetbut it kept

d to content

le “ 201

megawatts, w

nt Google dol the end of

he bulk of reof Google's geted ads ar for eyeballso!, and AOLa limited numting equals that traffic players--com

10

which

oesn't time.

elated gross round s will L--all mber. more from

me to

23

4.8 Ide

They usethat ideaseverywhepeople toand priorin-page eform, anproject idcost, a loteams. Thfind effor

4.9 Ex

Google lout thereGoogle Lfeedback

“A S

Exhibit XII

eas

e a process ths come fromere. Google o have a misritize them. Tediting. The

nd you can adeas that weot of peoplehey give an rts that are c

xperiments

launches its e to the publLabs is a grk on projects

Study on

I

hat lets ideam the top dow

has several scellaneous mThis is a toose are basicadd new idee consider ane will share update on w

correlated.

products qulic, listen to reat tool to s. All these

n the Bu

as really thrivwn. Somethiactive emai

mailing list.l at Google

cally project eas to the lind prioritizeideas. Snipp

what they're w

uick and oftethe feedbacget, immediprojects are

usiness

ve. Ideas coming they comil lists just fEmployeescalled Sparrideas. Ther

ist. We liter. If you makpets. Those working on,

en. They belck, and see wiate respons

e called Goo

Model o

me from eveme from the for ideas.. Itcompile all

row. It's a typre are also lirally have hke the captuare brief w

, and it's a w

lieve that thewhat peopleses to a partogletttes ( ba

of Googl

erywhere. Sobottom up. 's odd for a of those idepical Web pittle widgets

hundreds if nring of idea

weekly reporway to help s

e easiest thin think is imticular idea aby Googles

le “ 201

ome people They come company of

eas, discuss tage, but it als. They pop not thousans simple and

rts from diffself-organize

ng to do is pmportant. Thr

and revives) startups w

10

think from f 200 them, llows up a

ds of d low ferent e and

put it rough early

within


24

the startups.. Another example is Orkut, which is named after one of Google’s core engineers. We have something we call 20% time. Orkut's is actually the social coordinator for Google. But because of his social network interests, Orkut dedicates his side time, his 20% time, to work on whatever he wants to work on. Orkut started working on building this social networking site. He sent a mail out to the miscellaneous list, and within hours, we had 1,000 employees signed up. This really sparked people's imagination, thus Orkut was launched.

4.10 Recruitment

Many organizations have changed their pay or benefits in order to attract better workers, but no one has changed every professional job in the company just so that the work itself is the primary attraction and retention tool. Rather than letting work, jobs, and job descriptions be put together by the "out of touch" people in corporate compensation, Google's founders (Larry and Sergey as everyone calls them), HR director Stacy Sullivan, and the leadership team at Google have literally crafted every professional job and workplace element so that all employees are:

- Working on interesting work - Learning continuously - Constantly challenged to do more - Feeling that they are adding value.

The key element of changing the work so that the work itself becomes a critical attraction and retention force and driver of innovation and motivation is what Google calls "20% work." There is no concrete definition of what 20% work means, but generally for professional jobs it means that the employee works the equivalent of one-day-a-week on their own researching individually selected projects that the company funds and supports. Both Google Groups and Google News products are reported to have started as a result of personal 20% time

But its greatest value is that it drives innovation and creativity throughout the organization. At Google, innovation is expected of everyone in every function, not just product development. The 20% time, along with the expectation of continuous and disruptive innovation, has driven the company's phenomenal success in product and service innovation. Yes, in this rare case, HR activities and policies are actually driving corporate business success.

4.11 Value Proposition

From its modest start as a search-engine research project at Stanford University in the mid-1990s, the Google universe has expanded exponentially with new products and services. It's already a word processor, e-mail service, smartphone, and aims to be a storehouse of every


25

printed word in human history. Google allows us to cruise the streets of New York and Rome, or scour the surfaces of the moon and Mars. We can track global flu trends, monitor our household energy usage or simply edit photos.

Google wants to own your every waking minute online--at home, while in transit, at your workplace, wherever you happen to be. It makes connectivity so easy, on a desktop, laptop or mobile phone. How much easier via a little-known business called Google Applications that allows us to instantly share Google calendars, spreadsheets, memos, reports, e-mail, corporate blogs, presentations and more--much, much more--by storing them in Google's enormous data centers. These bundled office-suite services make Google money on subscriptions, but they are also something of a Trojan horse to pull more people onto the Internet so that Google can make even more money from ads. By expanding what kinds of information people organize and share, as well as what they search, Google makes users ever more dependent on it to get through the day.


