GOOGLE INCORPORATION

=
1 x 10100
FOUNDERS:

Larry Page Sergey Brin

MISSION (AT THE TIME OF FORMATION)
Creating ultimate search engine to help users tame the unruly and
exponentially growing repository of information i.e., internet.
MISSION (IN 2010)
Organize the world’s information and making it universally
accessible and useful.
Most effective, most profitable way to accomplish mission is to put
users first.
MISSION STATEMENT (2013)

“Google’s mission is to organize the world’s information and make it

universally accessible and useful.”
HISTORY
Founded : 1998 by Stanford University graduate students
Headquarter : US
Sector : Technology Services
Industry : Internet Software and Services
Market Capital : $ 217.6 Billion
 LOCATION

More than 70 Offices in 40 Countries

GOOGLE’S PRODUCTS AND SERVICES

google

Search
Applications Clients Maps Android
engines
PHILOSOPHY OF GOOGLE INC.
• Focus users
• Do 1 thing in best way
• Fast is better than slow
• Democracy on webworks
• No need to be at desk to need answer
• There’s always more info
• No boarders for information getting
• Be serious at work
• Great is not good enough
COMPETITORS
• Yahoo
• AOL
• Microsoft
MARKET SHARE (2013)
C S
OMPREHENSIVE TRATEGY

F
ORMULATION F RAMEWORK
3 STAGES OF STRATEGY FORMULATION:

Input Matching Decision

Stage Stage Stage
IFE Matrix SWOT QSPM

EFE Matrix SPACE Matrix

CPM Matrix BCG Matrix

IE Matrix

Grand Strategy
Matrix
INPUT STAGE

IFE Matrix

EFE Matrix
Input Stage
SFE Matrix

CPM Matrix
 IFE MATRIX
(INTERNAL FACTOR EVALUATION)
 IFE MATRIX

Weighted
Strengths Weights Rates average

Attention grabbing initial public offering 0.02 3 0.06

Payment of higher returns to investors (than any Co. in S&P 500) 0.03 3 0.09
Strong brand image among search engines 0.12 4 0.48
global leader in technology 0.06 4 0.24

BOD and Executive members experienced and are from Various tech
organizations 0.05 4 0.2
increase in Google's revenue internationally 0.07 4 0.28

use of censors according to locations in searches e.g. google.com.pk,

google.com.fr 0.06 4 0.24

"TechTalks" and "TGIF" meetings to conveys information to employees

keeping them satisfied 0.03 3 0.09
most relevant results of searches 0.12 4 0.48
 IFE MATRIX
Weaknesses

97% of revenue comes from advertisers 0.09 1 0.09

Google lacking advanced financial strategies 0.05 1 0.05
users may navigate directly to other well-known databases like amazon,
etc. 0.02 2 0.04
Other companies have filed claimes against Google for copyrights
infringement 0.03 2 0.06
has to refund fees charged for fraudulent clicks 0.06 1 0.06

IT and communication systems of Google can hinder availability of its

products and services 0.04 2 0.08

Excess spendings of Brin and Page and its nomination by Bloomberg

Business week as "Executive Excess" 0.04 2 0.08

rejection of acquisition offers by other companies due to chances of

loss of personal identity 0.06 2 0.12
No significant additional revenues generated by YouTube 0.05 1 0.05

1 2.79
 EFE MATRIX
(EXTERNAL FACTOR EVALUATION MATRIX)
Sr. Details Rating Weight Weighted
No. average score
OPPORTUNITIES:
1 Forming of policies to remove cultural barriers for employees 2 0.07 0.14
2 Controlling of religious abuses on websites can increase views 1 0.03 0.03
and clicks to specific sits i.e., YouTube
3 Secure browsing with least chances of viruses and hacks 4 0.1 0.4
4 Development of Strong corporate culture for attracting expert 3 0.09 0.27
employees of industry
5 Mobile computing is an open, unchartered area 4 0.3 1.2

THREATS:
1 Fast pace of innovation and continued growth required in industry 4 0.2 0.8
2 Acceptance of internet in colleges and cultural adaptation 3 0.04 0.12
behavior
3 regulatory issues related to monopolistic power 3 0.07 0.21
4 copyrights and material filtration laws for children 2 0.03 0.06
5 Exchange rate risk, negative tax consequences, foreign exchange 3 0.06 0.18
controls
6 Due to global recession, it's difficult to maintain and attract 1 0.01 0.01
talented employees

