google searchi'm feeling lucky team venus spring 2008 ©2008 google

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Google Search I'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

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Page 1: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Google Search I'm Feeling Lucky

Team Venus Spring 2008

©2008 Google

Page 2: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Google Search I'm Feeling Lucky

Overview

Team Venus Spring 2008

©2008 Google

Page 3: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

10,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,

000,000,000,000,000,000,000,000,000

GOOGOL The American Heritage Dictionary, 3rd Edition “Googol” n. The number 10 raised to the power of 100 (10^100) [A coinage]

Merriam Webster Collegiate Dictionary, 2006 Oxford English Dictionary, 2006

v. “To use the Google search engine to obtain information on the Internet.”

Page 4: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Web-based PortalDefinition

Portal - “Doorway”

A Web site or service that offers a broad array of resources and services, such as:e-mail, forums, search engines,online shopping malls.

Web Images Maps News Shopping Gmail more

What is a Web-based Portal?

Type Subsidiary of Time WarnerFounded in 1985 (as Quantum Computer Service)Headquarters New York

Type Public (NASDAQ:YHOO)

Founded Santa Clara, CA 1995

Headquarters Sunnyvale, CA

Type Search Engine

Founded 1996

Headquarters Oakland, CA

Page 5: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

• Google does search

• Google believes in instant gratification

• “The perfect search engine would understand exactly what you mean and give back exactly what you want.”

» Larry Page, Co-Founder Google

Page 6: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Google History

Stanford University, 1998- Sergey Brin- Larry Page

PageRankAlgorithm that solved the problem of spam

Google Inc.

With $1.1 million initial investment, Google was

Incorporated on September 7, 1998

History

Web Images Maps News Shopping Gmail more

Sergey BrinBorn: August 21, 1973 (age 34)Moscow, Soviet UnionOccupation:Co-founder and President of Technology of GoogleSalary: USD 43,726 (2005)[1][2]Net worth: ▲US$18.7 billion[2]Spouse: Anne Wojcicki[3]Website: Stanford.edu/~sergey/

Larry PageBorn: March 26, 1973 (age 35)East Lansing, MichiganOccupation: Co-Founder & President of Products of Google Inc.Salary: $25,045 USD (2005)[1][2]Net worth: ▲ $18.6 billion USD (2008)[3]Spouse: Lucinda Southworth

Page 7: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

• Type Public (NASDAQ: GOOG), (LSE:GGEA)• Founded Menlo Park, CA (September 7, 1998)• Headquarters Mountain View, CA• Key People

» Eric Schmidt, CEO/Director» Serge Brin, Co-Founder, Technology President» Larry Page, Co-Founder, Products President» George Reyes, CFO

• Industry Internet, Computer Software• Revenue US $16.593 billion [UP]56% (2007)• Net Income US $4.203 billion [UP] 25% (2007)• Total Assets US $22.335 billion (2007)• Total Equity US $22.689 billion (2007)• Employees 19,156 (March 31, 2008)• Website www.google.com

Page 8: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

PageRank (Core Competence)Created when web-based search engines were becoming popular (Patent granted on September 4, 2001)

Eric Schmidt joined Google in 2001– Sun Microsystems– Novell

Earned revenue • Licensed search technology to Yahoo!

and other 3rd-party sites

First Paid Listings on December 1999– CPC “cost per click”– CTR “click through rate”

Web Images Maps News Shopping Gmail more

Key Factors Behind Early Success

Type Public (NASDAQ: JAVA)Founded 1982Headquarters Santa Clara, CAIndustry Diversified computer

systemsProducts Computer servers,

workstations, storage, software, services

Rev ▲US$13.873 billion (FY07)OI ▲US$309 million (FY07)NI ▲US$473 million (FY07)Employees 33,350 (2008)

Page 9: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Web Images Maps News Shopping Gmail more

Key Factors Behind Early Success

Word of MouthNo money spent on advertisementsBecame popular via word of mouth Industry Trend Setter -In 2003, Lauched contextual paid

listing, which was followed by Overture

- Expanded domain beyond web search

Unique Culture70-20-10

Cost-per-ImpressionStarted 1999

Google’s 1st paid listing.Charged a fixed amount each time client’s ad was viewed, regardless of whether viewer clicked on the ad Weighted CPC bidsStarted 2002

Weighted CPC bids by the ratio of an ad’s actual click through rate (CTR) to its statistically-derived expected CTR

Helped ensure that users saw the most relevant ads first

Maximized revenue since there would be more paid-listings with higher CTR

Page 10: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Dual-class equity structure

Class A shares - 1 votes

Class B shares - 10 votes

Immunity

…from replacement

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Governance

Page 11: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Google Search I'm Feeling Lucky

Analysis of Market

Page 12: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

• Better algorithm

• User data validation trust score

• Established search engine sites

• Capital

Web Porter’s Five

Barriers to Entry

Page 13: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

After announcing the IPO plans

– Acceleration of product development plans (IPO August 2004)

– By 2005 some of Google’s advertiser charged the company of neglecting customer service. Despite this company continue to grow.