26

Exhibit XIII List of Google Products

Desktop Standalone Applications Chrome,Earth,Pack,Picasa,Talk,Sketch Up, Quick Search,Adwords Editor

Desktop Extensions Dashboard Widgets,Toolbar, Gears Online Mobile Products Blogger ,Buzz,Calender,Gmail,News,

Igoogle,Product Search,Reader,Picasa, latitude, Maps Navigation

Downloadable Mobile products Gmail, maps, sync,Talk,Voice, You Tube, Web Products Account Management‐ Dashboard

Advertising‐Adsense, Adwords,Optimizer,DoubleClick, Tv Ads

Communication & publishing‐ Apps, Blogger,Buzz, Calender,Docs,Gadgets,Gmail, Igoogle,Orkut,Picasa, Reader, Voice, Wave, You Tube

Development Android, AppEngine,Code,Chrome OS, Mapping City Tour,Map Maker,Building Maker,Mars,

Moon,Sky Map, Transit Search Alerts,Base, Blog Search, Book Search, Check

Out,Dictionary, directory, Finance, Image Search, News, Product Search,Scholar,Vedio, Web History,WebSearch

Statistics Analytics,Gapminder,Trends Hardware Google search appliance,Nexus one

Source: http://en.wikipedia.org/wiki/List_of_Google_products#Standalone_applications

27

5 Swo

Exhi

6 Cri

6.1 Cli

Google ha person having an

6.2 Se

There hais that th

“A S

ot Analys

ibit XIV

iticisms

ick Fraud

has also beenor automat

n interest in

curity

ave been some software c

Top

R

Un

R

Study on

is

n criticized bted script is the product.

me concerns can be used t

STRENGTH

King of Searc

10 Web brand

Relevance Ran

Extra Service

Speed

Opportuniti

nmapped Cou

Reach new con

n the Bu

by advertiserused to gen

.

about nationto pinpoint w

S

ch

ds in US

nking

es

es

ntries

ntent

S

usiness

rs regardingnerate a cha

nal security with near-pr

SWOT

Model o

its inabilityarge on an a

implicationsrecision accu

One main s

L

Advertising ‐p

PossibiUsers

Print collectInformatio

L

T

of Googl

y to combat cadvertisemen

s in Google Euracy the phy

Weakness

source of reve

Lack of focus

Only from tecperspective

Threatsility of censorget lost/confu

tion become len skills will dLegal trialsClick fraud

le “ 201

click fraud, wnt without r

Earth; conteysical locati

nue only

chnological

rship used ess visible isappear

10

when really

ention on of

28

critical inon.

Backlashseries of Critics arreveal on

Google Eofficials,typical ainstallatio

7 Com

7.1 Go

Microsofwithout atheir horTalking oMay 200features Bing-rela

The closefinding aWord an

“A S

nfrastructure

h over Googlaunch fumbrgued this dene's doctor or

Earth has b as being a

argument is ons that cou

mpetitor

oogle and M

ft is a compa doubt it isrns for markof these two 09, Microsofsuch as rankated deals w

er you look and acquirind Excel wer

Study on

e, commerci

gle Buzz, thbles that somefault setup r psychiatris

been criticizan invasion

that the sold be used b

rs

Microsoft

pany that hass Google’s bket supremac

giants, Gooft has raisedking search ith Twitter, F

at the two cong complemre developed

n the Bu

al and reside

he companyme argue revcould inadv

st.

zed by a nuof privacy oftware proy terrorists.

s had one obiggest advecy in areas sogle has reignd few questiresults base

Facebook an

ompanies, thmentary technd in-house, m

usiness

ential buildi

's new sociaveal troublingertently aid

umber of speand even po

ovides inform

f the most dersary in 20such as searned as leadeions amonged on relevand Yahoo.