TOTAL 1 3.42
 SFE MATRIX
(STRATEGIC FACTOR EVALUATION)
 weighted
average
SWOT Weights Rates score
Strong brand image among search engines (S) 0 .15 4 0.60
most relevant results of searches (S) 0.10 3 0.30
increase in Google's revenue internationally (S) 0.05 2 0.10
global leader in technology (S) 0.15 4 0.60

97% of revenue comes from advertisers (W) 0.10 3 0.30

rejection of acquisition offers by other companies due to chances of
loss of personal identity (W) 0.05 2 0.10
has to refund fees charged for fraudulent clicks (W) 0.05 2 0.10

Mobile computing is an open, unchartered area (O) 0.15 4 0.60

Secure browsing with least chances of viruses and hacks (O) 0.05 2 0.10

Fast pace of innovation and continued growth required in industry (T) 0.05 2 0.10
regulatory issues related to monopolistic power (T) 0.10 3 0.30

1.00 3.20
 CPM
(COMPETITIVE PROFILE MATRIX)
 CPM MATRIX
Critical Success
Factors
Weight Rate Score Rate Score Rate Score
Word of mouth 0.10 4 0.4 1 0.1 3 0.3

Relevant Advertisement 0.05 3 0.15 1 0.05 2 0.1

Online product and service 0.10 4 0.4 2 0.2 3 0.3

Ease of use 0.05 3 0.15 1 0.05 2 0.1

Market Capitalization 0.20 4 0.8 1 0.2 3 0.6

Number of advertisement member 0.10 4 0.4 1 0.1 2 0.2

Earning per share 0.15 3 0.45 1 0.15 2 0.3

Global leader in Technology 0.25 4 1 1 0.25 2 0.5
Total 1 3.75 1.1 2.4
STAGE 2: THE MATCHING STAGE
 SWOT Matrix

SPACE Matrix

Matching
BCG Matrix
Stage

IE Matrix

Grand Strategy
Matrix
SWOT MATRIX
 Strengths Weaknesses
1. Attention grabbing IPO 1. More revenue from advertiser members
2. Payment of higher return 2. Lack of financial strategies
3. Strong brand image 3. Direct navigation to databases
4. Global leader in technology 4. Copyright infringement claims against google
Internal factors/External Factors 5. Experienced team 5. Fee returns for fraudulent clicks
6. Increased international revenue 6. IT & communication systems of google can
7. Censored searches hinder performance
8. Information meeting for employees 7. Executive spendings increased
9. Most relevant searches 8. Rejection of acquisition offers
10. Vast product line 9. Low revenue from youtube

SO
Opportunities  developing strong culture for employees to WO
attract experts by ensuring proper  significant additional revenues will be
1. Cultural barriers removal for employees
communication generated by YouTube if religious abuses are
2. Controlling religion abusing activities
8S+1O controlled like dailymotion and youtube
3. Secure browsing
 mobile computing is an open, unchartered area 3W+2O
4. Capture mobile browsing
can go there and increase their product line
10S+4O

WT
Threat ST  IT and communication systems of Google
1. Fast innovation required by industry  Fast pace of innovation and continued growth shouldn't hinder availability of its products
2. Acceptance by educational institutions can be achieved by good technological experts and services in order to compete in fast
3. Rules for monopolistic powers team and being global leader in technology pace of innovation and continued growth
4. Copyright and material filtration 1T+4S required in industry
5. Exchange rates, taxes risks  Acceptance of internet in colleges can be 6W+1T
6. Difficult to attract talent achieved through most relevant searches and
strong brand image
2T+3S+9S
SPACE MATRIX
Financial strength Rate Environment stability Rate

EPS +7 Technological changes -1

Net income +6 Barrier to entry -3

Price earnings ratio +6 Competitive pressure -6

Price/earnings to growth +4 Ease of exit -6

Operating margin +5 Risk involved -2

Total +28 Total -18

Competitive advantages Rate Industry strength Rate

Market share -1 Growth Potential +6

Product quality -2 Profit potential +7
Customer loyalty -2 Financial stability +6
Technological know how -1 Resource utilization +6
Capacity utilization -1 Productivity +5
Capital utilization +7

Total -7 Total +37

Details Calculation
Financial Stability +28/5 = + 5.6

Industrial Strength +37/6 = + 6.16

Environmental Analysis -18/5 = -3.6

Competitive Advantage -7/5 = -1.4

1X - Axis = CA+IS
= -1.4+ 6.16 = 4.76
2Y-Axis = FS+ES
= + 5.6 – 3.6 =2
 BCG MATRIX
(BOSTON CONSULTING GROUP MATRIX)
BCG MATRIX
 IE MATRIX
(INTERNAL-EXTERNAL MATRIX)
IE MATRIX
It based on two key dimensions
The IFE total weighted scores on X-axis
The EFE total weighted scores on Y-axis
Divided in to three major reasons
Grow and Build- Cells I, II or IV
Hold and Maintain - Cells III, V or VII
Harvest and Divest – Cells VI, VIII or IX
 IE Matrix
Strong Average Week
3.0 - 4.0 2.0 - 2.99 1.0 -1.99

