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GOOGLE INCORPORATION

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FOUNDERS: Larry Page Sergey Brin

MISSION (AT THE TIME OF FORMATION) Creating ultimate search engine to help users tame the unruly and exponentially growing repository of information i. e. , internet.

MISSION (IN 2010) Organize the world’s information and making it universally accessible and useful. Most effective, most profitable way to accomplish mission is to put users first.

MISSION STATEMENT (2013) “Google’s mission is to organize the world’s information and make it universally accessible and useful. ”

HISTORY Founded : 1998 by Stanford University graduate students Headquarter : US Sector : Technology Services Industry : Internet Software and Services Market Capital : $ 217. 6 Billion

LOCATION More than 70 Offices in 40 Countries

GOOGLE’S PRODUCTS AND SERVICES google Search engines Applications Clients Maps Android

PHILOSOPHY OF GOOGLE INC. • Focus users • Do 1 thing in best way • Fast is better than slow • Democracy on webworks • No need to be at desk to need answer • There’s always more info • No boarders for information getting • Be serious at work • Great is not good enough

COMPETITORS • Yahoo • AOL • Microsoft

MARKET SHARE (2013)

C F S F OMPREHENSIVE ORMULATION TRATEGY RAMEWORK

3 STAGES OF STRATEGY FORMULATION: Input Stage Matching Stage IFE Matrix SWOT EFE Matrix SPACE Matrix CPM Matrix BCG Matrix IE Matrix Grand Strategy Matrix Decision Stage QSPM

INPUT STAGE IFE Matrix EFE Matrix Input Stage SFE Matrix CPM Matrix

IFE MATRIX (INTERNAL FACTOR EVALUATION)

IFE MATRIX Strengths Weighted average Weights Rates Attention grabbing initial public offering 0. 02 3 0. 06 Payment of higher returns to investors (than any Co. in S&P 500) 0. 03 3 0. 09 Strong brand image among search engines 0. 12 4 0. 48 global leader in technology 0. 06 4 0. 24 BOD and Executive members experienced and are from Various tech organizations 0. 05 4 0. 2 increase in Google's revenue internationally 0. 07 4 0. 28 use of censors according to locations in searches e. g. google. com. pk, google. com. fr 0. 06 4 0. 24 "Tech. Talks" and "TGIF" meetings to conveys information to employees keeping them satisfied 0. 03 3 0. 09 most relevant results of searches 0. 12 4 0. 48

IFE MATRIX Weaknesses 97% of revenue comes from advertisers 0. 09 1 0. 09 Google lacking advanced financial strategies users may navigate directly to other well-known databases like amazon, etc. Other companies have filed claimes against Google for copyrights infringement 0. 05 1 0. 05 0. 02 2 0. 04 0. 03 2 0. 06 has to refund fees charged for fraudulent clicks 0. 06 1 0. 06 IT and communication systems of Google can hinder availability of its products and services 0. 04 2 0. 08 Excess spendings of Brin and Page and its nomination by Bloomberg Business week as "Executive Excess" 0. 04 2 0. 08 rejection of acquisition offers by other companies due to chances of loss of personal identity 0. 06 2 0. 12 No significant additional revenues generated by You. Tube 0. 05 1 2. 79

EFE MATRIX (EXTERNAL FACTOR EVALUATION MATRIX)

Sr. No. Details Rating Weighted average score 0. 07 0. 14 0. 03 0. 1 0. 09 0. 4 0. 27 0. 3 1. 2 OPPORTUNITIES: 1 2 3 4 5 Forming of policies to remove cultural barriers for employees 2 Controlling of religious abuses on websites can increase views 1 and clicks to specific sits i. e. , You. Tube Secure browsing with least chances of viruses and hacks 4 Development of Strong corporate culture for attracting expert 3 employees of industry 4 Mobile computing is an open, unchartered area THREATS: 1 Fast pace of innovation and continued growth required in industry Acceptance of internet in colleges and cultural adaptation behavior 4 0. 2 0. 8 3 0. 04 0. 12 3 regulatory issues related to monopolistic power 3 0. 07 0. 21 4 copyrights and material filtration laws for children Exchange rate risk, negative tax consequences, foreign exchange controls Due to global recession, it's difficult to maintain and attract talented employees 2 0. 03 0. 06 0. 18 1 0. 01 1 3. 42 2 5 6 TOTAL

SFE MATRIX (STRATEGIC FACTOR EVALUATION)

