Googles Vision Statement & Mission

Statement
Googles mission statement and vision statement reflect the powerful position of this company
in terms of what it wants to achieve. Founded in 1998, the company has been following its
mission statement and vision statement, leading to its current position as one of the most
valuable brands in the world. Googles mission statement defines the strategies of the business,
such as the development of new products. In a similar way, the companys vision statement
pushes the organization to achieve new heights, such as through rapid innovation. The success
of Google is directly connected to the efforts of the company to fulfill its mission statement and
vision statement. Google follows its vision statement and mission statement through its generic
strategy and intensive growth strategies. These statements are used as basis for the
companys strategic choices.

Googles Vision Statement

Googles vision statement is to provide access to the worlds information
in one click. The companys nature of business is a direct manifestation of this
vision statement. For instance, Googles most popular product is its search engine
service. This product enables people to easily access information from around the
world.
Googles vision statement has three variables, namely, worlds
information, accessibility, and one click. The firm fulfills the worlds
information component of the vision statement by crawling web pages. The
company maintains databases containing indexes of these websites. Google fulfills
the accessibility component by offering its search engine services to everyone
around the world. The one click component of the vision statement refers to easy
access to information. The firm fulfills this component by offering innovative products,
such as the easy-to-use Google Search. Thus, the company effectively follows its vision
statement.

Googles Mission Statement

Googles mission statement is to organize the worlds information and
make it universally accessible and useful. Ever since its beginnings, the
company has focused on developing its proprietary algorithms to maximize
effectiveness. Google continues to focus on ensuring that people access the
information they need.

Googles mission statement is parallel to the companys vision statement. The mission
statement has four variables, namely, worlds
information, organization, universal accessibility, and usefulness. As
noted, the firm fulfills the worlds information component by crawling web pages. The
company organizes the information through its proprietary algorithms or programs.
Google also fulfills the universal accessibility component of its mission statement
by offering its services worldwide. Such processing and organizing of information also
makes search results useful. Therefore, Google effectively follows its mission
statement.

Strategic Analysis for Google

Google follows its mission statement and vision statement. The company is known for
effective products, like Google Search, that satisfy the specifics of the firms vision
statement and mission statement. The companys leadership in the market satisfies the
universal accessibility component of the mission statement by making Googles
products widely used. Innovative strategies contribute to the companys capacity to
maintain its leadership in the industry. This leading position empowers Google to
continue following its mission statement and vision statement.
It is recommended that Google should modify its vision statement and mission
statement in accordance to the wide variety of products the company currently offers.
The company now offers new products, such as Google Fiber and Google Glass.
However, the companys and vision statement and mission statement remain the same.
Thus, the adjustment should reflect the current diversification of Google products.
Ideally, the vision statement should depict the future condition of the company, with
consideration for its diversified business. In relation, the mission statement should
indicate Googles aims in terms of such diversification.

Business Model
"Google generated about $21 billion in revenue last year. The vast majority of that revenue, well
over 95%, comes from advertising via its search engine and its Ad Sense program, which places
ads on millions of websites"
"The current pre-dominant business model for commercial search engines is advertising" Google's
search engine is ranked number 1, proving itself to be the leader in search engine usage. This can also
be noted that Google has become synonymous with web search. Often you will hear how people would
"Google" the information rather than "search" for it.
"The other side of Google's hugely successful business plan is innovation" This is demonstrated in
the products and services that Google incorporates into its brand. Let's examine the technology behind
the brand.

Technology
Google's search technology is reliant upon computer algorithms to determine search
positioning:

Page Rank: The technology that determines the importance of each page. It considers
"500 million variables and 2 billion terms" to determine how a page will rank in the
search engine

Hypertext-Matching Analysis: The technology that analyses page content and ensures
the results returned are relevant to the query entered into the search engine.

Google Ad Sense
"Google Google Search, Ad Sense uses keywords to precisely target results so advertising
content is delivered based on page content. Google believes "advertisers, publishers, and
information seekers all profit as a result.
Google Ad Words
In combination with Ad Sense Google developed the "Ad Words [program] for advertisers who want to
reach a qualified audience as efficiently as possible"
The Page Rank and Hypertext-Matching Analysis appears to function to produce the best possible
matches for a user's search query. Ad Words and Ad Sense deliver content-appropriate advertising
based on the publisher's content. This effectively creates a relationship between content publishers and
advertising publishers, generating sense of network economy, value and effect.
Customers have needs, wants and nice-to-haves and traditional business models fulfill these for their
customers. Google offers its customers needs, wants, and nice-to-haves for free.

In return, whether knowingly or not, users create data whilst using Google services and
products which creates information that is listed in the Google Search Engine;
advertisement is then tailored based on the content delivered.

