Case Analysis

Google Inc. (2010): The Future of

1. Executive Summary 2

2. Statement of the Problem 2

3. Causes of the Problem 6

4. Decision Criteria and Alternative Solution 4

5. Recommendation Solution and Implementation and Justification 21

Reference

Case Analysis: Google Inc. (2010) The Future of the Internet Search Engine Page 1
I. Executive Summary

The present case study is based upon the strategic analysis of Google Company on the

basis of its potential profitability, successors & failures in the industry. The case also highlights

its problems statement and its causes, business strategies adopted by its major competitors,

operation management, its financial position, and human resources strategy. And then the

descriptive SWOT of Google is also discussed accordingly. The case concludes shortly with

recommendations of various strategic alternatives possible to Google Inc. To compete in the

industry, Google may be selected the alternative strategies namely defending current market

share, market modification and product modification. Therefore, above points are discussed

and analyzed in the following parts of this case study.

Google was founded by Larry Page and Sergey Brin in 1998, until now this company is

a giant internet search engine. Google's mission is to organize the world's information and

make it universally accessible and useful.

II. Statement of Problem

In 2010, Google was the global leader in technology for the ways that let people obtained

or accessed the information through using its search engine on the internet. There are many

competitions and challenges in front of Google management to solve in expanding business

growth to the future. Moreover, there are many risks, issues, and causes for the business

operation of Google to the national and international market on its products and services. For

the statement of the problem, there are divided into primary and secondary issues to be

explained and analyzed as below.

2.1 Primary issues and major problem

The Google’s industry was changed rapidly with having good performance in business

growth, and it can be said that this company is classified as one giant company in the global

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market. Reading through the case study, it can understand clearly about Google’s issue during

its standing in the potential competitive market as stated. There are some key problems that

need to be solved including:

 The strong competition with other companies in technology that was barrier for

growth and corporate expansion in the industry.

 The expected revenue growth rate may soon decrease because of direct and

indirect competition, the maturity of online advertising market, and growing size

of firms.

 Google has quickly grown incredibly large due to its ability to efficiency settle

needs for data access to a large and growing customer base. The question can ask

that “Is a monopoly ever a good thing? If there is one best way to search for data,

should the search industry be allowed to fall into this growth pattern or should it

become a regulated industry in the future?

 The liability still uncertain and take risk for the operation of Google both USA

and other countries.

 It existed the issue in worldwide not only the firms in USA that are respected and

held accountable the law but other countries must follow, it is the barrier of

business.

 Exchange rate risk, potential negative tax consequences, foreign exchange

controls and cultural barriers still take risk for international dealings.

 Privacy over the Internet is a serious industry issue and there are no industry

standards to be implemented effectively.

 Current laws are introducing for the protection of illegal access to data. Example,

hackers and others who take information and use it for identity theft or define for

consumers. It is the ways that a business will use their financial, health and

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banking information that they have given a company (HIPPA and Children

Privacy act these laws have nothing to do with companies that take a personal

information for marketing purposes store and retrieve it on a computer).

 Patent, trademark, or copyright infringement against the Google operation and lost profits

in the market.

2.2 Immediate action required

 The US and international laws restricted the distribution of materials that harmful

to children and collecting information from minor.

 The management increased the regulatory scrutiny and put legal issue for concern.

 It has a pressure from the government to censor its web content varied among

countries.

 The management finds the new and creates innovative ways to maintain a strong

corporation culture.

2.3 Secondary Issues and minor problems

 It could lose its trademarks on the name due to threating trademarks and secrets

 Invalid click or click fraud made the company lose confidence from its

advertisers/marketers.

 Internet security is a problem for users and it harmful to the Google.

 Google has a relationship with the federal US government for data access, how

this impact possible legislation and the public perception of fair practices will.

2.4 Identify and link the symptoms and root causes of the problems

 Challenge in business growth: increased competitive pressures, technology

innovation advance, intellectual property right protection/legal issue, hacker and

spam attack to steal data/information

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 International Market: different countries different accounting practice that let to

different privacy law and government censorship.

