...Introduction Google Incorporation is an American search engine company, found by Sergey Brin and Larry Page in 1998. It dominates the market by handling over 70 percent of worldwide online search requests (Hall, 2014). It aims to organize the world’s information and make it universally accessible and useful. Besides, it has an unofficial mission “Don’t Be Evil”, which refers to do good things for the world even though forgoing short term gains (Farfan, n.d.). It successfully expands its business from an online search company to a diverse company. Nowadays, it provides over 50 Internet services and products, such as Gmail, Google drive, Android, operating systems, applications for mobiles and computers. Moreover, when it took over Motorola Mobility in 2012, it began selling hardware, including smart phones and tablets, like Motor X, Nexus 7,etc. (Monhan, 2014). Recently, Google has sold Motorola to Lenovo at a much lower price, $2.91 billion than its purchase cost, $12.5 billion (Pressmen, 2014). Outwardly, it suffers enormous loss on disposal and loss of revenue. Worse still, its third quarter revenue growth rate from July to September in 2014 is far lower than analysts’ anticipation (Guynn, 2014). It may imply that there is stagnation for Google’s earnings. As a result, we will analyze Google based on CVP analysis, cost structure analysis, ratio analysis, and ethical issues and provide recommendations to maintain its sustainability. Financial analysis The quarter report shows...
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...Analysis of Google Google is a play on the word googol, which was coined by Milton Sirotta, nephew of American mathematician Edward Kasner, and was popularized in the book, "Mathematics and the Imagination" by Kasner and James Newman. It refers to the number represented by the numeral 1 followed by 100 zeros. Google's use of the term reflects the company's mission to organize the immense, seemingly infinite amount of information available on the web. Back before Google? Aye, there's the Rub. According to Google lore, company founders Larry Page and Sergey Brin were not terribly fond of each other when they first met as Stanford University graduate students in computer science in 1995. Larry was a 24-year-old University of Michigan alumnus on a weekend visit; Sergey, 23, was among a group of students assigned to show him around. They argued about every topic they discussed. Their strong opinions and divergent viewpoints would eventually find common ground in a unique approach to solving one of computing's biggest challenges: retrieving relevant information from a massive set of data. By January of 1996, Larry and Sergey had begun collaboration on a search engine called BackRub, named for its unique ability to analyze the "back links" pointing to a given website. Larry, who had always enjoyed tinkering with machinery and had gained some notoriety for building a working printer out of Lego™, took on the task of creating a new kind of server environment that used low-end...
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...Company Analysis | GOOG | An Analysis of Google Inc | Chelsea Moore 5/4/2015 | Company Analysis Company: Google Google is a well known search engine created by Larry Page and Sergey Brin in 1998. The idea of Google was once described by Page as "the perfect search engine that understands exactly what you mean and gives you back exactly what you want". Since then, Google has developed tremendously into more than just a search engine. The company offers Google Chrome, a freeware web browser, Gmail, Google Books, Play, News, Video, Image search, Maps, and dozens more. Google also works with businesses and offers several products to attract customers and build domains. Google's mission statement is to "organize the world's information and make it universally accessible and useable". Google reports four segments: The Google Website, Adsense Google Network websites, total advertising, and other revenue. The website and Adsense Google Network competes with Yahoo, AOL, Microsoft, Bing, and several other companies. In the advertising segment, Google competes with the previous mentioned along with Monster Worldwide, Expedia, Scripps Interactive, Ebay, and others. In the other revenues segment, Google competes with Oracle, Intel, Hewlett-Packard, and others. In fiscal year 2014, Google has not lived up to expectations. Growth was not disappointing, but Google missed estimates during the first three quarters. In Q4, profitability improved because of the holiday seasons...
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...any company. A SWOT approach should not only result in the identification of a corporation distinction competencies - the particular capabilities and resources that a firm possesses and the superior way in which they are used – but also in the identification of opportunities that the firm is not currently able to take advantage of due to a lack of appropriate resources (Wheelen, Hunger, Hoffman, and Bamford, 2015). I chose to conduct my SWOT analysis on Google. STRENGHTS Perhaps the biggest strength of Google is that it is the undisputed leader in search engines, which means that it has a domineering and lion’s share of the internet searches worldwide. It has more than 68% of the market share for internet searches and the competitors do not even come close to anywhere that it does (Tower, 2014). Google has become a household brand in the world, just like McDonalds, Apple, and Facebook. Its ability to drive internet user traffic is legendary and this has helped it become one of the most powerful brands in the world. Indeed, Google averages more than 1.2 Billion hits a month in terms of the unique searches that users perform on the site. This gives it an unrivalled and unparalleled edge over its competitors in the market. Its revenue model wherein it garners humungous profits through partnerships with third party sites has held the company in good stead as far as its ability to mop up resources and increase both its top-line as well as bottom-line is concerned. This is...