he more aliknology. Whmany other t

Model o

ngs, bases, g

al-networking blind spotsstalkers, jeo

ecial interesosing a thremation abou

dominant im10 and thesrch, collaboers in search,st in Googl

ancy to othe

ke they seemile powerhotools and ser

of Googl

government

ng service, is within the I

opardize jour

st groups, ineat to nationut military

mpacts in thee two giants

oration tool, but with ree’s managem

er users, Mic

m, especially ouse productrvices came

le “ 201

agencies, an

is the latestInternet gianrnalist source

ncluding natnal security.or other cr

e IT industrys will be locls and browelease of BINment team. crosoft has i

when it comts like Micrfrom outsid

10

nd so

t in a nt. es, or

tional . The ritical

y. So cking

wsers. NG in

With inked

mes to rosoft de the


29

company. In 1987, Microsoft bought a small company called Forethought for $14 million, snagging its PowerPoint presentation software in the process. And in 1997, it bought Hotmail, which to this day remains one of the largest web-based e-mail services. "They're really similar companies," says Dempsey, who before joining Google worked in Microsoft's corporate development department. "They're both software companies. The software DNA is the same for both. And both favour smaller deals. Microsoft has just been an acquirer of companies for a longer period of time."

Microsoft collects sales and licensing revenue for its products, Google's business model relies overwhelmingly on selling ads around its services. Despite its foray into so many different sectors, a whopping 97% of Google's revenues still come from web- and search-related ads. And for all the takeover deals it's done, Google has yet to come up with an alternative revenue stream.

Google's attack on Office is likely to be much tougher and slower. The fact remains that Microsoft has long-standing customer relationships across the globe, a network of consultants and integrators, and a strong customer support system. Besides, Microsoft is already making moves to the cloud, such as with June's launch of Office 2010. But there are problems. First of all, the infrastructure costs for cloud-computing are higher than traditional software. This could lessen the margins on Office, which are a staggering 64%. Also, as Google gets more traction, there will likely be downward pressure on pricing. The Wall Street Journal reported that Google says Microsoft is waging a global proxy campaign to cause trouble for Google with antitrust authorities around the world. As evidence, Google points to two European companies -- both with ties to the software giant in Redmond, Wash. -- that have filed complaints about Google with European antitrust authorities.

Google Apps is designed to undercut sales of Microsoft products, including Exchange and SharePoint. Microsoft has responded with Office Web Apps, free Web-based versions of Word, Excel, PowerPoint and OneNote that are due out in 2010. Last but not the least; the browser war between these two is giants are likely to heat up in 2010. So 2010 awaits the answer if ever so popular Microsoft’s premier browser’s market share could be brought down

30

7.2 Go

Being fro2010. ToMobile Aup to thecompetesmusic anpartner Mmusic reApple’s i

Apple's ((GOOG)which mambition

"We canabout it,"The suit District C

This lawyear agopreparing

“A S

oogle and A

om partnersoday, AppleApp Store, Oe task of bas against Apnd SmartPhoMySpace andetailer in UniPhones cont

(AAPL) blo, which has

manufacturesns.

n sit by and " Apple CEO

was filed Court in Dela

wsuit is the la, Google CEg to roll out A

Study on

Apple

to rivals, Ae and GooglOS, Mobile attling Googpple Safari. ones is all sd Pandora arnited States tinues to gra

ockbuster laws been leapin Google's N

watch compO Steve Jobsconcurrentlyaware.

atest episodeEO Eric SchAndroid pho

n the Bu

Apple is onele have beenAd, and On

gle in these But battle bset for growre looking toin 2009. F

ab hold of th

wsuit againng into the

Nexus One

petitors steas said in a sty with the

e in a remarhmidt sat onones in direc

usiness

e of the strinn locking thnline Musicareas as w

between wilwth in 2010o compete wurther, Goo

he market all

nst phone-mmobile phophone, it co

al our patenttatement. "WU.S. Interna

rkable fallingn Apple's boct competitio

Model o

ngent opponheir horns i and so on. Lell as browl intensify, . Google’s

with Apple’s ogle’s Andro

round the g

maker HTCne businessould kneeca

ted inventioWe've decideational Trad

g out betweoard. He lefton with Appl

of Googl

nents for Gon the field Likewise, Apsers, where as the markmusic searciTunes, wh

oid will havglobe.

C is clearly a. If Apple cap the searc

ns, or we ced to do somde Commiss

en Apple anft last Augusle's iPhone.

le “ 201

oogle in theof Smartphpple is moreGoogle Ch

ket for the dch along witich was the

ve tough tim

aimed at Gocan hobble Hch giant's m

an do somemething abousion and in

nd Google. Jst as Google

10

year hone, e than hrome digital th its No 1

me as

oogle HTC,

mobile

ething ut it."

U.S.