 Lack capture China the leader in internet usage, especially by using its main

search engine site due to restrict contents and political speech.

 Intellectual property management: unregistered trademarks of some services,

other companies file trademarks and copyright infringements against Google.

 Internet access providers may be able to block, degrade or charge for access certain

Google products and services.

 Face potential political problems in some countries, geographic, cultural, language,

and practice differences.

2.5 The decision being faced with the management

 In the competitive industry, especially the companies that serving in connecting

people with information on the web and provide them relevant advertising such as

Yahoo, Microsoft, Facebook, etc. is the strongest competition for Google. The

management of Google introduced new products and services to attract and retain

the users through usefulness search result, features, availability, ease of usage, and

help Google network members in creating revenue from advertising.

 In front of international market expansion for Google products and services, there

always has a pressure to Google in censoring its web content. Example, the

management agreed to censor some of its internet search results to china website in

2006.

 The intellectual property right was the issue for the Google’s management to

defense the web contents and other copyright material without fraud that it may be

let to low image and viability in the global market.

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 The Google’s management recognized that the future profit margins may be

tightened by lower profit margins on revenue receive from Google Network

members.

 Google spread its operation across the world to dominate in foreign currencies to

gain profitability.

Bases on the statement of problem above, the main problem for Google management is

how to make the company gain best performance in products and service, and expansion the

market in the globe with the strong competitive industry for the future?

III. Cause of the Problem

3.1 Analysis of the Problem

3.1.1 Financial Situation

Google has good brand name in internet search engines market. Google now is on its way

to achieve on Internet engine giant in the world. The revenue in 2009 obtained $23, 651 million

and $29,321 million in 2010 equal to 12.9% and 13.4% that is the high revenue. In 2009, stock

price gained $619.98 per share but the Google’s stock prices indicated that it has dropped 4.7%

in 2010 that this company worked hard in maintain the performance of developing and selling

the services and products more profitability in the competitive global market. Indeed, the

growing for Google lets this company to purchase other companies like YouTube,

DoubleClick, and Postini for merge and expanse service and products. It was not additional

revenue for Google since purchased YouTube with earned $1.6 billion in 2006 acquisition. In

2007, Google had revenues of $16.6 billion which grew an average of 115% annually in the

preceding five years. In this situation, Google’s main competitors, Yahoo, and Microsoft

Case Analysis: Google Inc. (2010) The Future of the Internet Search Engine Page 6
showed its revenues of $7.0 billion and $51.1 billion respectively. Hence, look at the financial

situation of Google seems to be lower that these two merged companies in market share.

3.1.2 Competitive Environment

The business growth of Google position in the strong competition with others companies

around the global especially the companies who serve on traditional and vertical search engine,

e-commerce sites, social networks, other forms of advertising, mobile applicants, and other

providers of online products and services. Although, Google stays in the highest level, Yahoo

is the strong competitor and position in the market, is getting stronger since it emerged with

Microsoft. The objective of Yahoo is to expand through new search technology (Panama) that

is attracting to users of Google and others users. Competing search engines such as Bing or

Yahoo developed their infrastructure to match the speed and comprehensiveness that Google

possesses. It is the one barrier for cover the market share.

In order to make the sales growth and compete with the competitors, Google spends

billions of dollars for development /R&D and upkeep however the cost is high but it is the

building advanced infrastructure for Google. That is the comparative advantage over its

competitors. In addition, the rapid speed of search on internet let the user comeback and

satisfying with the products and service of Google. However the management of Google tried

to move the company, there maybe increase the difficulty in the future to compete with others

companies.

3.1.3 Operation Management

Google develops products that enhance people’s ability to access online information.

Although the management of Google has a good operation in USA and other countries in its

business but this company faced the difficulty and uncertainty in operate the business as good

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example in China because there are some limited free speech on the web. Other hand, the limit

of internet usage, languages, culture, political problem, and government pressure on

informational and law still challenged to operation in some countries. It is a trade barrier for

Google in providing the service and information because it is the most successful exports of

Google. So, it is also very hard for meeting the needs of users because of government of each

country that make the market share of Google lost.

