Google Inc

818023 Syazwani Mohammad
Individual Assignment 1: Google Inc

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TABLE OF CONTENT

No. Content Page
1. Sub Topic 1: Company Background 2
2. Sub Topic 2: Industry Background 2
3. Sub Topic 3: Internal Environment Analysis 3
4. Sub Topic 4: External Environment Analysis 9
5. Sub Topic 5: SWOT and TOWS Matrix 11
6. Sub Topic 6: Strategic Recommendations 15
7. References 16

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Sub Topic 1: COMPANY BACKGROUND

Google name is come from mathematical term googol means number one and
following by 100 zeros. Founder was change the name into Google to make related with the task
of organizing huge information in Internet. Google was founded in 1998 but generated the idea
in 1995 by two computer science graduate students Larry Page and Sergey Brin (google.com,
retrieved on October, 2014). Before the official corporation, Larry and Sergey had met at
Stanford, and collaborated on a built search engine for the colleges servers named BackRub.
Both of them received a payment $100,000 from Sun Microsystems and started to develop giant
engine of Internet. Google had immediate sparkle after create Internet engine giant and being the
most popular than competitors Yahoo!.
In 2002, Google was hired Eric Schmidts to hold the title of CEO and cofounders Larry
and Sergey acting as active members in Board of Directors. Based on the list in A.Ryan 2010,
the executive team of Google is the cofounder and 7 others, Board of Directors also cofounders
and Eric Schmidt and 6 others. In August 18, 2004 Google also take opportunity went into public
with 19,605,052 shares of Class A common stock $83 per share and the stock was growth over
$600 per share till end of 2009 (A.Ryan,2010, google.com, 2014).
Every company must develop with mission and vision, thus Google mission is to
organize the worlds information and make it universally accessible and useful. Google believe if
they put users need first they can achieve the mission target.

Sub Topic 2: INDUSTRY BACKGROUND

Google was incorporated in September 4, 1998 and making their headquarters at 1600
Amphitheatre Parkway, Mountain View, CA 94043 (google.com,2014). Before Google develop
a giant search engine, other competitor of Google has been released into this industry by develop
several internet services such as Yahoo! Inc, MSN, Disney Online, Move Inc., Match.com LLC.
(yahoofinance.com, retrieved on October, 2014). Internet industry is a big opportunity to Google
because it is wide business and playing with technology indeed. Improvement in internet
technologies is needed and important things to impress people and user towards Google. To
respond on these issues, Google has growing stage by stage following current technologies and
users need. Up to year 2000, Google growing with 15 languages and having toolbar and makes
Google become friendly to users (A.Ryan,2010). Google search engine has been attracted a loyal
follower with the growing number of internet users because of simple design and useful results
(google.com, retrieved on October 2014).
In order to derive mission of company, Google has been launched several services. In
2000, in order to maximize speed when loading page, Google start to selling text-based
advertisements with search keywords and comprised with AdWords and AdSense products of
Google (google.com, retrieved on October, 2014). Besides growing in public shares, Google also
gained revenue almost 97% from innovative advertisement system, AdWords and AdSense
(A.Ryan, 2010). Other than that, using this application more users in business environment will
be success and grow because it is worldwide and friendly.
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On April 2004, Google also released applications Gmail to users that complete package
with speedy search, huge amounts of storage and threaded message. In 2004 too, Google
launched digital mapping named Google Maps that can detect live traffic, transit directions and
street-level imagery. In 2005 launched Google Earth that makes users can explore the ocean and
the moon. In 2006 Google acquired online video sharing site with YouTube and until today 2014
Google has been uploaded 60 hours of video in every minute in that site. High technology of
android also attracted Google to announced Android and the Open Handset Alliance in 2007 as
an open platform for mobile devices. In September 2008, Google project is more variable to
launched Google Chrome with comic book introducing in their source browser.
As an internet information provider, Google always come out with a new product in their
engine, Web Search, Mobile, News, Translate, Scholar and so many more that can search via
google.com. In 2008 and 2009 DoubleClick and Google Docs was released and all users are
available to upload any type of files and it is including ZIP files. Google also move a step
forward when they step into public education via google.com. Google Apps for Education is
creating to friendly users need between teachers and student. Google also mentioned that they
want to work with schools in continual evolution. Google also provide Google Spreadsheets for
team projects to increase good interaction with technological in the classroom.
In 2010, Google take a challenge to be a global leader by improvising their product and
more innovative. As mentioned in case study A.Ryan 2010, Google improvisation on their search
engine and personalization include of Google Image, Google Books, Google Scholar, Google
News, Google Finance, Google Videos, Google Blog Search, iGoogle and Personalized Search,
Google Product Search, Google Custom Search, Google Merchant Search, Google Trends,
Google Music Search, Google Webmaster Tools. Google also provided innovative and improve
in Applications such as Google Docs, Google Calendar, Gmail, Google Groups, Google Reader,
Orkut, Blogger, Google Sites, YouTube. Google also had a Clients in their Internet package,
such as Google Toolbar, Google Chrome, Google Chrome OS, Google Pack, Picasa and Google
Desktop. From 2004 launched as mentioned above, Google also improvise their package in
Google Geo, Maps, Earth and Local which is Google Local Search, Google Maps, Panoramio,
Google Earth, Google SketchUp. To be same level with android era, Google also adding values
in Android and Google Mobile by Google Mobile, Mobile Search, Mobile Applications and
Mobile Ads. Others from Google is Google Checkout and Google Labs.

