Google's Strategy

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Google's Strategy in 2010 Background of the Company The development of Google's search technology began in January 1996 when Stanford university computer science graduate students Larry page and Sergey Brin collaborated to develop a new serach engine. 1997 Larry and Sergey decide that the BackRub search engine needs a new name. After some brainstorming, they go with Google—a play on the word “googol,” a mathematical term for the number represented by the numeral 1 followed by 100 zeros. The use of the term reflects their mission to organize a seemingly infinite amount of information on the web. 1998 August Sun co-founder Andy Bechtolsheim writes a check for $100,000 to an entity that doesn‘t exist yet: a company called Google Inc. September Google sets up workspace in Susan Wojcicki‘s garage at 232 Santa Margarita, Menlo Park.Google files for incorporation in California on September 4. Shortly thereafter, Larry and Sergey open a bank account in the newly-established company‘s name and deposit Andy Bechtolsheim‘s check. Larry and Sergey hire Craig Silverstein as their first employee; he‘s a fellow computer science grad student at Stanford. Competition in the search industry. Which of the five competitive forces seem strongest? Weakest? What is your assessment of overall industry attractiveness? The search industry is based on the ability of providing higher technology to users, lower prices for advertising, and the capacity to engage suppliers to subscribe to the search engine. Some of the 5 big players, besides Google, are: • Yahoo, which has a challenger’s and loser’s position • Bing, this is new brand name for MSN Live search • Baidu, China search engine • Ask • AOL, where search engine is powered by Google * The bargaining power of buyers in 2008 was almost 97% of Google’s revenue made by advertising. * The bargaining power of suppliers consists in the trust of

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