I II III
High
3.0 -
3.99

IV V VI
Medium
2.0-
2.99

VIII IX
Low
1.0-
1.99 VII
IE MATRIX
EFE weighted Score = 3.42
IFE weighted Score = 2.79

Grow and Build

intensive (market penetration, market development
and product development)
or
integrative ( backward integration, forward
integration and horizontal integration)
GRAND STRATEGY MATRIX
GRAND STRATEGY MATRIX
INTERPRETATION:
As Google has a Strong Competitive Position and Continues Market
Growth so it can adopt any of the following strategies.
• Market development
• Market penetration
• Product development
• Forward integration
• Backward integration
• Horizontal integration
• Concentric diversification
 STAGE 3: DECISION MAKING STAGE

Decision
QSPM
making stage
 Market Product
Weight Penetration Diversification Development
AS TAS AS TAS AS TAS

Opportunities

forming of policies to remove cultural

barriers for employees
0.07 0 0 2 0.14 2 0.14

controlling of religious abuses on

websites can increase views and
clicks to specific sits i.e, youtube
0.1 3 0.3 0 0 3 0.3

Secure browsing with least chances

of viruses and hacks
0.09 3 0.27 0 0 3 0.27

Development of Strong corporate

culture for attracting expert
employees of industry
0.07 0 0 3 0.21 2 0.14

mobile computing is an open,

unchartered area
0.12 4 0.48 4 0.48 4 0.48
Threats
Fast pace of innovation and
continued growth required in
industry
0.21 4 0.84 4 0.84 4 0.84

Acceptance of internet in colleges

and cultural adaptation behavior
0.03 1 0.03 0 0 1 0.03

regulatory issues related to

monopolistic power
0.04 2 0.08 0 0 0 0

copyrights and material filtration

laws for children
0.15 3 0.45 1 0.15 2 0.3

Exchange rate risk, negative tax

consequences, foreign exchange
controls
0.08 2 0.16 1 0.08 0 0

Due to global recession, it's difficult

to maintain and attract talented
employees
0.04 2 0.08 2 0.08 2 0.08

1
Strengths
Attention grabbing initial public offering
0.02 0 0 0 0 0 0
Payment of higher returns to investors
(than any Co. in S&P 500)
0.08 2 0.16 1 0.08 0 0
Strong brand image among search
engines
0.05 3 0.15 3 0.15 0 0
global leader in technology 0.09 2 0.18 3 0.27 3 0.27

BOD and management is experienced and

from Various tech organizations
0.04 0 0 3 0.12 2 0.08
increase in Google's revenue
internationally
0.08 2 0.16 4 0.32 1 0.08
use of censors according to locations in
searches e.g. google.com.pk,
google.com.fr
0.05 3 0.15 0 0 1 0.05
"TechTalks" and "TGIF" meetings to
conveys information to employees keeping
them satisfied
0.04 0 0 1 0.04 3 0.12
most relevant results of searches 0.08 4 0.32 0 0 0 0
Vast product line 0.05 3 0.15 1 0.05 2 0.1
Weaknesses
97% of revenue comes from advertisors
0.15 2 0.3 3 0.45 4 0.6
Google lacking advanced financial
strategies 0.04 1 0.04 2 0.08 4 0.16

users may navigate directly to other well-

known databases like amazon, etc.
0.02 0 0 0 0 0 0

Other companies have filed claimes

against Google for copyrights infringement
0.02 1 0.02 0 0 1 0.02
has to refund fees charged for fraudulent
clicks 0.06 1 0.06 1 0.06 2 0.12
IT and communication systems of Google
can hinder availability of its products and
services 0.04 3 0.12 2 0.08 2 0.08
Excess spendings of Brin and Page and its
nomination by Bloomberg Business week
as "Executive Excess" 0.04 1 0.04 1 0.04 1 0.04
rejection of acquisition offers by other
companies due to chances of loss of
personal identity 0.01 0 0 0 0 0 0
No significant additional revenues
generated by YouTube 0.04 3 0.12 2 0.08 1 0.04
1 4.66 3.8 4.34
CONCLUSION:
• Market penetration
• Product development

Both strategies fit with Google but if need only one strategy, the
market penetration is the option to be selected