In 1995, the “Google guys” Larry Page and Sergie Brin started a project as a student in Stanford University for a basic search software and on September 7, 1998, they incorporated Google as a privately held company. (Bernard Girard, 2009)The software was basically developed on the relationship between websites. It was analyzing links between the sites and there was not any emphasis on how many times it appeared on the screen. It was previously named as “BackRub” in 1996. And by mid 1998 they gave the final name of the software as “Google”.
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Jeff Jarvis in 2009 said the incorporation was made with the help of family, friends, and the angel investors who helped both to raise approximately one million dollars. They dropped their PhDs aside and started the company in a friend’s garage in California. They were at that point of time able to answer ten thousand queries per day with the help of only four employees.
They number exactly doubled for employees with twenty five million dollars equity funding near mid 1999 at a new office in Palo Alto. But, the number of queries solved was sufficiently increased by five hundred thousand per day. (Janet Lowe, 2009 )
The company then was moved to Mountain View, performing three million searches a day in the same year later on. (Randall Stross, 2009) There were thirty nine employees at the end of that year.
Google expanded the search engine into ten another languages than English and also introduced handheld devices first of its kind with wireless technology for WAP phones. By June 2000, Google was the biggest search engine on the web solving eighteen million queries a day. (Jeff Jarvis, 2009)But, the strength in terms of manpower was still less than a hundred.
The capacity of answering was increased almost three times after than by the end of 2000 by sixty million searches per day that was doubled in early 2001. That shows how fast the company advanced in terms of technological advancements. Europe and Asia were also afterwards in its agreement list. (Bernard Girard, 2009)
Randall Stross in 2009 stated Japan was powered by top three portals by Google in 2001 and also it was holding the corporate sites of IDG.net, Procter & Gamble, Marthestewart.com, and also the cellular giant Vodaphone. After a few months, Google had one hundred thirty portals in thirty countries. None of the web based company made such a fast growth in history. (Janet Lowe, 2009 )
Google was available in seventy four different languages by the next year. London, Toronto, and Paris had then service agreement with the company with AOL. The strength in terms of Web Index was four billion web documents by just the end of that year. (Jeff Jarvis, 2009) It was named as “Brand of the year” by international branding consultancy.
Then in the early 2004, Googleplex was chosen for most of its operations and was considered as headquarters. (Randall Stross, 2009)And just on April first, a new email service named Gmail was introduced. With more than 130 languages, 70 offices in 37 countries, document creators, cellular advancements with HTC and smart phones, web photo albums, the company has made diverse innovations and also growth in every single aspect at its best.
Today, search on internet is also called as Google. That shows how company has the reputation of the best web based search engine all over the world. In very recent years the company had made tremendous growth and also becoming better every single day, that makes Google as the perfect choice for all of our group members to select it as the company that has made tremendous growth in the recent past.
Performance of Google search engine
Google web search is very popular and highest rated search engine in the world. Most of the people like Google engine search as a default search engine. Larry Page and Sergie Brin is the founder of the Google. They made Google incorporation in 1997.
In April 2000, Google announced the Mentalplex that is Google’s ability to read your mind as you visualize the search result as we want. (Bernard Girard, 2009) (Janet Lowe, 2009 )
Then after in May 2000, the first 10 language version of Google launched and it is in German, Latin, Swedish, Spanish, Portuguese, Dutch, Norwegian, and Danish.
In June 2000, Google made a partnership with yahoo to become their default search provider. In the year July 2001, Google launched Google image search with more than 250 million images. And in August 2001, Google incorporation has opened their first international office in Tokyo. (Jeff Jarvis, 2009)
In 2002, the first Google hardware was released called Google search appliance. From that, businesses can plug their computer’s network to enable search capabilities for their own documents. (Randall Stross, 2009)
In January 2004, Google introduces Orkut for the social networking. In October 2004, Google launched desktop search from that we can search for files and documents stored on our hard drive using Google technology.
In December 2005, Google launched Gmail for mobile in United States for the first time. In the year 2006, Google launches Piccasa in 25 more languages and Google maps for France, Germany, Italy, and Spain. (Perry Marshall, 2007)
In June 2007, Google made prime placement on the original Apple iphone. For the first time in June 2008, Google launches a stock quote live on Google finance and Google site search that helps the owner can enable Google powered searches for their web site.
