Transcript
Page 1: Google Strategy & Business Model
Page 2: Google Strategy & Business Model

ContentCompany profilePEST analysisFive forces analysisValue chainCanvas modelCore problemDifferentiation matrixCanvas model +5Strategy

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Mission & Vision

Google's mission is to organize the world's information and make it universally accessible and useful.

Google's vision is to make search engines so powerful that they ‘understand everything in the world’

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Company profile

Started in 1996 by Brin and Page, founded as Google in 1998

57% American kids say Google as their first word

620 Mln visitors daily

2013 consolidated revenu 50 bln, double digit growth every year

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PEST analysisPolitical

Political stability

Intellectual property protection

Anit-trust laws

Taxes

Economical

Level of education/Skill of workforce

Exchange rates

Financial market stability

Government intervention free market

Social

Entrepreneurial spirit

Culture (gender roles)

Demographics

Skill of workforce

Growth market due to more and more internet usage

Technological

Innovation

High costs

Rate of technological diffusion

Impact on VP in value chain

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Five forces analysisThreat of new entrants – MODERATE (high cash and infrastructure)Threat of substitutes – LOW (no substitute for the internet)Bargaining power of customers – STRONG (threat of substitutes in search and software)Bargaining power of suppliers – LOW (strong market dominance)Intensity of rivalry – MODERATE (Yahoo, MSN, IOS/Apple)Complementors – LOW (Google is a self developer, Licensing)

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Market Life Cycle

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Value chain Model

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Canvas Model

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Strenghts – brand value, data mining, human capital

Weaknesses – privacy, Google+, one source of profit

Opportunities – web services, acquisitions, mobile internet

Threats – unprofitable products, litigation, excessive integration

SWOT analysis

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Confrontation matrix

SWOT Service Acquisit Mobile Profit Legal Integration

Brand ++ o ++ ++ - +

Data ++ o ++ ++ -- o

HC ++ ++ ++ ++ ++ ++

Privacy o o -- - -- --

G+ o o o -- o --

Profit S ++ ++ + -- -- ++

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Some of its core strengths

(data mining, product integration)

are making Google

more and more unpopular. People do not like monopolies

Core problem

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Canvas Model +5

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StrategyGoogle must continue its position as market leader

Google Must cancel unprofitable and unpopular products (hardware?)

Google must develop new sources of income (web services)

Google must fight of any attack made by rivals

Google must make adds usefull (comparing prices, etc.)

Google must oppose intelligence agencies openly

Google must reduce legal expenses by 11% by 2016

Google must continue its acquisition strategy

Google must invest heavily to keep and acquire human capital

Google must maintain shareholder voting rights (80%) to keep strategic advantage