PRESENTED BY:
PRESENTED
BY:
AJITABH SANGWAN
IPSHITA SINGH
PARUL BUDHIRAJA
TASHI YANGZOM
THE "WORLD'S BEST SEARCH ENGINE"
“ONE OF THE BIGGEST ADVERTISING VEHICLES
THE WORLD HAS EVER SEEN”
“THE PERFECT SEARCH ENGINE WOULD
UNDERSTAND EXACTLY WHAT YOU
MEAN AND GIVE BACK EXACTLY WHAT
YOU WANT."
WORLD'S MOST EXCITING YOUNG COMPANIES –
A COMPANY FROM WHICH EVERY COMPANY CAN LEARN.
GOOGLE'S MISSION IS
“TO ORGANIZE THE WORLD'S
INFORMATION AND MAKE IT
UNIVERSALLY ACCESSIBLE AND
USEFUL.”
For techno-evangelists, Google is a marvel of
Web brilliance
For Wall Street, it is the IPO that change
everything
A case study in savvy management -- a
company filled with cutting-edge ideas,
rigorous accountability, and relentless
attention to detail
INTERNET CONSISTS OF AN INCREDIBLE
NUMBER OF PARTICIPANTS, CONNECTED
MACHINES, SOFTWARE PROGRAMS AND A
MASSIVE QUANTITY OF INFORMATION
SPREAD ALL OVER THE WORLD
HISTORY OF INTERNET
DEVELOPED FOR DEFENCE PURPOSES IN 1962
DEVELOPMENT OF ARPANET FOR PACTICAL PURPOSE
APART FROM DEFENCE USE.
SUCESSFUL EXPERIMANTATION OF CONCEPT BY
CONNECTING COMPUTER OF MASSACHUSETTS AND
CALIFORNIA.
THEORY OF “PACKET SWITCHING” WAS DEVELOPED
THAT FORMED BACKBONE OF STUDY
IN 1972 THE CONCEPT OF ELECTRONIC MAIL CAME IN TO
PICTURE
WORLD WIDE WEB WAS DEVELOPED
GOOGLE- A HUMBLE BEGINNING
IDEA CONCEPTUALIZED BY STANFORD STUDENTS
“LARRY PAGE AND SERGY BRIM”
MEANWHILE JERRY YANG & DAVID FILO TOOK A
DIFFERENT APPROACH TO SEARCH AND THEY CALLED
THEIR COMPANY YAHOO!.
EXISTING SEARCH ENGINES WERE
WEB CRAWLER, LYCOS, MAGELLAN, EXCITE, HOT BOT,
FELL SHORT, ALTAVISTA, INKTOMI.
LARRY & PAGE DEVICED RANKING SYSTEM FOR
INTERNET ,THERE BY SOLVING PROBLEM OF
SEARCHING INFORMATION –THIS NEW PRODUCT
WAS CALLED AS BACKRUB
IN 1997 THEY DECIDED THAT THE BACK RUB
SEARCH ENGINE NEEDED A NEW NAME &
THEY NAMED IT AS GOOGLE.
LACKING FUNDS TO HIRE A DESIGNER AND
THE ARTISTIC TALENT TO CREATE
SOMETHING ELEGANT, BRIM KEPT THE
GOOGLE HOMEPAGE SIMPLE.
THEY TRIED TO SELL THIS SEARCH ENGINE
BUT NON OF THE EXISTING COMPANIES
WERE READY TO BUY.
IN SEP 7 1998 FORMALLY ESTABLISHED THE
COMPANY GOOGLE INC IN WOJEECKI’S
GARAGE.
GOOGLE’S INTERFACE IN 1998
The founders
SERGY BRIN
&
LARRY PAGE
CURRENT FACTS ABOUT
GOOGLE
• Algorithm based on in addition to gauging a phrase's
appearance on a Web page, as other engines did, it
assessed relevance by counting the number and
importance of other pages that linked to that page.
• 500 million searches a day
• Revenue last year around 300 million dollars
• Growth Rate of 30-40% each year
• Search based on the registered “PageRank” and Hyper
Text Matching technology
• Search time from 3 sec to 0.2 sec
• 14,000 employees
• Advertising only through “Word Of Mouth”
• Click on paid ad costs climbed to 20% from 15%
3. The search results are
1. The web server sends the
returned to the user in a fraction
of a second.
query to the index servers. The
content inside the index servers
is similar to the index in the back
of a book - it tells which pages
contain the words that match the
query.