Sub Topic 3: INTERNAL ENVIRONMENT ANALYSIS

Internal analysis is important to determine whether Google is able to take advantage of
opportunity while avoiding treats. Some more about internal analysis is to identifying and
developing Google resources, structure and competencies. In other words internal environment
also goes to conditions, entities, events and factors in the organizations that can influence the
activities, performance and choices. This including management in corporate culture and
employee. Environmental analysis also wants to monitoring, evaluating and disseminating the
information that got from internal and external environment of Google to attract people to
Google product. This analysis also wants to identify strategic factors and determine the future of
Google. From the case study, Google Inc faces internal environment in mission, financials,
value chain, employee and competitive advantage that will be discuss in further below.

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1. Mission Statement

Google mission is TO ORGANIZE THE WORLDS INFORMATION AND MAKE IT
UNIVERSALLY ACCESSIBLE AND USEFUL. Based on the mission Google does not limit
their activities with timeline, so that Google is allow using any possible planning and activities to
performing good to users and maximize shareholders wealth. Google answer the question of
mission build, what we want to offer? What is the best from our heart to customer? How do we
want to make money? The key element of mission is the users must satisfy, but the question is
what being satisfied? Second key element is users of Google and market being served but who is
being satisfied? The third element is what Google does or how their users satisfied?
Mission is something that company must achieve in every program selection or product
to fulfill users. Management of Google believed they must put the needs of users first. From
there user will satisfy and makes word of mouth promotion and lead to increasing of users. From
the first question, what we want to offer, Google answering by worlds information that means
not focus on one sector or limitation plus they are worldwide. What is the best to customer?
Google answering by accessible and useful, and How do we want to make money? Because of
the mission is first say about organize, so Google really organize every product to maximize
revenue but not give burden to customer. For example, the AdsWord and AdSense product
derive 99% revenue to company based on ukessays.com reported. Other than that, Google also
provide advertisement that convenient to users by make it clears to users before claim any
payment.
Answering the three element of mission give advantage to end users make decision and
invite more investor to Google. What makes customer being satisfy? Google provide very user
friendly search engine, simple and useful result (google.com, retrieved on October, 2014). Other
than that, based on google.com, retrieved on October,2014 they well said and elaborate about
their mission, our mission is to facilitate access to information for the entire world, and in every
language. From there Google looks foremost serious about their mission. To answering second
element, who is being satisfied? We can look Google users are mostly for those who are having
knowledge to using Internet. Whether they are high education in Internet or just a lower end user,
they still can satisfy with Google product, because Google homepage interface is clear and
simple, and the pages load instantly (google.com, retrieved on October,2014). Google also teach
how to use them in google.com. The last element is how their user satisfies? The user will satisfy
from the product of Google as mentioned in industry background above chapter. Every product
in Google has the link how to use. So that user is educating with Google environment.
Look for Yahoo! mission as a Google close competitor, Yahoo!s mission is to be the
most essential global Internet service for consumers and businesses. Google is more profitable
mission than Yahoo! Because Google do not have limit user like Yahoo! Mission is focus on
consumers and businesses that is mean their search engine is suitable for those who are doing
business or looking for business. Other than that, Google mission is To organize the world
information this mean Google has an instinct of educate people because they are mentioning
Organize. Educate people via their useful information. Google has proved it from how to use
link in every product that they serve plus they also invest in Google Apps for Education. From
there we can trace that Google understand that education is forward investment and never end
and always have new alignment so that they will have new ideas and new business too.
Google also divide their mission into three statements. The first statement is want to
provide the most relevant and useful search results, independent and financial incentives. They
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want to be the resource to users. The second mission statement is useful advertising and says
advertisement shall not be an annoying interruption. Some users just want to looking their need
rather than seeing advertisement all around the homepage. Google take this challenge and clear
to user about any payment chance borne by user. Google does not take money from user, because
most of Google product is for free. The last mission statement in case study is Google will never
stop working to improve user experience by using search technologies, and focus into important
area of information. This worth for long term value of Google and reach user satisfaction.

