I 8ackground (Introduct|on)

Coogle began ln 1996 as a pro[ecL by Larry age and Sergey 8rln age and 8rln were
boLh sLudylng aL SLanford unlverslLy Callfornla 1hey came up wlLh a plan Lo make a search
englne LhaL ranked webslLes accordlng Lo Lhe number of oLher webslLes LhaL llnked Lo LhaL slLe
(and ulLlmaLely came up wlLh Lhe Coogle we have Loday) 8efore Coogle search englnes had
ranked slLes slmply by Lhe number of Llmes Lhe Lerm searched for appeared on Lhe web page
consequenLly Lhe duo seL ouL Lo make a more aware" search englne 1hey named Lhe search
englne 8ack8ub due Lo englne's ablllLy Lo use back llnks Lo a slLe Lo deLermlne lLs relevancy
LaLer on Lhe slLe was renamed Lo Coogle 1hls word ls derlved from Lhe word googol whlch
sLands for Lhe number 1 followed by 100 zeros Sergey 8rln and Larry age chose Lhls because
Lhey LhoughL lL was approprlaLe for a search englne whlch would seek ouL lnformaLlon from Lhe
asLronomlcal number of posslble sources conLalned on Lhe lnLerneL
age and 8rln found Lhelr flrsL lnvesLor ln Andy 8echLolshelm who was among Lhose
LhaL founded Lhe glanL Sun MlcrosysLems Pe was so lmpressed by Lhelr ldea LhaL he was
lmmedlaLely convlnced LhaL Lhe endeavor would be a success he wroLe Lhem a check for
$100000 1he duo wenL on Lo ralse an addlLlonal $1 mllllon ln venLure caplLal by Lhe end of
SepLember 1998
1hus on SepLember 7Lh 1998 Coogle was born ln a subleL garage ln Menlo ark
Callfornla SLlll ln beLa sLage Lhe search englne was noneLheless deallng wlLh more Lhan 10000
searches every day and was rapldly aLLracLlng boLh noLlce and pralse from Lhe general medla
and speclallsL publlcaLlons C Magazlne even lncluded Coogle ln lLs 1998 llsL of Lhe 1op 100
Web SlLes and Search Lnglnes
ln [usL slx monLhs Llme Lhelr servlce had mushroomed by flfLy fold wlLh over 300000
searches belng done dally age and 8rln were also able Lo acqulre an addlLlonal $23 mllllon ln
fundlng from 2 oLher venLure caplLal flrms Lo supporL fuLure growLh 1hls fundlng made lL
posslble for Coogle Lo provlde addlLlonal feaLures on lLs slLe lncludlng mulLllanguage supporL
and a Coogle 1oolbar 8uL lL dld noL sLop here Lhere was no easlng off on Lhe acceleraLor pedal
[usL because Lhe accounLs were lmprovlng
As 2001 began Lhe per day search number had hlL 100 mllllon and Lhls year would see
sLlll more parLnershlps wlLh boLh commerclal and educaLlonal cllenLs 1he laLLer recelvlng
lncreased search ablllLles for free wherever Lhey are ln Lhe world 1he founders of Coogle
clearly remember where Lhey came from and here soughL Lo help oLhers accordlngly
Coogle also sLarLed Lo buy a few Lhlngs lLself llke Lhe enormous web archlves of
ue[acom whlch was Lhe largesL useneL archlve on Lhe lnLerneL 1hey sLarLed Lo sorL complle
and merge seamlessly lnLo Lhelr glganLlc lndex whlch would grow Lo 3 bllllon web documenLs
and pages by Lhe end of Lhe year All Lhls meanL LhaL Coogle was acLually sLarLlng Lo make a
proflL whlch was very unusual for mosL of Lhe doL com bubble companles 1hls proflL was
rewardlng Lhe hard work of founders Sergey 8rln and Larry age as well as Lhe lnvesLors LhaL
had belleved ln Lhelr ldeas comlng Lo frulLlon
Cn Aprll 29 2004 Coogle made an S1 form SLC flllng for an lC Lo ralse as much as
