Business Economics: Google's Rise as a Tech Giant

Business Economics: Mrs. Celia Bense
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Economie d’entreprise : Corporate economy
Groupe 2 : jeudi 13-15h, avec Mme Celia Bense
GOOGLE
Par :
 ASHTEWY Mohamed
 Rami Safia
 Louchiche Celia

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Context :
1) Introduction.
2) New innovative technological products and services Market.
3) Google, the entry of an ambitious competitive player in the market.
4) Google, a big public organization (Building; its type, and its corporate
governance).
5) Google’s corporate structure and organization (Organizing).
6) Google’s management, plans and goals (Managing).
7) Google’s conduct of internal / external ethics and social responsibility.
8) Conclusion.
9) Human resources
10) Understanding marketing principles and consumer behavior.
11) Producing
12) Branding and Promoting
13) Distributing

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1) Introduction:
Since the beginning of the humanity there have been technological revolutions. We can find
those in every era of the humanity history. It has taken place in all countries; there must be a
new invention or a more efficient & creative way for fulfilling people’s need in a particular
place and time, such as: the knife invention or the discovering of fire. These solutions which
facilitated human being life are supposed to be called new technology.
In the 1980s, a new technological revolution has begun to change our daily life by
introducing the PC to the public. This technological digital revolution in telecommunications
and in information has been accelerated at the end of the 20th
century to produce us the
information age. Nowadays, there is no profession can be done without using any digital
inputs. Every work chain is computerized in order to increase the organization’s efficiency.
Recently, new trends have been emerged in the market as a consequence of the broad
regular use of computerized and digital devices, such as: the data management and the big
data. The information sector has been developed rapidly due to the huge amount of existing
data on the servers and the increasing need of the market to collect and analyze them to be
able achieve the organization’s goals. The information age of 2000s has happened due to a
major technological change agent which is Google. Google has its proper factors of
production, like: idea, knowledge, and resources, to succeed creating a need in the market
and in broadening it by developing its new services and products that are connected to each
other by collecting and organizing the data to facilitate users usage in this new information
age.
2) New innovative technological products and services Market:
The first World Wide Web was web 1.0 which was consisting of static pages and the users
were only content-consumers, the only one web browser was Mosaic that was adaptable on
all operating systems. At the end of the 20th
century, a lot of digital companies were created
and gained a lot of profits and strong reputation due to their value added services and their
unique competitive advantage. The market was still thirsty for those kinds of businesses that
probably encouraged the people investing on the dotcom companies and speculating on
their shares. The dot-com bubble consequently happened owing to speculations and over
investing on those fresh companies. So a lot of start-ups couldn’t resist this crisis, either they
were acquired or declared their bankruptcy such as Mosaic. Google was preparing itself for
the next data technology age. On the other side, there were earlier search-based
companies: Archie, Veronica, Gopher, Wanderer and WebCrawler and other companies,
such as: eBay, Amazon, Yahoo, hotmail, etc., survived from the dot-com bubble and they
were gaining more turnovers and having more clients while Google was still being in Menlo
Park garage as a start-up company searching for investment.
3) The entry of an ambitious competitive player in the market:
First brick to build a powerful innovative business organization in the information technology
market was in 1998. In 1995, Larry Page and Serge Brin met in the Stanford University. They
were working on a PHD research project involving the mathematical properties of the link
structure on the internet. The research project, “BackRub”, used an algorithm to follow the

