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Presented by Benno Marbach Charleston Sin Emily Chang William Cheng

Presented by Benno Marbach Charleston Sin Emily Chang William Cheng. Agenda. About Google Business Model Challenges Future Strategy. About. Founded by Sergey Brin and Lawrence Page in 1998

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Presented by Benno Marbach Charleston Sin Emily Chang William Cheng

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  1. Presented by Benno Marbach Charleston Sin Emily Chang William Cheng

  2. Agenda About Google Business Model Challenges Future Strategy

  3. About • Founded by Sergey Brin and Lawrence Page in 1998 • “Google's mission is to organize the world's information and make it universally accessible and useful.” • Public listed at NASDAQ in 2004 • Reported USD $2 Billion Revenue and USD $200 Million profits in 2004 Source: Google web site

  4. Software vs Content

  5. Online and Offline Information • Web pages, Image, Usenet, News, Group, Phonebooks, Maps, Mail order catalogues, Numbers (parcel tracking, patent), Blog, Keyhole • Print, Video program, Academic research papers

  6. Search … How they do it? • Crawling • Index using PageRankTM • Similar to citation index, i.e., high citation imply high impact • Performs an objective measurement of the importance of web pages • No human involvement or manipulation of results -- untainted information by paid placement • Hypertext-Matching Analysis • Analyzes page content

  7. 4160 results in 0.11 second 2245 results in 0.1 second 1300 results in 0.38 second Same as Google

  8. Premium Sponsorship AdWords AdSense Paidlisting -- AdWords and AdSense AdWords – add Ad sites to Google AdSense -- add Google Ad to sites

  9. Two Sided Market On the one side – End Users On the other side – Advertisers

  10. Network Affiliates End User Side  Click on the ads in Google’s or affiliates’ websites Advertisers End Users

  11. NetworkAffiliates End User Side  Customers get redirected to the advertiser’s websites Advertisers End Users

  12. NetworkAffiliates Advertiser Side  Advertisers pay Google based on CPC and ad’s position Advertisers End Users

  13. NetworkAffiliates Advertiser Side  Revenue split between Affiliates & Google Advertisers End Users

  14. Competition U.S. Search Traffic Market Share, August 2003 Global Market Share of Paidlisting in 2003 Source: Bartley & Weinstein, P.5

  15. Competitive Environment to Google Work in Progress Threat

  16. Choices for • Become an internet portal, self built or merge with AOL Advantage: Securing higher number of end users Disadvantage: Outside of core competence 2. Focus on developing superior search solutions Advantage: Keep alliance with AOL and be focus Disadvantage: Niche player

  17. How to Compete in the future? • Provide more relevant features, much faster • Provide more accurate information, much faster

  18. No one is perfect! • I'm taking part in a new web project...

  19. The End Any Questions?

  20. Questions? • Which are the two markets Google is serving? • What are the three key differences between Google and Yahoo, as mentioned in the presentation?

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