3.1.4 Human Resources Management

Google has experience in well managed employees in its organization around the world.

In 2009, Google had 19,835 employees and this company depended mainly on the skilled

employees. However there was a recession in the past that make more difficult to attract and

maintain skilled, and talented employees Google provided to its employer with strong

satisfaction. Look in the past of Google, in 2002, Google hired former Sun Microsystems

executive Eric Schmidt to assume the role as Chairman and, later in the same year, CEO. On

August 28, 2006, Dr. Eric Schmidt, CEO of Google, was appointed to the board. Brin and Page

are the cofounders and key corporate resource of Google. Google has a good corporate culture

among the employee with rewards system or bonus that was the retaining the high performance

employees. It was seen that there has an excellent management of Google, but in front of the

world recession and other problems let the management of this company to lay of the

employees as history of Google’s operations. In 1 April 2008, it was lay of lay off around 25%

of Double Click employees and in 26 November 2008 Google continued layoffs its 10000

contractual part time jobs being cut. And in 4 January 2009, Google decided to lay off 100

recruiters, with close engineering offices. At the same year, 26 March Google cut 'just under'

200 positions. This was the flow of skilled workers out from Google but it cannot assure to

those employees to work because of recession.

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3.2 Situational Analysis

Google is the biggest company and gets the strong recognition brand name in the world

which has three primary groups served namely: Users, Advertisers, and Google Networks

Members and Other Content Providers. The main categories of products and services provides

by Google including search engine and personalizations, clients, Google Geo, Android and

Google mobile, Google checkout and Google labs. Google has integrated with many websites

for improve its products search and catalogs and as well as integrated with radio advertising.

In 2007, Google purchased DoubleClick for $3.1 billion in cash for its attractive users. Google

made acquisitions internationally and domestic to continue to add its products to every means

of communications and data interaction available. The Google’s market size and growth rate

were unbelievable of achievement continually.

 The fiscal year revenue 2008 obtained $21,796 billion with the yearly grow rate 31%

 The fiscal year revenue 2009 obtained $23,651 billion with the yearly grow rate 9%

 The fiscal year revenue 2010 obtained $29,321 billion with the yearly grow rate 24%

The stock price increased from year to year, it increased from $192.79 per share in 2004

to $619.98 per share in 2009 however the price of stock dropped 307.65 per share in 2008 due

to the economic crisis and other problems.

3.3 SWOT Analysis

Strengths Weakness

• International market position • Public perception of Google’s practices

• Executive management and leadership • Non-corporation by foreign governments

• Strong in cash flow • Depend on advertising revenue for growth

• Customer satisfactions • Lack of information

• Products are very adaptable

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• Most efficient search engine • Impact of click fraud practice on the

• Pushing society’s technology business

Opportunities Threats

• Secure consumers personal info • Copyright lawsuits/issues

• Resurrect relationship with Chinese • Public perception of Google

market • Microsoft’s growing competition and

• Focus into developing tangible technology Yahoo partnership

• Relationship in other websites • Insistence by some foreign governments

• Gaps in online market offering • Competitive Advertising space

• Targeting specific markets-children or • Click Fraud and Invalid Clicks

senior citizens • Data Scams

• Future expansion for television

• Revenue through advertising

• Asia Internet Usage

• Growth in Online Videos

Strengths

 Google gains a strong market on search engine and other products and services that

made a good brand name in the world. The revenue for this company increases from

year to year that lead and strengthen the market expansion.

 To build the supply chain in the world and stronger in the industry, Google has purchased the

new companies to increase and sell the service and products to its users through spending on

other companies like YouTube.

 One of other things that makes the Google strong in the market, it has the active

founders and good human resource management. For example, Google hired a skilled

Case Analysis: Google Inc. (2010) The Future of the Internet Search Engine Page 10
employees like PhDs to enhance algorithms; and do research to create searching faster,

efficient and relevant. For reward system of Google, it provided to the top talent

employees with paid 10% and 10000 cash bonus. This makes the employees satisfies

what the Google’s management does.