2. The query travels to the doc
servers, which actually retrieve the
stored documents. Snippets are
generated to describe each search
result.
HOW GOOGLE WORKS?
GOOGLE’S WORKING CULTURE
GOOGLE’S
POPULARITY
•
•
•
•
Clean, minimalist
interface
Lack of in-your-face
advertising links
User Friendly
Credible source of
information
GOOGLE’S PHILOSOPHY
•
•
•
•
•
•
•
•
•
•
Focus on the user and all else will follow.
It's best to do one thing really, really well.
Fast is better than slow
Democracy on the web works
You don't need to be at your desk to need an answer
You can make money without doing evil
There's always more information out there.
Need for information crosses all borders
You can be serious without a suit
Great isn't just good enough
GOOGLE’S SLOGAN - DON’T
BE EVIL
4 REASONS FOR GOOGLE’S
SUCCESS
TECHNOLOGY
•
Innovative approach to page ranking
•
Google is a purpose-built hardware company, building all its own
servers from components it buys directly for their manufacturers.
•
According to Drummond, Google now operates the world's largest
distributed computer system.
BUSINESS MODEL INNOVATION
•
By perfecting the nature of targeted ads, Google not only has created a
highly effective revenue generator, it has produced what it hopes to be a
better experience for its users.
•
It is Google's goal to make their targeted ads at least as relevant and
useful to users as the search results themselves.
BRAND
• Number one most recognized worldwide brand. Indeed, Google
has become a verb ("I can't wait to get home and Google him")
which poses real challenges to a company seeking to protect
the strength of its mark.
FOCUS ON THE USER EXPERIENCE
•
Optimization for the user experience first and for revenue
second.
• The folks at Google firmly believe that the better the user
experience, the more easily money will follow.
As a business, Google generates revenue by providing advertisers
with the opportunity to deliver measurable, cost-effective online
advertising that is relevant to the information displayed on any given
page. This makes the advertising useful to you as well as to the
advertiser placing it.
GOOGLE PRODUCTS
GOOGLE PRODUCT LIST
STAND ALONE
PRODUCTS
MOBILE PRODUCTS
•
•
•
•
•
•
•
DESKTOP
GOOGLE EARTH
PICASA
SKETCHUP
GTALK
VIDEO PLAYER
DESKTOP
APPLICATIONS
(extension to software
of other
organizations)
• BLOGGER WEB
COMMENTS
• PINYIN IME
• GOOGLE
TOOLBAR
SMS
• PRODUCT
SEARCH
• CALENDER
• GMAIL
DOWNLOADABLE
PRODUCTS
• MAPS
• GMAIL MOBILE
WEB BASED
PRODUCTS
•
•
•
•
•
•
•
AdSENSE
AdWORDS
AUDIO ADS
BLOGGER
ORKUT
PICASA
YOU TUBE
MAPPING PRODUCTS
• GOOGLE MAPS
• GOOGLE MOON
• RIDE FINDER
GOOGLE’S BUSINESS STRATEGY
After its IPO and huge success from gaining advertisement
revenues, Google now has abundant cash to do more in its
R&D sector, so it seems they are currently penetrating into
"almost everything".