2. Financial Analysis

From the Exhibit 7 in case study, we can see Google are comparable with other competitor
in term of financial management. Besides, most of it Google was inspired more than competitors.
The competitor comparison here is from Yahoo!, AOL and industry itself. There are several
factors will be highlight to show whether Google is in good financial or not.

EXHIBIT 7 in case study

We can see the overall capture is more to Google. From the market cap, Google are
dominance the market capitalization about 186.01billion than Yahoo! and the difference cap is
164.96 billion. Yahoo! lags again in quarterly revenue growth, revenue and in net income when
they just got 1.60%, 6.53 billion and 1.07 billion rather than Google mostly is much higher than
Yahoo!. Other than that, compare AOL and Industry with Google, AOL mostly left behind to
Google and Yahoo!, thus for industry Google is hold large scale of market from industry
especially in Gross Margin and employees. This prove that Google mostly reach their mission
statement. In term of maximize shareholder wealth, the earning per share in Google is higher
than others, and it is growth in healthy with 1.21 compare to others.
When it comes to financial, everyone wants to hear about income and Google Financial
Statement (Exhibit 10) in case study is performing better from year to year in term of net income.
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For example increasing $2,293,590 from net income 2008 to 2009 and overall year from 2004 to
2009 Google was show the good and healthy financial performance.

EXTRACT FROM GOOGLE INC. FINANCIAL STATEMENT (Dollar amount in
million)

Above are the computations of part of Financial Analysis Ratios. From the ratios we can
summarize Google financial performance in six years from 2004 to 2009. In 2005, liquidity
ratios are higher than other year. From the history, 2005 is still in the beginning of Google
released into public which is in April 2004. The income from public generated into assets and
liabilities and we can see the movement of current assets in 2004 from $2.6million run into
$9.0million but still Google maintained the lower current liabilities. The higher current ratio and
cash ratio the more financial institution interested to give loan to Google due to strong liquidity.
Net profit margin in 2009 are not significant, it means Google has a problem with controlling the
indirect costs in operations. This makes Google in low effective procedure and inefficient in
2009. In 2008 Google ROI also detect with not significant with drop 13.31% that led to less
control on assets and showing inefficient management. ROE also drop in 2008, this show
shareholder total in investment is lower than other year. This showing Google has inefficient
management in their equity. In average collection period of Google lead to concern that Google
is inefficient again compare to year 2004 and 2008 average is lower than other years.

3. Value Chain

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Google are providing search engine services to users, so the product is not in raw material
type that need to go through a process of sale to end users. We can say the product of Google
is the users. The users will use Google search engine that provide useful information to user.
Once the user types any signs and it brings the user to Google Ads (text advertisement),
Google has touched with traffic information about user need. At the same time the partners
advertising will transform the traffic into conversion or we can say sales on partners site (the
finished good). Internet technology industry is not only detected from the quantity of user in
any sites provided in their search engine, but also available to detect pre-qualified users using
keyword association and search history, so that Google can recognize the users interest.
Whoever user that directed the key point in search engine and direct to partner site or
advertisement and meant to purchase, is the chance to Google specify they are success to
deliver partner site and at the same time earn revenue after make it sales.