 In compete with others in the industry, Google has also competitive advantage on an

interface to 88 languages to users in different countries with comfortable searching for

their business, education, and others. With simple interface and giving comprehensive

results, all these things make a satisfaction to its users and it is the achievement of

Google’s technology.

 It gets reputation by its popularity which proceeds by its word of mouth publicity, so it

doesn’t need to put much effort in marketing its search engine.

 Google has the good innovation in making a good technology in indexing millions of

web pages on internet with using low operation cost of UNIX web servers.

 Google produced variety range of products and service to serve its customers with free

and 97% of Google’s revenue come from advertising. For separating from advertising

and actual results Google gives “sponsored links” tag to sponsored results when users

search to get information. It always keeps the relevant sponsorship on the top when

doing search.

 Google also has a range of innovative additional services like Images, Groups,

directory, and News. Google didn’t complicate its website by making itself a portal;

rather it kept tabs for these services on its homepage so users can easily navigate and

that also keeps the website as simple as it was earlier.

 Google offers localized search called “search by location” where users can get results

showing vendors, products and services nearby their areas.

 It has a low operation cost regarding its products and services, but gained high revenue.

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 It has also acquired YouTube which provides video services to users across the web

and which is regarded to be the number-one online video portal users.

 It has AdWords and AdSense programs working as the main mechanism to attract

advertisers and publishers to come to Google more and more because of mutual gain in

business.

Weakness

 It is true that Google provides to users with good search engine, but many spammers

on internet manipulate Google’s ranking technology by creating dummy sites with

thousands of links to pages that they wanted Google to rank highly. It could make a

concerning to users of Google in the future.

 Google’s Cost Per Click advertising charging and ranking policy is confusing and

makes it difficult for marketers to predict where their ads would be positioned and how

much they would cost. It always has the impact of click fraud practice on the business

that make the advertisers lost their confidence on Google operation and let to loss of

profits.

 Google’s contextual advertising was perceived by marketers to be less effective

in generating sales because visitors to web pages showing editorial content were less

likely than searchers to be ready to buy. Furthermore, contextual search algorithms are

not 100% perfect and many a times make mistakes. It was showed that the marketers

don’t control the cost and position of their advertisement properly.

 Google’s localized search algorithms too sometimes result in errors due to automated

indexing.

 Although Google is a dominating player among search engine websites, only 50% to

65% of web search queries are answered accurately by it.

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 Google doesn’t have “sticky” like Yahoo! And MSN have which can attract users.

 Google doesn’t have highly personalized search by which it could charge users with

switching cost if they decide to leave Google’s services.

 Potential purchase of DoubleClick and it is history of privacy issues problems could

cause much public concern over privacy issues and connect that with Google.

 CDT, a Washington based watchdog company, started a campaign against

DoubleClick’s profiling activities and this could impact Google also.

 Federal Trade Commission and the consumer privacy groups Junkbusters have

increased public concern.

 The Justice Department request for records for millions of searches made on Google,

AOL and other popular search engines in an effort to bolster its case for an online

pornography law.

 Continued insistence by some foreign governments to censor the information so it did

not have a good corporate with the company to achieve the target market.

Opportunities

 The opportunity to grow the Google’s business expansion as global needs strong

strategies though management and other stakeholders. There are opportunities for

reaching new groups/segments and reaching for new contents for increasing revenue.

Its can enhance by having new acquisitions and continue wireless network expansions

move to the internet usage in some countries which will render the usage of google.com

to be increased as well.

 Looking a good practice, it can relive the trend like Yahoo! and MSN and become a

mass market portal for users that will increase switching costs for its potential users.

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 It is the good opportunity that it can add localized vendors paid advertisements on the

localized search and provide more services to the hand-held devices to capture more

market that goes past the conventional internet.

 For increasing the revenue, Google could increase its overall ads and as well as the

online video like YouTube is what the preference to users to spending time.