Company Background
"Google is now the most dominant search tool on the web, setting the
standard that others try to follow and better, as yet unsuccessfully"
. Founded just eight short years ago, Google was
developed by Larry Page and Sergey Brin. From the walls of a garage
the Google business was born.
The Google search engine has continued to grow at a rapid rate since
the initial launch in 1998. "The search engine and the company grew
quickly through word of mouth, initially with regular web users coming
across the tool and finding the results to their liking". The augmenting popularity of Google has
continued with strong
user acceptance worldwide. "Google took a major step forward in 2000
when it replaced Inktomi as the provider of supplementary search
results on Yahoo 3/32 this gives Google exceptional coverage of web
searches and it now has more than 50% share of the total search

market, making it the clear market leader"

Google serves three primary market segments: end users, advertisers,
and partner web sites. Google does not charge users
for searches. Google displays advertisements with the results of each
search requested by a user. Whenever a user clicks on an
advertisement, Google collects a fee from the advertiser.

Long Term Objectives

Google's long-term objectives are to deliver new advertising
technology, develop tracking mechanisms, and enable users to search a
larger base of information.
Google's search engine business is the dominant business of the
company. Google has built a competitive advantage based on search
engine differentiation. Google's strategies are innovation and concentric diversification.

Plan Goals and Implementation

Google's short-term objectives are to expand the workforce for
anticipated growth, expand further into international markets, and
continue developing new products. Expanding the workforce will help
achieve the long-term objective of delivering new advertising
technology. Google's organization structure is primarily functional
but also includes a few geographical organizations. Google has a
unique culture and policies to promote innovation.

Google Mission
Organize the world's information and make it universally accessible
and useful .

Vision/Values
Google does not document a Vision or Values on the Google website.
They do state a philosophy on the Google website, some are listed
Below :

Focus on the user and all else will follow.

It's best to do one thing really, really well.
Fast is better than slow.
Democracy on the web works.
You don't need to be at your desk to need an answer.
You can make money without doing evil.
There's always more information available.
The need for information crosses all borders

You can be serious without a suit

Great just isn't good enough
No pop-ups

Google strives to employ the most qualified applicants and reward the
greatest contributors, in order to promote good performance and
facilitate hiring and retention. Google's 70-20-10 rule for employees
is:

70% of employee time is spent on core business

20% for adjacent areas such as a Gmail and Google desktop search
10% for creativity and freedom to innovate

Environmental Analysis
Internal Environment
This section of the strategic environment is a realistic analysis of
Google's internal resources. The following internal traits portray a
resource-based view of Google's core strengths:

Strong brand name.

Broad web site appeal
Innovative search technology

"The advertisers' return on investment (ad cost per sale or cost per
conversion) from advertising campaigns on our web sites or our Google
Network members' web sites compared to other forms of advertising"
Google's weaknesses are:

Growing pains (i.e. finding new key employees and infrastructure)

Dependence on advertising source of revenue
Google Member Network's lack of popularity
Weak position in China
Nearly all revenue from one product line (search)
Lack of experience

External Environment

The external environment involves three areas: remote, industry, and

operating. Remote concerns for Google are new laws and regulations,
increasing intellectual property claims, and access to more
information. Industry concerns for Google are competitive threats from
Yahoo and Microsoft and new unknown competitors that
may be international. Agreements with advertisers could potentially
become competitive as well. Operating issues are the current ad base,
design of the ads, and shrinking advertising budgets of customers. The
quality of service provided by the Google organization and retaining
qualified help is also an operating issue.
Google's opportunities are:

Unmapped countries 23/64 expanding services

New advertisement format and tracking mechanisms
Size of current customer base and market share 23/64 leverage
advertising agreements

Google's threats are:

Competition from Microsoft and Yahoo greater resources, bundled

services, and ability to attract and retain users through portals
Increasing intellectual property claims resources needed for legal
claims
Increasing competition reducing operating margins
Shrinking advertising budgets by companies
Increasing international competition
New laws and regulations

Long-term Objectives
Based on the SWOT analysis of internal and external factors, the next
10 years will define the longevity and sustainability of Google as a
company. Quick and dramatic changes characterize the technological
environment. To keep up with the market Google plans to focus on
delivering new advertising technology, developing tracking mechanisms,
and enabling users to search a larger base of information. The
creation of patents and intellectual property will hold the keys to
gaining competitive advantages in the market. The retention and
recruitment of the best human resources are also a critical factor for
Google in order to reach the changing needs of consumers and
advertising clients.
Strategic Analysis and Choice
Google Inc. is a single-product-line business 3/8search engine

technology. In order to compete with other media titans such as

Microsoft and Yahoo!, Google has sought to employ the power of
differentiation to create a competitive advantage. The strategies of
Google have been focused on becoming a search engine that in the words
of the firm's co-founder, Larry Page, "understands exactly what you
mean and gives you back exactly what you want". In the
case of Google, by applying concentric diversification 3/8a focus on the
core product of search services 3/8the company has also been able to
benefit from a competitive advantage in "faster response times,
greater scalability and lower costs" . Hence, not only
does Google have a high advantage in the differentiation arena, but a
cost and speed advantage as well. According to Allen Weiner one key
element in the media strategy of Google's future will be making
searches "more relevant and useful to end users and maintain its
competitive edge over other search providers by retaining and growing
its user base"

