QUOTE AND NEWS
BBC News  4 hrs ago  Comment 
A new product from Google will link the clicks on ads with offline spend to prove digital ads work.
TechCrunch  5 hrs ago  Comment 
 Pinterest is adding another ad to its array of products, now allowing advertisers to publish video advertising that will automatically play in the home feed and search, as it continues to bulk up and woo advertisers with a different pitch from...
CNNMoney.com  6 hrs ago  Comment 
Even with a win, Google still loses in China.
TechCrunch  11 hrs ago  Comment 
 Ikea’s smart light bulbs will answer to voice commands starting this summer. The company announced in a Swedish-language press release that its smart lighting product line, called Trådfri, will work with Amazon Alexa, Google Assistant, and...
CNNMoney.com  May 23  Comment 
Next time you see an ad on Google, the company might be able to tell if you went out and bought it in a brick-and-mortar store.
Cellular News  May 23  Comment 
Taoglas, a leading provider of IoT and GNSS antenna products, today announced two new GPS certification testing services for Google and its device partners. The services are required for devices to meet Google's new ...
TechCrunch  May 23  Comment 
 When Google launched its AMP project about a year and a half ago, the focus was squarely on speeding up mobile web pages, with a special emphasis on news sites. Over the last few months, both the scope of supported pages and the range of places...
Benzinga  May 23  Comment 
Should Tesla Inc (NASDAQ: TSLA)'s investors be worried about the automaker's newest competitor, Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)? According to Morgan Stanley's Adam Jonas, there is reason to be concerned. Jonas commented in a report...
NPR  May 23  Comment 
"Last year, it was still quite humanlike when it played," the world's No. 1 Go player, Ke Jie, said after losing the first in a three-match series. "But this year, it became like a god of Go."
TechCrunch  May 23  Comment 
 Google is making it easier for IT admins to deploy and manage its Chrome browser in their businesses. The new Chrome Enterprise Bundle gives admins a single installer for the Chrome browser, the Chrome Legacy Browser Support extension for...




 

Google Inc (NASDAQ: GOOG), a global information technology leader, specializes in how people access and interact with information. Google provides the leading search engine along with many online services such as Gmail, Adsense, and Chrome. In fiscal year 2010, Google reported $29.3 billion of revenues and $8.5 billion of net income. Google operates in over 50 countries with unique domain names for each country. Internet advertising is the fastest growing segment of the advertising market, but still only represents 8% of total U.S. advertising dollars -- suggesting considerable room for further growth. To tap these opportunities, Google has used the profits from its paid search business to support innovative projects such as Google Editions and the Android Market.

Business Overview

Google’s search tools allow users to efficiently search through vast amounts of web-based information, organizing and delivering results based on relevance. It also has a long and growing list of products in many other areas of computer applications. Consumer usage of its products is free, financed through advertising (96% of 2010 Revenues) and licensing (3% of 2010 Revenues) sales.

Co-founders Larry Page and Sergei Brin created Google's core PageRank technology to archive and organize Internet webpages and develop a searchable database. The basic tenet of PageRank is that when one website links to another, the first website is endorsing the second. Pages are then "ranked" according to the ecosystem of all web pages archived. While the company has since utilized numerous other ranking systems, PageRank still remains a central technology. Google also creates search products for photos, videos, and specific websites types such as blogs. Google does not charge consumers for its search capabilities, receiving most of its revenue from advertising and a small portion from licensing its search technologies to enterprise companies.

Trends and Forces

Google's Advertising-Based Business Model is Susceptible to Economic Cycles

Advertising is a major revenue driver for Google, with 96% of its revenue coming from advertising. This dependence is a concern in a down economy since advertising is generally the first source of cost-cutting for companies[1]. Google has seen an increase in the number of paid clicks generated by an increase in aggregate traffic and the continued global expansion of their products, advertiser base and user base. The decrease in the average cost-per-click paid by advertisers was primarily the result of the strengthening of the U.S. dollar relative to foreign currencies.[2]

Google's Web Presence Stands to Gain from Growing Internet Traffic

Since 2000, the number of worldwide Internet users has more than doubled. However, certain regions have grown faster than others. Google seems to be positioning itself to grow even more substantially internationally likewise JBVEF especially in the Financial Sector, earnings, and advertising Google is poised to hold its own and continue to deliver top notch results. The US market is responsible for around 48% of Google's revenue by geography while 39% comes from the rest of the world (the UK brings in around 13%).[3]

Google's Free, Advertising-Supported Offerings Prove Highly Disruptive

Google has completely transformed the world of advertising in its efforts to connect users to information. Its free offerings have been highly disruptive to well-rooted industries, provoking frequent legal conflict. Viacom is seeking damages in excess of $1 billion from the posting and distribution of copyrighted materials on YouTube. With the 2004 launch of Google Book Search, authors and publishing houses reacted to the millions of copyrighted books being downloaded for free. The Authors and the Association of American Publishers sued Google for copyright infringement in 2005. Through a settlement, Google continues to make books digitally available, to the chagrin of publishers and book retailers such as Amazon. With the launch of Google Earth, the appeal of America Online's MapQuest basically disappeared overnight. Google's Android-based smartphones, equipped with free GPS navigation services, have upended the need for TomTom, which comes at a charge to consumers. Google's Gmail, Google Apps, and Chrome also competes directly with Microsoft's Hotmail, Office Suite, and Internet Explorer respectively[4].

Competition

Although Google in its broadest perception has gained an unparalleled marketplace acceptance, in the narrower search market its competitors are Yahoo! (YHOO) and Microsoft (MSFT), which is currently expanding into the online search and advertising business within the US and Baidu.com (BIDU) in China. Yahoo, founded four years before Google, was historically the leading online search site, but in January 2009, Google made headlines by overtaking Yahoo in unique users per month. Relative to Yahoo!--and almost any company--Google's expenses are quite low. The expense breakdown suggests different priorities for the two companies: Google's highest cost sector is product development, at 9%, while Yahoo! allocated 20% of revenues for sales. And while Google spreads its costs evenly among the three principle areas, Yahoo!'s expenses are clearly concentrated in sales, with development and administration trailing far behind.

Because Microsoft has many sources of revenue beyond advertising, it is difficult to compare it in more detail to Google and Yahoo!.

With a plethora of social networking websites and platforms making their way onto the internet, Google faces stiff competition from websites such as Facebook, Twitter, Groupon and LinkedIn.

Google's Android smartphone operation system is also in direct competition with Apple (AAPL) , Microsoft (MSFT) and Research in Motion (RIMM) in the fast-moving, competitive smartphone market. These corporations also uses JAVA programming [[1]] (BlueJ) language for development and research as well.

As Google expands into e-commerce and Local services using its Google Offers, Checkout, and Wallet , it is also encroaching on an estalished player in Groupon as well as Facebook's Deals.

Sources

  1. GOOG 2008 10-K pg. 19  
  2. GOOG 2009 10-Q1 pg. 27  
  3. GOOG 2009 10-Q1 pg. 28  

46. Android GPS tracking 47. The Android Phone

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