Google Inc Value Chain Illustration, (Ahsan Hussain, 2010)

Based on the value chain illustration above, Google are too depending on R&D Research and
development to support their activities. The employees in R&D are the most important persons
to hire. Google has a very strict qualification to hire people because they are measuring virtual
services to users, no eye contact, no product to touch and no logistic to delivery product.
After done with R&D process, Google will move to information architecture that allows cost
of structure such as infrastructure and systems to convey the Google R&D and it was called
server. The server will conduct the operation of information, distributions, sales and service as
well and each activity will earn the Google profit. The process of operation and distribution are
including in Information Retrieval. After users direct to the partner of Google advertiser, the
server will Reconciliation the data choose via Meta Data and automatically updating the data by
Meta Unit Data. Even though user are not clicking the partners Ads, Google fixed convey the
result into how many the user in this world (excluding non-Internet server) like to choose in one
day, in any festive all around, and it is good to say Google has locations all over the world to
localize distribution of information. Other than that, Google will use their locations to
appropriate with users information need in that country such as language of each country, and
Ads for several festive in that country. This strategic of value chain will benefit to increase the
sales and attracted future partner to invest to Google Ads.
Based on case study, A.Ryan,2010 mentioned about the risk in certain country that limit the
sales of Google. Every country has their own culture, so that Google do the direct action in some
country such as in Turkey, there has been popular video that mock Turkish and Google was
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filtered the link Google.com.tr. In value chain, this issues are bothered and makes the meaning of
value chain failed because not all the person in Turkey are Turkish and they are entitle to visit
the website otherwise the controversy website always followed by huge follower and this are the
best way for partners advertise their product via Google link.

4. Competitive Advantage

Google are giant search engine in the world and dominant the market based on the financial
result and market cap as abovementioned. To maintain the sustainable competitive advantage,
Google has developed an infrastructure that very guarantee to user a fast and efficient, useful
information. We can see from the below table, every year Google will allocate increasing of
property and equipment and intangible assets and Goodwill. These strategic are to sustain their
mission and capabilities from competitors.

Extract Balance Sheet Of Google Inc (Dollar amount in million)

Based on Resource Based View (RBV), any organization that fulfill their resource with prove in
gain and sustained their competitive advantage in valuable, rare, imperfectly imitable and non-
substitutable are entitle to put in RBV criteria.

Valuable Resources
Google resources are about the intelligent of R&D in Google who came to develop useful
search engine and attracted all over world to use Google search engine since its
establishment in 1998. They are lively with innovative and creative development ideas
and transform it into useful product and tools to Google. Nowadays, the resource was
helping too many users and partners and help Google too in gain revenue since 97%
revenue is from advertising.

$0.00
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
Property & Equipment
Intangible Assets
Goodwill
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Rare Resources
In term of search offering, compare to competitor of Google such as Yahoo! and MSN,
the relevance and reliable link is more to Google. We can see from Google web search,
google.com, it is free from any advertisement as mentioned in mission of Google. Other
than that, Google is offering educational homepage to whomever user between lecturer
and student for free. For example, they offering spreadsheet for team project and this idea
is beyond other competitors.

In-Imitable
Google have large scale of infrastructure and it is all over the world and not easy to
imitate. All has been synced up and all is running on very large quantity of RAM and
with fast computer technology memory. Otherwise Google too not much open and
disclose about how they keeping the data and overall it is difficult to duplicate the market
share of Google since Google has large market share rather than competitors. Thus, all
Google products has trademark registered, even though some is unregistered, but they are
legal situation within the third party. Google has to maintain their public domain and
secrets.

Substitutability
Google has other way to replace the users need from the other link to other browsing link.
For example application on kids, music, shopping, books. The image of Google interface
of homepage is rare and users know it is from Google for example Google Maps, Google
Earth. Then it difficult to substitute, because user still can use Google instead of changing
to competitors. There are different ways of organizing and make it efficient to user to
retrieved information. Google also has clear and clean relevant results at reasonable
speed and with minimum hassle.

Sub Topic 4: EXTERNAL ENVIRONMENT ANALYSIS

From the case study, we have six external environment will be analyzed below:

1. Global
Google providing search engine online product and these are providing them to deliver
their product in global view to entertain worldwide user besides Google locations also in
all over world countries. Until today, Google has more than 70 offices in more than 40
countries plus provide 150+ languages for user in selected countries. (google.com,
retrieved on October 2014). Google also provide homepage and search engine with own
user country language to gain market share. In term of gain market share, Google take
this opportunity focus on exciting moments using Google and make people take effort to
use computer especially in disadvantage countries to gaining internet access.

2. Demographics
Google is in good condition of demographics because commonly the young user base is
relatively with search engine. Young user base are fresh, determine, and love experience,
love expert thus, Google are mentioning the criteria. Internet users also not in specific
gender like other business typically focus on one gender either male or female. Thus,
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Google also relish expanding market share and gaining revenue with other generation
besides young to use Google search engine and relying on partners Ads.