Plan Goals and Implementation

Google's short-term objectives are to expand the workforce for
anticipated growth, expand further into international markets, and
continue developing new products. Expanding the workforce will help
achieve the long-term objective of delivering new advertising
technology.
Google's organization structure is primarily functional but also
Includes a few geographical organizations. The average manager has 20
direct reports. The human resources function strives to hire only the
most brilliant people. Job candidates take difficult tests and go
through an intensive interview process. Google offers generous stock
options to retain the best talent and align employee interests with
shareholder interests. Google operates primarily through small,
focused project teams that may remain together only a few weeks before
team members are reassigned to other projects.
Google has two unique policies to promote idea generation and
feedback. Every employee posts a weekly review of his or her
activities to the company website. Employees are encouraged to post
ideas on an electronic mailing list software application that delivers
the ideas to every employee in the company .
One key to the success of Google is the culture of the organization.
Google employees are the best of the best and treated as such. The
atmosphere is relaxed, fun and laid back which fosters creativity.
Google provides free lunches every day for employees and encourages
participation in the weekly roller hockey games. The company regularly
sponsors employee outings such as picnics and skiing trips. Finally,

Google is generous in its rewards to employees by offering bonuses,

stock options and profit sharing.

PEST Analysis of Google

Basically a pestle analysis is a form of evaluation that companies carry out to
establish the current market conditions in important aspects such as political,
economic, social, technological legal and environmental areas. The pestle analysis is
then used for strategic planning and management.
For a technological giant like Google, the pestle analysis is very essential as their
services touch on literally every aspect of the market conditions analyzed. The
following are some of the important assessments that can be obtained from carrying
out a pestle analysis for Google.

Political factors. In examining the political factors, Google has to assess the
political environment and its influence in information dissemination as well as
technological services. This should cover tariffs and taxation as well as government
regulations and restrictions. For instance, Google has in the recent past had to deal
with political issues with countries such as China. This is due to the laws and
regulations concerning access to sensitive information in China. Google is still
dealing with censorship issues and has even lost market to a major Chinese search
engine called Baidu. Such political factors can prevent Google from thriving in
certain countries.

Google is not an exception. Inflation rates, economic growth, tax regulations,

interest and exchange rates can all fall under economic assessments. For a labor
intensive venture, economic problems can trickle down to employment issues. Yet
Google has not experienced any stagnation despite the recent economic upheavals in
US and other countries. As for tax concerns, Google is still in discussions with France
over alleged tax noncompliance.

Social factors. These encompass the cultural, safety and social groups that
popularly use technological services. For example in China, Google users were found
to be mainly between 18 and 24 years of age. Most of these users were well educated
and situated in urban areas and also of a higher social class. The safety of these users
has to be considered and Google thus has to constantly implement measures that
protect its users in accordance with the local regulations.

Technological factors. This covers areas such as research and development as

well as automation and making changes in the technological area. As a technology
giant company, Google invests heavily in research and development and implements

several changes to satisfy its huge clientele base. This affects new entrants in the
technological service market as they can hardly compete with Google.

Labor laws and regulations. There are many laws and regulations that govern
information and technology sectors. Google has to comply with these laws and
regulations. These may include laws that restrict technological services or those that
govern tax payments. The French tax compliance case against Google is one such
regulatory factor that the company has to deal with.

Environmental factors. Within the technological sector, the environmental

factors mainly affect the users and their safety. Google has to ensure that its users are
protected from fraudsters, hackers and other internet hazards.
In conclusion, Google has created a niche for itself in the technological sector.
Despite the economic challenges that have faced most countries and companies in the
recent times, Googles growth has not slowed down. The company has to deal with
the regulation compliance problems that are a big obstacle to its growth and market
access.

Internal Analysis of Google

Googles mission, financials, value chain, and competitive advantages are discussed and
illustrated.