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...SWOT ANALYSIS OF GOOGLE [pic] GOOGLE’S BUSINESS STRATEGY: AN EMPIRICAL ANALYSIS OF THE STRENGTHS; WEAKNESSES; OPPORTUNITIES; AND THREATS (SWOT) OF GOOGLE BY: KWAKU F. DARKWAH (MBA; B.ED; CTLLS; ASSOCIATE-CIPD; MInstLM) CEO/FOUNDER: ADESUA GLOBAL, GHANA LECTURER-MANAGEMENT DEPARTMENT, LONDON SCHOOL OF MANAGEMENT EDUCATION (LSME) FEBRUARY, 2010 IF YOU NEED A FREE UPDATED COPY OF THIS ARTICLE IN PDF FORMAT, JUST SEND YOUR REQUEST TO: [pic]adesuaglobal@gmail.com [pic]This e-mail address is being protected from spambots. You need JavaScript enabled to view it [pic] THIS ARTICLE IS DEDICATED TO ALL ASPIRING BUSINESS ENTREPRENEURS 1:1 INTRODUCTION Arguably, in the last 10 years since the expansion of information technology as a result of the internet; one astounding firm that has impacted on our lives is Google. All age groups; different ethnic backgrounds; different religious backgrounds; different political backgrounds and affiliations all have been influenced by the impact of this organisation. Debatably, Google is one of the most powerful search engines in the world. Arguably, it can be said that Google is the most visited website in the world. It is now worth in excess of $94billion, although its value has more than halved since December 2007 (Time, 2008). Google attracts about 61.9 per cent of all internet searches online. According to Clark (2007) Google accounts for 56% of all searches on the internet according to the online research firm Comscore...
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...competition in the search industry. Which of the five competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness? Ever since Google was created there really haven’t been any competitors that have come close to giving them a scare as far as competing with what they offer. Of the five competitive forces the threat of substitute products or services and the power of buyers are the highest. The weakest of the five for Google is the threat of new entrants because the entry barriers for the industry are high, and high customer loyalty to Google would make it much more difficult for a new entrant. 2. How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years? Throughout the case, it mentions many times that the next big thing in the search industry is cloud computing. However, there are many other new areas that Google is entering such as Google TV, and they are continuing to develop their Google Maps and other areas such as their Android market (phones, tablets, and Google TV will be powered by android). After reading the case and thinking about what will bring in a major change, I think it will be cloud computing. Although most companies are still in the early stages of this, Google is projecting this to grow up to $95 billion by 2013. 3. What are the key factors that define success in the industry? What are the key competencies, capabilities...
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...GOOGLE Financial Analysis Report Prepared for: Financial Management Class – Florida Institute of Technology February 2011 TABLE OF CONTENTS EXECUTIVE SUMMARY 3 COMPANY INTRODUCTION 4 FINANCIAL ANALYSIS 5 Summary Financial Analysis Report 6 WEIGHTED AVERAGE COST OF CAPITAL (WACC) 10 FUTURE CASH FLOWS 12 ANALYSIS OF CASH FLOWS 13 Sensitivity Analysis of Google’s 2011 Future Cash Flow 14 Sensitivity Graph for Google’s 2011 Future Cash Flow 15 Sensitivity Graph for Google’s 2011 Future Cash Flow 15 Inflation Analysis 15 Google Inc. Discounting Future Cash Flows for Inflation @ 1.7%: 16 Footnotes effect on future cash flows 17 Analysis of Google Competitors 19 ANALYSIS OF CASH FLOWS 20 Footnotes effect of future cash flows 21 Analysis of Google Competitors 23 Major Project “post audit” 24 HISTORICAL STOCK PRICE 26 SECURITY ANALYST’S REPORTS 28 DIVIDEND and CAPITAL STRUCTURE 29 CORPORATE GOVERNANCE 30 MERGER and INTERNATIONAL STRATEGY 32 EXECUTIVE SUMMARY This report provides a detailed analysis of Google, an Internet search engine, which will offer information in order to make an informed decision as to whether to invest in Google. This report will also provide information regarding debt securities. The financial report shows that Google is in a stability strategic focus. During the years of 2007 – 2009 their Gross Margin continued...
