A corporate backgrounder and overview on Google’s current and future business trends and their impact on the company and its competitive industry- look for Google Presnetation under my slideshare profile

1. Corporate Communication
AC 413 Term Project
Professor Linda Finnerty
Tomer Melman
May 9th, 2011
A corporate backgrounder overview on Google’s current and future business trends and their impact on
the company and its competitive industry.

2. TABLE OF CONTENTS
Introduction.................................................................................................3
Google Industry description, Domestic and International operation and
business Challenges.................................................................................4-7
Development, trends and impact in the competitive industry.................8-9
The Mobile industry Trend – “The Power in Every Pocket”.................9-10
Still a Niche but Growing....................................................................10-11
Competition, Service, Products and content Leaders..........................11-13
Google’s Corporate Communication........................................................13
BIBLIOGRAPHY................................................................................14-15
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3. INTRODUCTION:
Covering an ongoing company which is yet to accomplish its core goal is almost an impossible
effort. The countless developments, trends, and innovations in the online/technology industry
and with Google in particular will make this paper current only about 5 minutes from the point it
had been completed. At this moment when I’m concluding the bibliography and conducting final
edits to the paper, I received 21 Google related news alerts and 2 updates on new service
improvements by Google to my mobile Smartphone via one of its real-time news products.
Though it’s almost midnight right now and most of Google employees are not in their offices, I
have learn from the various interviews I conducted with some of Google’s employees that
Google doesn’t start at 8Am and ended at 6Pm of the same day. Google is found in their head 24
hours a day 7 days a week, and not because they been expected to, but because they want to.
Google great success found in its innovation and its innovation comes from its employees which
are the blood which runs in the body of this amazing company. Behind every service or product
found numerous dedicated top of the line employees which came up with the idea, develop it,
market it, sales it, maintain and constantly improve, in order to deliver a better, faster, and
simpler usage experience to its costumers.
And if you don’t believe me, Google it…
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4. GOOGLE INDUSTRY DESCRIPTION, DOMESTIC AND
INTERNATIONAL OPERATION AND BUSINESS CHALLENGES
Founded by two Stanford University Ph.D. students, Larry Page and Sergey Brin, Google
the, search engine (originally created under the name BackRub) takes it is name from a play on
the word Googol- the number 1 followed by 100 zeros, a reference to the huge amount of data
online. Google’s designated mission was:” To organize the words information and make it
universally accessible and useful.” However, as time past Google expand its dominance to
different field beyond its designated mission.
In the process of achieving its first ongoing goal, today Google operates the leading and most
accurate search engine with an outstanding online search [1] market share of 65.4%, almost triple
then its search engine industry competitors such as Yahoo’s 17.4%, and Microsoft’s search
engine sites which hold about 11.1% of the online searches activity.
While there are many components to Google success when it comes to its search engine
success one of the key reasons is its unique PageRank technology which offering targeted fast
and quality results from billions of Web pages. Having those features under its belt is directly
connected to its financial success and popularity. Google generating most of it is revenue
through its ad sales, which allow advertisers to deliver relevant ads targeted to search queries or
Web content. Although Google’s Flagship product is with no doubt its internet search &
navigation services its touch many other fields and industries then the common person would
know. Google spread its operation throughout a variety of platforms and subsidiaries which
many of them are the leading website in their category. Under Google business umbrella found
websites and services such as YouTube, a video-sharing website, and DoubleClick, an online
advertising provider. In addition to its subsidiaries Google provides Web portal services such as
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5. Webmail (Gmail), blogging (Blogger), and photo sharing (Picasa). Other tools Google offers
include an online image library (Google Images), general news stories (Google News), financial
news (Google Finance), interactive maps (Google Maps), comparison-shopping services (Google
Product Search), Interactive TV platform (Google TV), its counter product to Microsoft’s office
software, Google’s free web-based word processor, spreadsheet, and presentation (Google Docs),
and this is only a partial highlight of some of its 60 plus current products and services. Google is
also engage in the Web browser business with its Google Chrome browser which been advertise
lately via a new sophisticated television ad featuring on its “faster then” features. Catering every
possible need via billions of computer screens, the Google experience goes out beyond the
traditional online usage patterns. Reacting to the change in the online usage consumer behavior,
the mobile market didn’t slip from Google’s eyes and in fact been one of its main focuses during
the past years. As part of its goal of entering and gaining power in the mobile industry, Google
developed the Android operating system (operates software and online applications mainly
targeted for mobile devices which compete with Microsoft's Windows system), along with
releasing the Nexus One, Google’s First Smartphone. More recently Google is expected to
release it is flight search tools which is part of it is $700 million acquisition of the flight search
software maker ITA.