Just a e was

31

7.3 Go

When it Yahoo hSearch an2009, Yacan watc

Yahoo aladded TwMicrosofyear to wforces be

7.4 Go

“A S

oogle and Y

comes to shas been in nd Analyticsahoo made soh videos or s

lso helps usewitter to its ft is approvewatch as otheing formed

oogle and

Study on

Yahoo

search, one the market s services. Some improvstream musi

ers find travesearch Page

ed by federalher competitoby their riva

Amazon

n the Bu

of Google’with variety

So without dvements in 20c straight fro

el deals and e and if a jol regulators. or look to oals.

usiness

s biggest coy of produc

doubt it will 009 by integom the Yaho

compare prooint search aThis could p

outperform G

Model o

ompetitors bts in areas be a fearsom

grating searcoo search res

oduct pricesand advertisiprove costly

Google in th

of Googl

besides Micof email, M

me competitch with its ricsults page.

. Further, Yaing deal betw

y to Google she market wi

le “ 201

crosoft is YaMessenger, N

or for Googch content. U

ahoo has recween Yahooso the 2010 iith different

10

ahoo. News, le. In Users

cently o and is the joint

32

In 2009, online sebooks forFurther, twith Am

Amazon area whecloud comthem on (EC2) whit will becomputin

7.5 Go

Facebookequippedis on ads70% of radvertiseprofit. Uincrease to heat upSocial NGoogle’sFacebook

Orkut offto their

“A S

Google’s efearch did gair free to custhere claimsazon.

with its Kinere Google ismputing plaGoogle’s in

hich has alree a great bang and E-boo

oogle And

k is well armd with its divs. Google harevenue comement is the ltimately, ththe probabilp based on q

Network? Ws worry seemk.

ffers Google sites, in di

Study on

ffort of scanin up some mstomers of Sos of opening

ndle e-book rs taking on Aatform that anfrastructureeady grab hoattle to watchok readershi

Facebook

mored with versified proas around 90ming from ad

cash cow fohat is what blity of increaquestion tha

With ever incms to a viable

Friend Connirect compe

n the Bu

nning milliomomentum aony Reader up Google E

reader is oneAmazon is inallows devele will be coold of marketh when thesp.

k

its mass appoduct portfol0% of its revds. So, puttinor them. Bothboth these giasing the revat where willcreasing usee one. So, in

nect, a tool etition with

usiness

ons of out-ofand helped thand Barnes Editions, an

e of the leadn cloud comlopers to creompeting wit with its sevse two giant

pealing socilio. But for bvenue cominng both thesh these comiants are fig

venue In 201l people finde of social n 2010 Goog

for Web pubsimilarly n

Model o

f-print bookhemselves to& Noble Noe-book stor

ders in e-boomputing. Gooeate their owith Amazonveral upgradts fight for m

al networkinboth of thes

ng from the ase biggies on

mpanies bankghting for – i10, Google ad there inform

networkinggle with its O

blishers to adnamed Face

of Googl

ks and incoro publish ovook, which ire, has opene

ok reader’s mogle’s Apps Ewn Web app’s Elastic C

de after its remarket supr

ng site whilee companiesads while Fan the same p

k on user datincreasing u

and Facebookmation in fu

g and the riORKUT will

dd social neebook Conn

le “ 201

rporating thever 500000 dis due in Janed up new ri

market. The Engine, a nelications and

Computing Celease in 200remacy on C

e Google is s, the real macebook hasplate, we seeta to move uuser base so k rivalry is l

uture in Searise of Facebl be in battle

etworking conect. Meanw

10

em in digital nuary. ivalry

other ewbie d run

Cloud 06. So Cloud

fully money s over e that

up the as to

likely rch or book, e with

ontent while,

33

Facebookand Yaho

Source: c

7.6 Go

Google dcollaborWave anquality bTeleprese

“A S

k has soughtoo. So it is fo

compete.com

oogle and

definitely haative platfo

nd Voice. Inby focusingence.

Study on

t out relationfor sure that t

m

Cisco

as a tough chorm, WebExn addition tog on collabo

n the Bu

nships with sthis battle is

hallenge agax, and supero this, Ciscooration thro

usiness

several arch-worth takin

ainst Cisco. rior VOIP so also is looough interne

Model o

-enemies of ng a note off

With years service, Ciscoking to enhet video, de

of Googl

Google, incin 2010.

of experienco poses a thhance its videsktop video

le “ 201

cluding Micr

nce on web bhreat to Goodeo confereno and cons

10

rosoft

based ogle’s ncing sumer

34

In additiGoogle iCisco on

Moreovevery neaCisco’s iGoogle’s

7.7 Go

Source: d

2010 is lsuch as collaborahas attrac

7.8 G

“A S

on to this, Cis looking to this front.

er, accordingar future (actintent to takes Nexus One

oogle and I

dailybits

likely to reoGoogle Wa

ation tools sucted more th

Google and

Study on

Cisco’s preso take everyt

g to Networktually by me video to the in the comi

IBM

open Googleave. Googleuch as Goog

han 2 million

d Nokia

n the Bu

sence in Clothing to the

kworld, Ciscid-2010). Its

he mobile phing days.