3. Technology
Technologies are the very important scale in Google that they are and should be expertise
in technologies to compete with competitor technologies and not left behind, but always
beyond the competitors. It will reduce initiative of imitate from others. Google also must
always upgrade their trademark license and patent and upgrading R&D to improve the
last ideas. Emerging technologies with other companies also is the good advice to Google
to gain expertise of R&D and gain income. Due to popularity of Google, they have
created a new technology Android link with smartphone. These technologies are
widespread to all smartphone products unless they are not entitling with Google term and
conditions.

4. Economic
Due to selling technologies as a based company, Google has not feel the downturn of
economic recession in United States, because in positive way Google business based has
never end unless there are other technologies really up and beat the search engine from
Google or other competitors. Everyday people want get the issues and news, instead of
using traditional ways such as newspaper, Google are the best and fast way to others to
collect the useful and relevant information. Google also focus with highly targeted useful
product and measuring partner advertisement with large scale of Internet technologies.
Thus, Google always in good economic conditions and become reliable company to
shareholder.

5. Political and Legal
Due to political and legal issues, Google has to face the problem arise with those
countries that hold own culture instead of Google link are sometimes touch sensitivity of
people. Otherwise the punishment does not affect the operation of Google because they
are a big search engine company in the world and has a liable ability to chase any users
that offended their companies in the legal issues especially due to imitate intentions or
hackers. Google also provide link to give knowledge to user about their privacy using
Privacy Center in google.com. Due to laws issues, basically the laws has so many
argument before there are entitle to be used for punishment, but in fast technologies way,
law cannot compete the fast of technology indeed. The law maybe is not necessary to
certain issues or in obsolete.

For example Google also confront with copyright issues, because Google stores copies of
third party web pages and images on servers, so Google are responded to certain users
that highlight this matter. The Digital Millennium Copyright Act are the answer for
Google defense their act, because from that Act, Google are able to release or linkage the
third party websites that include copyright materials as long as the companies also
complied with the statutory act.

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Sub Topic 5: SWOT ANALYSIS AND TOWS MATRIX

SWOT can be described into Strengths, Weaknesses, Opportunity and Treats. As a larger search
engine in the world, Google domain the market and has strongest competitors too and need to
brings Google extraordinary from them to compete and sustain in the market. Thus, SWOT
analysis will describe Google in a best way.

STRENGTHS 1. Fast and relevant information
Explanation From the case study A.Ryan, 2010 has mentioned that specialty of Google
is in their mission to provide accessible and useful information. Thus in
Google.com they also clearing the statement that homepage interface of
Google is clear and simple, and the pages load instantly. Based on
released new product each year from 2004 to 2010, Google promises their
mission to give useful information to user. Google product also have a
great expectation from user because it rare, new, helpful and fresh. Google
also provide more than 10 language in year 2000, but nowadays provide
150+ language to selected user Google browser (google.com, retrieved on
October 2014)
Competitor Compare to Yahoo! based on Yahoo homepage, there a lot of
advertisement and cookies that not seeing simple like Google. But it may
help people in to know news result as fast because Yahoo! homepage is
together with appearance news.
2. Reliable Source Revenue
Explanation Google is extremely effective in obtaining solution to earn revenue and
choose advertising is the number one income for Google about 97% from
income is from advertising. There are three primary groups that served by
Google which is first is by user, second is advertisers and third is Google
Network Member. All of this are contribute to Google revenue.
Example AdSense and AdWords which allowed for multiple consumers and will
results in sharing revenue between the companies.
Action Google also continuous improve their advertiser experience with them by
developing a new program such as YouTube and make AdSense at the
point of video offering.
3. Human Resources (loyal employees)
Explanation Google has a highly innovative, creative and super skilled employees.
Google has generate 19,835 staff at the end of 2009 consisting in Research
and development, 7,338 in sales and marketing, 2,941 in general and
administrative and 2,113 in operations. Looks into Google product each
years, there are highly qualified employee can do that because the demand
of creative people is high, so that Google hire people with high salary too
to sustain and maintain quality of idea from R&D. Once the recession
session had been done, it may become difficult to maintained and looking
the same or higher skilled as staff before. The employee satisfaction is the
best way for Google to maintain its good quality new product. They
believe good employee is a good investment too for companies.
Example On the Google website they are proudly displays the videos of Google
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office and employees at work to show that they are love their employees
and experiencing them with others.
4. Healthy Financial Condition
Explanation From the Balance Sheet and Income Statement and the Ratios that have
running at above financial analysis, Google is still in good condition and
still attracted people to allocate share to them. Even though inefficient
happen in some use of asset and operation, but Google net profit is still
higher than competitors Yahoo!. Inefficient is roughly tough to avoid in
every companies, but Google has intelligent to manage their financial by
creating new idea and generate huge income from that and manage the
leakages very well.
Plan The healthy financial will lead to more innovative idea from Google and
no limitation on their creativity. Every step and project are consume huge
amount of expenditure, so this will argue by shareholder.
Example Cash Ratio and Current ratio of Google is high, thus they have high
liquidity to attract financial institution give cooperation to expand
business.
5. Strong patents portfolio
Explanation From the risk in case study, we can see Google has several selected
product has been registered which is Google, YouTube, DoubleClick,
DART, AdSense,AdWords, Gmail and others were registered under
United States trademark. But there are some unregistered trademark from
Google product such as Android, Jaiku and others. Besides people will
think about unregistered trademark, but it is with third party consolidation
and have term and conditions. Google are huge company and able to
defend with other imitation and they have strong patent based on history
from their establishment since 1995, they are registered google.com as
domain.
6. Product integration and innovation
Explanation Google has released new product every year to sustain their ability and
fulfill user need.
Example From the Exhibit 2 in case study, Android and Google Mobile-Google
Mobile, Mobile Search. Mobile Phone is some product with highly use
from every stage of user, the fast information and fast technology were
attract Google to improvise their product by born Android instead of
Apple born the iPhone. Apple was exclusive to their own mobility, but
Google has sell their Android software firstly with Samsung i7500 on
2009 (gizmodo.com, retrieved on October 2014)

