Final Google[1]
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The document provides an overview of Google's current strategy, performance, internal/external analysis, and strategic alternatives. It discusses Google's growth strategy of focusing on cloud computing, research and development, mergers and acquisitions, and mobile/strategic partnerships. Key metrics on Google's financials, competitors, and opportunities in technology are analyzed.
Final Google[1]
- 1. Strategic Audit Presentation By: Cody Fergusson Professor: Kathleen Fitzsimmons Advisor: David Pollon Date: May 6 th , 2011
- 2. Current Strategy Current Performance Internal / External Scan Strategic Alternatives Growth Strategy Cloud Computing Research and Development Mergers and Acquisitions Mobile Strategic Partnerships Evaluation and Control Table of Contents
- 3. Have a growth strategy Mobile First Cloud Computing Socializing their services Hiring new employees Current Strategy
- 4. US Internet Search Market Share = 66% Cash = $34.975 Billion 96% of revenues still come from advertising Have acquired 95 companies since 2001 Current Performance Analysis
- 5. Strengths Brand name Cash reserves ($35 billion) Corporate culture Weakness Lack of infrastructure Android Cloud computing Inability to socialize search Internal Analysis
- 6. 2004 2005 2006 2007 2008 2009 2010 Sales $3,189,223 $6,138,560 $10,604,917 $16,593,986 $21,795,550 $23,651,000 $29,321,000 Gross Profit $640,192 $2,017,278 $3,549,996 $5,084,400 $6,631,969 $8,312,000 $10,381,000 Gross Margin 20% 33% 33% 31% 30% 35% 35% General and Administrative $188,151 $386,532 $751,787 $1,279,250 $1,802,639 $1,668,000 $1,962,000 Total long-term liabilities $43,927 $107,472 $128,924 $610,525 $1,226,623 $1,746,000 $1,614,000 Google Internal Financial Analysis
- 7. Threats Predicting the future correctly Competition: Yahoo! and Bing Loss of engineers and managers Opportunities Technology Personal Advertising External Analysis
- 8. Google Microsoft Apple RIM Nokia Profit Margin 28.43% 31.76% 22.36% 17.14% 4.26% Operating Margin 34.35% 40.10% 29.02% 23.30% 5.13% Return on Assets 12.99% 18.63% 20.88% 25.13% 3.82% Return on Equity 20.19% 43.96% 38.78% 41.24% 8.80% Total Debt $ 5.10 B $ 13.16 B 0 0 6.94 B Current Ratio 4.9 2.76 1.93 2.06 1.65 P/E Ratio 19.73 10.17 16.51 7.59 12.49 Market Capitalization $ 173.21 B $ 215.84 B $ 320.33 B 25.07 B 34.28 B Total Cash $ 36.68 B $ 48.72 B $ 29.23 B 2.12 B 17.10 B Operating Cash Flow $ 11.67 B $ 26.66 B $ 26.48 B 4.01 B 5.4 B External 2010 Financial Analysis
- 9. Retrenchment Too hot Stability Why? Growth Yes, but how? Strategic Alternatives
- 10. Continue to invest in our future through… Cloud Computing Research and Development Mergers and Acquisitions Mobile Strategic Partnerships Growth Strategy
- 11. Invest heavily in cloud computing Servers & infrastructure around the world to prevent outages, overloads Boost division (R&D) Renewable energy Security Cloud Computing First
- 12. Location: Redwood City, CA Estimated Price: $90 million Added Value: Security in the cloud 2,500+ customers Cloud Computing: Altor Networks
- 13. Location: San Mateo, CA Estimated Price: $70 million Added Value: 5,000+ Customers Employees: Pioneering the field Cloud Computing: Appirio
- 14. License Google Cloud to public and private sector Sell advertisements through new data collected Create better synergies around Google Cloud Computing
- 15. Future of Mobile
- 16. Google supplies: Phone, brand name Visa, MasterCard, Discover, Amex supply: Security, engineering, worldwide operations, brand name Visa already has PayWave (VPay in Europe) MasterCard has PayPass Service Search data and transaction data Mobile: Strategic Partnerships
- 17. Why? Dependence Highly targeted mobile advertising = $ Increase synergy with Google Offers = $ Discounts if you pay w/ Android Collect data on consumer spending Mobile: Strategic Partnerships
- 18. Cloud Computing Users, both private and public sector Market share Mobile Market share Increased advertising sales (revenue) Evaluation and Control
Editor's Notes
- #11: In the tech industry, you need to be proactive rather than reactive