’s rivalry we has stepp

gle Apps. Gon businesses

usiness

oud is anothweb, it cert

co is lookings recent acq

hone. Thus, w

with IBM wited into the

oogle will coin the last tw

Model o

her leading etainly will fa

g to enter inquisition of Pwe might see

th the release battle fieldompete againwo years.

of Googl

edge it has ace a good c

nto SmartphoPure Digitale Cisco givi

se of new cod with its

nst IBM’s Lo

le “ 201

over Googlecompetition

one market il and Flip sng a hard tim

ollaboration low cost h

otus Lives, w

10

e. As from

in the hows me to

tools osted

which

35

Source: n

Today, Nincrease peripherycompetinOffice M2010 mefor majoMotorola

So, at thigearing uinterestinGoogle o

7.9 Go

Source: gr

With relehas been interest bhas now default seto get a dimpact GGoogle’sthe obvio

“A S

nae.es

Nokia has hain use of sm

y of operatinng with Goo

Mobile to Syans Google r developme

a this will be

is point one mup to poise sng battle is on their toes.

oogle and

raphicsguru

ease of Googin the mark

between thesgone to de

earch enginedeal with MGoogle imms share of theous browser

Study on

ad grab hold mart phonesng systems fogle’s Androymbian deviAndroid wilents in 2010

e a worthwhi

may feel Goserious threaall set to ke.

Mozilla

gle Chrome,kets for yearsse two. Of laefault searche status. The

Microsoft to mmediately bue search marwar and now

n the Bu

of the mobis, means thefor Smartphooid. Nokia wices. With cll have to fa0 and with ile battle to w

oogle has touats either sineep the 201

, Google hass and now thate the war bh. Mozilla ne latest rumomake Bing aut eventuallyrket. Hence, w the war ov

usiness

ile phone mae IT giants Gones. Symbiawith recent claim of releace off toughcommitmentwatch in 201

ugh battle to ngle handed 0 interesting

s stepped inthis step frombetween the now has shoours on the ias its defaulty this moveGoogle now

ver default se

Model o

arket with 4 Google will an Open soudeals with

easing improh battle. Butts from Ace

10 and years

fight in 201or with collg enough fo

to ever so pom Google is l

two has heaown intent tinternet showt search enge, if comesw has Mozillearches.

of Googl

out of 10 mbe in rivalr

urce operatinMicrosoft isoved version, Google’s Aer, Sony Eri to come.

0. Most of tlaboration. Sor us to wat

opular browslikely to creaated up even to kick Goow that Mozilgine in Firefos true, is likla on a doub

le “ 201

mobiles sold. ry with Nokng system ws all set to n of Symbi

Android is piccson, HTC

the arch rivaSo, 10 line utch and keep

se battle. Moate the conflmore. The b

ogle out fromlla is now eyox. This makely to dec

ble war zone

10

With kia in

will be bring an in oised

C and

ls are ups of p the

ozilla lict of battle m its yeing

ay not crease ; first


36

8 The Road Ahead

Google‘s chief executive Eric Schimdt predicted a massive shift of advertising revenues from the fixed web to mobile platforms similar to that of print publications to the internet. The change would happen because mobile advertising could be more precisely targeted, making it more effective. When Google Inc. in January began to sell its Nexus One mobile phone from its own web site, online retailers could be forgiven for worrying the search engine giant one day might stomp all over them.

What’s more, Google’s vast store of knowledge about consumer behavior, and about how that behavior is changing minute to minute, would give Google an extraordinary leg up as a web retailer. “They know what people want through search, they know what is hot. It’s almost an unfair advantage,” says Kevin Lee, CEO of search engine marketing firm Didit.com LLC.