The technology industry demands constant innovation, and Google has been nothing
short of relentless in its efforts to develop or acquire new services and products in order to stay
ahead of some of its U.S based rivals such as Yahoo! and Microsoft. Even though Google’s U.S
operation has been accounted for approximately 48% of it is revenue in 2010, as a online
company which is one of the biggest and strongest resident of the global village we live in, it
been constantly increasing it international operation in order to lead and exceed it rivals by
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6. maximizing the other 52% of Google’s revenue which found in the world wide web outside of
the U.S “online borders”.
Beyond “Uncle Sam land” Google face many cultural and governmental barrier along
with an aggressive competition from both its U.S based and international rivals; while it holds a
respectful international online reach providing products and services in more than 100 languages
in more than 50 countries, regions, and territories, Google faced a blizzard of controversy
European countries. In Germany Google acknowledged it had been recording information from
unsecured wireless networks this along with other privacy matters lead to broader challenges in
Europe as regulators in France, Germany and Italy said they would examine whether Google and
Apple violated privacy rules by tracking the location of users. Those any other controversies may
lead to many restriction moves to both companies which may cost a portion in revenue. The
privacy and censorship obstacles have decrease its revenue and dominance preventing Google
from offering its full ability of its products. In many countries such Australia, Egypt, France,
Libya, Russia, South Korea, Turkey, United Arab Emirates, and Venezuela many of the online
operation and services are being censor by the government a factor which prevent many
companies and Google in particular to offer the Google experience. While countries such as
Australia and France which only conduct s prevention on the way that Google collect its users
information, in other countries which found in the Enemies of the Internet List such as Cuba,
Iran, North Korea, Saudi Arabia, Syria, Uzbekistan, Vietnam, and one of the most important and
almost unreachable country – China, where the some of the service of companies such as Google
and Facebook is only available through a third party websites which makes the profit of the
online traffic. China has been the market which many of the online tycoons such as Facebook
Apple and Google been trying to crack and sink its dominance. In the fourth quarter of 2010 the
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7. value of the Chinese search market reached $585 million, nearly doubling from a year earlier.
China’s online population increased 19.1 percent in 2010 to 457 million users, with nearly 82
percent of them using search engines in order to conduct different online activities. With this
market value, personal visits in the Chinese nation of CEO’s such as Mark Zuckerberg,
Facebook’s CEO, president, and founder, makes a perfect sense as part of his and other
companies’ efforts to strengthen or improve the business relation with that region. Considering
the fact that China represents a full 20% of the world's population, dominating its market can be
a key factor toward increasing every company international reach and overall revenue, which is
one of the Google’s key efforts.
