Google strategic management

Résumé du document

Founded in 1998 by Larry Page and Sergey Brin, "Googol" meaning "follow-up of 100 zeros" is a mathematical term. This number makes it possible to symbolize the incredible number of Web pages listed on Google. Google is one of five most popular Internet sites in the world. In the USA it is the fourth most visited site, after Yahoo, AOL, and Microsoft-MSN and before e-Bay. In France its notoriety is even larger, because it is third behind Microsoft and Orange and in front of Free. The principle of operation of Google, which made its success, turns around an innovation of its creators: the Rank Page. When a document is pointed by many hyperlinks, its Rank Page increases and the higher it is, the more it will have the chance of being posted in the first results of a research. This system thus gives an indication of the popularity of the document among the other documents of the Web. This revolutionary invention immediately was patented by its inventors during the creation of the startup Google.com, and was such a success that it was quickly conceded under license with several gates.

Extraits

[...] It has preceded its competitors in this domain and like an octopus; it is now present in every branch of the current communication on Internet. Went public four years ago, it is now bigger than General Motors and Ford joined together. Its founders, Page and Brin are about to become the Brothers” of the modern times. Lately, New York Times titled “Relax, Bill Gates; it's Google's as the villain”1. With their search engine available in 120 languages, Google is used in the most remote regions of the world. To sits its supremacy, the company creates regularly new services in connection with communication. Rivlin G. [...]

[...] Strengths A major innovation (Rank Page) which allowed Google to be different from the competitors and to offer a service completely innovating. Weaknesses Google is less diversified than some of its direct competitors like Yahoo! who diversified its incomes thanks to new services in line (music, games, videos, meetings Very great notoriety as well near the private individuals as of the companies, via the viral marketing (buzz) which is the best and cheapest of the vectors. Google does not propose an online purchase (except on the American site), which represents an important handicap within the framework of a total service offer. [...]

[...] The way is still long for Google, but in the light of its last years, nothing seems to resist to the giant of Mountain View. STMK Google 22 APPENDICES Google's general facts: Type Public NASDAQ : GOOG LSE: GGEA Founded Founders Menlo Park, California September 1998) Sergey Brin Larry Page Headquarters Area served Key people Googleplex, Mountain View, California (USA) Worldwide Dr. Eric E. Schmidt (Chairman) & (CEO) Sergey Brin (Technology President) Larry Page (Products President) Industry Market cap Revenue Operating income Net income Total assets Total equity Employees Website Internet, Computer Software Range during 2008 Q2: US$ 138.37 to 186.89 Billion US$ 16.593 Billion (2007) US$ 5.084 Billion (2007) US$ 4.203 Billion (2007) US$ 25.335 Billion (2007) US$ 22.689 Billion (2007) 20,123 (30 September 2008) Google.com STMK Google 2 BIBLIOGRAPHY Economic and IT press : Le Figaro économie : Google joue la carte du petit commerce» April 2006 p23. [...]

[...] The growth rate is high, which makes it possible for all the firms to profit from a good development without having to struggle. Moreover, it is easy to differentiate thanks to its activity, either to create another SBU and to profit from a temporary monopoly. However, in the same SBU, there is no niche so no temporary monopoly. The firms are little differentiated. Hence, the users tend to be unfaithful The substitute products threat The substitute products are to be supervised in particular if they appear in sectors where the profits are high. [...]

[...] Advantages Limits Progressive development Development mastering Use of own financial resources Partnerships Slow process Financing problems Google will be able to auto-finance expenditure in advertizing budget and in R&D budget by contributions of capital out of Stock Exchange. Moreover, the transfer of its patent Page Rank Algorithm under license to its competitors and the sale of advertising spaces (banners and Adwords select) ensure a regular income to the company Strategy of diversification Diversification rests on the acquisition and the use of new acquired know-how in other spheres of activities. In fact new sources of innovation make it possible to seize new opportunities. [...]