 Readdress privacy issue that can be set industry standards on privacy and become a

leader in privacy protection.

 In public perception to Google, assure consumers that their personal information is

secure and will not be sold to other companies.

 The relationship with Microsoft via Google Microsoft search and browsers and search

sites targeted toward specific markets such as children with protections or senior

citizens with limited computer knowledge and visual impairments.

 Growing relationship with government organizations like China provide to potential

opportunity in develop and market share increase.

 Development of artificial intelligence products and development of new hardware

solutions for server architecture enable Google gain more profit.

 Future expansion into television aspects of multimedia that let to be continued

expansion into 3D with 3D messaging market and 3D gaming.

Threats

 In the operation of Google, it faced of problems with publishers or companies on

copyright lawsuits and issues for music, books, movies, and legal troubles of YouTube

are the threat to Google. In addition, patent infringement is another threat to lead higher

cost and prevent ability of this company to produce services or products that make

losing a lot of profits.

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 Size of Google before more National or International regulation interferes with

company organizational structure and functions.

 There is no long time entry barrier in this business. Many competitors can emerge in

coming years with same services, better interface and names and can catch up Google’s

market like earning advertising that let to decrease of advertising space.

 Continuation of so many free services to non-profit organizations, local small

businesses and private users may become too expensive.

 Google’s confusing Cost Per Click ranking and charging policy could disappoint its

advertisers and company would start losing many of them.

 Foreign exchange rates could become a major threat for Google. International revenues

account for 44% of total revenues fourth quarter so the exchange rates could have

caused $18 million to $81 million loss if they had not changed.

 Public perception of data stored by Google is another threat how Google manage the

information secret or not for its users.

 Google is the big competitor for Microsoft in USA and other counties so the marketing

power of Microsoft could make Bing strong in search engine and a serious competitor

after Microsoft and Yahoo is partnership.

 For the international threat, it continued insistence by some foreign governments to

censor the information and international data server location and the legal issues related

to the privacy and usage and ownership issues of the data by foreign governments.

 Anti-Spyware programs such as XoftSpySE and NoAdware that can block cookies to

monitor users.

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3.4 Competitive Analysis - Porter’s five forces

Potential New Entrants

The barriers to entry in the internet search market are high and compete. The current

competitors have thousands of servers deployed in locations all over the world and have

accumulated many year worth of data about user habits. A new entrant would need to provide

better search results at very fast speeds to compete in this highly competitive market. With that

in mind, it must be recognized that when Google was founded in 1998, Yahoo, Excite, and

Altavista dominated the search market and Google has since eclipsed them all. The market

now, however, is more mature with a necessary path dependency to gather data on both the

content of webpages and the search history of users. Therefore, the threat of new entrants in

the internet search market is relatively low.

Bargaining power of Suppliers

Some of the primary suppliers are data houses where documents are sourced to be

returned in a search. Additionally, individuals and firms with online information like webpages

and blogs are suppliers of Google. Without these two Google cannot continue to attract users

who are primarily looking for information.

Google’s ad system is a reliable source of income because both the ad-making partner

and ad-receiving individual are both customers of Google’s. So as long as Google maintains

its market dominance with the search product, supplier bargaining power will remain low.

Google’s cost of revenue as a percentage of sales in 2007 was 40%. This number is the same

for Yahoo suggests that both companies are equally efficient at maintaining supplier-seller

collaboration.

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Potential entry of Current Competitors

Google’s stated goal is to “organize the world’s information”, and to merit they have

created many complimentary products to their main internet search service. Targeted

advertisements based on the information they collect with their products are Google’s primary

source of revenue. In 2007, Google had revenues of $16.6 billion which grew an average of

115% annually in the preceding five years.

Google’s main competitors, Yahoo, and Microsoft (operating under their respective

brands is MSN and Live Search), posted revenues of $7.0 billion and $51.1 billion respectively.

There is a dizzying amount of money made in this industry.