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links in a webpage and analyze all the connections. The PageRank algorithm generated a
popularity index for each web page based on the quantity and quality of incoming links. In
1997, Google is registered as a domain. By 1998 Google’s web had indexed 60 million URLs,
Sergey and Page decided then to found Google Inc. for a main purpose which is to make it
easier to find high-quality information on the web. So, Google based on 3-years university
research project in web search and data mining.
“Google”, they have chosen this name because its origin from the word ‘googol’, a
mathematical term for the number represented by the numeral 1 followed by 100 zeros.
The first tactic they used to imply their Google’s start up strategy is the creation of
Google Friends Newsletter and doodle; which was their first interface between the
users and a service.
In 1998-1999, , they received the first investment of 100,000 dollars from sun co-founder to
an entity that doesn’t yet exist, which helped them to incorporate their company. They setup
their workspace on a rented garage in Menlo Park, California. Google files for incorporation
in California. Then they hired Google first employees and directors.
In the end of 1999, they moved to their new official head quarter location in Mountain View
in the north of Silicon Valley.
Google’s business model depends on determining what the searcher is looking for and
delivering an easy way for people to be separated from their money and in
determining which Web sites were most relevant to a search query. Google has a way
of linking the results of queries to relevant advertisements. And with a paid search ad
industry that brings in more than $23 billion in revenue. Google now provides free net-
search services in more than 120 languages, with a large number of web-based products in its
portfolio and generates about 97 percent of its revenue through online advertisements (Google
Ad words and Ad sense). Google provides now more services and products in order to have
competitive advantage, such as: Google search, Google Earth, Google Chrome, Android,
YouTube, Gmail, and Google plus, Google Nexus (the manufacturing is associated with other
phones companies; LG, Motorola), Google Play, Google Drive, Google glass.
The Google brand is valued at USD 100 billion, making it the world’s first ‘one-hundred
billion brand.’ In 2009, Fortune magazine ranked it as the best place to work in the U.S.,
which is indeed a tribute to the company’s leadership and people-management practices.
4) Google, a big public organization (Building; its type, and its corporate
governance):
Before its IPO in 2004, what did Google look like?
In 2004, AdSense placements are almost certainly the reason why Google has seen network-
derived ad revenue rise so sharply. It also shows Google becoming increasingly tied to what
happens beyond the borders of its own web sites to earn money. Many in senior
management and key employees are fully vested. In short, they could cash out and depart
Google at any time. Google notes system failures can be a concern and reveals in November
2003, it failed to provide web results for 20 percent of its traffic for 30 minutes. Most of
these employees are involved in sales and marketing, but a healthy chunk focus on research
and development. Employee classification, as of March 31, 2004:

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It is astonishing that Google CEO Eric Schmidt earned a salary of $250,000 and earned a
bonus of $301,556 while Google's two cofounders each earned a salary of $150,000 and
earned bonuses of $206,556.
- Google went to be a public company under the name: Google Inc. on 2004, when its initial
public offering took place to finance its futuristic projects and plans. Google’s IPO of
19,605,052 shares of Class A common stock takes place on Wall Street. Opening price: $85
per share. Now its share price is approximately 571 dollars. The cofounders serge and page
hold 56.7% of voting shares. As long as they remain friends, they can do whatever they want
with the company, and they cannot be fired. The cofounders hold the majority of voting
stocks because they want to be free to make very long term investments in projects that they
expect to yield results way into the future and they have put rules for protecting themselves
from any expulsion from their company. Like any corporation, Google has guidelines and
regulations inside the organization to be able to control employees’ professional behavior
and decisions that may affect the corporation’s performance.
The Corporate Governance Guidelines are established by the Board of Directors of Google Inc.:
(according to Google’s official website)
1- To provide a structure within which their directors and management can effectively pursue
Google’s objectives for the benefit of its stockholders.
2- To serve as a flexible framework.
These guidelines should comply with all applicable laws, Google’s charter documents and
other governing legal documents and company policies.
A- The board of directors:
- The board size composed of at least 5 members. It is determined usually by resolution of the
board.
- Board membership criteria The Nominating and Corporate Governance Committee evaluates
candidates for membership on the Board, including candidates nominated or recommended by
stockholders, in the context of criteria established by the Board, and recommends to the Board
the select of nominees for election at the Annual Meeting of Stockholders or nominees for
election to fill interim vacancies on the Board.

