Google - strategic case
STRATEGIC PLANNING
Google
Have you ever searched the Internet for games, research for your report, information on the newest technological advances? Chances are you “googled” the information.
Google is the world’s largest search engine. It allows users to search over eight billion websites in more than 35 languages with an audience base of more than 380 million people. Google generates revenue from advertisers who pay a fee for placing their ads on the website. The ads are targeted by keywords. Revenues have skyrocketed over the years. In 2005, the company had revenues of over $6.1 billion and net income of almost $1.5 billion. That’s one year sales growth of 93% and income growth of 267%. By 2006, revenues had increased to over $10 billion.1
Background
Google was founded by two PhD students, Larry Page and Sergey Brin, in a Stanford University dorm room. According to Google’s official website, the two did not get along, spending most of their time arguing. However, they quickly found something worth arguing about—how to retrieve pertinent information from an enormous set of data. The partners developed an innovative search engine called “Backrub” for its ability to analyze the back links to a website. Larry’s dorm room was set up as a computer hub, while Sergey established the business office. After maxing out their credit cards on a terabyte of memory, they needed more funding. Eventually, the pair raised almost one million dollars from friends, family, and acquaintances, and a $100 000 investment from Sun Microsystems founder, Andy Bechtolsheim. In September 1998, Google Inc. opened its door—a garage door. The first office was established in the garage of a friend.2
So where does the name come from? A googlol is the mathematical expression for one followed by 100 zeros. Google adapted the name because it feels it reflects the company’s vision of organizing an immeasurable quantity of information on the web. Google’s mission
Have you ever searched the Internet for games, research for your report, information on the newest technological advances? Chances are you “googled” the information.
Google is the world’s largest search engine. It allows users to search over eight billion websites in more than 35 languages with an audience base of more than 380 million people. Google generates revenue from advertisers who pay a fee for placing their ads on the website. The ads are targeted by keywords. Revenues have skyrocketed over the years. In 2005, the company had revenues of over $6.1 billion and net income of almost $1.5 billion. That’s one year sales growth of 93% and income growth of 267%. By 2006, revenues had increased to over $10 billion.1
Background
Google was founded by two PhD students, Larry Page and Sergey Brin, in a Stanford University dorm room. According to Google’s official website, the two did not get along, spending most of their time arguing. However, they quickly found something worth arguing about—how to retrieve pertinent information from an enormous set of data. The partners developed an innovative search engine called “Backrub” for its ability to analyze the back links to a website. Larry’s dorm room was set up as a computer hub, while Sergey established the business office. After maxing out their credit cards on a terabyte of memory, they needed more funding. Eventually, the pair raised almost one million dollars from friends, family, and acquaintances, and a $100 000 investment from Sun Microsystems founder, Andy Bechtolsheim. In September 1998, Google Inc. opened its door—a garage door. The first office was established in the garage of a friend.2
So where does the name come from? A googlol is the mathematical expression for one followed by 100 zeros. Google adapted the name because it feels it reflects the company’s vision of organizing an immeasurable quantity of information on the web. Google’s mission