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Google An Excellent The Business Model
Only Yesterday ..Jan 22 nd  2009 ,[object Object],[object Object]
Build it and they will come
Initial Business Model   (Algorithmic Search Technology Development) ,[object Object],[object Object],[object Object],Content  Providers Content  Providers Content  Providers Users Users Users Users Capability of Connecting Data with Users
Expanded Business Model   (Search Engine Funded by Paid Listings) ,[object Object],[object Object],[object Object],[object Object],Google’s Expanded Model Advertisers Content  Providers Advertisers Content  Providers Web portals Users Users Users Users Advertisers Advertisers Users Users Users
How Paid Listing Works Click on banner adds American Express pays Yahoo $.50
Google uses Search Results Sponsored Links $$  Free Search Results
Click Through Rate
Google’s Business Model: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Activity Core New Offerings / Deals S o u r c i n g S p a c e New Offerings / Deals New Offerings / Deals New Offerings Deal Foundation  &  Integrative  Capabilities Activity Capability Capability Enhanced  Over Time Android phone design Gadgets Design Product Marketing Server Hardware develop Search Algorithm Data Connection Map  data base Customer experience Google checkout payment Software integration Street view data base Business Strategies Build on-line infrastructure Satellite data base Open Office G-Doc Picasa Photo Chrome browser Innovation Capabilities: Core and Non-Core
Google’s Value Calculus and Value Generation Engine Package Compelling offers Access the customer Create Products and Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Value Created for the Customers: Find Anything free of charge, through one standard interface by Search
Google’s Balanced Model:  Virtuous Cycle ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Transformation Business Model ,[object Object],[object Object],[object Object],[object Object],[object Object],Value Capture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Capabilities and Capability Sourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Offers Transformation Augmentation Substitution  Business Model Components  ( for searchers)  Degree of Change  
Value Created for Internet Users   (Transformation) ,[object Object],[object Object]
Value Created for Advertisers (Transformation) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Value Created for Web Portal (substitution model) ,[object Object],[object Object],[object Object],[object Object]
Google’s Evolving Value Calculus Value Gen Engine: Creative employees Value Captured by Company: Licensing Search Engine Tech to Web Portals Value Created for the Customers: Search Engine Algorithms Value Gen Engine: Creative Employees / Innovation Value Captured by Company: Licensing &Ad Revenue Value Created for the Customers: Search Engine & Advertising Value Gen Engine: Innovation/ worlds best place to work ! Value Captured by Company: Licensing, Ad Revenue, Web Services Value Created for the Customers: Search Engine,  Advertising, Virtual Web Software/Services
Competitors ** Teoma and Wisenuts are California startups in search engine space. CourtseySearchEngineWatch.com   Energy Companies – Google has spent millions in renewable energy R&D. Phone – Google’s 3G has started gathering momentum  New Search imitators -** Teoma and Wisenut   have imitated Google in terms of service and has better search algorithm but has smaller database. Future Competitors Current Competitors ( Search, Browser, OS and other IT services )
Next Step for Google ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Factors to Google’s Success ,[object Object],[object Object],[object Object],[object Object]

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Google Business Model

  • 1. Google An Excellent The Business Model
  • 2.
  • 3. Build it and they will come
  • 4.
  • 5.
  • 6. How Paid Listing Works Click on banner adds American Express pays Yahoo $.50
  • 7. Google uses Search Results Sponsored Links $$ Free Search Results
  • 9.
  • 10. Activity Core New Offerings / Deals S o u r c i n g S p a c e New Offerings / Deals New Offerings / Deals New Offerings Deal Foundation & Integrative Capabilities Activity Capability Capability Enhanced Over Time Android phone design Gadgets Design Product Marketing Server Hardware develop Search Algorithm Data Connection Map data base Customer experience Google checkout payment Software integration Street view data base Business Strategies Build on-line infrastructure Satellite data base Open Office G-Doc Picasa Photo Chrome browser Innovation Capabilities: Core and Non-Core
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17. Google’s Evolving Value Calculus Value Gen Engine: Creative employees Value Captured by Company: Licensing Search Engine Tech to Web Portals Value Created for the Customers: Search Engine Algorithms Value Gen Engine: Creative Employees / Innovation Value Captured by Company: Licensing &Ad Revenue Value Created for the Customers: Search Engine & Advertising Value Gen Engine: Innovation/ worlds best place to work ! Value Captured by Company: Licensing, Ad Revenue, Web Services Value Created for the Customers: Search Engine, Advertising, Virtual Web Software/Services
  • 18. Competitors ** Teoma and Wisenuts are California startups in search engine space. CourtseySearchEngineWatch.com Energy Companies – Google has spent millions in renewable energy R&D. Phone – Google’s 3G has started gathering momentum New Search imitators -** Teoma and Wisenut have imitated Google in terms of service and has better search algorithm but has smaller database. Future Competitors Current Competitors ( Search, Browser, OS and other IT services )
  • 19.
  • 20.