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- There are also members of the board serve as directors in the company.
- The director tenure is determined by the nominating and corporate governance committee
(according to the director contribution into wellbeing of Google and its stockholders and it
monitors the directors’ performance). The directors’ elections take place every year.
- Board committees consist of; an Audit Committee, a Leadership Development and
Compensation Committee, a Nominating and Corporate Governance Committee, an
Acquisition Committee and an Executive Committee. From time to time the Board may form
a new committee or disband a current committee depending on the circumstances. Each
committee complies with the independence and other requirements established by applicable
law and regulations, including SEC and NASDAQ rules. Members of all standing
committees are appointed by the Board.
- B- The board duties: 1) to oversee management and evaluate strategy ( the directors have the
responsibility to exercise wisely their business acts, reactions to the eventual risks and the
business environment, put the most suitable strategy and plans to Google and to make the
most effective decisions). It oversees management and evaluate strategy to identify any risk to
Google’s financial performance, operations, infrastructure, plans, prospects, acquisitions and
divestitures.
- 2) to select the chairman of the board and chief executive officer in compliance with Google’s
certificate of incorporation and bylaws.
- 3) the leadership development and compensation committee at least annually evaluate the
performance of the CEO and the other officers and also review & approve the compensation
plans, policies and arrangements for executive officers and other officers (CEO compensation
determined by all the members).
- 4) The leadership development and compensation committee review and recommend
management succession planning to the board for the development, retention and replacement
of executive officers.
- 5) All members of the Board must inform the Audit Committee of the Board of all types of
transactions between them (directly or indirectly) and Google as soon as reasonably
practicable even if these transactions are in the ordinary course of business (potential conflicts
of interest). The Audit Committee of the Board will review and approve all related party
transactions for which audit committee approval is required by applicable law or the rules of
the NASDAQ Stock Market. The Board will also ensure that there is no abuse of corporate
assets or unlawful related party transactions.
- 6) The Audit Committee of the Board evaluates the integrity of Google’s accounting and
financial reporting systems, including the audit of Google’s annual financial statements by the
independent auditors, and that appropriate disclosure controls and procedures and systems of
internal control are in place. The Audit Committee reports to the Board on a regular basis and
the Board, upon the recommendation of the Audit Committee, takes the actions that are
necessary to ensure the integrity of Google’s accounting and financial reporting systems and
that such controls are in place.
- 7) The Nominating and Corporate Governance Committee of the Board will annually review
and evaluate the effectiveness of the governance practices under which the Board operates and
make changes to these practices as needed.

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- The frequency of board meetings are at least 4 regularly scheduled board meetings.
- The attendance at these meetings can be done in person, via telephone conference, or via video
conference.
- The board members could not have more than 5 public company board memberships. For the
CEO cannot have membership in more than 3 public company board memberships.
- Members of the Board will have access to Google’s management and employees as needed to
fulfill their duties.
- The Board and each committee of the Board will have the authority to obtain advice, reports or
opinions from internal and external counsel and expert advisers and will have the power to
hire, at the expense of Google, legal, financial and other advisers as they may deem necessary
or appropriate, without consulting with, or obtaining approval from, management of Google in
advance.
- Each director and senior corporate officer will be required to meet the following minimum
stock ownership requirements: (i) each director shall own shares of Google stock equal in
value to at least $750,000 (Seven Hundred and Fifty Thousand Dollars); (ii) our Founders,
Chief Executive Officer, and our Executive Chairman shall own shares of Google stock equal
in value to at least $14,000,000 (Fourteen Million Dollars); and (iii) our Senior Vice
Presidents shall own shares of Google stock equal in value to at least $4,000,000 (Four
Million Dollars).
Google provides an orientation program for new directors that include written materials, oral
presentations, and meetings with senior members of management. The orientation program is
designed to familiarize new directors with Google’s business and strategy. The Board
encourages directors to participate in accredited director education programs. The Board will
reimburse directors for expenses incurred in connection with these education programs.

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5) Google’s corporate structure and organization (Organizing):
Google’s organizational structure: it has cross-functional organizational structure, and it
maintains it through perfect leadership and innovative management techniques. It has a
non-traditional cross- sectional structure. Google’s executives encourage always coordination
between all the managerial levels in communicating directly between the managers and the
employees, instead of communicating through more formal channels. The executives work
closely with employees and with other departments, which is the cross-functional
management; the open communication policy. It gives to everyone the impression that he is
the company’s manager and contributes directly to its objectives.
Google corporation’s consultants observed that after the IPO of Google, its management style
and unique work environment that depends on team operations as in a start-up was going to
diminishing and it would be like the other normal bureaucratic and linear controls
corporations. So, the triple of Google (Page, Schmidt, and Brin) decided to retain its work
environment which induce the guidance and the creativity rather than the severe linear control,
and a bureaucratic traditional corporation. They hired a chief cultural officer to maintain their
characteristic start up atmosphere among all the organization levels, and chief internet
Evangelist and a distinguished entrepreneur on stuff to help identify and enable new
technologies. These managers ensure Google’s stays innovative.
The corporation is overseen by a board of directors which gives the instructions down through
an executive management group. This group oversees several departments; finance, products,
engineering, legal, and sales. Each of these departments is divided into smaller units. For
instance, the sales department is divided into smaller units dedicated to the Americas, Asia
Pacific, and Europe, Middle East, & Africa.
Its cross- functional organizational structure is established according to Google’s functions
and activities. If one of those functions are located in several geographical areas, It will be
subdivided into geographical functions. There is always inter-functional communication
channel to facilitate information acquisition and its open democratic communication policy
to eliminate the noise that could happen during the message transfer via several managerial