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...1. Using competitor intelligence from the case material, assess the levels of market commonality and resource similarity that Google has with three key industry competitors. How will they influence competitive behavior and the intensity of rivalry? Market Commonality refers to the number of different markets two or more direct competitors are involved in. For instance Sony and Samsung are direct competitors and are involved in number of different markets which includes Smartphones, Televisions, and Hi Fi Systems and so on. Market commonality also pertains to the degree of importance each competitors give to their each market. For instance, Sony and Samsung may give more importance to their Television line of products because it either maybe their most popular products of all or it may be due to their anticipated future market of that product. Multimarket competitors are less likely to attack each other aggressively, but will respond aggressively when they’re being attacked. For instance Airlines industry is a multi-market industry wherein the prices are similar, but if the competitors comes up with a promotion, others would swiftly respond. Resource similarity on the other hand, refers to how the each of the firms’ resources both tangible and intangible can be compared. For instance, Sony and Samsung both are market leaders in LCD and LED manufacturing. Both have exceptional intangible resources in terms of designing products and their level of knowhow and technological expertise...
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...CASE 5: Google’s Strategy in 2009 1. BACKGROUND INFORMATION |Timeframe |Country(s) Involved |Key Individuals & Titles |Company Type & Size | | | | |Google is one of the leading internet technology and | |1994-2009 |USA, Worldwide |Larry Page and Sergey Brin – founders|advertising companies in the world. The company generates 97% | | | |David Filo – Yahoo Co-founder |of its revenues in both 2008 and 2009 from its search-based | | | |Erick Schmidt - CEO |advertisers. Besides, it maintains a large index of web sites | | | | |and other online content, which are freely available through | | | | |its search engine. | 2. BRIEF SUMMARY OF CASE SITUATION |Business or Industry Description |Particular Company Situation | |The industry includes enterprises that operate search engines, internet portals and| ...
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...Strategic Analysis Google (GOOG) Presented By Josh Schumacher Charity Thomas Frieder Mack Jennifer Bell “To organize the world’s information, and make it universally accessible and useful.” 1998 2000 September, Google opened its door in Menlo Park, CA. Google officially became the world's largest search engine with its introduction of a billion-page index June 26, Google and Yahoo! announced a partnership that solidified the company's reputation — not just as a provider of great technology, but as a substantial business answering 18 million user queries every day. 2001 August, Dr. Eric Schmidt joined Google as CEO 2003 Google acquired Pyra Labs and became the home for Blogger, a leading provider of services for those inclined to share their thoughts with the world through online journals. July, Google acquired Picasa, a digital photo management company helps users to organize, manage and share their digital photos. October, Google acquired Keyhole, a digital and satellite image mapping company based in Google's own headquarter town, Mountain View, CA. 2004 2005 Google acquired web analytics firm Urchin Software. Corporate Culture “If we don’t have any of these mistakes we’re just not taking enough risks”. “Crazy definitely triumphs comfy at Google” Get Uncomfy: That means never settle into an equilibrium (a.k.a. "rut"), but don't fall apart either (a.k.a. the "chaos trap") Pace Yourself: The goal should be creating an internal rhythm...
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...Case analysis about Google’s Strategy in 2010 The article talks about how Google works, how they have been evolving and their innovations. The article starts talking about the year 2010 and the billion dollar sales that the company had that year. Then it emphasize how Google went from the searches in the computer to negotiations with several big and important brands to launch the android operating system for mobile phones which helped the widespread of internet and of mobile devices in the world. Google beneficiated too from the raise of banner ads and video ads displays. Also wanted to launch in 2010 Google TV believing that this market could grow to $95 billion by 2013. As you can see, Google is always trying to innovate, to search for new markets, leading technology to the future. In July 2010 Schmidt commented that Google´s new ventures into mobile devices, television search and cloud computing would allow the company to “organize the world´s information on any device and in any way that we can figure out to do it”. Another useful innovations that Google launched was Google earth and its companion Google maps in 2004, that allowed internet users to search and view satellite images of any location in the world. Then people could see it in 3d (street view). Also between 2005 and 2010 Google included Google news, book search, music search, video search, Gmail, web-based calendar, web-based document and spreadsheet applications, Picasa web photo albums, translation feature...
