GROUP MEMBER:

SITI NAJWA IZZATI ABDUL HAMID

DEWI ZAFIRAH ABU BAKAR
NUR ZULLAIKHA MOHD REDZUAN
AMIDATUL ADILA ABDULLAH

CURRENT
PERFORMANCE
Google was founded in 1998 by Larry Page and
Sergey
Brin, PhD students at Stanford University.
Google Inc. became a global technology leader
focused
on improving the ways people connect with
information.

CURRENT
PERFORMANCE
Google web site become a top internet property
and the
brand one of the most recognized in the world.
Google maintains a large index of web sites and
other
online content.
The main revenue generation of Google is by
delivering
relevant, cost-effective online advertising.

GOOGLE
S
STRATEGI
C
POSITION

Googles Chairman of Board and CEO,

Eric
Schimdt, is committed to the
continuous
growth of Google as a premium
Internetsearch company while at the same time
striving to further expand beyond just
the
Internet search-based services the
company
offered.
In Googles website www.google.com or
one
of more than 150 other Google
domains. With
Google you can find anything what you
need.

GOOGLE
S
STRATEGI
C
POSITION

Google regularly explores all

three manners of
diversification :
i. with new start-ups
ii. with acquisition
iii. with strategic alliances.

GOOGLE
S
STRATEGI
C
POSITION

Googles vision :
Is to organize the worlds
information and make it
universally accessible and useful.

Google s Mission :

GOOGLE
S
STRATEGI
C
POSITION

a) Doing the best to provide the most relevant and

useful search results possible, independent of
financial incentives. The search results will be
objective, and we do not accept payment for search
result ranking or inclusion.
b) Doing the best to provide the most relevant and
useful advertising. Advertisements should not be an
annoying interruption. If any element on a search
result page is influenced by payment, it will be
made clear to the users.
c) Will never stop working to improve user experience,
search technology, and other important areas of
information organization. Believe that user focus is
the foundation of success to date and this focus is
critical for the creation of long-term value and not
intend to compromise user focus for short-term
economic gain.

BOARD OF DIRECTORS

Larry
Page
CEO and
Co
Founder

Eric E.
Schmidt
Executive
Chairman

Sergey
Brin
CoFounder

David C.
Drummon
d
Senior Vice
President,
Corporate
Developme
nt and
Chief Legal
Officer

Patrick
Pichette
Senior Vice
President
and Chief
Financial
Officer

CORPORATE
GOVERNANC
E

The company has grown to more

than
20,000
employees
worldwide, with a management
team that represents some of the
most
experienced
technical
professionals in the industry.
Therefore Google inc practice :
Corporate culture
Continuous innovation requires
a
new kind of people
management

Corporat
e Culture

Comfortable sharing ideas

and opinions.
Googles hiring policy is
aggressively non
discriminatory and favored
ability over experience.
Google has people on staff
to
manage the 70/20/10 rule.

Continuous
Innovation
Requires a
New Kind of
People
Managemen
t

The extraordinary marketplace

success of Google is beginning to
force
many business leaders to take
notice
and to come to the realization that
there is now a new path to
corporate
greatness. New path firms
dominate by producing continuous
innovation
Executives are beginning to learn
that
continuous innovation cannot
occur
until a firm makes a strategic shift
toward a focus on great people
management

SOCIETAL ENVIRONMENT

Internet search is applicable to most cultures all

over the world this gives Google geographic
independence
Google is well positioned in demographics because
it has a relatively young user base
Internet search doesnt depend on factors like
gender, religion etc. therefore Google has an
advantage over other businesses.