Mission Statement
Googles mission, to organize the worlds information and make it universally accessible and
useful 1, speaks to their goals, but does not reflect the way they earn a profit. The statement
definitely gives the company a future to strive towards, as it will be quite some time before all of
the worlds information is easily accessible even though they have made great strides. The
mission statement sets the company up as a resource that would be used by anyone who was
doing research whether as part of a thesis or just a question out of curiosity. The mission
statement doesnt give a timeline, it only states the end result. The mission statement is broad
enough that it allows for Google to use any means possible to organize information. This means
that they are neither limited to search nor are they limited to using the internet in its current
form.
The mission statement is graphic because it gives a sense of the scale of the endeavor in its
bold declaration to organize the worlds information and become universally accessible. This

definite goal with a strong focus gives the statement direction and flexibility as it does not
specify the means, leaving lenient room in the respect of the physical products the company will
produce. All the worlds information could never be made searchable or categorized because
some data is private and other data is not defined in a computer readable form. However, even
though the mission statement isnt strictly feasible, it is desirable, motivational, and long-lasting.
Googles mission statement is quite distinctive and original because the scope of the project is
much larger and more long-term than most other companies would aspire towards. It is
complete in the sense that the goal is not just to organize information, but also to make it
accessible and useful.

The statement is forthright in understanding the boon and the banes of advertisements to
search engine users in its suggestions that advertisements should not be an annoying
interruption 2 Figure 1 displays the difference between the homepage of the top competitors in
the search industry. Google has long held a very human-centric point-of-view, and their mission
statement reflects their dedication to user experience in their promise to provide the most
relevant and useful search resultsindependent of financial incentives 2. Google is quick to
recognize that customer faith will provide the basis for increased traffic and strong word-ofmouth promotion
The mission statement will probably not change either through the actions of competitors or
through a changing external environment. Information retrieval is likely to only become more
important in the future and therefore Google has set itself up well with the long-term vision of
their mission statement. This projected prosperity does not, however, include the discussion of
the companys stakeholders in the statement or specifics on the monetary value creation.

Financial Analysis
Google is a relatively young company that has been public since August 2004. At that time, a
share of the stock sold for a paltry $85. By late 2007, the stock had reached a high of around
$750, a whopping 882% return in 3 years 3. The shares have now dropped down to the high
$300 range 3 due to the recession the United States is currently experiencing.
Google derives approximately 99% of its revenue from advertising 4. Most of its online products
are free to use and are supported by text ads that are displayed within the interface 2. This begs

the question of whether Google has a sustainable business model if in the future people begin
to ignore internet-based advertisements.

Primary Competitor Analysis (Yahoo!)

Google

Yahoo!

Income Statement (in millions of USD)

Revenue

16,594

6,969

Income from Continuing Operations

30.6%

10.0%

Cost of Goods Sold

40.1%

40.7%

10.4%

22.1%

23.2%

5.9%

Ratio Analysis
Income Statement Common-Size Data

Balance Sheet Common-Size Data

Liabilities/Total Assets
Profit Ratios
Return on Assets

Financially Google is in much better shape than its main competitor, Yahoo. Google has about
2.4 times the revenue of Yahoo, but common size ratios allow comparison of the two. Google
has a much higher Income from Continuing Operations/Sales ratio, which indicates that Google
is more profitable than Yahoo. The two companies have a roughly equivalent Cost of Goods
Sold/Revenue ratio at 40%, but Googles Liabilities /Total Assets ratio is half of Yahoos
indicating that Google is managing their debt better. Googles Return on Assets shines as well
at 23.2% versus Yahoo!s 5.9%

Ratio Analysis
Google
Growth Ratios

Current Year

Prior Year

Sales Growth

56.5%

72.8%

Income Growth

43.2%

76.0%

Asset Growth

37.1%

79.8%

Receivable Turnover

9.1

10.6

Fixed Asset Turnover

4.1

4.4

Profit Margin

30.6%

33.5%

Return on Assets

23.2%

24.7%

Activity Ratios

Profit Ratios

Keeping in mind the facts mentioned in the previous paragraph, Google slowed down by the
end of the 2007 fiscal year. The growth ratios such as Sales Growth, Income Growth, Asset
Growth were all down from 2006 . In addition the Activity ratios of Receivable Turnover and
Fixed Asset Turnover were also down slightly . Profit margin and Return on Assets were also
down, but still at healthy levels. These numbers do not mean that Google is in trouble; after all,
they are still much higher than Yahoo!s ratios. What they mean is that Google is moving out of
its explosive, exponential growth and it will eventually settle at a more steady growth rate if their
business model remains successful. No company can sustain a greater than 50% growth rate
for too many years in a row.

Growth

Googles spectacular growth is shown in the charts in Appendix C. In the past 5 years revenue
has grown from $1.47 billion to $16.59 billion. In the Net Income Trend Graph, the revenue
growth is pleasantly tracked by the net income.