– Google is colliding with nearly every company in the information technology industry.

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How is the Market?

Page 14: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Web Images Maps News Shopping Gmail more

Who are Google’s Competitors?

Yahoo!– Internet Portal who invested early in Google– 2006 Yahoo and Google were competitors– Main difference between Yahoo & Google.

• AltaVista• AlltheWeb• GoodSearch• Rectifiti

Page 15: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Microsoft– Develop its in-house search engine in 2005– Courted AOL as a ventured partner– Google’s new products Live Search

• A9.com• Tafiti• Ms. Dewey

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Who are Google’s Competitors?

Page 16: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

eBaySearches are the beginning of e-commerce(eBay owns 25%)

Craig’s List

Amazon

Google’s Wallet Competing with eBay’s pay pal

Google’s BASE

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Expanding

Page 17: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Google Search I'm Feeling Lucky

Google’s Future and Recommendations

Page 18: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Google’s Options

• Continue to develop highly effective algorithms that generate superior search solutions.

• Branch into other arenas like e-commerce or become a portal like Yahoo!

• Venture in developing new products to compete against Microsoft.

• Consider venturing out with AOL and pay only up to 100% of the searches generated by AOL.

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What should Google do?

Page 19: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Google • Has the best search engine

• Threat to Microsoft and Yahoo!

• Biggest threat is your cellphone(Business Week April 28, 2008)

• Distinctive Culture & Organizational Scheme has been what makes this company unique and successful

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Where is Google Now?

Page 20: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Web Images Maps News Shopping Gmail more

Known Products

GmailSearch and personalize your computer

PicasaExplore the world from your computer

YouTubeBusiness info, news, and interactive charts

DesktopFind and connect with businesses from your phone, for free

OrkutMeet new people and stay in touch with friends

Page 21: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

EarthExplore the world from your computer

FinanceBusiness info, news, and interactive charts

GOOG-411Find and connect with businesses from your phone, for free

Special SearchesSearch within specific topics

ScholarSearch scholarly papers

Web Images Maps News Shopping Gmail more

Other Products by Google

Page 22: Google SearchI'm Feeling Lucky Team Venus Spring 2008 ©2008 Google

Web Images Maps News Shopping Gmail more

List of Products

Desktop Products AdWords Editor Earth Gmail Notifier Hello Pack Google Earth, Google Desktop, Picasa, Google Talk, StarOffice and Mozilla Firefox. Photos Screensaver Secure Access VPN client for Google WiFi user SketchUp VoIP Web Accelerator Desktop extensions Blogger Web Comments Browser Sync Dashboard Widgets for Mac Pinyin IME Send to Phone Mobile products Blogger Mobile Calendar Gmail News Google Mobilizer iGoogle Product Search

Reader Mobile search Picasa Web Albums Google Notebook Downloadable mobile products Gmail mobile Maps Mobile YouTube Google Talk (BlackBerry Exclusive) Google Sync (BlackBerry Exclusive) Mobile Updater (BlackBerry Exclusive) Web products Advertising AdSense AdWords Website Optimizer Audio Ads Click-to-Call Grants TV Ads Communication & Publishing 3D Ware house Apps Blogger Calendar Docs

Dodgeball FeedBurner Gadgets Gmail GrandCentral iGoogle Joga Bonito JotSpot Notebook Marratech e-Meeting Orkut Page Creator Picasa Web Albums Reader Shared Stuff Questions and Answers (Russia Only) YouTube Development Android App Engine Code Co-op Google Web Toolkit Mashup Editor OpenSocial Web master Tools Mapping Maps Mars Moon Sky

Ride Finder Transit Search Access ible Search Alerts Base Blog search Book Search Catalogs Checkout Code Search Directory Experimental Search Finance Groups Image Labeler Image Search Language Tools Life Search (China) Movies Music Trends News News Archive Search Patent Search Product Search (Previously Froogle) Rebang (China) Scholar SearchMash Sets SMS Suggest Suggest Australia

University Search U.S. Government Search Video Vo ice Local Search Web History Web Searc h Statistics Analytics Gapminder Trends Zeitgeist Hardware products Google Search Appliance Google Mini Other products GOOG-411 Previous products Answers Deskbar Free Search Local Personalized Search Public Service Search Related Links Spreadsheets Vo ice Search Writely Google X