Presently, Google commands 57% of internet searches in the United States. This large

market share enables them to improve the quality of their search results and targeted ads more

quickly than their competitors. This creates a sort of self-perpetuating draw for customers as

the search results constantly improve. Yahoo and Microsoft lag behind with 23% and 11%

respective market shares. The competitive rivalry is strong and ongoing in this industry because

large amounts of advertising dollars flow to the website that has captured the largest volume

of searches.

Power of Buyers

Google has two basic customers; paying and nonpaying. The nonpaying customers are

users of Google's search services and other freeware applications. These individuals are the

core of operations because they allow Google to attract their paying customers. The paying

customers are usually firms who use targeted ads accompanying Google searches to reach

individuals. However, there are some individuals who do not want to be bombarded with ads,

and pay for that convenience.

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As of 2007, 99% of Google’s revenues are derived from advertising. However, no single

account contributes more than 3% to net revenue, and less than 5% of the revenue is generated

by any given network partner site. This means that no single buyer has a controlling interest.

In Google’s system many advertisers bid on keywords. Popular keywords like “Dallas Texas”

are sold for much higher value-per-click through than obscure topics. This distributed approach

allows Google to attract both large companies and small “mom-and-pop shops” keeping buyer

power low.

Potential Substitutes

In 2008, the internet has become the mode chosen by millions of people all over the world

to request and retrieve information. In light of this fact, there really is no suitable substitute for

search. Information can be organized in different ways including categories and sorted by date,

but Google provides tools to complete these tasks as well as conduct searches. A substitute

product may be invented in the future, but there are no obvious substitutes to organizing

information on the internet.

Google has positioned itself well to weather each of Porter’s Five Forces of Competition

as well as stay afloat in a turbulent external environment. Google’s ability to please its

stakeholders will continue to define the success of the venture and the future of the company.

Google is in the business of making relevant information accessible and usable. The

competitive environment is interesting because the industry is vaguely defined. There are other

company that do differing levels of the same thing, but Google does it so well that its name has

become synonymous with the industry. For these purposes, and simplicity, it will concede that

the Google is in the Data Organization and Retrieval Market.

According to the discussion about the problem and situational analysis, it can be

showed that Google has many strength compared to its competitors in the industry but it has

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also the weaknesses to considered and improved. The expansion operation on services or

products in some countries still the barriers and pressure to Google while the competition in

the market is full and take risks. Google is strong in cash flow with low cost of operation and

get high revenue but buying other companies still in front for competition/difficulty. The law

regulation, culture and language of each country is different that is the problem for Google at

international operation.

IV. Decision Criteria and Alternative Solutions

Strategic Solutions

Google is the top company in search engine in the world, the future feeling that the revenue

of this company may be slow because of its competitors in the market is increasing. Hence,

Google needs to consider the following solution for maintain its stronger performance in

business growth in the future.

4.1 Strategic Alternative – evaluate the pros and cons of each alternative

After done on analysis, there are some possible strategic alternative to be considered for

Google including three strategic alternatives are defending current market share, market

modification & product modification.

4.1.1 Strategy- defending current market share

Google is known for everyone in the globe, but competition still exist to the

management of company. The competitive landscape on search, advertising, video, blogging,

and social networking is so high yet. Google has strong corporate culture, innovation

technology, and good brand name. So, all these things let this company position in the global

market best against the competitors. The defending current market share is enable to Google

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maintain its technology, users and business growth, and before the industry situation drop in

any case.

 The pro for this strategy is securing and maintaining the market share stability of

Google in the global market with its existing competitive advantage and

competency among competitors. The users is increasing every day so it is the good

for Google lets them stay on the products and service.

 The con for this strategy is Google can lost the market share in other forms of

advertising and being cut-out of the value chain by other companies. This means

that Google lost the profits for its business in other countries and maybe lost the

ability to compete with competitors while they develop their market share/brand

name.

