Google 2008 Case Study

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BUS 900n

Table of Contents
I. Background3
II. Analysis 5
A. Porter's Five Forces Analysis 5
B. Strategic Objectives7
C. SWOT Analysis 8
D. Financial Review 11
III. Alternatives 12
i. Do nothing 12 ii. Expand Android’s offering 12 iii. Increase market penetration of Chrome Internet Browser 13 iv. Expand into other technology markets 14 v. Increase search dominance in developing markets 15 IV. Recommendations 15

V. Implementation 16
Appendix 19

I. Background (Introduction)
Google began in 1996 as a project by Larry Page and Sergey Brin. Page and Brin were both studying at Stanford University California. They came up with a plan to make a search engine that ranked websites according to the number of other websites that linked to that site (and ultimately came up with the Google we have today). Before Google, search engines had ranked sites simply by the number of times the term being searched for appeared on the web page, consequently the duo set out to make a more “aware” search engine. They named the search engine Back-Rub due to engine’s ability to use back links to a site to determine its relevancy. Later on, the site was renamed to Google. This word is derived from the word 'googol' which stands for the number 1 followed by 100 zeros. Sergey Brin and Larry Page chose this because they thought it was appropriate for a search engine which would seek out information from the astronomical number of possible sources contained on the Internet.

Page and Brin found their first investor in Andy Bechtolsheim, who was among those that founded the giant Sun Microsystems. He was so impressed by their idea that he was immediately convinced that the endeavor would be a success and he wrote them a check for $100,000. The duo went on to raise an additional $1 million in venture capital by the end of September 1998.

Thus, on September 7th, 1998, Google was born in a sublet garage in Menlo Park, California. Still in beta stage, the search engine was nonetheless dealing with more than 10,000 searches every day. Google was rapidly attracting both notice and praise from the general media and specialist publications. PC Magazine even included Google in its 1998 list of the Top 100 Web Sites and Search Engines.

In just six months time, their service had mushroomed by fifty fold with over 500,000 searches being done daily. Page and Brin were also able to acquire an additional $25 million in funding from 2 other venture capital firms to support future growth. This funding made it possible for Google to provide additional features on its site, including multi-language support and a Google Toolbar. But it did not stop here; there was no easing off on the accelerator pedal just because the accounts were improving.

As 2001 began, the per day search number had hit 100 million, and this year would see still more partnerships with both commercial and educational clients. The latter receiving increased search abilities for free, wherever they were in the world. The founders of Google clearly remember where they came from and here sought to help others accordingly.

Google also started to buy a few things itself, like the enormous web archives of, which was the largest Usenet archive on the Internet. They started to sort, compile, and merge Deja into their gigantic index which would grow to 3 billion web documents and pages by the end of the year. All this meant that Google was actually starting to make a profit, which was very unusual for most of the dot com bubble companies. This profit was rewarding the hard work of founders Sergey Brin and Larry Page, as well as the...
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