In 2008, Google launches Google chrome and Piccasa web album and Google earth for iphone and ipod touch. At the last in July 2009, Google launches moon in Google earth and most important Google search engine they added Google images panel for easier finding of images. (Janet Lowe, 2009)
Above all some important growth of Google from 1995 to 2009, from that we can measure the growth performance of the Google.
Advancements by Google
Google Inc. and its latest advertising tools are creating fear among their competitors.
In 10th June 2010, Google search engine has launched background image technology from that user can personalize their homepage of Google by applying the background image at their homepage. As the founder of Google told that “Understand exactly what you mean and give you back exactly what you want”.
Concentrating on that Google has developed page rank technology that perfectly change the way of search conducted. (Bernard Girard, 2009)
Page rank technology, it is developed for more better and perfect data for the user. As per Google, pages that we believe are more important receive a higher rank and are more likely to appear at the top of the search
Problem faced by Google
In the year 2006 Google has faced a problem in china. In china Google web page was not working properly, the main problem occurred in that of speed.
In china Google web page appears to be down around 10% of the time, peoples had lots of problem with speed after reaching the Google web page. (Perry Marshall, 2007)
The main reason behind the problem is domain server of the china which is from Cisco Company from that the problem was occurred but goggle has successfully resolved the problem.
Five force model of Google:
Michal porter has defined five forces for the strategy formation of the company and Google has also used five forces to their own business as strategy.
Impact on Google
Google is regionally not globally dominant.
Competition Elimination and Substitution: Microsoft embedding their search tool into their Explorer browser.
Threat of forward integration – Google search may not perform as well with new software releases from Microsoft and Apple.
Barriers to Entry (Potential for New Market Entrants)
Yahoo & Microsoft have radically improved their search engines and can on pass/deploy their search tool through their products.
There is no such thing as the perfect search engine – thus a better search engine invented by another will critically affect Google – mayhap even mortally as 40% of the company revenue comes from advertising which is driven through the search engine.
Competitive Rivalry (Degree of Rivalry)
Rules/ethic have not been defined so the environment is easily exploited or manipulated.
Switching costs for most of the search tools are nothing.
Brand identity is important (if not paramount – Google has made the language as a noun and a verb)
Treat of Substitutes
(Product & Technology) Development
High. Switching costs are negligible
Buyer inclination to substitute is primarily driven by speed and accuracy of the result and also by the overt pushing of ads that are included with the search results and pages.
Use of the search rankings is a significant leverage point by the owners of search tools in bargaining.
Loss of ranking has in the past led to costly legal arguments – equivalent of e_defamation_of_character or denial of services .Users of the search tool are becoming more sophisticated and demanding other services also for free.
Substitutes are available – and for the same price: free
Two client groups – web community wanting to search/locate items and the organisations selling products – have to satisfy both client groups equally”
( Source: http://mbtGoogle2.blogspot.com/2008/09/porter-5-forces-for-Google.html)
Strategic analysis of the position of the company
Google Search Performance in 2009
The heart of Google is still the search engine in 2010. It started in 1998 and nowadays it has a market share of almost 90% in Europe and about 60% in the USA. The main competitions of this search engine are Yahoo and Microsoft Bing. Yahoo has 21% of market share in the USA and 3% in Europe. Bing has 10% in the USA and 3% in Europe as well. There are numerous of other small search engines which either use the database of one of the three market leaders or have a market share of less than 1%.
Considering the recovery in early this year, profit has been raised. Efficiency of performance management team has deem emphasized. Innovative approaches and flexibility helped the company through the year. (Perry Marshall, 2007)
Last year net income profits was revealed $382 million, but this year it came up to $1.97 billion. Moreover adjusted net income came up to $2.19 billion as last year, it was $1.62 billion
Since beginning of 2010, Google’s boss revealed that they maintain optimistic about the internet and keep to invest in technological innovation to get benefit also the wider web not only of our users and customers,
Lately it is wished Google’s numbers reflect a wider trend towards a more efficient economic recovery.
Google Market Share
Search Engine Total AVG Dec ’09 Jan ’10 Feb ’10 Mar ’10 Apr ’10 May ’10
Google 85.93% 85.74% 85.49% 84.47% 85.43% 87.44% 86.26%
Bing 6.00% 5.71% 5.71% 6.39% 6.24% 5.43% 6.27%
Yahoo 4.92% 5.47% 5.38% 5.63% 5.04% 4.20% 4.26%
AOL 2.11% 2.39% 2.38% 2.37% 2.08% 1.79% 1.85%
Ask 1.04% 0.67% 0.76% 0.93% 1.20% 1.14% 1.34%
Other 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.02%
Google Search Engine Technology Overview
The world’s leading portals and websites in Google’s search technology is preferred. Without disrupting their users’ web surfing experience for advertisers, profitable ad industry, Google’s advertising policies are also beneficial.
