250 likes | 368 Views
Trent Hemann Bunde Walker James Yost. Industry Analysis. Industry involvement Internet Industry Search Engine Online Advertising Software Industry Electronic Industry. Online Advertising Industry. 9 % of U.S a dvertising spending 16% increase in 2010
E N D
Trent Hemann Bunde Walker James Yost
Industry Analysis • Industry involvement • Internet Industry • Search Engine • Online Advertising • Software Industry • Electronic Industry
Online Advertising Industry • 9% of U.S advertising spending • 16% increase in 2010 • Continue to grow as technology becomes more efficient
Global Expansion • Year 2000- developed 10 new language versions • Eliminated language barriers • Expanded customer base greatly • One year later- over 26 total language versions
Google’s Partnerships • Yahoo (2000) • Agreed to be default search provider • 10,000 searches/day before partnership • 500,000 searches/day after partnership • AOL (2002) • Had 34 million customer • Leader in e-commerce, web brands and internet technologies
Acquisitions • Urchin Software Corporation (2005) • Used by owners of websites • Helps understand users’ experience • Tracks marketing performance • Milestone for Google’s online advertising • Became leading online advertiser in Industry
Competitors • Yahoo • Offers news, search, messenger and email • Created rich content • Allowed users to stream music/videos straight from website • Offers travel applications
Competitors • Apple • Safari vs Google Chrome • iTunes vs My Space and Pandora • iPhone vs Android
Key Success Factors • AdWord • Helps website owners measure amount of activity • Gives feedback on owner’s ad • Shows if click leads directly to purchase or signup • Helps owner see strong/weak selling points • Strong selling point of Google for customers
Key Success Factors • AdSense • Enables ads on customers website • Ads relevant to website content • Creates revenue on a “per-click” basis • Generated over $2.04 billion in 1st qt 2010
Google’s mission • Google’s mission is to organize the world‘s information and make it universally accessible and useful. • It’s best to do one thing really, really well. • You can make money without doing evil. • Great just isn’t good enough.
SWOT Analysis • Strengths • Brand name,Search, Employees, Innovation • Weaknesses • Lack of Integration of products • Opportunities • Google TV, Android • Threats • Bing/Baidu, Apple/Blackberry/Microsoft
Google’s Products • Search • Ads • Android • Google TV • YouTube • Site search • Chrome
Search • No ads on the normal Google search • AdWords • Advertisers use to advertise on the side of Google page with key words • AdSense • Delivers ads from AdWord program to partner websites
Android • Mobile and Tablet OS • Offered free to manufacturers • Only free OS for smartphones and tablets • Android Market
Google TV • Blue Ocean Strategy • Includes Google search, Chrome, Android, Apps, Flash, and other Google products • Help integrate Google products
Financial • More Cash than Current Liabilities • Rely on equity rather than Liabilities • Always looking for strategic acquisitions
Employees • The right people on the bus • 20,000 Employees • We love our employees, and we want them to know it • $1,000 Bonus and 10% Raise • 20% of Time for Employees
Strategic Issues • Weaknesses that need to be corrected • Threats that need to be ignored or addressed • Opportunities that need to be taken advantage of • Continuing Strengths
Lack of Product Integration • Advertise Google products on search site. • Low Cost • Maintains simplicity • Pull down menu • Choose what you use the most • Implementation
Social Networking • Orkut • Developed by OrkutBüyükkökten • Brazilians account for 54% of total users • In 2008, fully managed and operated by Google Brazil • Have branches in U.S. and U.K. • Implementation
Threats • High Levels of competition • search, e-commerce, advertising, etc. • Exchange Rate Fluctuations • 53% of Revenue comes from international operations • Security Issues • Access to private information
Opportunities • New Products and Services • Google TV • Strategic Acquisitions • AdMob • Growing mobile advertising market • Promising future for Android Smartphone • Passed iPhone in U.S. consumer sales
Strengths • Brand Image • Global • Strong Infrastructure Base • Core of all products • Websites that create advertising opportunities • 67% of 2009 Revenue • Home Grown Software