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Trent Hemann Bunde Walker James Yost

This analysis delves into Google's remarkable growth in the online advertising industry, highlighting key successes such as its partnerships with Yahoo and AOL, leading to significant search activity increases. The report covers the company's foundational goals, innovative products like AdWords and AdSense, and competitive advantages. It discusses challenges from competitors and evolving market dynamics, as well as opportunities in mobile advertising and video content. Finally, a SWOT analysis underscores Google’s strengths, weaknesses, opportunities, and threats in navigating a competitive landscape.

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Trent Hemann Bunde Walker James Yost

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  1. Trent Hemann Bunde Walker James Yost

  2. Industry Analysis • Industry involvement • Internet Industry • Search Engine • Online Advertising • Software Industry • Electronic Industry

  3. Online Advertising Industry • 9% of U.S advertising spending • 16% increase in 2010 • Continue to grow as technology becomes more efficient

  4. Online Advertising Spending

  5. Global Expansion • Year 2000- developed 10 new language versions • Eliminated language barriers • Expanded customer base greatly • One year later- over 26 total language versions

  6. Google’s Partnerships • Yahoo (2000) • Agreed to be default search provider • 10,000 searches/day before partnership • 500,000 searches/day after partnership • AOL (2002) • Had 34 million customer • Leader in e-commerce, web brands and internet technologies

  7. Acquisitions • Urchin Software Corporation (2005) • Used by owners of websites • Helps understand users’ experience • Tracks marketing performance • Milestone for Google’s online advertising • Became leading online advertiser in Industry

  8. Competitors • Yahoo • Offers news, search, messenger and email • Created rich content • Allowed users to stream music/videos straight from website • Offers travel applications

  9. Competitors • Apple • Safari vs Google Chrome • iTunes vs My Space and Pandora • iPhone vs Android

  10. Key Success Factors • AdWord • Helps website owners measure amount of activity • Gives feedback on owner’s ad • Shows if click leads directly to purchase or signup • Helps owner see strong/weak selling points • Strong selling point of Google for customers

  11. Key Success Factors • AdSense • Enables ads on customers website • Ads relevant to website content • Creates revenue on a “per-click” basis • Generated over $2.04 billion in 1st qt 2010

  12. Google’s mission • Google’s mission is to organize the world‘s information and make it universally accessible and useful. • It’s best to do one thing really, really well. • You can make money without doing evil. • Great just isn’t good enough.

  13. SWOT Analysis • Strengths • Brand name,Search, Employees, Innovation • Weaknesses • Lack of Integration of products • Opportunities • Google TV, Android • Threats • Bing/Baidu, Apple/Blackberry/Microsoft

  14. Google’s Products • Search • Ads • Android • Google TV • YouTube • Site search • Chrome

  15. Search • No ads on the normal Google search • AdWords • Advertisers use to advertise on the side of Google page with key words • AdSense • Delivers ads from AdWord program to partner websites

  16. Android • Mobile and Tablet OS • Offered free to manufacturers • Only free OS for smartphones and tablets • Android Market

  17. Google TV • Blue Ocean Strategy • Includes Google search, Chrome, Android, Apps, Flash, and other Google products • Help integrate Google products

  18. Financial • More Cash than Current Liabilities • Rely on equity rather than Liabilities • Always looking for strategic acquisitions

  19. Employees • The right people on the bus • 20,000 Employees • We love our employees, and we want them to know it • $1,000 Bonus and 10% Raise • 20% of Time for Employees

  20. Strategic Issues • Weaknesses that need to be corrected • Threats that need to be ignored or addressed • Opportunities that need to be taken advantage of • Continuing Strengths

  21. Lack of Product Integration • Advertise Google products on search site. • Low Cost • Maintains simplicity • Pull down menu • Choose what you use the most • Implementation

  22. Social Networking • Orkut • Developed by OrkutBüyükkökten • Brazilians account for 54% of total users • In 2008, fully managed and operated by Google Brazil • Have branches in U.S. and U.K. • Implementation

  23. Threats • High Levels of competition • search, e-commerce, advertising, etc. • Exchange Rate Fluctuations • 53% of Revenue comes from international operations • Security Issues • Access to private information

  24. Opportunities • New Products and Services • Google TV • Strategic Acquisitions • AdMob • Growing mobile advertising market • Promising future for Android Smartphone • Passed iPhone in U.S. consumer sales

  25. Strengths • Brand Image • Global • Strong Infrastructure Base • Core of all products • Websites that create advertising opportunities • 67% of 2009 Revenue • Home Grown Software

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