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levels and the time wasting. Google depends more on open cross functional teams for all
organizational levels but it is more concentrated in the low level of the organization. Indeed,
the manager is the responsible and is the one who assigns and receives reports from his
subordinates. Managers don’t put goals for their employees, but they delegate/give them the
authorization t to put for themselves their goals that they should reach in a particular time.
Their supervisors and managers work as inspirational leaders and empower their employees /
subordinates. Sometimes the employees themselves set the benchmarks. The management
team prompts the creativity, the innovation and the responsibility among its employees.
Google leaders want their employees to “think out loud”. This communication policy is
something that most big corporations tend to lack. With quicker communication, productivity
within the company is drastically improved. In addition to that, this structure promotes
corporate transparency. Google has created other organizational type facilitating and
improving intra-organization communication and creativity, which is the 70-20-10 rule. The
rule affirms that the employees have the freedom to spend 70 percent of their time on current
assignments, 20 percent on related projects of their choice (related to their core projects), & 10
percent on new projects that they desire.
Some of these ideas translated into projects would become new products. Both Gmail and Ad
Sense, the company’s ad software for publishers, started out as 20% time projects. This rule
authorizes Google’s employees to take risks.
6) Google’s management, plans and goals (Managing):
Larry and Serge hired a professional and experienced manager/CEO Eric Schmidt in order to
gain experience and knowledge from him in terms of corporation management. Either
corporation or even a small company could succeed and achieve its goals without making its
strategy and its periodical plans; that are supposed to improve the company’s performance,
without precising its vision and its goal, without imposing work culture that should be
suitable to its environment, without having efficient performance control schema/system
and without preparing itself to any potential threat or crisis. Google’s main managerial
principles are equality, empowerment, involvement, informality, and democracy not
bureaucracy.
Google’s values are: focus on the user and all else will follow, it’s best to do one thing really
well, fast is better than slow, democracy on the web works, you don’t need to be at your
desk to need an answer, you can make money without doing evil, there’s always more
information out there, the need for information crosses all borders, you can be serious
without a suit, and great just isn’t good enough.
Google’s mission statement: Organize world’s information and make it universally accessible
and useful by helping the users to be better and by less complicating the life.” It organizes
the world’s information through cloud computing, makes the information accessible via its
services either online or offline, a wide range of Google services are now accessible offline,
such as: Google drives.
According to “Google’s about page” on the company's website, the mission has different
branches. The company focuses on do-it-yourself ads with Google AdSense. Google focuses
on speedy search and message threading in its email service called Gmail. Google's line of
Android phones offer its users free access to Google Maps and provide navigation and
communication. Google is also branching into other fields as well, such as the famous Google
cars that operate on their own. This is part of Google’s vision for a future where cars drive
themselves and people can participate in more productive activities during their commutes.