$2718281828 1hls alludes Lo Coogles corporaLe culLure wlLh a Louch of maLhemaLlcal humor
as e 2718281828 1hls move would spur Lhe launchlngs of Coogle LarLh Coogle Maps
Coogle 1alk and Cmall (an emall cllenL) ln 2003 ln 2006 Coogle opened a phllanLhroplc
franchlse called Coogleorg and announced plans Lo work wlLh Lhe naLlonal Archlves ln
WashlngLon uC Lo dlglLlze years of hlsLorlcal fooLage Lhls lncluded WWll newsreels moLlon
plcLure fllms and nASA producLlons Coogle also released Coogle calendar and creaLed an
adverLlslng parLnershlp wlLh e8ay and a Loolbar dlsLrlbuLlon wlLh Adobe ln a slgnlflcanL move
Coogle also acqulred Lhe exLremely popular ?ou1ube 8y Lhe end of 2006 Coogle sLock soared
Lo over $300 per share 1hrough 2009 Coogle conLlnued Lo expand lLs sphere of funcLlonallLy
and saw lLs popularlLy lncrease dramaLlcally 1he company ls sLlll seen as qulrky lnnovaLlve and
surprlslng whlch has served as an effecLlve compeLlLlve sLraLegy

II Ana|ys|s (D|scuss|on)
A orters I|ve Iorces Ana|ys|s
| 1hreat of New Lntrants
1he barrlers Lo enLry ln Lhe lnLerneL search markeL are hlgh 1he currenL compeLlLors
have Lhousands of servers deployed ln locaLlons all over Lhe world and have accumulaLed many
years worLh of daLa abouL user hablLs A new enLranL would need Lo provlde beLLer search
resulLs aL very fasL speeds Lo compeLe ln Lhls hlghly compeLlLlve markeL WlLh LhaL ln mlnd lL
musL be recognlzed LhaL when Coogle was founded ln 1998 ?ahoo LxclLe and AlLavlsLa
domlnaLed Lhe search markeL and Coogle has slnce ecllpsed Lhem all 1he markeL now
however ls more maLure conLalnlng a necessary paLh dependency Lo gaLher daLa on boLh Lhe
conLenL of web pages and Lhe search hlsLory of users 1herefore Lhe LhreaL of new enLranLs ln
Lhe lnLerneL search markeL ls relaLlvely low
|| 8arga|n|ng ower of Supp||ers
1he force of suppllers plays a raLher lnslgnlflcanL role when lL comes Lo Coogle and lLs
markeL Coogle ls ln Lhe buslness of ldeas and lnformaLlon Cf course Coogle sLlll lnLeracLs wlLh
suppllers Lo obLaln hard drlves servers Lhe elecLrlclLy Lo power Lhese overhead expenses for lLs
faclllLles eLc buL none of Lhese add up Lo Lhe presence of slgnlflcanL power on Lhe suppller
slde
||| 8arga|n|ng ower of Customers
1he ldea of a cusLomer ls a raLher lnLeresLlng one for a search englne because lL ls very
Lwodlmenslonal Cn one hand Lhere are mllllons of people worldwlde who use Lhe search
englnes on a dayLoday basls and dlrecLly beneflL from Lhe servlces LhaL Lhe search englne has
Lo offer Cn Lhe oLher hand Lhere are cusLomers LhaL acLually generaLe Lhe cash flow for Lhe
search englne lL ls lmporLanL Lo noLe LhaL 99 of Coogle's revenue ls generaLed by adverLlslng
companles who pay Lo be feaLured ln Coogle's search resulLs 1hese Lwo seLs of cusLomers are
very dlfferenL buL Lhey have one Lhlng ln common Lhey are boLh very powerful ln Lhls markeL
lL ls very easy for a user Lo access anoLher search englne lf Lhey are noL happy wlLh Lhelr
producL and where Lhe user goes Lhe adverLlser wlll evenLually follow
|v 1hreat of Subst|tute roducts
1he lnLerneL has become Lhe preferred mode Lo requesL and reLrleve lnformaLlon by
people all over Lhe world ln llghL of Lhls facL Lhere really ls no sulLable subsLlLuLe for Lhe search