Any time you search the key word or series of words, many web sites you search on the word or sequence of words it contains, how often a page that lists out. Google’s search technology and the value of pages (Page Rank) and page content analysis technology (hypertext-matching analysis) allow to calculate at the same time, many untouched by human hand performs. Google’s structural design also expands itself as the internet expanded. (Bernard Girard, 2009)
If we put in a nutshell, Google is a page that get in the way of the importance of that page that “votes” are based. Google also included in this voting process will determine the importance of the pages. Thus the top-ranked pages from other pages, play an important role in determining the rankings, where this process is carried out without human hands touching reminder of the need. (Steve Johnston, 2010) The intelligence of the Internet is included in Google and using their own resources and the importance of a page determines the ranking.
Advertisements on Google Search
A new web site on the first page of Google for certain keywords in the Search Engine Optimization for appearing to be done, while Google and Google will be recording it take to raise a particular need. Or for target keywords on Google search engine results pages, many Search Engine Optimization has been a very good web site, may be competitors. that’s too much competition, where a lot of competitors in the search results page may take a long time to upgrade. In this period of time ”through’ ‘Google advertising can reach the target customer base, you can promote your products and services.
Moreover, even if the old web site, web site traffic growth in the highly competitive search term. (Steve Johnston, 2010)
Google Advertising (Google Adwords), search engine Google, the search partner and content network advertising is an advertising system.
When advertising on Google, the Google Search Engine
On the right side or on the page as sponsored links at the top
Partner Pages Search: Search at the top of the results
Content Partner for the page: content partners determine where their ads are displayed on the web site.
Fees are paid per click.
Competitive advantage by Google
Whatever the reason is, but the fact is that the people now, like to use Google search engine as it is very simple to click and use another search engine. People of whatever age generally, know how to operate Google. So, such psychology has added most important competitive advantage to Google. Google has largest and the single run server and host system. It is the very first company who started to compete with Microsoft. Google is creating web services, business web packages, spread sheets, word documents, emails, creation services. They are very innovative, enthusiastic and accurate. These were just some of the small list of competitive advantages, which Google has over their competitors.
He has started a new strategy, by squeezing supply chain as hard a s he could, he converted Dell into a fearsome competitor. With his help, PC supply chain came to consist of foundries, assembly plants and trucks. Google with over $200 billion in market capitalization has started the same strategy, fine tuning and adapting it for the Web & broadband. (Jon Smith, 2008)
Instead of trucks and assembly plants, however, Google’s supply chain is made up of fibre networks, data centres, switches, servers and storage devices. (Jon Smith, 2008) From that perspective, its business model is no different than that of Dell’s (DELL): Google has to deliver search results, if you want to be generous about their other projects as fast as possible at as low a cost as possible.
To better understand Google and its business model, one needs to break it down into three data inputs.
Relevancy of results.
Speed of search.
Cost of executing a search query.
While their results aren’t best, they are high-quality enough. Just like Microsoft Windows was first-class enough to lead the market. Google now has 64 percent of the total explore market. And although a typical Google query can often be an act of uselessness, we put up with it because the results are fast. If they’re wrong, we can just set off all over again.
The company has paid attention of the speed of its search engine too that how fast it access the information. Nowadays, Google is taking between 0.12 to 0.16 seconds, which is really very fast. This requires plenty of bandwidth and specialized hardware (Jon Smith, 2008)
Against this background, it makes just right sense for Google to build their own servers, storage systems, internet switchers and possibly, sometime in the future, even optical transport systems. Imagine connecting thousands of hosts at speeds of, say, 10 gigabits per second, in a manner that allows any-to-any connections.
Porter’s competitive advantage model:
When any company gains the profit which exceeds the average for the industry, the firm is said to have the competitive advantage over its rivals. Two type of competitive advantages are there:
1. Cost advantage
2. Differentiation advantage
When the company is able to deliver the same benefits as competitors at lower cost than it is called cost advantage, and when the company delivers the extra benefits to the customer than it is differentiation advantage.
