Case analysis report
“Don’t be evil”
Arthur Dalin
Assignment #1 • Boston University - Ecommerce & Web design • Professor Lee
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Summary
Introduction……………………………………...3
I. Company’s presentation……………………...4
II. Market analysis…………………………...5-11
Internal analysis………………………………5-9
 Value Chain overview………………...5-6
 Resources & revenue analysis………..7-9
External analysis…………………………..9-11
 Microenvironment…………………..9-10
 Macro-environment……………………11
III. SWOT………………………………………12
Evaluation & recommendations………………13
Bibliography……………………………………14
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Introduction
For my analysis report case, I choose Google. Why?
First, Google is a fascinating enterprise that leads the web information. I have been
using Google since I know how a computer works.
Then, it is for me very interesting to study a company listed in the “Internet Big
Four”; Theses companies that manage today’s Internet: Apple, Facebook, Amazon
and Google.
Through this paper I am going to present Google Inc., establish the Internal &
External diagnostics and then draw a SWOT to emit main management Strengths,
opportunities but also weaknesses and threats of Google Company.
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I. Company’s presentation
History of Google
Google is a company that has been founded in 1998. Everything started in the
Silicon Valley with Larry Page and Serguei Brin. At the beginning, Google Inc. was a
simple « search engine » historically competed by Yahoo! & Bing.
As time goes by, they develops many Internet based tools and acquired softwares &
different companies.
The main mission of Google is to « organize the worldwide information and make it
universally accessible and useful ».
Google Inc. has been listed at NASDAQ since 2004. Nowadays, Google is one of the
most powerful firms of the world due to its market capitalization value (In 2014,
Google is the 2nd biggest world wide firm).
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II. Market Analysis
Internal analysis
Google’s product & services – Internal Value Chain overview.
At the beginning, Google is known for it’s historically search engine but the
company propose a wide bench of tools and is almost present in every virtual and
connected domains.
Actually, there are 4 mains areas in which Google operates:
 Web services:
As web services afforded by Google we cannot forget to mention in a first time
the Search Engine that is the “root” of Google’s company.
Furthermore Google has its own inbox system called “Gmail”. It’s a very clear,
powerful & safe mail system used by lots of people.
Then, we can focus on Google Maps, it is a very complete and accurate maps
system. In the latest updated version, it is possible to see some cities in 3D (such as
Boston, NYC, Paris, London). Again, Google Maps allows you to simulate an
itinerary by cycle, walking, Car or even by Plane.
Another very helpful web service that we can quote is Google drive, which is a live
working & files exchange platform very efficient.
Then, Google has also a news & information system that provides a selection of
best articles among all information websites listed on their database. It is also possible
to modify your personal setting in order to get only the content that you need or want.
Moreover, Google is also able to give you a translation from no less than 90
languages. This service can also translate web pages or you can even upload a
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document to translate. All these things are possible with Google Translate.
To finish, and with the intention of being everywhere and cover every sectors,
Google has built its own social network called Google Plus.
This list above is not exhaustive but it is for me mains web services furnished by
Google. (There is also: Google Docs, Blogger, Shopping, Google Wallet and Google
Photos)
 Advertising:
Then, Google provides lots of advert tools that can be both useful for companies or
individuals: Ad Words, AdSense, and Google Analytics …
 Operating systems:
Who does not know Android? Android is Google’s Operating System.
It works on smartphones and tablets, but Android is also available as a connected
watches OS, a TV OS and is going to be a car OS with “Android Auto”.
 Google Play:
Finally, Google provides also a Multimedia platform called Google Play. It’s
Google’s online “store” where you can find a bench of multimedia contents such as
music, videos, eBooks and applications for your tablets and smartphones compatible
with Android system.
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To summarize:
Internal resources
Technical & Human resources:
In the first place, Google employs no less than 53,600 people from
everywhere in the world. They are always looking for brilliant and very talented
workers. Google Inc. is almost everywhere in the world. They have more than 70
offices in more than 40 countries around the globe.