• Competing against existing companies with traditional services
– threat to MSN, BBC, Hotmail etc
• Exploring new hot spots to expand its own business scope –
Google Earth, You Tube etc
• Becoming an advertisement magnet both on and off the
Internet – expanding to radio (dMarc Broadcasting) and print
media
• Acquiring small companies and converting them into cash cows
COMPETITION AGAINST THE
BIGGIES
GOOGLE’S
PRODUCT
COMPANY
PRODUCT
GTALK, GMAIL
YAHOO, MSN
YAHOO, MSN
Messenger and
Mail Services
GOOGLE
SPREAD SHEET
MICROSOFT
EXCEL
CHECKOUTOnline Payment
system
eBay Inc
eBay
GOOGLE’S MANAGEMENT
•
•
•
•
Executive Management Group
Google Management Group
Google.org
Board Of Directors
GOOGLE REVENUES
Q2’07 Y/Y GROWTH = 58% & Q2’07 Q/Q GROWTH = 6%
4500
4000
3664
$ in millions
3500
3205
3000
2254
2500
2456
2690
1919
2000
1500
3872
1257
1384
Q1'05
Q2'05
1578
1000
500
0
Q3'05
Q4'05
Q1'06
Q2'06
Q3'06
Q4'06
Q1'07
Q2'07
U.S. VS INTERNATIONAL REVENUES
2500
$ in millions
2000
1500
1000
500
0
Q1'05
Q2'05
Q3'05
Q4'05
Q1'06
US
Q2'06
Q3'06
INTERNATIONAL
Q4'06
Q1'07
Q2'07
GOOGLE’S EXPENSES
• Cost of
Revenues
45.00%
40.00%
35.00%
$ in millions
30.00%
Q2'06
25.00%
Q1'07
20.00%
Q2'07
15.00%
10.00%
5.00%
0.00%
Costs of Revenues
Research &
Development
Sales & marketing
General &
Administrative
• Research and
Development
• Sales and
Marketing
• General &
Administrative
GOOGLE’S INCOME
PROFITS
1400
1221.2
1104.6
$ in millions
1200
1000
815
800
600
400
200
0
Q2'06
Q1'07
Q2'07
HOW GOOGLE MAKES
MONEY BY ADS
GOOGLE'S % REVENUE GENERATION
SOURCES
2%
15%
ADS(Adwords) on
Google's US website
ADS(Adwords) on
Google's International
website
50%
33%
Network partners who
carry Google
Ads(Adsense) on their
websites
other sourses
COMPETITOR PROFILE
Yet Another Hierarchical Officious Oracle
• Principle activity is to provide Internet products and services
to consumers thorough a network of online properties
• Area of specialization are mainly
 Search and Market place
 Information and content
 Communication and consumer services
 Affiliate services
• Revenues generated by Marketing, Listing Services and by
offering fee-based-services for accessing additional content
and services
• Yahoo is based in USA, Europe, Asia, Australia and Canada
COMPARISM OF GOOGLE AND YAHOO
GOOGLE
YAHOO
Concentrates on simpler ads
Shows visually rich ads
GOOG
YHOO
EXCHANGE
NASDAQ
NASDAQ
INDEX
S&P 500
S&P 500
19-Aug-04
12-Apr-96
$85
$13
$100.34
$33
18%
154%
$296.23
$34.62
MARKET CAPITAL
$82.29 billion
$48.35 billion
SHARES OUTSTANDING
171.22 million
1.396 billion
SHARES HELD BY INSIDERS
53.73%
11.11%
SHARES HELD BY INSTITUTIONS
37.90%
72.30%
89.95
60.16
$2.51 billion
$3.33 billion
90%
57.72%
USP
TICKER
IPO
IPO PRICE
CLOSING IPO PRICE
FIRST DAY GAIN
CURRENT STOCK PRICE
P/E (2005)
TOTAL CASH
CURRENT GROWTH RATE(2005)
GOOGLE VS YAHOO 1 YEAR STOCK CHART COMPARISN
STRENGTHS
• Reputation and familiarity
• Speed and user friendliness
• Relevance ranking based on
citations
• Extra services
•Multi-disciplinarily
WEAKNESS
•Heterogeneousness of the material
•Content is arbitrary
•Risk of dead-ends (users find the
citation, but can't access the full text)
•No expert search
•Anglo-Saxon (English language) focus
•Innovation spearheaded by young
employees
OPPORTUNITIES
•Reach new user groups
•Reach new content
•Higher usage of valuable (expensive)
content
THREATS
•Strategic alliances between
competitors
•Innovative technology as developed by
competitors
•Users get lost/confused
LEARNINGS FROM GOOGLE
• Google now has the world’s largest market capitalization,
overtaking industrial-age giants like Ford and General Motors in
a relatively short period of time.
•
Lot more value on those who can instantly find information
than we do on those who merely manufacture “stuff”.
• Google “search & connect” model instead of the General
Motors “produce & sell” model.
• Stress on helping people find out more- when they most need it
These factors have helped Google to emerge as a genuine
business, technological, and cultural phenomena
THANK YOU