(Strategic management- competitive advantage- “http://www.quickmba.com/strategy/competitive-advantage/”- accessed on 14th June 2010)
Google has multi core chips, those with many processing engines on each side of silicon. It is the type of differentiation strategy. Many software companies assumed to better performance from ever-faster chip clock speeds. Google had adopted with multi core chip very well while other companies do not have adjusted with that. This chips had excellent interconnection.
( Competitive advantage- “http://arnoldit.com/wordpress/2008/05/31/Googles-competitive-advantage-plumbing/”- accessed on 16th June 2010)
(PEST analysis-“http://www.softducks.com/image/icon/P/PEST-Analysis-Software-(Advanced)-91459.gif”- accessed on 15th June)
Government regulation and legislation have given permission to the integrity, accessibility and long term retention for the data.
Government has also made the rules and penalties for illegal sites which do not meet the standards. (Bernard Girard, 2009)
Government has given some soft ware so that everybody cannot access the personal sites of the company.
Increase in the quantity of internet savvy countries could mean extra revenue for the company.
Trends are not easily predictable, so that Google must always look for devaluation of the currency, and economic trends. (Jon Smith, 2008)
Such trends must not be feared of but it must be taken advantage from it. As whenever the trends seem to b worsen, it may set back the tracks.
Google has learned “ride on the waves” of the endless economic trend.
There are so many changes which are presented on the internet.
As internet connects the whole world together, it must be taken care that it must not make any partiality for any community.
It is also must be taken care that all the forgotten data can be collected from the internet.
From the Google all the alike information can easily be accessed, which provides endless information. (Bernard Girard, 2009)
Google also has adopted the culture of host country which is really beneficial for it
Technology has helped further for the interconnectivity. In fact the internet is the product of the technology
Everybody is using video calls nowadays. Nobody in the past has thought that they will see their beloved ones thousands of miles away.
The technology has made the competition with other search engines endless.
(PEST ANALYSIS- “http://ivythesis.typepad.com/term_paper_topics/2009/12/pest-analysis.html”- accessed on 15th June 2010)
Google key success factors:
Applied to infrastructures: ability to adapt its size to high load and volumes.
Ability to easily grow at marginal costs. (Bernard Girard, 2009)
Applied to business models: ability to monetize millions of users.
The utility of a good or a service varies with the number of users.
The reach of a critical mass of users constitutes a significant barrier to the entry.
The web offers the opportunity to exploit and analyze a very large amount of data.
Users’ behavior can be analyzed to create monetizing value.
The traditional walled garden (Network or portal) media strategy becomes irrelevant.
Content and services must be open and interoperable to favor audience circulation.
Google is certainly the most important search engine around now. Knowing what you should not do and still stay alive to Google, as well as learning shortcuts to getting
an immediate good placement on Google’s search engine results page, which is
now a very important part of website promotion. The main thing is that your
search covers more than 8-9 billon URLs. Also you will see only that pages which
include the terms you type. One can feel lucky and save time while using it.
Google is the single most power-full search engine in the world which never ceases to amaze us.
Google`s vision is broader than the most of people imagine, said by the vice – president Holzle. He said it comes with a huge scale of computing power based on cheap, no name hardware that is horizontal to failure. There are hardware malfunction not just once only, but time and time again, many times a day. That s right, that Google is built on the inadequate hardware. The magic is that the writing software that allow that hardware will
fail and expeditiously deals with that reality, says Holzle.
Bernard Girard, The Google Way: How One Company Is Revolutionizing Management as We Know It, April 2009
Jeff Jarvis, What Would Google Do?, January 2009, First edition, Harper Business
Randall Stross, Planet Google: One Company’s Audacious Plan to Organize Everything We Know, September 2009, Free Press
Jay Barney, Gaining and Sustaining Competitive Advantage, November 2006, Prentice Hall, 3rd edition
John Gamble, Arthur Thompson Jr., Essentials of Strategic Management: The Quest for Competitive Advantage, April 2008, McGraw-Hill
Jon Smith, Google Adwords That Work: 7 Secrets To Cashing In With The No. 1 Search Engine, Infinite Ideas limited, November 2008
Perry Marshall, -Unlimited Guide To Google Ad Words: How To Access 100 Million People In 10 Minutes-Entrepreneur Press 2 Edition, 2007
Steve Johnston-50 Ways To Make Google Love Your Website-Random House Books, 2010
Jennifer Grappone- search engine optimization: an hour per day-john Wiley & sons, 2008
David Vise, The Google Story- Pan New Edition, September 2006
Dan Sanderson, Programming Google App Engine, 2009, O Reilly Media, 1st Edition,
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