Not like in the U.S where Google holds a strong presences in the search engine market, in
China Google Chinese website came only third with about 17% of the search engine market
share followed by QQ.com, while on the top of the search engine pyramid sits the almost
absolute Chinese market leader -Baidu.com with 75.5% of search engine uses in the third quarter
of 2010. The challenges does not found only with its Chinese competitors, more than any other
county in the Enemies of the Internet list in China Google’s activity is subject to many
censorship and limitations which are set by the government as part of its control in what it
citizens can read, search, and discuss. After a long feud with the Chinese government over these
censorship issues, in 2010 Google and China reached a compromise, and Google began
publishing a link on it is government approved ".cn" domain (Google.cn) to an uncensored
website based in Hong Kong (Google.com.hk)
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8. DEVELOPMENT, TRENDS AND IMPACT IN THE COMPETITIVE
INDUSTRY
Google set it is focused on improving the ways people connect with information by
constantly creating and building products which improve and simplify people lives around the
globe. Similar to it is competitors Google following the business pattern of expanding it is reach
to different industries as possible, collecting online behavior informational patterns in order to
deliver more accurate and suitable results to each one of it is service users while maintaining
strong dominance and primarily focus in main key areas such as: search, advertising, operating
systems and platforms, and enterprise. Nevertheless Google and its industry competitors shift
many of their resources and attention toward constant growing trends such as the mobile
Smartphone’s industry by making their variety of services and applications compatible to the
different devices which found in the market. While Google offer many services and products
which interact with diverse industries and competitors such as Apple and Facebook, on the
corporate level Google still believe that it number one rival is the software giant Microsoft. "We
have a competitor called Microsoft," he said. "Microsoft has more cash, more engineers, more
global reach. We see competition from Microsoft every day." Eric Schmidt.
Despite the fact that Microsoft primary industry found in the Computer Software
Development Tools, and Operating Systems and Utilities Software it wide spider nets spread
over many of Google’s key markets and revenue pipes such as the search engine and mobile
industry. The big reverie among the two corporations have been widely expressed by numerous
new innovative products and services which been presented constantly by both Microsoft and
Google. In October 2006 Google released Google Docs, web-based Word processor
Spreadsheets, and by 2007 added their own Presentation and Form applications to the Google
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9. Docs application. With unique sharing and collaboration features Google made a remarkable bite
in the “Holy” and almost absolute services of Microsoft the Microsoft office software, one of the
component of Microsoft strongest revue channel. The two giants rivalry does not stop in the
platforms and services segment, more lately both companies along with many other gives more
attention to the mobile phone industry, one of the most growing market trends.
THE MOBILE INDUSTRY TREND – “THE POWER IN EVERY POCKET”
“Today the vast majority of the world’s population has access to mobile phones, and over
two billion people are connected to the Internet. Sergey Brin and Larry Page Founders’ Letter
Google 2010 Annual report
While advertising revenues made up 96% of its revenues in 2010, Google drift lots of
attention toward the behavior changes in the way people search for information and conduct their
daily online activities. In recent years there have been a dramatic increases and change on the
way people access and search for information as a result of the growth in popularity and
accessibility of new devices such as smartphones, netbooks, tablets, video game consoles, and
smart television devices. In the search to appeal to the growth of the mobile market and lack of
its brand presence, in January 2010 Google released Nexus One, Google’s Flagship Smartphone,
which manufactured by HTC and uses Google’s operating system the Android; At the same year
Microsoft has released its own but not first (Microsoft’s first Smartphone, Windows CE Pocket
PC OS, was released in 2001) Windows Phone 7 Smartphone which brought together many of
Microsoft’s popular features from its other platforms, including Xbox, Zune, Office and Bing.
Continually capitalizing on advertising a risky move at the time was made by on May 2010 when
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10. Google acquire AdMob, a privately-held mobile display ads technology provider, for $750
million. Though many have been skeptic in regard to AdMob acquisition, it is forecasts that
Google would generate the investment of its acquisition by 2014 and will reach a $6 billon in
revenue by 2020. Further Mobile efforts by Google include Google Voice, free
telecommunications application service by Google, which gives its users one number for all their
phones, voicemail, free US long distance, low rates on international calls, and many other phone
features. This move is only one step among many which been done by Google in order to
increase the presence, image, and service of the Google brand in the market. Although those
innovative and strategic moves strengthen the Google brand, its facing a tough competition from
software developers companies, such as Microsoft and Apple, and other mobile applications as
users had been increasingly accessing content and e-commerce sites using mobile applications
which built in to the operating system of the device. Pattern which decrease Google search
numbers, product usage, and its advertiser exposure.