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The site Google+ is part of Google’s vision for social media that is integrated into phones and
every other part of life. The Google Chrome web browser is part of the company's vision of a
more open market for web browser add-ons. The innovative company has even begun a new
venture called Calico that is focused on creating a healthier future for all of humanity.
Google’s tradition is to focus on long-term projects, thus its co-founders are not waiting the
immediate yielding from their investment, they inversely want to put money on a project
and yields further its profits.
Google’s long term goal (according to its CEO Eric Schmidt): is 1) to give the user one exactly
right answer to a query. Its strategy to achieve this long term goal is by guiding the user to a
well definitive site that responds/corresponds to his/her search which is summarized and
answered the user’s question by Google team. Along with the citation, of course. (Direct
article-type answer with citations). 2) Is to have the world’s top artificial intelligence
research laboratory (according to internal company document). 3) Google wants to have an
improved infrastructure to make their engineers more productive. 4) Google wants to be the
best in search. 5) Google wants to improve their ad system. 6) It wants to enhance its
communities and content.6) increase the scale of innovation. 7) the accessibility of its tools
everywhere. 8) to hire the best at every level and keep them. Google's short-term objectives
are to expand the workforce for anticipated growth, expand further into international
markets, Expanding the workforce will help achieve the long-term objective.
Google has its style of setting goals for cross functional teams, a witness from MR Wael
Ghonim on Google way to setting objectives: OKRs are Objectives and Key Results. I
submitted my Q1 OKRs with what I thought were aggressive yet achievable goals. Not good
enough. My manager explained that we needed to set stretch goals that seemed impossible
to fully achieve. …I said “This is just a 90 day window and we can predict with reasonable
accuracy what is achievable. Why set unrealistic goals?” Because you can’t achieve amazing
results by setting modest targets. We want amazing results. We want to tackle the
impossible. According to him, failure in Google is not an option; they promote the trials, they
use Thomas Edison approach “I haven’t failed, I’ve just found lots of approaches that don’t
work, and I am closer to the solution”. The scoring target is between 60-70%. Adsense is a
result of a failed more ambitious project to understand the web. Most companies have a
long, detailed planning cycle in pursuit of quarterly goals. That often makes them very
predictable. Google does just the opposite. It has a short, unpredictable planning cycle in
pursuit of very long-term objectives.
The SWOT analysis of Google’s environment is: Google’s Strengths: market Leader in Search
Engines, ability to Generate User Traffic, revenue from Advertising and Display, and the
introduction of Android and Mobile Technologies. Its Weakness: excessive reliance on
secrecy (such as: its detailed strategies or plans, its algorithm formula), falling Ad rates,
Overdependence on Advertising (Google’s business model relies heavily on advertising and
the numbers reveal that it gets more than 85% of its revenues from ads alone.), less
experienced new CEO who is its founder Larry Page, its excessive spending on employees
welfare. In the external environment analysis we can find that, the opportunities are:
Android Operating System, Creation of new products/services to a new market: Google
Glasses and Google Play, cloud computing, Android TV (Free & Bouygues box), and the
threats are: the strong rivalry from Amazon, Yahoo, Microsoft and social networks
(Facebook), the Hard competition in mobile computing, imposition of new taxes on its
revenues separately in every country, governmental censor on its data may lead to trust lose
on its services/products.

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7- Google’s social responsibility:
Google’s motto is “Don’t be evil”, this moral code helps to guide employees because it holds
them accountable to the management, to themselves and to the users.
Google pay so much attention on social causes, either inside the corporation or outside. We
can observe how it treats and manage its employees. It offers to them benefits without any
governmental laws, because the founders want a distinct culture for their company to create
a unique brand. ‘’The goal is to strip away everything that gets in our employees’ way. We
provide a standard package of fringe benefits, but on top of that are first-class dining
facilities, gyms, laundry rooms, massage rooms, haircuts, carwashes, dry cleaning,
commuting buses – just about anything a hardworking employee might want. Let’s face it:
programmers want to program, they don’t want to do their laundry. So we make it easy for
them to do both.” -Eric Schmidt, CEO
Google confirms on its bylaws and code of conduct and prohibits any kind of retaliation
against anyone of its workers who report for any violation of this code.
1- Serve our users (integrity, privacy,….)
2- Respect each other (equal opportunity employment, safe workplace,….)
3- Avoid conflicts of interest (personal investments, inventions, accepting gifts,..)
4- Preserve confidentiality (Google partners, confidential information,…)
5- Protect Google’s assets (intellectual property, Employee Data,….)
6- Ensure financial integrity and responsibility (spending Google’s money, …)
7- Obey the law (competition laws, anti-bribery laws,….)
Google also has its causes, like the environment and how it makes efforts to promote the
clean energy. It has established a separate department to do researches on clean energy
establishes several clean energy plants.
In any natural crisis, we can find how Google does raise funds through its Google doodle.
8- Conclusion:
Possibility of conflict in Google’s management: Page bought Motorola Mobility for over
$12bn. We should take into account the management change at Google. It was Page's first
major business deal as CEO, a chance to finally spread his wings and put his distinctive stamp
on the company. Motorola deal failed because of Page shows off.
Google faces difficulty to retain its fun image after other companies’ scandals and its issues
with the European Union concerning the user privacy and the monopoly action (Microsoft
monopolistic actions, Apple tight control over its music distribution system). It allies or
makes partnerships with companies that are popular with its labor abuse; Foxconn
(controversies relating to how it manages employees in China and to the several suicides
took place at its factories).
Many may say that we must impose laws and restrictions on Google because of its way of
doing business for not protecting users’ information privacy, but there is something they
should know that Google’s business model based on being able to capture data from users
that are used to attract the advertisers, 90% of Google’s revenues come from the advertising.

