About Google April 2004: About Google April 2004 Conception, history,visual History
Analysis
SWOT, Core Competencies, PEST, Boston Matrix, Porter
Revenue, Profit (Estimates), Value Chain
IPO? Future??
tiny Google Doodle Quiz Research Powered by and the Mayo Team
Slide2: Mission Statement
Slide3: "Googol" is the mathematical term for a 1 Followed by 100 zeros. It's a very large number
To: Organise the world's information and make it universally accessible and useful
Structure
Machine readable
Happy Customers 200 million times a day
I’m Feeling Lucky
Slide4: History of Google
Slide5: Founders Larry Page
Graduate of University of Michigan (BSc. Engineering – Honours)
Master’s Degree from Standford in Computer Science
Received numerous leadership awards for his efforts toward improving the College of Engineering
Came to prominence when he built a programmable plotter and inkjet printer out of Lego™.
Sergey Brin
Graduate of University of Maryland (BSc. Mathematics & Computer Science – Honours)
Master’s Degree from Standford in Computer Science
Recipient of a National Science Foundation Graduate Fellowship
Together formed Google in 1998 – Page, aged 27 and Brin, aged 26.
Slide6: 1995: Page & Brin meet
1996-97: Release “BackRub” – precursor to Google
1998: Google is born
Funding USD1 million from friends, family and angel sponsors
1999: Venture capital funding of USD25 million
First commercial customer – Red Hat
Search technology adopted by AOL/Netscape
2000: Launches non-English language versions
Yahoo! adopts Google’s search engine
Expansion with agreements with leading portals & websites in US, Europe & Asia
Google Number Search™ and Google Toolbar™ launched
Slide7: 2001: Backing by major corporate sites e.g. Vodafone, Proctor & Gamble and top three portals in Japan
Search technology available to any palm-based handheld
Country domains now offered
Expands into Brazil & Latin America.
Language offerings rise to 28.
2002: Launches
Google Search Appliance
AdWords Select
Google News
Google Labs
Serach services and syndicated advertising agreement with AOL
Sprint forms association with Google for first Wireless Image Search on PCS phones
Slide8: 2003: Advertising base exceeds 100,000 customers. First profit making search engine organisation.
Signs agreement with Disney to provide web search and targeted sponsored links to Walt Disney Internet Group Web Properties (Disney.com; FamilyFun.com, Go.com and Movies.com)
Forms alliances with Lycos
Continues domain country expansion
3 Billion items in web index
2004: Yahoo! agreement over
Lawsuits pending over use of trademarks
Googles tracking cookie making users weary of Google’s intent
Exceeds 6 Billion items in web index
Slide9: Searches per day
Slide10: Old Google Layouts
Slide18: Google SWOT
Slide19: Strengths
Strong brand image
Advertising
Technology
People
Innovation
Privately owned and profitable Weaknesses
Depends on others to make a profit
High costs – highly skilled workforce with > 50 with Ph.D.s
“Big Brother” syndrome starting to make users nervous
Long-term revenue stream not assured, early in the web ecology, economy of links Opportunities
Entry into new areas:
Media company / Entertainment
Web Portal
Email, Personal, Blog
Ecommerce / B2B
Directory
Semantic Web Threats
Competition e.g. Teoma, Wisenut and Microsoft
No unique, long-term customer relationship with individuals (only as good as the last search)
New Technology
Lawsuits / Privacy
Slide20: Google became a verb
Telegraph Herald Jan 14th 2001 “If you are googling your perspective dates…”
Slide21: Google Core Competencies
Slide22: Innovation
Page-Rank, Google-In-A-Box
Advertising
Targated, Measured, Unobtrusive adds
Understanding people “Do no Evil”
Trust and Technology
Slide23: Google PEST
Slide24: Google’s STEP (+ is positive impact, - is negative)
Slide25: Google BCG
Slide27: Google Porter five Forces
Slide29: Market Share
Slide30: Size of Google Index
Slide31: Google Revenue Estimates
Slide33: 2002 $294M Overture 38%, Google 16%, Yahoo! 8%, of Advertising Search Revenue
2003 $400M Microsoft approach Google about a partnership or buyout ($10 bn?)
2003 $700M -$1Bn, Yahoo reports $1.63Bn,
Jan 2004 $1Bn Google used by 39%of US Internet users, compared with 30% for Yahoo
Mar 2004 $4Bn Ask Jeeves and ISH : $250M (7% Market):
Yahoo! Estimates $2.12-$2.25BN in 2004
Slide34: Google Profit Estimates
Slide35: 2002: $10M pay-per-click model for contextual ads Google Search Appliance(GSA) $28k - $450k
2003: >$100M Gross margins 70% - 80%. eBay 80%- 90%: Yahoo! :$46.7m for Q1
2004: $150-$300M Ask Jeeves and ISH : $60M (7% Market) – Ask Jeeves bids $420M for ISH
Mar 2004: $1Bn US paid search advertising spending jumped 123% last year to $2Bn, and is likely to grow another $500M this year and next.
Slide36: Google IPO
Slide37: 2003: $14Bn-$18Bn Market Cap $2Bn raised in Cash - Yahoo expected to report $28Bn Market Cap
July 2003: Yahoo! spend $1.6 billion for marketing search specialist Overture;
Jan 2004: $12Bn-$25Bn Google sign with investment banks Goldman Sachs Group and Morgan Stanley to handle IPO; Comply with Sarbanes-Oxley
Feb 2004: Sergey Brin and Larry Page, join Forbes magazine's list of global billionaires.
Mar 2004: $36.7Bn – Google: 150,000 advertisers worldwide. Yahoo drop Google.Yahoo launched its own search technology last month after acquiring, Inktomi and Overture
Mar 2004: Open Online Auction? Google deny IPO rumours
Slide38: Google Value Chain
What Next?: What Next? IPO Yes or no?
It will hurt their innovation
They don’t need the money, But!
YES / No / Yes / No /….. YES
Communities on the WEB
Treat to economy of links
Off the Wall?
Grid, Search applications platform Research Powered by and the Mayo Team
Slide43: Google Doodle
Slide44: http://www.cs.tcd.ie/tullyg/google/Google.htm