It’s not clear how far Google intends to press that advantage. But the company has said that its Nexus One e-commerce site, Google.com/phone, will not be its last venture into selling directly to consumers via the web. “It’s the first in what we expect to be a series of products which we will bring to market with our operator and hardware partners and sell through our online store,” Mario Queiroz, the company’s vice president of product management, wrote in a blog post as the phone went on sale.

Google Editions, meanwhile, is set for launch in the first half of the year. Customers who buy e-books from this Google store will be able to access the works through most computer, phone or e-book readers. This device-agnostic approach sets it apart from Amazon, which uses a proprietary e-book format designed primarily for its own Kindle reader.

The plans in the works suggest Google is likely to focus on selling digital goods, such as e-books and entertainment content, taking advantage of its vast web infrastructure and massive amounts of data about online shoppers. Moving further into hard goods would require Google to invest in warehouses and distribution networks, which would be a big departure for this web-centric company.

Whatever direction Google takes, data from search will serve as a guide, and any moves into retail likely will boost Google’s core business. Every click a consumer makes when conducting a search and every word used in a Gmail message, helps Google better understand what consumers are looking for, when they are looking for it and where that search comes from. Google can use that data to stay on top of trends and build ever more detailed pictures of various consumer types, advantages for any retailer.


37

Google has said it wants to go carbon neutral. With the FERC order, it can now effectively erect as many solar panels and install as many fuel cells as it likes without worrying about having purchased too much capacity; the company can now sell off the extra power it generates. Google can now exploit its massive data centers to provide services for controlling power consumption in commercial buildings, industrial sites, and homes. Google PowerMeter, currently in beta, allows you to see your own electricity usage information (on iGoogle widget) and helps you to improve your efficiency in a variety of ways. Google PowerMeter receives information from utility smart meters and energy management devices and provides customers with access to their home electricity consumption right on their personal iGoogle homepage.

Real and potential missteps aside, it’s hard to forget that Google already has transformed, indeed practically created, the online advertising industry. And it has the financial heft and the constantly growing storehouse of data to potentially alter online retailing, even if the elephant has yet to hit its full stride.

9 Annexure

Exhibit XV

Google Vision

Focus on the user and all else will follow. It's best to do one thing really, really well. Fast is better than slow. Democracy on the web works. You don't need to be at your desk to need an answer. You can make money without doing evil. There's always more information available. The need for information crosses all borders You can be serious without a suit Great just isn't good enough

38

Revenue (Google WeGoogle NeLicensng a

“A S

Exhib

Source:

Exhi

Sourc

Exh

( % of revenueebsites etwork Websiteand other reven

Study on

bit XVI Inco

: Google Finan

ibit XVII

ce: Google Fin

hibit XVIII

es)

es nues

n the Bu

ome Stateme

nce

nance

usiness

ent In Millio

2009 Q466% 31% 3%

Model o

ons of USD

4

of Googl

le “ 201

10

39

Sou

Ex

S

“A S

rce: Google In

xhibit XX

Source:http://m

Study on

nvestor Relatio

marketshare.hit

n the Bu

Ex

ons

tslink.com/( as

usiness

xhibit XIX

on March 201

Model o

10)

of Googlle “ 20110

40

Exhibit X

Source:ht

Exhibit X

Source:ht

“A S

XX I

tp://marketsha

XXII

tp://marketsha

Study on

are.hitslink.com

are.hitslink.com

n the Bu

m/ /( as on Mar

m/ /( as on Mar

usiness

rch 2010)

rch 2010)

Model oof Googlle “ 20110

41

Exhibit X

Source:htt

“A S

XXIII

tp://microrevie

Study on

ews.org/files/2

n the Bu

2009/10/Email

usiness

lMarketShare.j

Model o

jpg

of Googlle “ 20110

42

Exhibit X

Source: se

Exhibit X

“A S

XXIV

earchenginew

XXV- Stock

Study on

watch.com/363

Price

n the Bu

35350

usiness Model oof Googlle “ 201

10

43

Source: htt

Exhibit X

Number

1

2

3

4

5

6

7

8

9

10

“A S

tp://www.goog

XXVI- Merg

Acquisition date

February 12, 2001

September 20, 2001

February 2003

April 2003

April 2003

September 30, 2003

October 2003

October 2003

May 10, 2004

June 23, 2004

Study on

gle.com/finance

gers and Aqu

Company

Deja

Outride

Pyra Labs

Neotonic Software

Applied Semantics

Kaltix

Sprinks

Genius Labs

Ignite Logic

BaiduA

n the Bu

e/historical?q=

uisitions

Busines

Usenet

Web searchengine

Weblog software

Customer relationshipmanageme

Online advertising

Web searchengine

Online advertising

Blogging

HTML edi

Chinese language se

usiness

=NASDAQ:GO

ss Coun

USA

h USA

USA

p ent

USA

g

USA

h USA

g

USA

USA

tor

USA

earch CHN

Model o

OOG

ntry

Valu(USD

A

A

A

A

A $102,

A

A

A

A

N $5,00

of Googl

ue D)