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...Google SWOT Analysis: Strengths * Google Search Engine- The number one search engine, hard to replicate. * Strong Brand Value * Ancillary Service- Gmail, YouTube, Google Hangout * Robust Research and Development Opportunities | Weakness * Click fraud * Piracy and copyright issue * Not a leader in social media space | Opportunities * Growing demand of online video * Growing demand of Android OS | Threats * Competition from Microsoft, Yahoo, Apple and smaller competitors * Rapid Technological changes | Strengths: Google has established a brand name which users trust. End-users need little to less marketing and technology enthusiastic keep a close watch on the new products Google releases. Google has a simple interface in 88 languages making it easier to access by users in different countries. Google offers a broad range of services that includes Gmail, YouTube, Google hangout, Google play, Google chrome, Google Earth, Maps, and Android etc. A comprehensive range of service offerings enables the company to attract and retain customers and maximize its market share and revenue. Google could benefit from the growing demand for online video. Though current online video constitutes about one third of the total web traffic, there huge potential in online video market. YouTube and Google’s online community that allows users to share upload and rate video worldwide stands to gain from this growth. Weakness: One major point of concern for Google is “Click...
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...Business Analysis of Google Business analysis of Google Google began as a search engine called “BackRub” created by Larry Page and Sergey Brin in 1996 (Google Corporate Information). This search engine “used links to determine the importance of individual web pages” (Google Corporate Information). In 1998, these two Stanford University graduates had finished their work and created the company called Google (Google Corporate Information). Google offers a wide range of products and services in a range of different languages (Google Corporate Information). The product that started it is the web search, which allows the searching of billions of web pages (Google Corporate Information). There are many products under the web category (Google Corporate Information). The other categories are Mobile, Media, Geo, Home & Office, Social, Specialized Search, and Innovation (Google Corporate Information). These categories are for every day users. There are other products and services for businesses. Google offers many forms of advertising to businesses (Google Business Solutions). These include the categories Local Ads Made Easy, Enhance Your Website, Hassle-free Computing, Find New Customers, Promote products & Services, and Learn & Innovate (Google Business Solutions). Google makes its money through advertising (Google Investor Relations). The products they have are AdWords, Google Display Network, DoubleClick, mobile-specific ad formats, DoubleClick Ad...
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...Google’s culture can be primarily thought of as customer-responsive. Their company motto is “Don’t be Evil”. Although they do not deal with customers in real time interface, they have developed innovative products which provide the customers with a lot of ease and satisfaction. They go out of their way to allow engineers at their companies with 20% of their working time to explore areas they want to. Google Earth, Gmail and Google mobile are some of the most successful innovations of Google. These successful projects over the years have motivated the employees of Google to drive on this innovation trend within the company to create easy and user friendly products. Google does not seem to believe in a hierarchical structure. It divides their...
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...Google: Everything for everyone in a single click! Google made it possible to organize all the information on earth and provide it to the user when needed. It was first founded in 1999 by Sergey Brin and Larry Page with the mission “to organise the world’s information and make it universally accessible and useful”, Google has became the world’s largest search engine in 2007. The fast growing business Google generates revenue by providing advertisers with the opportunity to deliver online advertising that is relevant to the search results on page. It works on the basis of cost-per-impression, where they pay a fixed amount each time their ad is viewed by internet users. Figure 1 The figure above shows the recent market share of Google from April 2011 until February 2012. Based on this graph, the market share hold by Google is high and maintains at 80% and above until Nov 2011 but a slight declined in their market share happened in December 2011 and February 2012. They are few reasons why did this happen to Google despite the expanding of the World Wide Web. Therefore, a PESTLE analysis is used here to analyze the reasons behind this current situation. From Political analysis, few factors can be considered such as, political stability worldwide, the intellectual property protection and pricing regulations. Usually, any changes in the government ruling the country will indirectly affect the international business in it. This is because change in government might leads to changes...
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