Google it is also more than 900 000 servers that indexing 1000 billion web
pages through the worldwide web.
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This company also provides to its employees one of the best place to work
(N°1 of the Fortunes 2014 ranking of the best company’s to work for) due to their
flexible, peaceful and funny Management practices.
Google workers can from Segway to move into offices, free food, toboggans,
relaxations rooms etc. It is perfectly shown through the movie “Internship” that has
been shooted into a perfect replica of Google California headquarters.
“The good work ambiance makes good work”
Google offices around the globe - Google.com
Financial resources
Where does Google’s revenue come from?
First, in 2013, Google made US$ 59.825 billion of Revenue with US$ 12.920 billion
of Net income.
Given to online studies and Google’s income declaration, no less than 97% of their
earning comes from online advertising.
From its 97% ads, 70% are coming from “Ad Words”, which allows businesses to
advertise by popular keywords. The most expensive keywords per click are for
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instance: “Insurance” with $54.31/click, “Mortgage” with $47.12/click, “Attorney”
with $47.07/click or again “Loans” with $44.28/click.
Then, the 30% ads lefts are made by “AdSense”, which allows businesses to advertise
on specifics websites. We will take the CBS website example with $70 cost per 1000
views.
Moreover, how the Google X secret lab contribute or will considerably contribute to
Google’s incomes? The Google X lab is especially looking for future innovation &
revolutions such as driverless cars (it works by using tones of sensors and Google
Map technology), Google glass, the web of things in which every devices is
connected (TV, watches, fridges..) or again the crazy elevator to space…
Finally, the other incomes are made by other acquisitions by Google including
YouTube that is nowadays the 3rd most popular websites with no less than billions of
ads shown every year. The rest of incomes are due to other Google’s acquisitions such
as Motorola mobility (purchased in 2011), ITA software, Slide.com (a social gaming
website), Wildfire Interactive or also the well known Waze (Social driving network).
External analysis
Microenvironment
Suppliers
Actually the most important suppliers of Google are its users. Basically when
you are using Google, you are also sharing some personal information. For instance,
you permit Google to be informed about on which websites you go, for what you are
interested in (Sports? Music? Etc.). With all these information, first Google will
propose you some targeted advertising, then they will analyze all your data for their
statistics, and professional & private purpose.
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Competitors
As said above, Google’s touches almost every Internet domains that’s why it faced to
many powerful competitors.
Search Engine competition – Given to 2014 global market share of Search
Engine researches, Google is widely ahead with 85.78% of GMS followed by Yahoo
with 6.24%, Bing (Microsoft) 3.21%, Baidu 2.59% and others wih a bit more than
1%. Google search engine is the favorite in the world except in China and in Russia
where Google is boycotted or restricted by states.
Operating System competition – According to global market share, Google OS,
namely Android, is taking the market with 84.5% of the whole market in 2014. The
Apple IOS is following with 11.7%, Windows OS with 2.9% and Blackberry OS with
0.5%.
Online Advertising competition – Depending on Global online advertising
statistics, Here again, Google own the market with more than 57% of the global
market share, followed by Yahoo with 16%, Bing from Bing (Microsoft) with 14%.
Facebook has just started to online advertise but statistics showed an amazing
growing in this sector. It could be one the future online advertising giant.
Macro-environment
Threats & Opportunities (PESTEL model)
Political – In some countries, Google cope with difficulties. It is censured and
replaced by totalitarian regimes’ search engines in order to control information.
In another hand, Google is currently suspected of tax fraud especially in Europe. The
company could be penalized of heavy fines and tax adjustment.
Then, as its leader status, Google is often menaced due to its dominant position abuse.
