STRAMAN K34 07:40 to 09:10 Class

Estrella.Cua.Go.Montemayor.Somera/

Introduction
Google was started by computer science graduates from Stanford University, Larry Page and Sergey Brin. Company name was derived from the mathematical term googol, a number represented by 1 followed by 100 zeros.

Currently has 65% of market share in searches performed in computer and mobile devices.

Introduction - contd
The company received one of its first funding from an investor who was the founder of Sun Microsystems - $100,000 check Googles Business Model
Revenues from licensing fees Advertising-based revenue

Point of View
We are taking the point of view of the current CEO, Mr. Larry Page, approaching Mr. Eric Schmidt who is now the Chairman of the Board.

Statement of the Problem

How can Google maintain the companys status of being the current leading Internet search firm with the aid of the new ventures that it undertook while competing with strong rivals in industries that it is currently participating in?

Statement of Objectives
Short Term
To be able to consistently update and improve Google's search capabilities that gives multiple information in a single search query To be able to adapt to the growing change and development of today's technology To create a greater amount of internet traffic for them to have more opportunities that the advertisements by Google can be seen by many To be able for Google to integrate its current services into other industries that is still related to the internet, online advertisement and most importantly, providing information

Long Term
To be able to maintain Google's strong relationship with their business partners and customers as well, specifically to those advertisers who utilizes the internet as their place for advertisements. To be able maintain Google's market dominance and leadership when it comes to providing information from the internet To be able for Google to expand through tapping into other markets in other countries that Google has not entered into yet to acquire additional market share

U.S. Search Engine Market Share Rankings, July 2006 July 2011

Percent of Searches
Search Entity Google Sites Yahoo Sites Microsoft Sites Ask.com AOL Others Total July 2006 43.7% 28.8% 12.8% 5.4% 5.9% 3.4% 100% June 2009 65.0% 19.6% 8.4% 3.9% 3.1% 100% May 2010 63.7% 18.3% 12.1% 3.6% 2.3% 100% July 2011 65.1% 16.1% 14.4% 2.9% 1.5% 100%

U.S. Smartphone Platform Market Share Rankings, September 2009 May 2011 Smartphone Platform Google Android Apple iPhone RIM (Blackberry) Microsoft Windows for Mobile Palm Others September 2009 2.5% 24.1% 42.6% 19.0% May 2010 13.0% 24.4% 41.7% 13.2% May 2011 38.1% 28.6% 24.7% 5.8%

8.3% 3.5%

4.8% 2.9%

2.8%

Total

100%

100%

100%

Areas of Consideration
Financially strong and capable Captured majority of the U.S. search engine market share Strong brand image Stable and effective strategic acquisitions Well established relationships with advertisers and business firms

Strengths

Weaknesses

Damaged reputation in promoting ethical practices Few number of applications offered for phones running on the Android operating system Lacks knowledge and technology in mobile gadgets

Areas of Consideration - contd

Expanding to untapped markets Taking advantage of technological breakthroughs Wider range of accessibility in internet searches Increasing number of internet users Acquisition of firms that would complement Googles services Reduction in trade barriers in favorable markets in foreign countries

Opportunities

Threats

Increasing intensity in competition among industry rivals Restrictive barriers from attractive markets Growing bargaining power of advertisers Strategic moves of competitors to introduce innovative technological advancements

Areas of Consideration - contd

Opportunity Strength
O5 vs S3 Integration of Google with other firms or industries is a great opportunity for them to improve on their services for them to greatly expand their market since they already had establish a brand equity.

Threat
T1 vs S4 Even though Google has integrated most of their services through their different acquisitions, they should see to it that they are able to compete and keep up within the industries that they are about to enter for them to avoid costs that will affect their financial performance.

Weakness W3 vs O2

T2 vs W1 If Google would take advantage of the upcoming Before Google would try to enter a developments in technology, they should think of market that has barriers or ways through set of activities for them to have restrictions when it comes to their own manufactured hardware and researches and giving information, applications that are exclusively for Android for Google should take into Google to maintain its leadership through this consideration the issues would advancements. come up if they will not adapt to the restrictions that are present from other countries.

Alternative Courses of Actions #1

Acquisition of Motorola Mobility

Incorporation of a semantic search technology Form strategic alliances with businesses in order to bring internet services in chosen underdeveloped countries

Alternative Courses of Actions #2

Discontinuation on the acquisition of Motorola Mobility

Incorporation of a semantic search technology

Help companies and universities in developing their intranets and websites with Googles technology in untapped markets

Recommendation
As Googles CEO, the major problem that the company is facing is the maintenance of its position that it acquired in the market throughout the years. The company is planning to take the 2nd ACA as a strategy to be implemented in the following years.

Recommendation ACA#2
Discontinuation on the acquisition of Motorola

Maintain position in the market

Incorporation of a semantic search technology
Help companies and universities in developing their intranets and websites with Googles technology in untapped markets

Implementation
Bring the points of disadvantages of acquiring Motorola Mobility to Eric Schmidt, the chairman, and other board of directors. Invest on the incorporation of a semantic search technology by improving on their current search engines capabilities with the companys resources both in its financial and technological aspect.

Implementation contd
Google will start to develop relationships with schools, universities and businesses by showcasing the advantages and benefits both for academic and administrative purposes through the companys services.

Learning Points
Strategic acquisitions are beneficial to the company if it will complement its core competencies. Despite aggressive competition, the services of other rivals are sometimes necessary to incorporate in the companys products and services because they may complement one another. Being the market leader, should not hinder the company from expanding the business and improving on its services.