SOCIETAL ENVIRONMENT

ECONOMY
Googles focus on highly targeted, measurable advertising makes it more
recession-proof than many other businesses in the technical sector. The
crucial need to stay informed and constantly connected keeps such
services vibrant despite the parched surroundings.
TECHNOLOGY
Technology is obviously always improving and Google has taken specific
measures to make sure it does not fall behind.
SOCIO-CULTURAL
The world is increasingly becoming more connected due to the means of
communication available through the internet.
most new cell phones are internet capable devices. People will use these
devices for driving directions, to locate restaurants, check sports scores,
download music, and even quick research.
POLITICAL LEGAL
Google has also faced concern on copyright issues because the company
stores copies of third party web pages and images on their servers

TASK ENVIRONMENT: PORTERS 6 FORCES (FORCES

DRIVING INDUSTRY COMPETITION)

Porters 6 Forces analysis is a framework for industry analysis and business

strategy development relative to the competitors of a firm.
POTENTIAL NEW ENTRANTS
Googles business is rapidly evolving and intensely competitive, and is
subject to changing technology, shifting user needs and frequent
introductions of new products and services.
There are many competitors in different industries, including
traditional search engines, vertical search engines and e-commerce
sites, social networking sites, traditional media companies, and
providers of online products and services.
SUPPLIERS
Googles ad system is a reliable source of income because both the ad
making partner and ad-receiving individual are both customers of
Googles. So as long as Google maintains its market dominance with the
search product, supplier bargaining power will remain low.

TASK ENVIRONMENT: PORTERS 6 FORCES (FORCES

DRIVING INDUSTRY COMPETITION

CURRENT COMPETITORS
Googles main competitors are Yahoo, AOL and MSN.
Presently, Google has nearly 60% of US market against
their search engine. This large market share helps them
to improve the quality of their search results and get ads
more quickly than their competitors. Yahoo and Microsoft
lag behind Google in market shares.
CUSTOMERS
- The customers of Google are mainly the ad providers.
Ads providers are continuously looking for the search
engines which the people use the most to attract the
target customers.
- Google is number one as the usage of this search
engine is the most depending on its fast and reliable
search results and simplicity of the website.

TASK ENVIRONMENT: PORTERS 6 FORCES (FORCES

DRIVING INDUSTRY COMPETITION

POTENTIAL SUBSTITUTES
The internet has become the mode chosen by
millions of people all over the world to request
and retrieve information
Googles ability to please its stake holders will
continue to define the success of the venture
and the future of the company.
RELATIVE-POWER OF STAKE-HOLDERS
In Googles case the main power is on the hand
of the investors and other partners
The increase in stock price proves that the
company has a very good reputation and the
financial condition is sound.

INTERNAL ENVIRONMENT
ANALYSIS

The internal environment analysis mainly involves the strength

and weaknesses of an organization. Here the strength and
weaknesses are found according to Google Inc.s current
situation.

STRENGTH :

Profitable business model (S1)

User friendliness, reliable and fast search (S2)
Brand equity (S3)
Innovative initiatives (S4)
Work-force & corporate culture (S5)

WEAKNESS :

Dependency of advertising business (W1)

Has products customers dont know that it even exists(W2)

EXTERNAL ENVIRONMENT ANALYSIS

The external environment analysis involves the

opportunity and threats of an organization. Here the
opportunities and threats are chosen according to
Google Inc.s current situation and future possibilities
OPPORTUNITY :
Increasing internet users (O1)
Technological change (O2)
Expanding to profit making opportunities (O3)
THREATS:
Increased competition in the search engine market (T1)
Business model imitators (T2)
New media of advertising (T3)
Data privacy (T5)

No

Internal strategic factors

weight

rating

Weight
score

comments

strengths
S1

Profitable business model

S2

User friendliness, reliable and fast search

S3

Brand equity

0.12

0.48

Search
engine,
business
solution,
website etc.

0.2

3.2

0.64

Related search results

0.18

0.72

Large number of users

advertising,
third
party

S4

innovative initiatives

0.12

3.5

0.42

Google earth, Google news etc.

S5

Workforce & corporate culture

0.08

0.24

Helps create innovation business

ideas

weaknesses
W1

Dependency on advertising business

0.2

0.6

Most revenue comes from Google

Ad Words

W2

Has products customers dont know that

it even exists

0.1

0.2

Google catalogue, Google translate,

Google wireless etc.