englne lnformaLlon can be organlzed ln dlfferenL ways lncludlng caLegorles and sorLlng by daLe
Coogle provldes Lools Lo compleLe Lhese Lasks as well as conducLlng searches
v Compet|t|ve k|va|ry w|th|n the Industry
Coogle's maln compeLlLors ?ahoo! and MlcrosofL posLed revenues of $70 bllllon and
$311 bllllon respecLlvely 1here ls an lmmense amounL of money made ln Lhls lndusLry
resenLly Coogle commands 37 of lnLerneL searches ln Lhe unlLed SLaLes 1hls large markeL
share enables Lhem Lo lmprove Lhe quallLy of Lhelr search resulLs and LargeL ads more qulckly
Lhan Lhelr compeLlLors Lhls creaLes a sorL of selfperpeLuaLlng draw for cusLomers as Lhe search
resulLs consLanLly lmprove ?ahoo and MlcrosofL lag behlnd wlLh 23 and 11 respecLlve
markeL shares 1he compeLlLlve rlvalry ls sLrong and ongolng ln Lhls lndusLry because large
amounLs of adverLlslng dollars flow Lo Lhe webslLe LhaL has capLured Lhe largesL volume of
searches
Coogle ls well poslLloned ln Lhe lndusLry Coogle's ablllLy Lo please lLs sLakeholders wlll
conLlnue Lo deflne Lhe success of Lhe venLure and Lhe fuLure of Lhe company
8 Strateg|c Cb[ect|ves
Coogle has Lwo prlmary ob[ecLlves Coogles flrsL ob[ecLlve ls Lo domlnaLe lnLerneL
adverLlslng 1hls ob[ecLlve has been Lhe prlmary focus of Coogles research and developmenL
deparLmenL slnce Lhe companys lnlLlal publlc offerlng ln 2004 Coogle has worked Lowards
achlevlng Lhls ob[ecLlve by malnLalnlng Lhelr sLaLus as Lhe mosL popular search englne ln Lhe
world acqulrlng varlous Lech companles and launchlng Androld operaLlng sysLem As of !une
2009 Coogle SlLes were used for lnLerneL searches by 63 of Lhe world followed by ?ahoo!
SlLes aL a mere 196 (please see charL 1)
ln 2006 Coogle purchased ?ou1ube for $163 bllllon uesplLe ?ou1ubes enormous
popularlLy as a vldeo slLe Lhe company has yeL Lo meanlngfully conLrlbuLe Lo Coogles
revenues ln 2008 Coogle acqulred Lhe company uouble Cllck for $31 bllllon Lo expand lLs
adverLlsemenL capablllLles Lo lnclude banner ads aL Lhe Llme lnLerneL banner ads were
becomlng an lncreaslngly popular meLhod of adverLlslng
Androld ls a moblle phone operaLlng sysLem launched by Coogle ln 2008 1he operaLlng
sysLem allows wlreless phone provlders Lo manufacLure lnLerneLenabled phones Androld was
launched Lo allow Coogle Lo lncrease lLs moblle search markeL share of 63 and Lo
correspondlngly lncrease adverLlsemenL revenues from banner and vldeo ads
Coogles second ob[ecLlve ls Lo conLrol Lhe deskLop Coogles managemenL belleves LhaL
Lhe buslness communlLy wlll soon begln Lo mlgraLe away from uslng compuLer sofLware
programs sLored on local hard drlves Lo uslng compuLer sofLware programs sLored on Lhe
lnLerneL AnalysLs predlcL LhaL cloud based compuLlng plaLforms wlll grow Lo a $93 bllllon
markeL by 2013 1he cloud based compuLlng plaLforms offers buslnesses a number of
advanLages lncludlng lower cosLs and easler collaboraLlon lor Lhese reasons Coogle launched a
beLa verslon of Coogle Apps ln 2006 1he beLa verslon lncluded flle sLorage space presenLaLlon
sofLware spreadsheeLs word processlng lnsLanL messaglng a calendar and Cmall Coogle also
launched Chrome lnLerneL browser and Chrome operaLlng sysLem Lo accommodaLe Lhe