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09- HUMAIN RESSOURCES:
We are looking for our next noogler (new Googler) a person who is for the role, made for Google and
many other things
1. INTERVIEW PROCESS : We are looking for bright and effective people who have team spirit.
When you place an interview at Google, you are usually in front of four or five Googlers. They
look for four things:
 Job applications : An external recruitment strategy is one which a human resources
department will systematically search the employee pool outside its own employees
to fill positions , google will use advertisements in newspapers, job search websites,
external recruitment also has some substantial advantages. Unlike internal recruits,
you are getting an inflow of often completely new ideas with an employee who has
not been exposed or overexposed to your corporate culture. An outside prospect
often yields new ideas . External recruiting may lead to team stability, as teams may
remain intact when hiring externally.
 Role-related knowledge : google looking for people who have a variety of strengths
and passions, not just sets of isolated skills. ensures that you have the experience
and training necessary to be successful in your role. If you are a candidate for an
engineer, for example, seeks to check your skills in coding and your areas of technical
expertise.
 screening interviews : Over the past two years, Google has spent a lot of time to
make the hiring process as efficient as possible, reducing the hiring period and
multiplying communications to the attention of the candidates. Involve Googlers its
process certainly takes more time, but it is certain that it is worth it. early Googlers
have identified these principles there are more than ten years, and it is they that
allow us to remain faithful to that as it develops.
 Physical exams and tests : The worst part of working at Google, for many people, is
that they’are overqualified for their job. Google has a very high hiring bar due to the
strength of the brand name, the pay & perks, and the very positive work culture. As a
result, they have their pick of bright candidates, even for the most low-level roles.
2. INTERNAL STAFFING OR PROMOTION : When Google was less than a year, John Doerr, one of
its shareholders, made a presentation on the use of an organizational system called

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Objectives and key results or ORC (OKR English), First, you set a goal. Then you set up a
number of "key results" quantifiable that will help you achieve this goal.As early as Monday,
Google's 25,000 employees will receive an email informing them of the procedure in which
Google Ventures is committed to providing $ 10,000 to each employee cache to facilitate the
acquisition of a new business .
3. DEVELOPING WORKFORCE : Working with the Internet giant is an experience extremely
coveted by students around the world, Google only accepts trainees in 1500 a total of 40,000
applications per year , A series of interviews "highly technical" than 45 minutes , it is mainly
to apply my skills to a practical situation , Housing, roommates, Transportation: expenses
paid , An integration seminar more than a week.
4. MANAGEMENT DEVELOPEMENT PROGRAMS : Mentoring in the workplace, increase the
skills of being in business, entrepreneurs to increase the survival and growth of businesses
Other objectives being to: Promote the profession, Develop a sense of belonging to the
community, Improve communications, Educate the pleasure of the profession, Participate in
the development of the profession, Succession Planning.
5. COMPENSATION AND BENEFITS : Googlers have the highest mid-career median salary at
$141,000. Second place goes to Microsoft at $127,000.Googlers are extremely satisfied, as
are Amazon, Apple and Facebook employees. But Google and Apple employees are also
relatively stress-free.
6. LEGAL AND ETHICAL ISSUES : We must distinguish three things: ethics and morality, the law
of Google, and finally the law broadly and that applies to us all , Google admits employ
mostly white men.
10 -Understanding Marketing Principles and Consumer Behavior
1. What’s Google Marketing :
The management process through which goods and servicesmove from concept to the customer. It
includes thecoordination of four elements called the 4 P's of marketing:
(1) identification, selection and development of a product,
(2) determination of its price,
(3) selection of a distribution channel to reach thecustomer's place, and
(4) development and implementation of a promotional strategy.
What is the Google marketing strategy? Ever wonder that with so many search engines out there,
why is Google the first? Well it is not all because of the marketing strategy of Google; there is one
aspect in the marketing strategy that makes it so great. It’s the little things combined, as you should