Used

Googl

GooglSearch

Blogg

Googl

000,000

AdSen

iGoog

AdSen

Blogg

0,000

Baidu

le “ 201

d as / Integrawith

le Groups

le Personalizeh (iGoogle)

er

le Groups, Gm

nse, AdWords

gle

nse, AdWords

er

10

ated

ed

mail

s

s

44

11

12

13

14

15

16

17

18

19

20

21

“A S

July 13, 2004

September 2004

October 2004

October 27, 2004

March 28, 2005

May 12, 2005

July 2005

July 7, 2005

August 17, 2005

November 2005

November 17, 2005

Study on

Picasa

ZipDash

Where2

Keyhole, Inc

Urchin Software Corporation

Dodgeball

Reqwireless

Current Communications Group

Android

Skia

Akwan Information

n the Bu

engine

Image organizer

Traffic ana

Map analy

Map analy

Web analy

Social networkingservice

Mobile bro

Broadbandinternet acc

Mobile software

Graphics software

Search Eng

usiness

USA

alysis USA

sis

AUS

sis

USA

ytics

USA

g USA

owser

CAN

d cess

USA

USA

USA

gines

BRA

Model o

A

A

S

A

A

A

N

A $100,

A

A

A

of Googl

Picasa

GooglMobil

Googl

GooglEarth

Googl

Googl

Googl

000,000

Interne

Andro

AndroChrom

Interne

le “ 201

a, Blogger

le Maps for e

le Maps

le Maps, Goog

le Analytics

le Latitude

le Mobile

et backbone

oid

oid, Google me Browser

et backbone

10

gle

45

22

23

24

25

26

27

28

29

30

31

32

“A S

December 20, 2005

December 27, 2005

December 31, 2005

December 31, 2005

January 17, 2006

February 14, 2006

March 9, 2006

March 14, 2006

April 9, 2006

June 1, 2006

August 15, 2006

Study on

Technologies

AOLB

Phatbits

allPAY GmbH

bruNET GmbH

dMarc Broadcasting

Measure Map

Upstartle

@Last Software

Orion

2Web Technologies

Neven Vision

n the Bu

Broadbandinternet acc

Widget eng

Mobile software

Mobile software

Advertising

Weblog software

Word proc

3D modelinsoftware

Web searchengine

Online spreadshee

Computer vision

usiness

d cess

USA

gine

USA

GER

GER

g

USA

USA

essor

USA

ng USA

h AUS

ets

USA

USA

Model o

A $1,00

0

A

R

R

A $102,

A

A

A

S

A

A

of Googl

0,00,000

Googl

Googl

Googl

000,000

AdSen

Googl

Googl

Googl

Googl

Googl

Picasa

le “ 201

le Desktop

le Mobile

le Mobile

nse

le Analytics

le Documents

le Sketchup

le Search

le Spreadshee

a

10

s

et

46

33

34

35

36

37

38

39

40

41

42

43

44

45

“A S

October 9, 2006

October 31, 2006

December 18, 2006

January 4, 2007

February 16, 2007

March 16, 2007

April 17, 2007

April 19, 2007

April 13, 2007

May 11, 2007

June 1, 2007

June 3, 2007

June 5,

Study on

YouTube

JotSpot

Endoxon

XunleiC

Adscape

Trendalyzer

Tonic Systems

Marratech

DoubleClick

GreenBorder

Panoramio

FeedBurner

PeakStrea

n the Bu

Video shar

Web application

Mapping

File sharing

In-game advertising

Statistical software

Presentatioprogram

Videoconfeing

Online advertising

Computer security

Photo shari

Web feed

Parallel

usiness

ring

USA

n

USA

CHE

g

CHN

g

USA

SWE

on USA

ferenc SWE

g

USA

USA

ing

ESP

USA

Model o

A $1,65

0

A

E $28,0

N $5,00

A $23,0

E

A

E $15,0

A $3,10

0

A

A $100,

of Googl

0,00,000

YouTu

Googl

00,000

Googl

0,000

00,000

AdSen

Googl

Googl

00,000

Googl

0,00,000

AdSen

Googl

Panora

000,000

FeedB

Server

le “ 201

ube

le Sites

le Maps

nse

le Analytics

le Documents

le Talk

nse

le Chrome

amio

Burner

r (computing)