Quarterly Data (in millions of USD)

1st Q

2nd Q

3rd Q

4th Q

Annual

Current Year Revenue

3,664

3,872

4,231

4,827

16,594

Last Year Revenue

2,254

2,456

2,690

3,206
.

10,605

Google is not a seasonal or a cyclical company, because its services are constantly desired.
Table 3 shows that Google has not yet had a quarter where income or revenue was below the
previous quarters reported numbers.

. Quarterly Stock Prices

Since the fourth quarter has not yet been reported for 2008, the Current Year Quarterly Stock
Prices table in Appendix D shows fiscal year 2007 numbers. As stated earlier, Googles stock
performed remarkably through the end of 2007 and the Quarterly Stock Highs and Lows graph
showcases that continued growth.

Value Chain Analysis

Googles primary activities in its value chain vary slightly from a traditional model where raw
materials are processed into finished goods for sale to a customer, gaining value in each step of
the process. Since Google doesnt produce physical products, its value chain is a bit more
nuanced. Google gathers all the web users it can (the raw material) by enticing them to use its
stellar search product with highly relevant results delivered promptly. Then, through assorted
signs (text advertisements) it directs these same web users in the form of traffic to its
advertising partners who transform the traffic into conversions or sales on their sites (the
finished good). Google adds value not only by directing a quantity of web users to specific sites,
but also by sorting the pre-qualified visitors using keyword association and search history to
recognize users interests 5. In this manner, Google ensures that the users who are directed to a
partner site are more likely to purchase a product there.

Google's Value Chain

Googles primary activities in its value chain are heavily dependent on the support activities of
administration and human resources. Google has always tried to hire the most qualified and
competent individuals to ensure that it excels at the research and development of its technology
and systems. In fact the company often gives aptitude challenges and tests to help recruiters
sift through the massive amounts of resumes they receive
Next to the employees, a large percentage of the cost structure is the infrastructure and
systems. Googles servers and internal software allow it to conduct operations, distribution,
sales, and service. Each activity contributes to the value chain by increasing the profit of the

firm. Google has locations all over the world1 to localize distribution, marketing, and service
which in turn ensures maximum profit on a global scale. Profit is maximized by the companys
cultural awareness and social competence to tailor products to the regional needs of its users.
By shifting activities geographically, Google can also take advantage of diversity from a human
resources perspective and also perhaps lower salaries in countries other than the United
States. Google has even begun outsourcing some of its copywriting to firms in India.
Google uses advanced analytics to measure the efficiency of its supply chain (the web users).
This data about the history of its users is important because it helps Google improve its search
algorithms and advertising interface. New technology and word-of-mouth promotion by its loyal
users can bring in new customers and thereby increase the profit margin.

Competitive Advantages
Google has sustainable competitive advantages because the remarkable scores accrued in
measures of value, rarity, and substitutability.

Value
Googles search products bring value to their customers because they provide relevant
websites promptly. Google has achieved the top market share in the search industry precisely
because their product is rare. They are able to provide excellent links in the first few results for
both well-known subjects such as Dallas Cowboys and uncommon, long-tail searches like
cerebrospinal fluid.
As mentioned in the Value Chain section, Google excels at directing a large quantity of visitors
to websites using its Ad Sense program. Many business are dependent upon the traffic Ad
Sense brings to their website to generate income. For the advertisers this increased traffic
translates into increased sales and directly helps the bottom line.

Rarity
Googles search offerings are rare because of the relevancy of the results. Microsoft and Yahoo,
Googles main competitors, simply do not provide links that are as useful as Googles.
Googles website features a minimalistic design, which is uncommon. Most websites feature
some sort of banner advertising and are littered with hundreds of words. The Google home
page can only contain 28 words as a policy established Sergey Brin and Larry Page, the
companys founders. This keeps the clutter to a minimum which is a stark contrast to Yahoo and

Microsofts search home pages .Google faithfully adheres to the provision in the mission
statement which recognizes that advertisements should not be an annoying interruption . This
rare service is testimony to their charge to never compromiseuser focus for short-term
economic gain

Substitutability
There are different ways of organizing and accessing information, and right now searching the
internet is arguably the best for retrieving information efficiently. Google does not confine itself
to the search product it is most well known for and has special applications for browsing
different kinds of information such as its Shopping, Books, and Music applications.
Google consistently delivers relevant results at blazing speeds with minimal hassle. These three
competitive advantages set its core search functionality apart from the competitors whose web
portals simply cant keep up. Google should be able to sustain its competitive advantages
through the foreseeable future, but it will need to continue to innovate new ways to diversify its
advertising business so the company is not dependent on solely the Ad Words service.