STILL A NICHE BUT GROWING
After the disappointment of the 3D TV’s as the next big thing more companies set their attention
toward the Smart TV, an interactive way to capture people needs and daily online usage into
their TV sets. Among the different companies which engage in this new innovative platform
found known companies such Philips, LG, Panasonic, Samsung, Sony Toshiba along with
different platform providers such as Internet@TV by Samsung, Vudu by Wal-Mart, Apple TV,
Yahoo! GoTV, Mediaroom by Microsoft, and Google TV which is part of a business partnership
with Sony, Intel and Logitech. The concept of the Smart TV is that each TV has built-in
computer processors and operating software so the TV sets can be tailored with applications
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11. similar to computers and Smartphone’s. By offering a Google Smart TV Google could increase
its future reach and synchronize its platform while offering their consumers to shop, surf the
Web, check the weather and traffic, set up customized news pages while having a variety of
social networking, photo and video sharing, using the different Google products. Though this
scenario sounds like a interactive utopia, Google is experiencing a not so welcoming greet from
many of the cable and content providers. ABC, Hulu, NBC, and Viacom all blocked Google TV
deceives from accessing it programs and content. Rather if it’s an act in order to protect from
lowering its advertisement rating or just an effort in order to earn time, Google will need to find
a solution as the Smart TV will increase in demand and availability.
COMPETITION, SERVICE, PRODUCTS AND CONTENT LEADERS
One of Google’s big success in the last few years have been when it entered to the internet
browsing industry by releasing Google Chrome, Google’s web browser. With a unique approach
and a great focus on core values of providing a fast, simple, and secure browser . In less than 3
years since its release Google Chrome receive great reviews and a high usage of over 120 million
people increasing its market share to 11.9% and climbing to the third place follow by Mozilla
Firefox and Microsoft’s Internet Explorer. Not like Google Chrome and Apple’s Safari both
Mozilla and Internet Explorer experience a decline in their market share, possibly due to an
increase activity of both Apple and Google in the mobile, and tablet industries. With no doubt
the rising of Google browser popularity is connected to its aggressive marketing campaign which
include embedded ads on its web pages and as mention previously a new sophisticated and
entertaining TV commercial. Still Google is far from its competitors who enjoys their
competitive lead which base on their business flagship elements and on their long time presence
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12. in the market. Apple’s products which have a strong presence in the computer, phone, and tablets
market have the competitive advantage of tailoring most of its services and software’s such as its
internet browser, Safari, in its products as default choice. Microsoft on the other hand enjoys the
same competitive advantage with their explorer and the Microsoft windows operating system
along with the advantage of being in the market for many years compare to Google which will
celebrate its 13th birthday on September of this year. This competitive advantage allow both
Apple and Microsoft to be stronger in certain categories, however, Google continue to make
efforts to shrink those gaps by different market activity. One noticeable move which may be the
birth of a new product category is the soon to come Samsung Alex, Google’s notebook, which is
the commercial version to Google’s Cr-48 beta notebook that was unveiled last year. A success
of Google’s notebook may have a direct affect on it other products and services as the notebook
will most likely to be introduce with most of Google’s services and products as a default option.
With a wide products portfolio Google face a difficult struggle in almost every portion of its
business. Beyond competition from web information providers Google face competition with
specialize search engines and e-commerce websites such as Kayak, a traveling search engine,
Amazon.com, and EBay as many consumer may skip the use of Google and go directly to the
competing website in order to conduct their search and business.
In the Social network industry website such as Facebook and Twitter play a growing rule for
product or service referrals rather than seeking information via Google or any other search
engine, people use links which their friends post of links which found on companies Facebook
pages. Additional competition to Google comes not only from the different industry companies
such as Apple, Yahoo, Microsoft, or Facebook. Google’s main revenue comes from its
advertising solutions and services meaning that one of the ways to increase its revenue is by
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13. receiving a greater spenditure from those who already advertise with Google services. Those
advertisers also engage in the traditional methods of advertising such as newspapers, magazines,
billboards, radio, and television. Doing a better job, delivering good results and revenue to those
advertisers may cause by favoring and spending more money with Google over the other
traditional forms.