aforemenLloned appllcaLlons
Coogles ob[ecLlves Lo domlnaLe lnLerneL adverLlslng and conLrol Lhe deskLop boLh seem
feaslble ln llghL of Lhe companys hlsLorlc success and currenL poslLlon ln Lhe markeL
C SWC1 Ana|ys|s
| Strengths
erformlng a SWC1 (SLrengLhs Weaknesses CpporLunlLles and 1hreaLs) analysls on
Coogle wlll prove useful ln developlng some sLraLeglc recommendaLlons Coogles sLrengLhs
lnclude Lhe companys poslLlon as Lhe worldwlde leader ln lnLerneL and moblle search
adverLlsemenL Coogles success ls grounded ln Lhelr lnLerneL search englne LhaL uLlllzed LexL
maLchlng Lechnlques and age8ank Lechnology Lo dellver remarkably accuraLe resulLs CLher
sLrengLhs lnclude Lhe avallablllLy of Androld Lo mulLlple wlreless phone manufacLures Coogles
advances ln cloud compuLlng sofLware and Lhe avallablllLy of Coogles search Lechnology Lo
small and large buslnesses llnally Coogle ls ln a sLrong flnanclal poslLlon as evldenced by Lhe
company's conLlnued growLh ln revenues proflLablllLy vasL cash reserves and wellleveraged
poslLlon
|| Weaknesses
Some of Coogles weaknesses lnclude several hlsLorlc acqulslLlons LhaL have noL yeL
proven useful Lo Lhe company As prevlously menLloned Coogle's acqulslLlon of ?ou1ube has noL
yeL resulLed ln a meanlngful flnanclal conLrlbuLlon Lowards revenues Coogles lnLernally
developed soclal neLwork (orkuL) has noL been nearly as successful as many of Lhe company's
rlvals lncludlng myspacecom and facebookcom
||| Cpportun|t|es
1here are a number of opporLunlLles avallable Lo Coogle Lmerglng markeLs presenL a
huge opporLunlLy for Coogle Lo lncrease Lhe share of searchbased ads ApproxlmaLely 744 of
norLh Amerlcas populaLlon uses Lhe lnLerneL Lhls amounLs Lo roughly 231 mllllon users ln Asla
only 174 of Lhe counLrys populaLlon uses Lhe lnLerneL Powever Lhls amounLs Lo roughly 637
mllllon users AnoLher opporLunlLy exlsLs ln Lhe growlng markeL for cloud based compuLlng
Some analyses predlcL LhaL Lhls markeL has Lhe poLenLlal Lo lncrease Lo $93 bllllon by 2013
Coogle has forged aggresslvely ahead ln Lhls markeL buL sLlll has many more avenues Lo
explore Coogles release of Androld operaLlng sysLem for moblle devlces presenLs anoLher
promlslng opporLunlLy for Lhe company 1he markeL for smarL phones has rapldly grown over
Lhe lasL several years Some oLher opporLunlLles for Lhe company lnclude Lhelr creaLlve and daLa
processlng ablllLy Lo enLer new speclallzed markeLs and Lhe poLenLlal exlsLlng ln Lhe open
markeL for dlglLal good (movle muslc and games)
|v 1hreats
llnally Lhe exLernal LhreaLs Lo Coogle's conLlnued success lnclude Lhe company's
compeLlLors and Lhe ongolng recesslon Coogle's prlmary compeLlLors are ?ahoo! and MlcrosofL
ln 2008 ?ahoo! was Lhe second mosL vlslLed slLe worldwlde approxlmaLely 142 mllllon unlque
vlslLors accessed Lhe slLe every monLh ?ahoo! offers consumers many of Lhe same feaLures as
Coogle does lncludlng an lnLerneL search englne emall a personal calendar news eLc ?ahoo!
also offers webslLe hosLlng for small buslnesses and has parLnered wlLh LwenLy moblle phone
provlders Lo offer moblle and dlsplay adverLlsemenLs CurrenLly ?ahoo! ls used by moblle
consumers Lo perform a search 33 of Lhe Llme SeLLlng lLself aparL from Coogle ?ahoo!