SWOT Weights Rates weighted average score Strong brand image among search engines (S) 0. 15 4 0. 60 most relevant results of searches (S) 0. 10 3 0. 30 increase in Google's revenue internationally (S) 0. 05 2 0. 10 global leader in technology (S) 0. 15 4 0. 60 97% of revenue comes from advertisers (W) 0. 10 3 0. 30 rejection of acquisition offers by other companies due to chances of loss of personal identity (W) 0. 05 2 0. 10 has to refund fees charged for fraudulent clicks (W) 0. 05 2 0. 10 Mobile computing is an open, unchartered area (O) 0. 15 4 0. 60 Secure browsing with least chances of viruses and hacks (O) 0. 05 2 0. 10 Fast pace of innovation and continued growth required in industry (T) 0. 05 2 0. 10 regulatory issues related to monopolistic power (T) 0. 10 3 0. 30 1. 00 3. 20

CPM (COMPETITIVE PROFILE MATRIX)

CPM MATRIX Critical Success Factors Google AOL Yahoo Weight Rate Word of mouth 0. 10 4 0. 4 1 0. 1 3 0. 3 Relevant Advertisement 0. 05 3 0. 15 1 0. 05 2 0. 1 Online product and service 0. 10 4 0. 4 2 0. 2 3 0. 3 Ease of use 0. 05 3 0. 15 1 0. 05 2 0. 1 Market Capitalization 0. 20 4 0. 8 1 0. 2 3 0. 6 Number of advertisement member 0. 10 4 0. 4 1 0. 1 2 0. 2 Earning per share 0. 15 3 0. 45 1 0. 15 2 0. 3 Global leader in Technology 0. 25 4 1 1 0. 25 2 0. 5 Total 1 Score 3. 75 Rate Score 1. 1 Rate Score 2. 4

STAGE 2: THE MATCHING STAGE

SWOT Matrix SPACE Matrix Matching Stage BCG Matrix IE Matrix Grand Strategy Matrix

SWOT MATRIX

Strengths Internal factors/External Factors 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Attention grabbing IPO Payment of higher return Strong brand image Global leader in technology Experienced team Increased international revenue Censored searches Information meeting for employees Most relevant searches Vast product line Weaknesses 1. 2. 3. 4. 5. 6. 7. 8. 9. More revenue from advertiser members Lack of financial strategies Direct navigation to databases Copyright infringement claims against google Fee returns for fraudulent clicks IT & communication systems of google can hinder performance Executive spendings increased Rejection of acquisition offers Low revenue from youtube SO Opportunities 1. 2. 3. 4. Cultural barriers removal for employees Controlling religion abusing activities Secure browsing Capture mobile browsing Threat 1. 2. 3. 4. 5. 6. Fast innovation required by industry Acceptance by educational institutions Rules for monopolistic powers Copyright and material filtration Exchange rates, taxes risks Difficult to attract talent ST developing strong culture for employees to WO attract experts by ensuring proper significant additional revenues will be communication generated by You. Tube if religious abuses 8 S+1 O are controlled like dailymotion and mobile computing is an open, unchartered youtube area can go there and increase their product 3 W+2 O line 10 S+4 O WT Fast pace of innovation and continued growth IT and communication systems of Google can be achieved by good technological shouldn't hinder availability of its products experts team and being global leader in and services in order to compete in fast technology pace of innovation and continued growth 1 T+4 S required in industry Acceptance of internet in colleges can be 6 W+1 T achieved through most relevant searches and strong brand image 2 T+3 S+9 S

SPACE MATRIX

Financial strength Rate Environment stability Rate EPS +7 Technological changes -1 Net income +6 Barrier to entry -3 Price earnings ratio +6 Competitive pressure -6 Price/earnings to growth +4 Ease of exit -6 Operating margin +5 Risk involved -2 Total +28 Total -18 Competitive advantages Rate Industry strength Rate Market share -1 Growth Potential +6 Product quality -2 Profit potential +7 Customer loyalty -2 Financial stability +6 Technological know how -1 Resource utilization +6 Capacity utilization -1 Productivity +5 Capital utilization +7 Total -7 Total +37

Details Calculation Financial Stability +28/5 = + 5. 6 Industrial Strength +37/6 = + 6. 16 Environmental Analysis -18/5 = -3. 6 Competitive Advantage -7/5 = -1. 4

1 X - Axis = CA+IS = -1. 4+ 6. 16 = 4. 76 2 Y-Axis = FS+ES = + 5. 6 – 3. 6 =2

BCG MATRIX (BOSTON CONSULTING GROUP MATRIX)