10

s

)

47

46

47

48

49

50

51

52

53

54

55

56

“A S

2007

June 19, 2007

July 2, 2007

July 20, 2007

July 9, 2007

September 27, 2007

October 9, 2007

July 30, 2008

September 12, 2008

August 5, 2009

September 16, 2009

November 9, 2009

Study on

m

Zenter

GrandCentral

Image America

Postini

Zingku

Jaiku

Omnisio

TNC (Tatter and Company)

On2

reCAPTCHA

AdMob

n the Bu

processing

Presentatioprogram

Voice overInternet Protocol

Aerial photograph

Communics security

Social netwservice

Micro-blog

Online vid

Weblog software

Video compressio

Security

Mobile advertising

usiness

USA

on USA

r USA

hy

USA

cation USA

work USA

gging F

eo

USA

KOR

on

USA

USA

g

USA

Model o

A

A

A $45,0

A

A $625,

A

FIN

A $15,0

R

A 124,6

A

A $750,

of Googl

Googl

00,000

Googl

Googl

000,000

Gmail

Googl

Googl

00,000

YouTu

Textcu

$ 00,0

00

000,000

le “ 201

le Documents

le Voice

le Maps

le Mobile

le Mobile

ube

ube.com

10

s

48

57

58

59

60

61

Source: W

10 Ref

1. DJa

2. N

3. S

S

4. RJa

5. Bht

6. S

“A S

November 9, 2009

November 23, 2009

December 4, 2009

February 12, 2010

February 17, 2010

Wikipedia

ferences

Dr. John Sullan2,2010.

Nicholas G C

ergey Brin earch Engin

Rob May, Swan 20,2010

Brent Hummttp://www.d

heriff Rama

Study on

Gizmo5

Teracent

AppJet (EtherPad)

Aardvark

reMail

livan, A Cas

Carr, The Go

and Lawrenne, http://inf

warm Theo

mer, Greg Jdailyspeculat

adan,Google

n the Bu

VoIP

Online Advertising

Collaboratireal-time e

Social Sear

Email Sear

se Study of

oogle Enigm

nce Page, Thfolab.stanfor

ory and Co

Jones, Audrtions.com/, J

Marketing

usiness

USA

g

USA

ive ditor

USA

rch

USA

rch

USA

Google Rec

ma,http://ww

he Anatomyrd.edu/pub/p

rporate Str

re Wilde, SJan 20,2010

g Secrets , ht

Model o

A $30,0

A

A

A $50,0

A

cruiting,http

ww.strategy-b

y of a Largpapers/googl

rategy, http

Steve Elliso

ttp://ezineart

of Googl

00,000

Googl

Adsen

Googl

00,000

Gmail

p://www.drjo

business.com

ge Scale Hye.pdf ,Jan

://www.busi

on, Google

ticles.com, J

le “ 201

le Voice

nse

le Wave

ohnsullivan.c

m/ ,Jan 2,201

ypertextual 20, 2010

inesspundit.c

Strategic P

Jan 20,2010

10

com/,

10

Web

com/,

Plan,


49

7. Stephen E. Arnold, Where is Google Going, http://www.googleguide.com/ Jan 27,2010

8. Google Guide , http://www.googleguide.com/, March 7,2010

9. Tom Taulli, Google takes another shot at Microsoft Office, www.dailyfinance.com,

March 7,2010

10. Sam Gustin, Google Backs Its Handset Maker in Phone War with Apple ,http://www.dailyfinance.com/ , March 7,2010

11. 10 Toughest competitors of Google, http://technology.globalthoughtz.com, March 7,2010

12. Kirby, Jason, How Google really does it, Canadian Business, 10/13/2009, Vol. 82 Issue 18, p54-58, 4p,Feb 28,2010, March 8 2010

13. Hardy, Quentin, When Google Runs Your Life, Forbes; 12/28/2009, Vol. 184 Issue 12, p88-93, March 8 2010

14. Fine, Jon, Google and Other People's Content, BusinessWeek; 12/3/2007, Issue 4061, p075-075, March 8 2010

15. http://en.wikipedia.org/wiki/Google, March 8 2010