case google.pptx

Case 9:

Presented by Team 8The Back Corner

Thursday, January 21, 2016

Robert Wise, Thao Bui, Tung Lu, Huynh Vo, Shirley Kaeratana

Robert Wise

Agenda

Component Speaker # Name Minutes Total Time

Agenda handout 1 Robert Wise 1 1Company Background 2 Shirley Kaeratana 2 3

Current News 3 Thao Bui 2 5Financial Statement 4 Tung Lu 2 7

SWOT Analysis 4 Tung Lu 4 11Case Questions:

Question 1 2 Shirley Kaeratana 2.5 13.5 Question 2 1 Robert Wise 2.5 16 Question 4 3 Thao Bui 2.5 18.5 Question 5 5 Huynh Vo 2.5 21 Question 6 1 Robert Wise 2.5 23.5

Recommendations / Summary 1 Robert Wise 1 24.5Quiz / Q&A Robert Wise 5.5 30

Speaker 1: Robert Wise

Founded by Larry Page and Sergey Brin in 1996Corporate Office: Mountain View, CASearch engine was first named “BackRub” Specializes in cloud computing, software and online advertising

technologiesAdWords contributes to most of Google’s profitsMotto: “Don’t Be Evil”

Company Background

Speaker 2: Shirley Kaeratana

US Marines don’t want Google’s Robot Dog A long time ago in a galaxy far far away

Current News

Speaker 3: Thao Bui

Financials: Google Stock

Source: Google FinanceSpeaker 4: Tung Lu

• Revenue of 18.7 billion in 2015(Microsoft 78 Billion, Apple 231 Billion, Facebook 12.5 Billion)• Google revenue 90 percent comes from advertising, and the rest

comes from Google own website• Net income of 14.4 billion in 2015

Financial Facts

Speaker 4: Tung Lu

Financials: Google Versus Competitors

Source: Geekwire.com Speaker 4: Tung Lu

Financials: Google Cash and Short Term Investments

Source: QuartzLaz.comSpeaker 4: Tung Lu

• Market leaders in search engine: Google has been the biggest Internet search worldwide

• Open source products and services: Google products can be used with any OS or mobile devices without any charge including Google maps, calendar, and drive.

• Quality and customer experience: Google’s objects are to offer premium products, and solve customer needs and problems by providing excellent customer experience.

Strengths

Speaker 4: Tung Lu

• Relies on one source of income: more than 90 percent revenue of Google comes from online advertising. In the future, Google ‘s growth might decline or slow down because of their competition • Unprofitable products: Google has so many products and services

that add no value to company profit such as Google reader, I Google, Google health, and Google notebooks.

Weaknesses

Speaker 4: Tung Lu

• Driverless electronic cars: Google has been successfully tested driverless car recently. • Google fiber cables: Google is currently testing fiber cables that can

deliver Internet content faster than current providers. • Google TV: Google TV is new service that can offer TV programing,

movies, and more across the home Internet connection.

Opportunities

Speaker 4: Tung Lu

• Competition from Microsoft: Microsoft is increasing its market share in Internet searches and becomes one of Google biggest rivals • Competition from Facebook: Social media has been real threat for

Google in term of advertising.• Potential lawsuit: EU currently accuses Google by using its Internet

search engine market to display its own services higher than competitors

Threats

Speaker 4: Tung Lu

Benefits searchersSearchers don’t mind being advertised to as long as the product fits searcher’s needs

Benefits advertisersOffers a unique means of putting their message in front of audience

Benefits search enginesEnables search engines to support advertisers and searchers simultaneously

Question 1: Pay-Per-Click Search

Speaker 2: Shirley Kaeratana

Global spending on advertising in 2015: $537BInternet’s share of ad spending: $121BPercent market share: TV 40%, Internet 23.4%, Newspaper 15%,

Radio 6%Big Ad Agencies (WPP, Omnicon, Publicis)Internet Competitors: Facebook, Yahoo/Bing, Microsoft, Apple

Question 2: Comp Structure Internet Advertising


Googles revenue from internet advertising: $59B (66% of the market)

Methods of Generating Revenue:1. CPC (cost-per-click)2. CPM (cost-per-mille)3. Revenue Sharing



Source: netmarketshare.com

Search Ads Display Ads



Source: Business Insider.comSource: Business Insider.com

Google’s Products:AdWords: revenue stream from advertisers

AdSense: implementation of ads on mom-and-pop sitesAdMob: implementation of ads in mobile aps.

Google’s Revenues are safe:Population is growing at 1.4%; Internet 8-10% annually.Internet advertising (especially mobile) expected to grow.



Question 4: Google’s Success and Future in Paid Search

Source: comScore.comSource: comScore.com

Speaker 3: Thao Bui

RESPECT USERS + Keep layout clean + Put ads separated

GOOGLE ADWORDS: + Friendly feature + Flexible + Better service


Speaker 3: Thao Bui

HUMAN RESOURCE: + Having top talents + Well working environment + Innovation Time Off

TECHNOLOGY: + PageRank + Low cost computer


Speaker 3: Thao Bui

What is Google trying to do strategically?

Question 5:

Speaker 5: Huynh Vo

Business Strategy : individual strategyClassic Approach – AdwordVisionary Approach – Google glasses

Corporate Strategy : strategic ambidexterityUmbrella Corporation– Alphabet

Question 5: What is Google trying to do strategically?

Speaker 5: Huynh Vo

TCP/IP (1982)DNS (1984)WWW, Tim Berners-Lee (1991)Mosaic browser (1992)Google Search Engine (1998)

Question 6: Paradigm Shift


Source: singularity.com

“Information Age”

Google Search Revolutionized the Internet:Changed industries: computers and internet (software & hardware)Social global cultureThrough: Algorithms, page authority, indexing keywords

Question 6: Paradigm Shift


“Information Age”

#1 recommendation: Enter streaming TV marketMaintain massive scale (maps, docs, gmail, etc.)Focus on mobile (Facebook, Twitter)Continue to press Yahoo!Bing for SE market shareCompete in payments market (paypal)

Recommendations


90% of revenue from advertisingInnovative company: maps, docs, self-driving carPrimary success is combination of:

(1) Search Engine (1998)(2) AdWords (2000)

Over 200 products improve Google’s “scale”

Summary


Quiz Question #1:

Robert Wise

Quiz Question #2:

Robert Wise

Robert Wise

Quiz Question #3:

Quiz Question #4:

Robert Wise

Quiz Question #5:

Quiz Question #6:

Robert Wise

Q&A:

Robert Wise

Backup Slide – Growth of Internet


Backup Slide – Future of Ad Growth


Backup Slide – CPC rates


Backup Slide – Market Share Advert


Backup Slide – Google Q. Ad Revenue


1. King of Internet Advertising Market2. “Google” became an official word in

the dictionary3. Android now has a dominant 75% market share4. Google + is gaining ground5. Strong balance sheet6. Positive on the stock

Backup Slide – Reasons to invest in Google:

Source: Google Finance

Speaker 3: Thao Bui

Backup Slide – AdWords Auction ??

Speaker 3: Thao Bui

Backup Slide – SEO vs PPC AdWords

Speaker 3: Thao Bui

Backup Slide – Under Alphabet Company

Speaker 3: Thao Bui

Backup Slide – What Google Alphabet stands for

Speaker 3: Thao Bui

case google.pptx

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