Organizational Analysis By,

DIVYALAKSHME.A KIRUTHIKA.N

Google is a Delaware corporation with its headquarters located at Mountain View, California.

It was found in 1998 by Larry Page and Sergey Brin.

It is the best Internet search engine technology provider.

Introduction

The Vision To make search engines so powerful that they would understand "everything in the world".

The Mission To organize the world's information and make it universally accessible and useful.

The Focus Google continues to focus on innovation and on the user experience.

Don't be evil-Google’s informal corporate slogan.

Google states that they generate revenue primarily by delivering relevant,cost-effective online advertising.

Businesses (Advertisers) use Ad Words program to promote their products and services with targeted advertising.

Google offers customers interfaces in 42 languages and payment options in 48 different currencies.

Profit

Organizational Chart

Organizational Analysis

Organization with narrow span * Close supervision * Close control *Fast communication A functional organizational group *Logical reflection of functions *Simplifies training *Furnishes means of tight control at top

The World's Most Successful Corporate Culture

Free work schedule

Relaxed, team-based

atmosphere

collaborative culture

Strives to maintain

open culture

High Tech

environment

Google SWOT AnalysisStrengths Weaknesses

(1) Effective and efficient search engine technology. (2) Providing services in many nations. (3) Sufficient fund for innovation.

(1) Lacking variety of profit sources.(2) “Click Deception” influences on AdSense profits.

Opportunities Threats(1) The cooperation between Google

and other cell phone companies is getting mature.

(2) The development of “Google Talk”

and “Google Checkout”.

(1) Other competitors offer new services frequently.(2) Virus affect on internet safety.(3) Paid- search market has entering a mature stage.

Analysis of External & Internal Environment

Google follows SO strategy *It capitalizes on its strengths to take advantage of opportunities. *It strives to overcome weakness. *It helps the organization to cope up with the threats they face so that they can focus on opportunities.

The Growth Share Matrix

Supplier bargaining power :• Supplier concentration is low• Switching costs is low• Threat of forward integration is low• Importance of volume to suppliers is high

Rivalry factors:• Few players of relatively smaller size industry is growing at rapid pace•Product differentiation is lowSwitching cost is lowExit barrier is low•Switching cost zero•Informational Complexity due to secrecy of internal algorithms

Substitution threat:•Mobile search. But due to less sophisticated technology threat is far away few years •Switching cost is LOW

Buyers bargaining power:• Buyer size/volume is very small• Change cost/frequency is very low.• product/service importance is high.• Ability to backward integrate is very less.• Price sensitivity is high• Product differentiation is low

Entry barrier:•Entry barriers due to brand identity and scales is high

Porter’s Five Forces Model for Google Search

Primary competitors - Microsoft and Yahoo! Inc.

Both Microsoft and Yahoo have more employees than Google.

Microsoft also has significantly more cash resources.

Longer operating histories and more established relationships with customers and end users.

Microsoft and Yahoo also may have a greater ability to attract and retain users - because they operate Internet portals with a broad range of content products and services.

Top 2 Competitors

Competitor Analysis

Performance over 5 years

R&D -> More than 10% increase Y/Y since 2002*Continuous Innovation, creating new products.*New products every year, Need Based Positioning, Depth rather than Breadth.*Ready to deal with dramatic change.

Cost of Revenue – around 40% increase Y/Y since 2003 *Find new sources of Revenue, margins reducing.

Performance Analysis

Google applies their organizational core-advantage to provide lots of convenient and free services for users.

We believe that Google's success is due to their innovative ability, and focus on search.

Conclusion

Thank you!!