QUOTE AND NEWS
TheStreet.com  19 min ago  Comment 
NEW YORK (TheStreet) -- Google  co-founders Larry Page and Sergey Brin must have been scared of losing control of what has become one of the Internet's most powerful companies to split the company's stock the way they did. At first glance, the...
The Hindu Business Line  11 hrs ago  Comment 
Forbes  39 min ago  Comment 
Google and Facebook are taking moonshots into virtual reality, self driving cars and robots. Here are three more potential areas you might see them take aim for in the future.
Benzinga  2 hrs ago  Comment 
According to the Wall Street Journal, Google (NASDAQ: GOOG) wants to trademark the name, “Glass” but the U.S. Patent & Trademark office isn’t on board with idea. The company trademarked “Google Glass” last year, but the marketing...
DailyFinance  2 hrs ago  Comment 
SAN FRANCISCO, CA -- (Marketwired) -- 04/04/14 -- The Sage Group announced the finalists for Marketers That Matter™, an award sponsored by The Wall Street Journal that recognizes outstanding marketing executives at the forefront of their...
Forbes  3 hrs ago  Comment 
Google has made targeted advertising so easy—and so easy to get wrong. Display advertising is tough, but you don't need Ray Kurzweil to engineer a system to prevent unhappy customers.
TheStreet.com  4 hrs ago  Comment 
NEW YORK (TheStreet) -- I have a Roku streaming player. And I absolutely love it. However, I'm pretty certain that after Amazon.com delivers my Fire TV the Roku 3 I have in my living room will join the older model Roku that collects dust in my...
SeekingAlpha  4 hrs ago  Comment 
ByQuoth the Raven: Ecosystem, ecosystem, ecosystem. It's all going to be about what OS is eventually going to not only be powering your computer and phone - but running in your vehicle and controlling the appliances in your home. Companies like...
TechCrunch  4 hrs ago  Comment 
Google’s Project Loon, the effort to bring Internet connectivity to more remote areas using a network of hot air balloons, has racked up an impressive achievement – going around the world in just 22 days. One of the project’s test balloons...
TechCrunch  5 hrs ago  Comment 
Google has paid a €1 million ($1.4 million) fine in Italy levied by the country’s data protection watchdog for complaints relating to its Street View street-level image capturing cars that date back to 2010. At issue was a failure by Google...
TechCrunch  6 hrs ago  Comment 
Google has released a video showing a glimpse of what's going on behind the scenes at Project Ara, one of the hardware shunkworks projects coming out of its Advanced Technology and Projects that's aiming to put together a modular smartphone. Read...




 

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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