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know what will boost your sale and what will not. Not every human is the same, thus you need to
mix up the likings of all the different choices, and make it into something likeable by all. This might
sound difficult, but it is simple really, all you need to do is keep a few tips and tricks in mind.
The only way to understand, how and why Google is winning over all the other search engines, is to
go over the marketing strategy of Google. Their strategy might be hard to understand at first, but you
will see how they follow the pattern of smart decision-making. Google is a mix of excellent marketing
ideas, smart choices, and the live on the edge and take risks, great advisors, and they provide us with
great products. Read below to understand in detail the marketing strategy of Google.
They use the power of less, the power of less means they give you a clean, simple, and interference
free search page. When you open the Google page, you will see a Google logo and right in the middle
is the search bar, which is fast in loading, and easily visible. During the early years, this was the only
feature, because of slow internet connections. Google was also preferred because the other search
engines were just full of confusing stuff, filled with ads and useless features.
The second marketing strategy of Google is, they have posted no ads on the website, just
preferences. The makers of Google understand what the people want, and give them exactly that,
without any confusions. They understand that when people want to find some information, they do
not want it crowded it with other things that might distract their work. The best way to make users
happy, and make sure they are coming back is to give them exactly what they want.
As you know that Google offers you reliable sources, not completely, but most of the time, so it gets
things done. As a search engine, it is the best it can do. There is this marketing strategy of Google,
they do direct marketing, not brand marketing. There are hundreds and thousands of business that
market themselves using Google. That is how it grows, no matter if you have a small or a large frame
business, you will use Google to platform it.
Another advantage that is a marketing strategy of Google is that it has a long-standing reputation.
According to the psychology of people, they want things that are better, no matter how slightly
better they are. Currently, 60% of all the searches around the world are done by Google, which
means the strategy works in a way.
In the same marketing strategy of Google, they offer free services, which is a compelling technique.
This way people become loyal to their services. In addition, to use many features of Google you must
have a Gmail account, this is how they sell.
The power of the vision is the next marketing strategy of Google, which means to be able to sell
something that people do not want. To see the bigger picture, thinking about the future, as what
people will need. You probably do not know when Google started there was not much use of it, as
people did not know that to do with it. Then as the time went by, slowly people figured out that they
needed Google, for more than one thing. Marketing strategy of Google is strong as it collected all the
data of the world in one place and presents it to you when you want it.
Identifying market segments
In-market audiences is a way to connect with consumers who are actively researching or comparing
products and services across Google Display Network publisher and partner sites and YouTube. To

15
qualify someone as being in-market for a specific product or service, Google takes into account clicks
on related ads and subsequent conversions, along with the content of the sites and pages they visit
and the recency and frequency of the visits. In this way, Google accurately categorizes users so you
can target those most interested in your offerings.
Reach potential customers while they’re actively researching and comparing products, regardless of
what site they’re currently visiting.
Available in-market audiences include:
 Apparel and Accessories
 Autos & Vehicles
 Baby & Children's Products
 Beauty Products & Services*
 Business Services*
 Computers & Peripherals
 Consumer Electronics
 Consumer Software
 Dating Services*
 Education
 Employment
 Financial Services
 Gifts & Occasions
 Home & Garden
 Real Estate
 Sports & Fitness…
2. The consumer Buying Process
Jim Lecinski knows there’s only one Zero Moment of Truth. As the managing director of U.S. sales
and service for Google Inc., Mr. Lecinski knows a thing or two about how consumers make the jump
from being interested in a product to buying it.
What exactly is the Zero Moment of Truth? 
It’s that moment after you have been made aware of a product or service, but before you pick it up
off the shelf and drop it in your cart. It’s when you use all the technology that you have at your
disposal to research, look for a better deal, look at ratings or reviews, learn more about it to become
an instant expert. It’s those series of behaviours after seeing the ad stimulus — tv, web, radio, etc. —
but before you’re standing at the shelf, picking a product.
10- Producing
1. What Google offers companies ?
Google offer a wide range of tools available to businesses to help them develop their active, whether
or not through the Web. These programs are the backbone of the society, and enable entrepreneurs
and publishers around the world to grow their business. The advertising programs, which range from
simple text ads to rich media ads, help businesses find customers, and publishers to earn money