The Value Chain

The value chain of Google is very distinct and slightly different than a typical value chain
you would see from other companies. The traditional value chain model shows how companies
combine their resources to turn raw materials into physical goods which is then sold and turned
into a profit. Google however does not actually produce physical goods. Instead Google treats
their web users as their source of raw materials. Google attracts their users through their unique
and advanced search engine and uses advertisements and signs to direct them, as roads and signs
direct traffic. The signs are Google's advertising partners which transform their traffic of users
into sales by directing them towards Google's partners websites. The traffic is converted into
sales because of Google's unique way of connecting the users search requests with Google's
advertising partners, making it more likely that the user will purchase goods from their partner's
websites.

Google's value chain highly relies on its support from its administration and human
resource departments. One of the reasons why Google is so successful is because they continue
to strive in developing new, attractive and innovative tools for their users and partners to use. As
you can see in the value chain figure above, Google holds its Product R&D, Technology, and
Systems Development at their highest importance. Google equips their human resources
department with unique skills and tools to continue bringing in the brightest most talented
employees in order to achieve their mission of continuing innovation. Google equips their
administration department with similar tools in order to keep these key employees they
worked so hard to find and mold them into Google's value chain.
Google's value chain also holds their infrastructure and systems with a significant
amount of importance that is equally matched with their value of employees. Google's software
and hardware is responsible for conducting the company's operations, distributions, sales and
services. Google has strategically built their infrastructure around a system that allows every
contributing activity to increase the company's value chain and profits. Google uses their
transaction history and unique analytical tools to continue improving their systems just by
examining the behaviors of their users. Google has strategically placed the company in multiple
locations around the world to localize their distributions and marketing. Google's global
positioning also allows them stay up to date on their culture awareness to continue delivering
products and services tailored to the interests of the consumers in those areas. Google's
analytical tools are allowing the company to constantly improve their systems which will allow
them to attract new users and partnerships which increases Google's overall profits.
Google has achieved a remarkably strong and sustainable competitive advantage through
its high ranking values that were developed through their value chain. Google's powerful search
engine creates an extremely high value to its users by providing links precisely relevant to their
requests. Google's search engine is capable of providing results to searches of extremely
common subjects such as "Toyota automobiles" and uncommon subjects such as "spinal
surgery." Many businesses have come to rely on Google's capabilities to direct their users to their
partners websites in order to generate revenue. It is important for Google to continue providing
high value to its users which will ultimately increase Google and their partners overall profits.

Google has built an extremely rare search engine system that does not allow Yahoo and
Microsoft, Google's main competitors, to compete against them. Google's competitors simply do not
produce the same highly satisfying results through their own search engines the way Google's does.
Google has strategically designed their search engine page to be completely unique all on its own
compared to Yahoo and Microsoft. Both competitors feature similar search engine pages with a lot
of advertisements and additional information that cover their entire page. Google has taken the
more simplistic approach by providing just the search engine on their page. Google has decided to
approach this direction because they strongly believe that "advertisements

should not be an annoying interruption" and distract the user from the main reason why
they approached a search engine page to begin with.
Google's complex infrastructure makes it difficult for competitors to imitate their value
chain. Google has strategically placed structures around the world equipped with extremely fast
computer servers that are synced together. Since Google's design on their search engine has the
ability to improve its self each time it is used, and Google's competitive advantage of having the
largest market share, Google has been able to stay ahead of their competitors. It is extremely
difficult for any of Google's competitors to compete against a system that is continually
improving its searching capabilities and receiving the most attention from users. Google's search
engine simply improves its self more quickly than their competitors. Google's data process that
makes their search engine improve itself requires a lot of time and a developed analytical
system. Without going through this complicated process, the data and its potential usage would
be useless. Google has taken the time to refine their process of retrieving this data and
discovering its meaning, creating a very complex system that makes it difficult for competitors
to imitate. Google's unique interface has remained different for multiple strategic values. One
value is that the clean and simple look provides more space and better quality advertising for
Google's partners to benefit from. Since Google's advertising partners are not concerned with the
satisfaction that the user gets from using Google's search engine, the simplicity and more space
is very attractive to these companies. More space and access to higher quality advertisements
fulfills the advertising partners only concern, and that concern is the achieving maximum return
of investment through its advertisements. Google's competitors would have a difficult time
imitating this asset because it would require the companies to completely change their search
engines image. Google was also developed during a historical time period, which will be
impossible for new competitors to imitate. Some of Google's success was their strategic decision

to enter the market back in the 1990's when the internet and search engines were developed.
Google was able to achieve a first-mover advantage and created itself during a unique historical
time period that cannot be recreated.
The internet is the single most used and most efficient way of sharing and receiving
information all over the world. Google has achieved a strong sustainability in a market that will
probably not be replaced by a better technology for a long time. Google has taken advantage of this
unique position to stretch out its capabilities and not confine itself with just one type of

information searching. Google has developed and refined ways to search for all different types of
information and continues seeking out other areas it can establish itself in. Special information
applications such as shopping, books and music are all the types Google is growing into.
Google's unique infrastructure and its competitive advantages allow the company to lead the
industry with minimal hassle and little fear of ever losing a strong market share.
Opportunities
Strengths