BCG MATRIX

IE MATRIX (INTERNAL-EXTERNAL MATRIX)

IE MATRIX It based on two key dimensions The IFE total weighted scores on X-axis The EFE total weighted scores on Y-axis Divided in to three major reasons Grow and Build- Cells I, II or IV Hold and Maintain - Cells III, V or VII Harvest and Divest – Cells VI, VIII or IX

IE Matrix Strong 3. 0 - 4. 0 Average 2. 0 - 2. 99 Week 1. 0 -1. 99 High 3. 0 3. 99 I II III Medium 2. 02. 99 IV V VI Low 1. 01. 99 VIII IX

IE MATRIX EFE weighted Score = 3. 42 IFE weighted Score = 2. 79 Grow and Build intensive (market penetration, market development and product development) or integrative ( backward integration, forward integration and horizontal integration)

GRAND STRATEGY MATRIX

GRAND STRATEGY MATRIX

INTERPRETATION: As Google has a Strong Competitive Position and Continues Market Growth so it can adopt any of the following strategies. • Market development • Market penetration • Product development • Forward integration • Backward integration • Horizontal integration • Concentric diversification

STAGE 3: DECISION MAKING STAGE Decision making stage QSPM

Weight Opportunities forming of policies to remove cultural barriers for employees Market Penetration Diversification Product Development AS TAS 0. 07 0 0 2 0. 14 0. 1 3 0 0 3 0. 09 3 0. 27 0 0 3 0. 27 0. 07 0 0 3 0. 21 2 0. 14 0. 12 4 0. 48 controlling of religious abuses on websites can increase views and clicks to specific sits i. e, youtube Secure browsing with least chances of viruses and hacks Development of Strong corporate culture for attracting expert employees of industry mobile computing is an open, unchartered area

Threats Fast pace of innovation and continued growth required in industry Acceptance of internet in colleges and cultural adaptation behavior regulatory issues related to monopolistic power copyrights and material filtration laws for children Exchange rate risk, negative tax consequences, foreign exchange controls Due to global recession, it's difficult to maintain and attract talented employees 0. 21 4 0. 84 0. 03 1 0. 03 0 0 1 0. 03 0. 04 2 0. 08 0 0 0. 15 3 0. 45 1 0. 15 2 0. 3 0. 08 2 0. 16 1 0. 08 0 0 0. 04 2 0. 08 1

Strengths Attention grabbing initial public offering 0. 02 0 0 0 0. 08 2 0. 16 1 0. 08 0 0 0. 05 3 0. 15 0 0 0. 09 2 0. 18 3 0. 27 0. 04 0 0 3 0. 12 2 0. 08 2 0. 16 4 0. 32 1 0. 08 0. 05 3 0. 15 0 0 1 0. 05 0. 04 0 0 1 0. 04 3 0. 12 most relevant results of searches 0. 08 4 0. 32 0 0 Vast product line 0. 05 3 0. 15 1 0. 05 2 0. 1 Payment of higher returns to investors (than any Co. in S&P 500) Strong brand image among search engines global leader in technology BOD and management is experienced and from Various tech organizations increase in Google's revenue internationally use of censors according to locations in searches e. g. google. com. pk, google. com. fr "Tech. Talks" and "TGIF" meetings to conveys information to employees keeping them satisfied

Weaknesses 97% of revenue comes from advertisors 0. 15 2 0. 3 3 0. 45 4 0. 6 0. 04 1 0. 04 2 0. 08 4 0. 16 0. 02 0 0 0 Other companies have filed claimes against Google for copyrights infringement 0. 02 1 0. 02 0 0 1 0. 02 has to refund fees charged for fraudulent clicks 0. 06 1 0. 06 2 0. 12 IT and communication systems of Google can hinder availability of its products and services 0. 04 3 0. 12 2 0. 08 Excess spendings of Brin and Page and its nomination by Bloomberg Business week as "Executive Excess" 0. 04 1 0. 04 rejection of acquisition offers by other companies due to chances of loss of personal identity 0. 01 0 0 0 0. 04 1 3 0. 12 4. 66 2 0. 08 3. 8 1 0. 04 4. 34 Google lacking advanced financial strategies users may navigate directly to other well -known databases like amazon, etc. No significant additional revenues generated by You. Tube

CONCLUSION: • Market penetration • Product development Both strategies fit with Google but if need only one strategy, the market penetration is the option to be selected