Jessica Feliciana

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014201300082
Ghea Amalia
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014201300059
Strategic
Rizky Perdana Management
/
014201300133
Fadhlan Imam Vidani
/
014201300044
Galdrin Naufalfikri
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014201300055

GOOGLE
Strategic Analysis

Content
Company profile
PEST analysis
Five forces analysis
Value chain
Canvas model
Core problem
Differentiation matrix
Canvas model +5
Strategy

Mission & Vision

Google's missionis to organize the world's
information and make it universally accessible and
useful.
Google's vision is to make search engines so
powerful that they understand everything in the
world

Company profile
Started in 1996 by Brin and Page, founded as Google in 1998
57% American kids say Google as their first word
620 Mln visitors daily
2013 consolidated revenu 50 bln, double digit growth every
year

PEST analysis
Political
Political stability
Intellectual property protection
Anit-trust laws
Taxes

Economical
Level of education/Skill of workforce
Exchange rates
Financial market stability
Government intervention free market

Social
Entrepreneurial spirit
Culture (gender roles)
Demographics
Skill of workforce
Growth market due to more and more internet usage

Technological
Innovation
High costs
Rate of technological diffusion
Impact on VP in value chain

Five forces analysis

Threat of new entrants MODERATE (high cash and
infrastructure)
Threat of substitutes LOW (no substitute for the internet)
Bargaining power of customers STRONG (threat of
substitutes in search and software)
Bargaining power of suppliers LOW (strong market
dominance)
Intensity of rivalry MODERATE (Yahoo, MSN, IOS/Apple)
Complementors LOW (Google is a self developer, Licensing)

Porters 5 Forces
Advertising Value Chain

LEGEND
:

COMPETITION
Whatarethemaincompetitors?

WhosafraidofGoogle?Everyone.

Value chain Model

Canvas Model

SWOT Analysis
S
W
TRENGTHS

Search engine industry

Executive management
Large cash flow
Loyal and satisfied
employees
Loyal customers
Products are very adaptable
Pushing societys technology
Channels for the phone
market
Scalability
Openness
PPORTUNITIES

Secure consumers
personal info
Resurrect relationship
with Chinese market
Focus into developing
tangible technology
Relationship in other
websites
Gaps in online market
offering
Targeting specific
markets- children or
Positive
senior citizens
Future expansion for

EAKNESSES

Public perception of Googles

practices
Non-corporation by foreign
governments
Internal
Decisions being made to
factors
progress Google
Advertising revenue growth
is slowing down

HREATS

Copyright lawsuits/issues
Public perception of
Google
External
Microsofts growing dislike factors
Continued insistence by
some foreign governments
Microsoft and Yahoo
possible partnership
Advertising space is
becoming more
competitive
Negative

Confrontation matrix
SWO
T

Servi
ce

Acqui
sit

Mobile

Bran
d

++

++

++

Data

++

++

++

--

HC

++

++

++

++

++

++

Priva
cy

--

--

--

G+

--

--

++

++

--

--

++

Proft

Prof Lega Integrat

t
l
ion

Core problem
Some of its core strengths
(data mining, product integration)
are making Google
more and more unpopular. People do not like
monopolies

Canvas Model
+5

Strategy
Google must continue its position as market leader
Google Must cancel unprofitable and unpopular products (hardware?)
Google must develop new sources of income (web services)
Google must fight of any attack made by rivals
Google must make adds usefull (comparing prices, etc.)
Google must oppose intelligence agencies openly
Google must reduce legal expenses by 11% by 2016
Google must continue its acquisition strategy
Google must invest heavily to keep and acquire human capital
Google must maintain shareholder voting rights (80%) to keep strategic advantage

Recommendations
Google should continue on improving the accuracy of the search
results :
ACCURACYMOREUSERSMOREADVERTISERS
Fightspammers-Impactonsearchqualityandaccuracy
ResolvetheclickfraudissueImpactonadvertising
business
Provideprivatesearchservicestocompaniesusingits
superiortechnology

Conclusion
Focus on the search engine business service
quality
o Portal business is not an opportunity
Reinforce its core competencies :
o Cutting edge search technology
o Highly qualified workforce <==>innovation

Competitionisonlyoneclickaway

References

http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspx
http://www.businessinsider.com/jimmy-wales-wikipedia-operations-2010-5
http://www.millwardbrown.com%2Flibraries%2Foptimor_brandz_files%2F2011_brandZ_top100_report
http://support.google.com/adwords/bin/answer.py?hl=en&answer=6104
http://www.davechaffey.com/E-commerce-Internet-marketing-case-studies/Google-case-study
http://www.wordstream.com/articles/google-earnings
http://investor.google.com/earnings.html
http://www.slideshare.net/korhan/google-brand-analysis-presentation
http://www.slideshare.net/kimuh72/google-facts-216737
http://issuu.com/samy20002000fr/docs/google_ksf_en
http://www.google.org
http://screwcable.com/google-vs-apple-vs-amazon-where-should-you-store-your-music/
http://www.minterest.com/60-google-products-services-you-probably-dont-know/
http://www.space.com/15395-asteroid-mining-planetary-resources.html
http://mysteriousuniverse.org/2012/04/private-spaces-google-goes-to-outer-space-for-new-business-idea/
http://en.wikipedia.org/wiki/Google_driverless_car
http://thenextweb.com/apple/2012/03/13/the-ftc-subpoena-of-apple-could-spell-the-end-of-googles-default-search-status-on-the-iphone/
http://www.mckinseyquarterly.com/Googles_view_on_the_future_of_business_An_interview_with_CEO_Eric_Schmidt_2229
http://www.businessweek.com/articles/2012-04-04/googles-page-apples-android-pique-for-show#p1
http://www.businessinsider.com/jimmy-wales-wikipedia-operations-2010-5
http://answers.yahoo.com/question/index?qid=20081231182156AAyCsro
http://www.centives.net/S/2012/how-much-is-wikipedia-worth/
http://www.google.com/adplanner/static/top1000/
http://en.wikipedia.org/wiki/History_of_Wikipedia#Historical_overview_by_year