Google Company Analysis Paper

3693 Words May 24th, 2012 15 Pages
Google Company Analysis Paper

Abstract

In this paper, I perform business analysis for Google Inc, the leading internet search engine provider in the world. Google Inc., a technology company, maintains index of Web sites and other online content for users, advertisers, Google network members, and other content providers. Its automated search technology helps users to obtain instant access to relevant information from its online index. The company provides targeted advertising and Internet search solutions, as well as hosted applications (Google profile, 2010).

Mission, Goals & Objectives

Google, the name of the company, reflects the immense volume of information that exists, and the scope of Google's mission: to
…show more content…
Internet advertisement is the way Google generates its revenue. Every time you perform a search on Google, you have probably noticed that there was a section called “Sponsored Links”. Every time you click on one of those links, Google charges a fixed amount of money to the website for the click (How does Google make money, 2010). The growth external environment of internet use and advertisement give Google more optimistic future than many of the technology and traditional industrial leaders. For the year of 2009, Google’s total revenue was $23.65 billion, with net income of 6.5 billion. Google’s total market cap stood at over $178 billion, more than the most of the technology giants such as IBM, Intel and Cisco. Most of the industry experts and Wall Street analysts had expected Google to continue grow at a rapid pace in term of both revenue and profit perspectives.

Porter's Five Forces

Porter's five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979 (Porter five forces analysis, 2010). The analysis of Porter's Five Forces as they pertain to Google is the following:

The threat of substitute products or services I believe, at this moment, the above threat is unlikely. Google has the best internet search technology in the world. Giving the strong reputation and skyrocketing stock price, the company has been able to attract the best talents to work…