recenLly enLered an alllance wlLh lnLel Lo offer consumers a seLLop Lelevlslon box Lo provlde an
lnLeracLlve vlewlng experlence grounded ln Lhe lnLerneL ?ahoo!'s flnanclal poslLlon appears Lo
be deLerloraLlng lrom 2003 Lo 2008 ?ahoo's sales lncreased every year yeL neL lncome Lrended
downward ?ahoo!'s balance sheeL poslLlon remalns relaLlvely sLrong as evldenced by Lhe
company's falrly subsLanLlal llquldlLy and wellleveraged poslLlon
MlcrosofL ls slgnlflcanLly larger Lhan Coogle ln 2008 MlcrosofL had revenues of $60
bllllon as compared Lo Coogle's revenues of $22 bllllon MlcrosofL offers consumers a wlde
varleLy of producLs and servlces lncludlng compuLer sofLware consulLlng servlces vldeo game
hardware and onllne servlces Cf Lhese producLs and servlces Lhe mosL subsLanLlal LhreaL Lo
Coogle's performance lles ln MlcrosofL's semanLlc search englne Lechnology and cloudbased
Lechnology SemanLlc search Lechnology provldes MlcrosofL Lhe opporLunlLy Lo surpass Coogle's
search englne ln accuracy and relevancy 1he semanLlc search analyzes Lhe meanlng of a word
or phrase as well as lLs conLexL CurrenLly Lhe Lechnology ls only parLlally lncorporaLed lnLo
MlcrosofL's search englne (8lng) because Lhe search processlng Llme Lakes several seconds
longer Lhan a Coogle search MlcrosofL has also made some subsLanLlal sLrldes ln cloud
compuLlng Lechnology ln 2008 Lhe company launched Wlndows Llve whlch allowed users Lo
sLore flles onllne MlcrosofL also offers buslnesses Lhe ablllLy Lo hosL operaLlng programs and
daLa flles onllne (Azure) Lo reduce caplLal expendlLures MlcrosofL's flnanclal poslLlon ls sLrong
as evldenced by Lhe company's proflLablllLy and sLrong balance sheeL poslLlon
llnally Lhe ongolng economlc recesslon presenLs a slgnlflcanL LhreaL Lo Coogle's
performance lL ls llkely LhaL companles wlll cuL back on more dlscreLlonary expendlLures such
as adverLlslng Lo remaln proflLable durlng Lhls perlod 1hls wlll negaLlvely lmpacL Coogle as
onllne adverLlslng composes a slgnlflcanL porLlon of revenues
D I|nanc|a| kev|ew
Coogle's currenL flnanclal poslLlon ls sLrong 1he company's revenues and neL lncome
have Lrended sharply upward slnce 2001 ln 2008 Coogle had revenues of $218 bllllon and a
neL proflL of $42 bllllon Coogle's neL proflL margln of 19 ls prlmary aLLrlbuLable Lo Lhe
company's hlghly scaleable buslness model Coogle's buslness model adds llLLle addlLlonal flxed
cosL for addlLlonal cusLomer as a resulL Coogle has a vasL cash reserve as evldenced by cash
cash equlvalenLs and markeLable securlLles of $138 bllllon and a correspondlng currenL raLlo of
877x 1hls allows Coogle Lo lnLernally flnance Lhelr conLlnued expanslon Coogle's proflLablllLy
has also placed Lhe company ln a wellleveraged poslLlon as evldenced by Lhe company debL /
worLh raLlo of approxlmaLely 123 lease see aLLached charLs LhaL deLall Coogle's proflLablllLy
llquldlLy and leverage poslLlon as compared Lo Lhelr ma[or compeLlLors

III A|ternat|ves (w|th eva|uat|on)
| Do noth|ng
ConLlnue on Lhe paLh Lo domlnaLlng Lhe realm of lnLerneL adverLlslng SLay focused on
expandlng core buslness ob[ecLlves and correspondlngly focus adverLlslng on all lnLerneL
enabled devlces 1hls ls a good opLlon conslderlng how much of Lhe world has yeL Lo come lnLo
consLanL conLacL wlLh Lhe lnLerneL 1hls markeL alone Lhe markeL LhaL Coogle currenLly conLrols
overall globally sLlll has vasL poLenLlal and deflnlLely should noL be lgnored
|| Lxpand Andro|d's offer|ng
1he success of Androld on Lhe moblle markeL (cell phones) seems unsLoppable aL Lhls
polnL Coogle ls conLlnulng Lo Lake markeL share from oLher cell phone operaLlng sysLems
prlmarlly Apple A Senlor AnalysL aL SLraLegy AnalyLlcs recenLly sald We forecasL global Androld