WEAKNESSES 1. Relies on one shot of Income
Explanation As we know from the case study elaboration, Google has expertise in
advertising and making much income from that selection about 97%. Thus
any blockage of online advertising will give negative effect on operating
profits.
Suggestion Google should gain other creative income less than too dependent on one
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source income. How come the partner of Google choose other company to
advertise their product, thus Google are more sickness to up with other idea
to recover the all operation cost. Otherwise the Google competitor, also do
the same things, offering advertising in their browser.
2. Culture Shock
Explanation Google are large search engine using Internet and it is worldwide to everyone
connected with Internet. Some countries are reluctant to Google product due
to culture governance.
Example Google has removed their link in YouTube due to mock Turkish.
(A.Ryan,2010)
Suggestion Google need alert their employees close to their area of networking to detect
early the sensitive culture of countries that related to their product.
3. Costly on Intellectual Property
Since user are mainly using search engine instead of typing the website name
because the Internet browser always pop up appear when user click to Google
browser, thus Google not become commonly used by describing searching.
Example Authors Guild and the Association of the American Publishers, claim to
Google about the product and trademark in Google advertisement. It costly
for both parties.
4. Internet Security Issues
Even Google are the most larger search engine, they are also trace by hacker
to obtain user record and falsify to use. For example credit card information
that can get from user Gmail, Blogspot using hackers skilled. To identify the
theft is a major problem to Google because it also the problem to other search
engine.
Suggestion Google should hire the most talented employees to generate the high quality
software and reliable and dependent internet security to user information.

OPPORTUNITIES 1. The raise of Mobile internet users
Since Google collaborate with Samsung using Android software,
there a lot of mobile phone such as ASUS, HTC using the same
Android to gain sustain market independent for mobile phone and
while they are cannot compete with Apple model but still in rage of
currently mobile phone technologies.
2. Acquisition of Patent
Since Google has several products unregistered trademark, Google
should take this opportunities raise up with own product rather than
collaborate with third party and allocate profit after sales for both
party. Google can earn money by own product after gain experience
and market share. Every step should do after end of agreement with
third party.
3. Scholar
Since Google have a scholar website, but not mentioning a lot in
public, why not Google take this opportunity to start looking for
further employees from Google Scholar to back up recession
employees.
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THREATS 1. Competition
Since Yahoo! is the close competitors to Google, with their high profitability
search engine too, Google has to compete in term of reliable product to sustain
user. Other than Yahoo!, the vertical search engine and e-commerce sites such
as WebMD (for health queries), Kayak (for travel queries) and eBay
(commerce). Some user also too much rely on social network such as
Facebook, Twitter because there are also have link service sharing information
on friend status user. Other traditional advertising also treats to Google such as
magazine, yellow pages, billboard, radio, television, newspaper. Besides,
mobile application also the treats to Google because user always rely on
mobile application than search engine.
2. Legal and Regulatory issues
Some law currently is not functioning through fasting internet technologies.
Thus, Google are not except to face this problem and give negative impact to
operational of Google. Google do not have strong power to defend from law
other countries for the certain issues of blockage website due to culture
sensitivity. In China, they has restricted content on political issues, Google are
agree to censor some of Internet search result in Google in China website in
2006.