Search Engine is: reliable,

accurate, fast

Simple to use

Low operating costs

Innovative additional services

Google could adjust switching costs by

tracking search history

Google could merge with mass

market search portals

Google could fully enter the

mobile market

Google could offer more advanced

multimedia services

High attractiveness towards

advertisers

Weaknesses

Google's ranking system is

susceptible to manipulation

Google's "cost per click" advertising is

difficult to forecast

Search engine still produces 5060% search accuracy.

Threats

Google relies on outside web portal

contracts

Merging with mass market

portals could impact image

Google adapting more

personalized searches opens
privacy risks

Google's SWOT Analysis

Google has achieved an incredible competitive advantage in the web search engine
industry by having a very unique set of skills, constantly observing their market and seeking out
new opportunities, and keeping a tight control and observation on their weaknesses and possible
threats.
Google has been dominating the market with their powerful search engine tools. Google
offers a search engine that has built an incredibly strong relationship with its users over time by
staying extremely accurate and reliable. This positive reputation has reached other companies

ears and brings a high attractive value to advertise using Google's search engine. Google does
not need to rely on high marketing costs due to its reputable background. Google has taken a
different approach with their search engine page by staying clean and simple. Microsoft and
Yahoo, Google's greatest competitors, have flooded their search engine pages with
advertisements and customization tools that make their pages feel cluttered and confusing.
Google's infrastructure allows continued innovative ideas to insure a long-term life cycle with
the company. Google's system is capable of improving itself each time their consumers use
their search engine. This guarantees a continued line of improvement as long as users continue
to use their search engine.
Google uses a "pay per click" advertising system to bring revenue in for their partners
when the user is directed to the related sites. The "pay per click" system makes it difficult for
businesses to calculate a usable forecast because Google cannot guarantee that the user's search
request will be relevant to that particular company. This could discourage companies to
participate in this program and if Google's image were to ever take a negative impact, it could
result in a loss of current advertising partnerships. Even though Google has built an incredible
reputation and has become the #1 search engine, it still only produces an estimated 50-60%
search accuracy. Google's search engine is unique in the market due to its design of developing
its accuracy based off its users usage. Google tracks the search information and what web sites
they most commonly relate their search to in order to create its accuracy. This system has
proven to be very reliable, fast and accurate but it lacks in catering to specific needs. Yahoo and

Microsoft have designed their search engines to cater to more personalized and specific
individual requests preventing Google's search engine from achieving a higher ranking
accuracy. Google's advertisement program has also become susceptible to manipulation from its
users. Users are capable to flooding Google's search engine by paying for Google's advertising
partnership with useless and inaccurate websites. Google's contract with their advertising
partners promises to connect the user to their related websites first when the users search is
related to them. Google's search engine is not capable of determining which websites are useful
or useless when the user is paying Google to direct the user to their sites.
Google could enter the mass market search portals, granting them more channels to
retrieve even more data for their systems to consume and analyze. Gaining more data through
more channels means that Google would have access to information they could use to offer
their
users even more possible related search results. However, more data does not guarantee it is
useful or relevant. Google will have to be careful that they do not flood their data with
irrelevant information which could ultimately leave the user struggling to find a fast and
accurate search. Google could also attempt to fully enter the mobile internet market. With the
growing demand for new ways to be mobilizing the internet, indirect competitors are gaining a
huge market share on developing innovative tools to meet the growing demand. With Google's
established reputation and its developed information tools in all types of information, Google
could take this opportunity to enter the market by simply designing a device that could carry all
of their already established tools and services. This opportunity would ultimately give Google
the advantage of not confining their services to a single location such as a home or business
computer. The internet is becoming more available and easier to use all around the world. The
internet market has an ever growing demand for more ways to share even more different types
of information through the internet. Google has the opportunity to offer more advanced
multimedia services. Services such as video chat, and live news streaming is opening new
opportunities for companies like Google to really refine and develop advanced ways to meet
this growing demand.