16
through their contents. Google also offer cloud computing tools for businesses that allow the latter
to save money and increase productivity.
2. What Google offers for the Web ?
Google create products that we hope will help to improve the Web, and thus, your user experience.
Including products such as Google Chrome and Android, our goal is to simplify and speed user tasks
on the web. Google also pledge in favor of an open web for everyone. google is indeed involved in
various projects aimed at facilitating the contribution of developers to the Web ecosystem for the
benefit of all. We strive to make the Web more environmentally friendly, using our resources more
efficiently and supporting initiatives for renewable energy sources. The Web has undergone
significant changes since the creation of Google. What has not changed, however, is faith in the
infinite possibilities of the Internet.
3. Developing new products
Google ís Mission Statement: ìOrganize the worldís information to make it universally accessible and
useful .
Google has been at the core of innovation and their product development strategy has been an idol
for many companies. Though a bit dated, there are multiple links on the internet which discuss the
approach followed by Google for New Product Development.
The following link is from a presentation by Marissa Mayer, then Google's Product Manager, to the
Silicon Valley Product Management Association.
The process followed by Google for new Product Development is to nurture the smart people in the
creative environment and outlined as follows:
1) Accept ideas from everywhere
2) Prioritization of top 100 ideas
3) Having Small, Agile, Engineering Teams
4) Promoting Self-organization and visibility
5) Thinking user-centric design
4. The product life cycle
One of the many reasons Google consistently brings innovative, world-changing products to market
is because of the collaborative work we do in Product Management. With eyes focused squarely on
the future, our team works closely with creative and prolific engineers to help design and develop
technologies that improve access to the world's information. We're responsible for guiding products
throughout the execution cycle, focusing specifically on analyzing, positioning, packaging, promoting
and tailoring our solutions to all the markets where Google does business.
At Google, we put our users first. From innovative software products like Gmail, YouTube, Chrome,
StreetView to mobile devices like the Android, we build products that organize the world's
information and make it universally accessible to our users. Google products are the lifeblood of who

17
we are. The Product Management team works closely with our engineers to guide products from
conception to launch, and with our business partners to generate profitable revenue streams.
As part of the Product Management team, you bridge technical and business worlds as you design
technologies with creative and prolific engineers and then zoom out to lead matrix teams such as
Sales, Marketing and Finance, to name a few. You have a bias for action and can break down complex
problems into steps that drive product development at Google speed. As a Product Manager, you can
be part of shaping Google’s next game-changer.
11- BRANDING AND PROMOTING :
Many roducts are designed , three important tools for acomplishing this taske are brandinng ,
packaging , and labeling, once products are identified ; sellers must also think about making them
khown, thanks to promotions.
1-identifying products :
The name of google is khnown , brand in the word , many products are designed , google chrome ,
youtub , google map, google earth.
2-Promotion :
Google is a technique designed to sella product , oogle services are therefore free, and very popular.
Google has built a dynamic and innovative corporate reputation through the publication of useful
software and services for all, especially free and efficient .
3-advertising :
You want to attract more customers? Sign up for Google AdWords so that users find you when they
search for your products or services. Want to monetize your website? Google AdSense allows you to
display relevant ads next to your own content online. You get paid .
12- THE DISTRIBUTING :
1-THE DISTRIBUTION MIX :
Direct sales:
It allows you to sell your products or services directly to end users. You do not need to appeal to
intermediaries, Sales patterns this channel are telephone sales, at home, in the markets, in events
such as trade shows, and of course, selling your own shop or retail space, real or virtual.
2-WHOLESALING :
merchant wholesalers : so there was heavy discount on the best brands ,

18
full service merchant wholesaler : provides credit , marketing ,
limited service merchant wholesaler : provide a few services sometimes murely storage ,google
company , creating a powerful position for themselves by bringing together previously unknown
buyers and sellers , Internet Solution Providers Intermediaries providing the enabling technologies to
support these business-to-business e-commerce efforts.
3-RETAILING :
Retail marketing is changing. Today, success means connecting with your most important customer:
the omni-channel shopper. Here we detail the three ways retailers can reach this shopper by
measuring behavior, providing localized information, and creating the right organizational structure.

19
References:
- Girard, Bernard. The Google Way: How One Company is
Revolutionizing Management as we know it?, No Starch Press,
New York, USA, 2009.
- http://searchenginewatch.com/sew/news/2066479/google-ipo-to-
happen-files-for-public-offering
- http://teamly.com/459-goals-at-google
- http://blogoscoped.com/archive/2009-09-05-n83.html
- http://www.123HelpMe.com/view.asp?id=167474
- http://www.google.com/about/
- https://www.gv.com/lib/how-google-sets-goals-objectives-and-key-
results-okrs
- http://en.wikipedia.org/wiki/Google
- Goldman, Aaron. Everything I Know about Marketing I Learned
From Google. McGraw Hill Professional, Aug 26, 2010.

Business Economics: Google's Rise as a Tech Giant

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