QUOTE AND NEWS
TechCrunch  2 hrs ago  Comment 
 Covering a red carpet isn’t usually a skill in the repertoire of tech journalists, but it’s also not every day that you get to see Vin Diesel and Kevin Durant on the same stage as Mark Zuckerberg, Priscilla Chan and Sergey Brin. If...
Benzinga  11 hrs ago  Comment 
"BoycottTrump," an app launched by the Democratic Coalition Against Trump, has cracked the top 10 in the Apple Inc. (NASDAQ: AAPL)'s App Store and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s Google Play. The app is a database listing over 250...
The Economic Times  Dec 4  Comment 
India operations post 44% rise in revenues at Rs 5,904 cr in FY16 as the internet giant grabs a major chunk of digital ad market.
Clusterstock  Dec 3  Comment 
In February this year, Google's smartwatch boss painted me a rosy picture of the future of wearable technology. The wrist is, David Singleton said, "the ideal place for the power of Google to help people with their lives." He envisioned a...
Forbes  Dec 2  Comment 
Photo from Google Images captured from Daily Mail. Cuba is on the minds of many right now. With the recent passing of Former Cuba President Fidel Castro, there is reflection on past history and events. And with the upcoming inauguration of...
TechCrunch  Dec 2  Comment 
 If you were to write a history of Silicon Valley, you could do it by looking at a series of major diaspora. Companies like Google, Yahoo, Oracle and PayPal attract top talent for years; when they reach maturity or a major liquidity event, their...
Forbes  Dec 2  Comment 
Pageviews. Unique Visitors. Traffic. Is it up? Is it down? What about Google search traffic? Facebook? Twitter? Those were the questions constantly buzzing around my team’s heads in my previous role on the audience development and analytics team...
Motley Fool  Dec 2  Comment 
This time around, Alphabet will spend about 37% more buying its own stock. But the search giant probably still isn't spending enough.
CNNMoney.com  Dec 2  Comment 
The dream for Latin America's top students: Snag a job at Google or Microsoft.




 

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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