Global Strategy
Google has become an incredible force that is unmatched amongst its competitors.
Google is constantly moving forward thinking and creating incredible new ideas to expand
their reach in the global market. Google has built their infrastructure around the idea to always
think forward and outside the box and has brought tools and services that completely change
the way we live our lives and do business around the world.
One innovative idea to improve the modern business is a program called Google
Shared Spaces. This product's goal is simply to increase the efficiency in most modern
businesses. Shared Spaces is an interactive platform where all employees, even around the
world, can easily
connect with each other. The program offers tools to the users that will allow them to share in
real time all the information they desire. Now companies with employees spread across
nationally or internationally can brainstorm together, do surveys and time frame management
all with a single gadget in Shared Spaces. This will ultimately improve the way most
businesses operate because they will have the opportunity to share critical information more
effectively and efficiently bringing faster results. This tool is still in its early life cycle but will
hopefully have a significant impact on the world's economy due to the increased productivity
with lower costs shared between offices all over the world.
Another global strategy is Google's decision to develop and launch the Android operating
system with an application creation system available to any users without programming skills. This
will allow users that do not have the knowledge or programming background to have the
capabilities of creating their own applications for Google's Android system. This move by Google
will make an impact on the entire application market ultimately affecting every competitor of
Google. Applications will flood the market for the Android device now that Google has made it
possible for anyone to create. The world should see massive amounts of user applications created
from users all over the world. Google has enabled creative thinking and profitable opportunities for
users all across the world. Applications will be improved and new, innovative ideas will be shared at
blurring speeds that have never been seen before.

Google has also created a gadget called the Aardvark. The Aardvark is another global
strategy tool that Google has created. The Aardvark has the ability to act as a platform that will
connect you to real people with the information you are trying to search for on the internet.
Imagine the possibilities of having instant confirmation of the credibility on the information you
have been searching for. Connecting with a real live professional that has mastered the
knowledge of the information a user is searching for. Aardvark searches through all of the major
social networks and picks up on the keywords you are searching for. Through the social
networks Aardvark will be able to find, and connect individuals to the user, the same way we
use our Facebook and e-mails to connect ourselves to the world. The Aardvark will connect you
with a professional that best matches your search and is most qualified to answer the users
queries. This will be the first time in the world that research information can be validated
effectively and immediately.

Conclusion
Google has become a company people admire for their financial growth, their customer
ratings, their way of treating their employees and their innovation. Throughout our research we
have found that in all four areas Google strives to be the best and have several measures put in
place to achieve their goals and targets. Financially they are constantly trying to find ways to
reduce their costs and find new acquisitions to put their brains into. Their customers are an
important asset to them and they are constantly finding ways to improve the speed and security
of their products and services which has kept them ranked high on the Customer Satisfaction
Index. Google is known for treating their employees fantastic with many benefits and have
been ranked in the top fifth in Forbes 100 Best Companies to Work For for several years now.
Innovation is something Google has been known for since they were founded and they are
continuously coming out with new services and more advanced upgrades to existing services.
Google has been the pioneer in its industry since it first stepped foot in the search engine
market. Google has developed a corporate strategy to address concerns in the world and develop
technology to save it. For now Google has developed tools that have revolutionized the way we
live our lives and conduct business across the globe. Google's innovation will create an
incredible force behind the way we search and share information to the world.

Google Balanced Scorecard

Perspectives

Financial

Objectives

Measurements

Targets

Initiatives

FY

FY

FY

2008

2009

2010

Revenue Growth

% Change in Revenue

31.3%

8.5%

24.0%

More Operating Capital

Profitability

Return on Equity

-18.9%

20.7%

1.7%

Increase Return on Equity

Operation Costs

% Costs of Revenue vs. Expenses

0.2%

-4.8%

-0.2%

Increase Efficiencies by
Reducing Expenses

Customer

Stock Prices

Stock Prices (using Dec 31 year close)

-44.5%

201.5%

-4.2%

Increasing Stock Prices

Customer Satisfaction

Customer Satisfaction Index

86

86

80

Top research teams

Overall Company Feel

Ranking on Forbes List/Going Green

Clean Energy 2030

Keeping Up With Technology

New Acquisitions

1.4 bil

1.5 bil

1.8 bil

Google+

Going Global

Revenues by region

3%

1%

Making their products available

4%

in almost all languages

Internal

-Innovation

Software Expansion

NA

NA

NA

-Technological innovations

Business

-Best Search Engine

Customer Usage Rating

72.07%

72.52%

71.59%

-Increase speed and relevance

-Becoming Global

Foreign Involvement

NA

NA

NA

-Foreign partnership

-Recruiting Top

Job Growth

60%

40%

NA

-Cultivate challenging/productive

People/Keeping Top People

Innovation

Value Chain

and Learning

SWOT Analysis
Global Strategy

environment

Profit Margin

-5.9%

8.2%

1.4%

Key Employees, Infrastructure

N/A

N/A

N/A

Competitive Advantages, Core

Geographical Revenues

-5%,

-2%,

1%,

Competencies

(US, UK, Others)

-1%,

1%,

-2%,

Google Shared Spaces

4%

3%

1%

Android Applications
Aardvark