Team Dodgers Spring 2008
Agenda History Industry Overview Business Model Sources of Competitive Advantage Challenges Initiatives Recommendations
History Started by Sergey Brin and Larry Page Named “Google” Presented its discovery at the World Wide Web Conference Raised almost $30 million in funding Went public - 19,605,052 shares offered at $85 per share - Raised $1.6 billion Launch of its Orkut product Most expensive purchase of its history - $1.65 billion purchase of online video-sharing site YouTube
History Sergey Brin – former company’s chairman the president of technology Larry Page – former CEO of Google president of product Eric Schmidt – hired in 2001 as Google’s new CEO
Industry Overview Key players –Yahoo! –MSN –AOL
Industry Overview Key success factors –Paid listings –Cost per click model
Industry Overview Network Effect
Business Model Core businesses – sponsored search engine services and advertising Related diversification –All businesses are linked and in the search industry
Selected Services
Sources of Competitive Advantage Organizational Structure and Structure –Dual-Class Equity Structure Designed for stability over the long term Supports Google’s innovative approach to business
Sources of Competitive Advantage Corporate Values –Philosophy, Ten Golden Rules –Managing Innovation
Challenges Manage uncertainty through diversification –Young, evolving industry Threat of consolidations
Initiatives Web search –To maintain the “network effect” New search domains –Google Knol –Android
Recommendations Free Wi-Fi throughout metropolitan areas Continue focusing on innovation
Questions?