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Economic
– As showed above in the competition analysis, Google is the
worldwide leader in the Internet area. The company also benefits from some countries
tax system advantages (such as other big companies). Finally, IT sector and especially
online advertising sector is getting forward for years. The 2008 subprime markets
crisis had a weak impact on Internet business.
Social
– Google’s goal is to collect, assemble and tidy up the whole web
information. That way, the company participates directly at social interactions
between websites contents, forums, businesses and Internet users. Then with all its
tools and innovative researches, Google wants to make an easier future for everybody.
Technological
– Nowadays, only 38% of the whole population have Internet
access. Google is the leader in Web researches & Operating system that mean the firm
set the current trends. They have no less than 900 000 servers to manage 1000 billions
websites.
Environment – The current trends is to save energy or to use renewable ones.
Most of biggest companies of the world were sensitized about that point. Since 2006,
Google has been trying to reduce its carbon emissions and its use of energy.
Moreover, they are looking for solutions to recuperate wasted energy and heat from
servers to re-use it.
Legal
– Everybody knows that Internet is increasing very fast. Governments and
states are in a way overtaken concerning laws and Internet regulation.
But, some legal actions have been taken against Google. Privacy on Internet is not
enough well managed. Moreover Google used to take its users information in order to
reutilize it. A lack of privacy and tax return clearness in most of these huge Internet
companies is blamed.
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III. SWOT
Strengths
 Turnover and Income are growing year by year.
Weaknesses
 Google’s economic model is to much
 Google is international and based almost
dependent of online advertising (97%)
everywhere in the world. They are technically
 Users are afraid of the “Big brother” effect.
also very well equipped (900 000 servers)
 Google only can touch connected population
 Google acquired big companies like Motorola,
(38% of the whole population)
YouTube, Waze etc.. (More than 125
acquisitions)
Opportunities
 Google is the undisputed leader in all its market
 This company always looking for break into
new markets (automotive, aerospace etc.)
 Its users love the simplicity of their application
Threats
 Google is not accepted by China (1st world
power) & Russia.
 Google is pointed out for its behavior faults;
privacy, intellectual property and tax fraud
and services.
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Evaluations & recommendations
Obviously Google dominates markets. They own more than 50% in each market
they operate. Does Google going to become in years the worldwide computer, the
“knowledge searcher” and the personal assistant?
First, Google have to convince Governments against them. I’m talking about
dictatorship such as Russia and China that prefer use their national search engines in
order to control the local information. Moreover, we can’t forget that only 38% is
nowadays connected to the Internet. Google is unattainable without at least an Internet
connection.
Secondly, the company has to keep its innovations policy. Google is a futurebased firm and this is its capital gain. Furthermore, they have to maintain theirs
strategic acquisitions if they want to diversify and enter into new markets.
Then, Google should work on a simply graphical interface in order to guides its
users through their different services & product. Indeed, nowadays everything is
linked without really being. Lots of people pass by lots of Google’s tools because they
even don’t know that it’s exists.
Last but not least, the power is something, but confidence is another matter.
Google have to be irreproachable with public relations & governments by regularize
tax by being respectful about privacy & intellectual property of everybody.
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Bibliography & Webography
Bibliography:
 « In The Plex: How Google Thinks, Works, and Shapes Our Lives », Steven
Levy – Apr 12, 2011
 « Google Productivity Guide », Mr Keith Charles Johnson – Oct 23, 2014
 « The Google story : Inside the hottest Business, Media and Technology
Sucess of our Time » By Mark Malseed – Aug 29, 2006
Webography:
 https://investor.google.com/financial/tables.html
 http://www.nytimes.com/2015/01/30/technology/google-earnings-revenuesqueezed-profit-misses-estimate.html?_r=0
 http://www.investopedia.com/ask/answers/120314/who-are-googles-googmain-competitors.asp
 http://www.investopedia.com/articles/investing/020515/business-google.asp
 http://www.fastcompany.com/3028156/united-states-of-innovation/the-googlex-factor
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