3.3

Total score

No

External strategic factors

weight

rating

Weight
score

comments

Opportunities
O1

Increasing internet users

0.15

0.75

O2

Technology change

0.05

0.1

O3

Expanding to profit making opportunities

0.15

3.5

0.525

New internet devices and advertising

platforms

0.2

Local search engines are more popular

in markets like china

Internet dependency
Increase in use
launches nexus

of

mobile

google

Threats
T1

Increased competition in the search engine

market

T2

Business model imitations

0.05

1.2

0.06

Google catalogue, Google translate,

Google wireless etc.

T3

New media of advertising

0.15

0.3

Might create threat initially if its not

internet related

T4

Concerns from investors

0.15

0.46

Positive now, but as its a public

company investors are important

T5

Data privacy

0.1

1.5

0.15

Government regulations

3.485

Total score

ANALYSIS OF STRATEGIC FACTORS

STRATEGIC ALTERNATIVES

Google has three strategic alternatives namely- defending

current market share, market modification & product
modification.
PROS
CONS

HELP TO SURVIVE IN THE TOUGH

NEEDS HUGE INVESTMENTS

COMPETITION
HELP

TO

OVERCOME

THE

OVERLYING

ON ANY STRATEGY

CURRENT

CAN

PRODUCT PROBLEMS

LEAD TO STATEGIC MYOPIA.

Out of the above mentioned strategies, market modification strategy must be

adopted. As Google can only grow its impressions by increasing:
The frequency of searches by existing users,
New searchers that didn't use search engines before, and
Users that migrate from other search engines

RECOMMENDED STRATEGY

1.Development of a Google browser or closer and more partnerships with browser

companies
2.Development of Google database software or partnerships with database companies
3.Development

of

server

hardware

and

software

to

continue

technological

advancements and security for Google data systems

4.Continued R&D in phones, music, television, computer, telecommunications, gaming
5.Development of artificial intelligence and applications that would use this. analysis of
what these systems can or cannot do.
6.R&D into 3D messaging products and image recognition
7.Create search systems and products with interfaces geared toward specific markets
such as children, visually impaired or new users such as many senior citizens and
rural foreign markets

IMPLEMENTATION

1.Have R&D of browsers, databases and servers continue along with evaluation of purchasing or partnering
with companies that offer what is needed
2.Hire more high tech people to fulfil many R&D ideas
3.Design demographic search sites
4.Have a lobbyist in Washington, DC and California or any high technology state that has many technology
issues percolating into laws and regulations for the new breed of digital technology issues. Become involved
with all watchdog privacy issue organizations.
5.Do as complete as possible study of international data issues along with cultural taboos or sensitivities to
help the company stay out of the hot seat with more legal issues
6.E mphasize the usage of data containing information with permission and have open discussion on how to
protect people as well as their own business.
7.Create and promote an image of an ethically and socially responsible company that believes in respecting
peoples privacy.
8.Implement enhanced operational and management systems that will provide the real time results clients.

EVALUATION & CONTROL

1.

Examine the long term costs of the browser, databases and server technologies along with
evaluation of what it financially will bring to the bottom line. Keep in mind many databases and
browsers are offered free.

2.

Continuing to hold contests and other creative means to evaluate a potential future employees skill
set will enable hiring managers to get people that can hit the ground running. Continued
relationships with many universities may help cater educational programs to be configured to
Googles future needs.

3.

Determine costs to implement demographic search sites and study the long term maturity issues
involved when the children users are older and use to the Google way of doing things. Also for
older users, determine the increased development costs verses income for things such as visually
enhanced sites. Sound and voice could become easily integrated into this type of site.

4.

Stay abreast with the rules and regulations regarding privacy and all legal technology issues. Take
a moral high ground as to how they will define and handle these issues and apply that to all
customers and users world-wide no matter what the laws are. If they can help define these usage
issues at the national and international level it will enable them to base their business on a known

rather than an unknown.

CONCLUSION

Nowaday, Google is the most popular global search engine.

Its realiability and user friendliness attract users from all
over the world. The brand value of Google is higher than its
competitors, but it doesnot mean that this will remain
always. Google needs to take strategies to be the market
leader as there are always new competitors in the search
industry. The strategies need to be updated due to frequent
technological change.