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Team Dodgers Spring 2008. Agenda. History Industry Overview Business Model Sources of Competitive Advantage Challenges Initiatives Recommendations. History. 1996 - Started by Sergey Brin and Larry Page 1997 - Named “Google” 1998 - Presented its discovery at the
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Team Dodgers Spring 2008
Agenda • History • Industry Overview • Business Model • Sources of Competitive Advantage • Challenges • Initiatives • Recommendations
History • 1996 - Started by Sergey Brin and Larry Page • 1997 - Named “Google” • 1998 - Presented its discovery at the World Wide Web Conference • 1999 - Raised almost $30 million in funding • 2004 - Went public - 19,605,052 shares offered at $85 per share - Raised $1.6 billion • 2004 - Launch of its Orkut product • 2006 - Most expensive purchase of its history - $1.65 billion purchase of online video-sharing site YouTube
History • Sergey Brin – former company’s chairman the president of technology • Larry Page – former CEO of Google president of product • Eric Schmidt – hired in 2001 as Google’s new CEO
Industry Overview • Key players • Yahoo! • MSN • AOL
Industry Overview • Key success factors • Paid listings • Cost per click model
Industry Overview • Network Effect
Business Model • Core businesses – sponsored search engine services and advertising • Related diversification • All businesses are linked and in the search industry
Sources of Competitive Advantage • Organizational Structure and Structure • Dual-Class Equity Structure • Designed for stability over the long term • Supports Google’s innovative approach to business
Sources of Competitive Advantage • Corporate Values • Philosophy, Ten Golden Rules • Managing Innovation
Challenges • Manage uncertainty through diversification • Young, evolving industry • Threat of consolidations
Initiatives • Web search • To maintain the “network effect” • New search domains • Google Knol • Android
Recommendations • Free Wi-Fi throughout metropolitan areas • Continue focusing on innovation