Google is one of the most successful companies on the planet. Before Google, there was a Red Ocean of Search Engines. Yet Google managed to create a Blue Ocean which made competitors such as Yahoo irrelevant.
How did Google create and achieve Blue Ocean Success? The answer lies in their innovative business model which is illustrated in this presentation.
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Google's Business Model
1. Google’s Business Model
Business DNA Question: What are game-changing designs, needs, and aspirations for
the search engine industry?
BUSINESS DNA DESIGN BLOCK NEEDS BLOCK
D (Inside the Enterprise) (Outside the Enterprise) N
BUSINESS MODEL Key Key Key Customer Channels Customer GLOBAL
CANVAS Partners Resources Activities Relation- Segments ENVIRON-
(KP) (KR) (KA) ships (CR) (CH) (CS) MENT :
“SEMPORCES” Suppliers/ Employee/ Machinery/ Process/ Output: Retailers/ Customers/ Environment
Genes (Universal Inputs Actors/ Props/ Strategy/ Product/ Channels/ Audience
System Logic) Culture/IP Infrastructure Tactics Service Distributors
Google, Inc. Suppliers Web Competi-
(Search Engine) google.com Searchers tors
Affiliated Adwords Adverti-
Adsense Influencer
Multi-sided Websites (Auction) sers
Business Model
DELIGHT: Accu. results;
Revenue Targeted ad
A PAIN: Staff; IT
Cost IP Infrastructure
SHARED VALUE (PROPOSITION): “To organize the world’s information and make it universally accessible and useful”
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
2. Strategic Business DNA Dashboard for “Google Search”
Business DNA Question: What are game-changing designs, needs, and aspirations for
the search engine industry?
BUSINESS DNA DESIGN BLOCK NEEDS BLOCK
D (Inside the Enterprise) (Outside the Enterprise) N
BUSINESS MODEL Key Key Key Customer Channels Customer GLOBAL
CANVAS Partners Resources Activities Relation- Segments ENVIRON-
(KP) (KR) (KA) ships (CR) (CH) (CS) MENT:
Business
“SEMPORCES” Suppliers/ Employee/ Machinery/ Process/ Output: Retailers/ Customers/ Model
Genes (Universal Inputs Actors/ Props/ Strategy/ Product/ Channels/ Audience Environment
System Logic) Culture/IP Infrastructure Tactics Service Distributors (BME)
Proprieta- Search Manage Google Google.com Web Yahoo
Google, Inc. ry Algo- Platform/ Platform Search searchers Overture
(Search Engine) rithm Infrastructure Engine; etc. Ask
Alta Vista
Pre-qualifi- Affiliate Affiliates: Website - Market
cation Link/ Website visitors Forces
Adsense owners - Industry
Forces
Bidding Adwords for Google Sponsors/
-Macro-
Keyword Adwords for Advertisers
economic
Ads Keyword Ads
Multi-sided Forces
Business Model -Key Trends
DELIGHT: Accurate info;
Revenue (R$) Targeted ad
A PAIN: Staff IT
Cost (C$) Infrastructure
SHARED VALUE (PROPOSITION): “To organize the world’s information and make it universally accessible and useful”
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
4. Blank Template: Strategic Business DNA Dashboard – 50,000ft
Business DNA Question: ………………………………………………………………………………………………………………………………
BUSINESS DNA DESIGN BLOCK NEEDS BLOCK
D (Inside the Enterprise) (Outside the Enterprise) N
TOOL/MODEL: GLOBAL
ENVIRON-
MENT :
“SEMPORCES” Suppliers/ Employee/ Machinery/ Process/ Output: Retailers/ Customers/ Environment
Genes (Universal Inputs Actors/ Props/ Strategy/ Product/ Channels/ Audience
System Logic) Culture/IP Infrastructure Tactics Service Distributors
Description/
Story
DELIGHT:
A PAIN:
SHARED VALUE (PROPOSITION):
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
5. Value Logic of Strategic Business DNA Dashboard – Generic Layout
Business DNA Question: ………………………………………………………………………………………………………………………………
BUSINESS DNA DESIGN BLOCK NEEDS BLOCK
D (Inside the Enterprise) (Outside the Enterprise) N
TOOL/MODEL: GLOBAL
ENVIRON-
MENT :
“SEMPORCES” Suppliers/ Employee/ Machinery/ Process/ Output: Retailers/ Customers/ Environment
Genes (Universal Inputs Actors/ Props/ Strategy/ Product/ Channels/ Audience
System Logic) Culture/IP Infrastructure Tactics Service Distributors
Description/ Suppliers Competi-
Channel User
Story tors
BUSINESS
Partners/
Collabo- Customer Influencer
rators
DELIGHT:
A PAIN:
SHARED VALUE (PROPOSITION):
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
6. Strategic Business DNA Dashboard for Business Model Canvas
Business DNA Question: ………………………………………………………………………………………………………………………………
BUSINESS DNA DESIGN BLOCK NEEDS BLOCK
D (Inside the Enterprise) (Outside the Enterprise) N
BUSINESS MODEL Key Key Key Customer Channels Customer GLOBAL
CANVAS Partners Resources Activities Relation- Segments ENVIRON-
(KP) (KR) (KA) ships (CR) (CH) (CS) MENT:
Business
“SEMPORCES” Suppliers/ Employee/ Machinery/ Process/ Output: Retailers/ Customers/ Model
Genes (Universal Inputs Actors/ Props/ Strategy/ Product/ Channels/ Audience Environment
System Logic) Culture/IP Infrastructure Tactics Service Distributors (BME)
Market
Description/ Forces
Story
Industry
Forces
Macro-
economic
Forces
Key Trends
DELIGHT:
Revenue (R$)
A PAIN:
Cost (C$)
SHARED VALUE (PROPOSITION/VP):
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing