Way back in 1996, Stanford University graduate students Larry Page and Sergey Brin built a search engine called “BackRub” that used links to determine the importance of individual web pages which led to www.google.com in 1998 (Woodford, 2005). Since then, it is the world's most widely used search engine. In the days of globalization and with technology advancing every day, it cannot just rely on its brand to stay a market leader. It needs to come up with new strategies and innovations on a frequent basis. This research paper discusses the business model of Google and provides a strategic plan that analyzes few of the factors that Google must consider in order to be successful in the upcoming years. It discusses how Google can strengthen its position as a technologically innovative company and recommend ways for it to secure a solid foundation for an even more diverse revenue stream in the future.
Table of Contents
Introduction1
Objectives1
Market analysis1
Milestones:2
Implementation plan2
Risk management plan3
Financial Analysis4
Recommendations4
Appendix7
EXHIBIT 1: Projected Income Statement7
EXHIBIT 2: Estimated Budget9
Strategic Plan for Google
Introduction
Google Inc. provides advertising and global internet search services and hosted applications. It provides users with products and services that help people in finding, creating, and organizing information. In addition, the company also provides the advertisers with ways to deliver online ads, as well as offline ads on television, to customers across Google sites. It engages in acquisitions of other technology related companies on a frequent basis. One of the recent strategies is the plan to acquire Motorola mobility, the transaction which is expected to close by the end of 2011 or early 2012.
Objectives
The acquisition will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing industry. It will also allow Google to gain mobile patents and strengthen its hardware business and to do even more to innovate and deliver outstanding mobility solutions across its mobile devices and home businesses. The transaction offers significant value for Motorola Mobility's stockholders and provides compelling new opportunities for its employees, customers, and partners around the world
Market analysis
In today's vocabulary, the words "Google" and "search" are practically interchangeable. Every day, the average user searches on the Internet at least twice. In 2010, these searches generated about 20 billion clicks per month (Summer, 2011). On the face it, it seems to be a very minor activity, but it has generated billions of dollars of revenues for the company. As the market leader, Google maintains more than 60% of the market share worldwide; no any other search engine has even 10%. The reason can be attributed to the fact that Google was the very first search engine that was being publicized at such large scale and users have got so familiar with it that they have gotten habitual of using it.
Milestones:
Google's shrewdest move as of late has been its heavy investment into the mobile arena. In 2005, the company purchased a small mobile software company called Android. Android was open-sourced ...