GOOGLE’S CORPORATE COMMUNICATION
Google main communication method to it investors, consumers, and media is conducted using
www.google.com , Google’s main website and via http://investor.google.com, Google’s investor
relations website, in addition as required by publicly traded companies Google file and release
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Proxy Statements to the
SEC and to its investors website, in addition Google is also conducting annual meeting for its
stockholders. Other communication forms include webcast of earnings calls and events which
Google participate in or host with the members of its investment community. Additionally,
Google provide notifications of news or announcements regarding its financial performance,
including SEC filings, investor events, press and earnings releases, and blogs as part of its
investor relations website. Investors and others can receive notifications of new information
posted on Google investor relations website in real time by signing up for email alerts and RSS
feeds. On top of all Google communicate with its users using http://www.facebook.com/Google
(Google official Facebook page), along with twitter.com/GOOGLE (Google Tweeter page), on
http://www.linkedin.com/company/google (Google LinkedIn page), and using its official blog -
googleblog.blogspot.com.
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14. BIBLIOGRAPHY
Online
 Hoovers.com Google Inc.
http://www.hoovers.com/company/Google_Inc/hsrfri-1.html
 Hoovers.com Microsoft Corporation
http://www.hoovers.com/company/Microsoft_Corporation/rcrtif-1.html
 Google’s view on the future of business: An interview with CEO Eric Schmidt
http://www.mckinseyquarterly.com/Googles_view_on_the_future_of_business_An_interview_with_CEO_
Eric_Schmidt_2229
 Google's Biggest Rival is Microsoft: Schmidt
http://news.brothersoft.com/googles-biggest-rival-is-microsoft-schmidt-5053.html
 The Google Way: Give Engineers Room
http://www.nytimes.com/2007/10/21/jobs/21pre.html
 FTC Said To Be Prepping Google Probe
http://www.huffingtonpost.com/2011/05/02/google-ftc--probe_n_856286.html
 Our Search: Google Technology- The technology behind Google's great results
http://www.google.com/technology/pigeonrank.html
 Yahoo Finance
http://finance.yahoo.com/q/pr?s=iap.l
 INDUSTRY CENTER - INTERNET INFORMATION PROVIDERS
http://biz.yahoo.com/ic/ll/851mkt.html
 Google Investor Relations- 2011 Annual Stockholders Meeting
http://investor.google.com/proxy.html
 Better Living through Software: Microsoft Advances for the Home Highlighted at Consumer Electronics
Show 2002
http://www.microsoft.com/presspass/features/2002/Jan02/01-08msces.mspx
 February Search Results Are In: Bing Is Up Again, Yahoo Is Down Again
http://www.businessinsider.com/search-results-are-in-bing-is-up-again-yahoo-is-down-again-2010-3
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15.  Google's market share dips ever so slightly
http://news.cnet.com/8301-1023_3-20016795-93.html
 comScore Releases August 2010 U.S. Search Engine Rankings
http://www.comscore.com/Press_Events/Press_Releases/2010/9/comScore_Releases_August_2010_U.S._S
earch_Engine_Rankings
 Google breaks AdMob even by 2014- makes a $6B killing by 2020: Mobile Advertising
http://www.telenow.net/Google-Admob-acquisition-FCC-mobile-advertising
 Google Acquires AdMob For $750 Million
http://techcrunch.com/2009/11/09/google-acquires-admob/
 Google unveils Chrome OS laptop
http://www.thinq.co.uk/2010/12/8/google-unveils-chrome-os-laptop/
 Google details the Samsung Alex Chrome OS netbook
http://www.thinq.co.uk/2011/5/2/google-details-samsung-alex-chrome-os-netbook/
 Google TV: Upgraded version in the works?
http://news.consumerreports.org/electronics/2011/05/google-tv-upgraded-version-in-the-works.html
 Google Voice officially integrates with Sprint phones
http://www.cnet.com/8301-17918_1-20059374-85.html
Online Video:
 Introducing Google TV
http://www.youtube.com/watch?v=diTpeYoqAhc
Webcast:
 Google Inc. First Quarter 2011 Earnings Conference Call, Thursday April 14, 2011 at 1:30 PM PT
http://google.client.shareholder.com/eventdetail.cfm?eventid=95184
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