TOWS Matrix will be used to develop strategies for companies from the threats, opportunities,
weaknesses and strengths. TOWS also will combine the internal and external analysis of Google.

TOWS MATRIX

Google Inc.
Strengths (S)

1. Fast and relevant
information

2. Reliable Source Revenue

3. Loyal Employees

4. Healthy Financial

5. Strong patent portfolio

6. Continuing product
integration and innovation
Weaknesses (W)

1. Rely on one core income

2. Culture problem

3. Costly on Intellectual
Property

4. Internet Security Issues
Opportunities (O)

1. The raise of mobile Internet
user

2. Acquisition of patent
Strengths Opportunities (SO)

1. Copyright the own mobile
phone of Google as a brand
new product since mobile
internet are the most relevant
Weaknesses Opportunity
(WO)

1. Generate more income from
own mobile phone application
as Apple Inc. does.
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3. Scholar

and popular gadget nowadays.

2. Build the giant patent for
Google only in every Google
countries location and for any
third party joint venture with
Google product.

3. Open Google Institution for
technologies education to gain
more idea and as a coating
current employee recession.
2. Educate third party about
knowledge of patent and
Intellectual properties via
adding term and condition on
agreement.

3. Increase the number of high
talented employee in security
data department
Threats (T)

1. Competition

2. Legal and Regulatory issues
Strengths Threats (ST)

1. Strengthen the R&D
department for continuing
good and possible product to
gain more market share.

2. Increase and upgrade the
salary and bonus for employee
to sustain their abilities for the
sack of Google.

3. Replace any product due to
law regulation with the brand
new reliable product to sustain
user and bring good
governance image to user and
law.
Weaknesses Threats (WT)

1. Increase the efficient of
R&D Development.

2. Increase the security level
in every user database

3. Patent all user importance
data such as password on
financial data and make user
understand the term and
conditions that any
encumbrances hackers after
patent shall be borne by
Google. Otherwise the
services of patent shall be
borne by user itself.

Sub Topic 6: STRATEGIC RECOMMENDATIONS

Due to fast changing information and technologies nowadays, Google logically and
basically is the strongest brand compare to other competitors. Thus, Google must maintain and
sustain their good brand and loyalty of user by evaluating every single complaint led to
discontinued product or operation in certain country or not. Evaluating profitable acquisition also
recommended here, because Google has several acquisition that not led to higher income such as
advertising AdSense and AdWords. The too much dependent on one income is highly not
recommended for strong long lasting companies.
However, all recognition and designation of decision is in CEO hand, while user are
important to as a tool of decision.

16

References:

1. Yahoo! Finance (2014). Competitors. Retrieved on October 5, 2014. From
https://finance.yahoo.com/q/co?s=GOOG+Competitors

2. Google (2014). Our history in depth. Retrieved on October 5, 2014. From
http://www.google.com/about/company/history

3. CSIMarket.com (2014). GOOGs comparison of Quarterly Growth Rates to its Competition.
Retrieved on October 5, 2014. From
http://csimarket.com/stocks/competitionNO3.php?code=GOOG

4. CSIMarket.com (2014). GOOG Sales vs. its Competitors. Retrieved on October 5, 2014.
From http://csimarket.com/stocks/competition.php?code=GOOG

5. Haim Hilman Abdullah (2010). Pengurusan Strategik Konsep dan Kes. Pearson Malaysia Sdn.
Bhd.

6. Wheelan T.L, & Hunger J.D (2012). Strategic Management and Business Policy Towards
Global Sustainablity (13rd ed.). Pearson Education Inc.

7. Value Chain Analysis (2010). Retrieved on October 5, 2014. From
https://www.scribd.com/doc/29032015/Value-Chain-Analysis-by-Ahsan-Hussain

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818023 Syazwani Mohammad

Individual Assignment 1: Google Inc

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