4.1.2 Strategy- market modification

Currently, Google stay on the top at global market how about the future? Market share

is the concern/barriers for selling the products and services. By considering on market

modification strategy, Google should consider on integration that lead this company to benefits

from market share in merges & acquisitions. This strategy is preferred and achievable because

it allows Google to quickly adopt new technologies and process rather than trying to develop

them internally. Therefore, it can also grow their operation international with the offering many

excellent features of product or services to people around the world.

 The pro for this strategy is helping the business operation in USA and international

to survive in the touch competition through merges with another company who

strong in different fields of internet technology and acquisition. Google entered into

strategic alliance with other companies to creating global advertising partnership

for expanding business globally. So, the market for Google will gain additional

market share and recognition and high revenue.

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 The con for this strategy comes up with the huge investments on buying new

companies. Google fail in purchasing some companies for its market share like

Groupon that it rejected because of fear common to web entrepreneurs. It maybe

not generate significant revenue if it not grow well.

4.1.3 Strategy-product modification

As known before, Google has high innovative products and technology because of the

high skilled/ qualified workforce. Hence, the product modification strategy it could achieve the

attractive more users to use improve/new product feature and service plus existing ones.

 The pro for this strategy is letting Google focus on the tangible technology that

improve for future competitive strategy what lost advertising revenue/market share.

It help to overcome the current product problems of Google on what the customer

feedback/complain or error for making the loyalty of old/new users. It also build

the image of Google in the Global market stronger and win over the target market

that its competitors.

 The con for this strategy would exist if Google did not strong innovate or not

modification the products properly. It will lost money and market share especially

the market share or customer’s perception as global.

V. Recommendation

As discuss and mentioned alternative strategies above, it can concluded that the best

solution for Google to implement is market modification strategy must be adopted. Google has

a good score in the global market in search engine and other products/service, so this company

could grow its impressions by increasing the frequency of searched by existing and new users,

the users that come from other search engines like Yahoo or About. It also attract the traffic to

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sites in its search and advertising networks. This strategy provides to Google as market leader

about advance in internet search, increase customer satisfaction, maintaining a positive public

perception. In addition, a contingency plan can be established that Google will be well prepared

for future successes existing in a different environment than they currently have.

Implementation Strategies

 Have R&D of browsers, databases and servers continue along with evaluation of

purchasing or partnering with companies that offer what is needed

 Hire more high tech people to fulfill many R&D ideas

 Design demographic search sites

 Have a lobbyist in Washington, DC and California or any high technology state that

has many technology issues percolating into laws and regulations for the new breed

of digital technology issues. Become involved with all watchdog privacy issue

organizations.

 Do as complete as possible study of international data issues along with cultural

taboos or sensitivities to help the company stay out of the hot seat with more legal

issues

 Re-evaluate goals – how far does Google want to go on the privacy front especially

now that the merger with DoubleClick is raising serious questions about competition

and regulations?

 Emphasize the usage of data containing information with permission and have open

discussion on how to protect people as well as their own business.

 Create and promote an image of an ethically and socially responsible company that

believes in respecting people’s privacy.

 Implement enhanced operational and management systems that will provide the real

time results clients.

Case Analysis: Google Inc. (2010) The Future of the Internet Search Engine Page 22
 Continued focus on enhanced advertising targeting

 Expansion of opt-in registration methods and requiring consumers to provide a

certain level of information they will be able to build a very detailed database about

individuals with particular interests from various demographics.

 Develop software for large data gathering systems or purchase companies that do

this.

 Expand multimedia product offerings to attract users

 Create hardware for imbedded search systems

 Keep an eye competitors and must win over them

Conclusion

Google will continue to develop its worldwide domination of all aspects of the internet,

search, multimedia and telecommunications industries. There are some points that need to be

considered including growing competition in global market, the threat is increasing, and world

technology change. In order to achieve the overall vision of Google, this company should be

advantage on its strength, minimize weaknesses, catch the opportunity as competitors, and

limit the threat. Finally, Google will be ready on all fronts with the products and services that

are needed to be successful.

Case Analysis: Google Inc. (2010) The Future of the Internet Search Engine Page 23
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Case Analysis: Google Inc. (2010) The Future of the Internet Search Engine Page 24