smarL phone shlpmenLs Lo grow an lmpresslve 900 percenL annually durlng 2009" Pls reporL
credlLed Androld's success Lo Lhe relaLlvely low cosL prlclng sLrucLure Lhe sofLware's semlopen
source sLrucLure and Coogle's supporL for cloudbased servlces wlLhln Lhe operaLlng sysLem As
of 2009 MlcrosofL one of Coogle's LradlLlonal compeLlLors was sLlll mlsslng from Lhls markeL
Androld's growLh ln Lhls markeL ls coupled wlLh a change ln lnLerneL consumpLlon Lrends
Consumers are beglnnlng Lo spend more Llme lnLeracLlng wlLh Lhe lnLerneL on moblle devlces
and less Llme accesslng Lhe lnLerneL Lhrough personal compuLers 1hls means LhaL Lhe average
consumer who uses Lhe Androld operaLlng sysLem ls Lralnlng hlmself on lL 1hey are becomlng
comforLable dolng more and more Lhlngs on Androld every day 1hese Lasks LradlLlonally could
only be accompllshed on a C runnlng MlcrosofL or Apple sofLware 1he polnL Lo Lake away from
all of Lhls ls LhaL Androld ls noL hard wlred Lo moblle devlces lL ls sofLware LhaL can be made Lo
run on many dlfferenL Lypes of plaLforms personal compuLers lncluded Cnce consumers have
used Coogle's operaLlng sysLem for several years Lhey may be more wllllng Lo use a deskLop
verslon of Lhe sofLware 1hls could poLenLlally glve Coogle enLrance lnLo a markeL LhaL has been
domlnaLed by Lhe same Lwo players slnce LhaL markeL's creaLlon
||| Increase market penetrat|on of Chrome Internet 8rowser
Coogle fundamenLally undersLands how Lhe lnLerneL works 1he companles' Lwo mosL
popular webslLes are Lhe flrsL and Lhlrd mosL vlslLed on earLh Powever up unLll lasL year Lhey
requlred you Lo use someone else's sofLware ln order Lo access Lhelr offerlngs 1hey have Laken
Lhe flrsL sLep ouL of Lhe cloud and onLo Lhe deskLop wlLh Lhelr new Chrome 8rowser 1he new
web browser ls already fasLer Lhan lLs esLabllshed rlvals 1hls pro[ecL's success ls paramounL
because ln Lhe pasL oLher sofLware companles have Laken sLeps Lo llmlL Lhe funcLlonallLy of
Coogle's producLs 1hey have done Lhls by Llnkerlng wlLh Lhe way Lhe browser lnLeracLs wlLh
Coogle's servers 1hus expandlng Lhe markeL share of Coogle's browser can help ensure LhaL all
consumers have a rellable and conslsLenL experlence wlLh all of Coogle's servlces on Lhe neL
|v Lxpand |nto other techno|ogy markets
Coogle's ablllLy Lo dellver relevanL ads for consumers on Lhe lnLerneL ls whaL has made
Lhe company almosL all of lLs revenue 1he company does noL however geL people Lo go Lo Lhelr
slLe by promoLlng how effecLlvely Lhey wlll be adverLlsed 1hey geL lnLerneL users Lo frequenL
Lhelr slLe by offerlng Lhem a range of producLs LhaL enable Lhem Lo flnd and use lnformaLlon
fasLer Lhan any of Lhelr compeLlLors 1hls focus on fasL accuraLe and rellable lnformaLlon
presenLaLlon and processlng would be very useful ln many markeLs ouLslde of consumer
lnLerneL searches Coogle could develop a Leam LhaL acLlvely searches for smaller markeLs
whlch could be easlly served by reconflgurlng exlsLlng sofLware offerlngs Many lndusLrles such
as law enforcemenL Lrafflc conLrol and healLh care all requlre aggregaLlng Lremendous
amounLs of lnformaLlon Lo a searchable useable daLabase someLhlng Coogle has accompllshed
wlLh greaL success on Lhe lnLerneL
v 8ecome the prem|um open market for d|g|ta| goods
Cne of Lhe lnherenL advanLages Lo Coogle havlng a sLrong moblle presence ls lLs ablllLy
Lo Lake lLs producL caLalogue ouL of Lhe home or work offlce Lo wherever you have Lo be 8y
ownlng Lhe operaLlng sysLem LhaL powers moblle devlces Lhey can offer a seamless lnLegraLlon
of mulLlmedla collecLlon beyond almosL all oLher companles A purchase of a muslc album a
cusLomer makes on Lhelr phone whlle walLlng ln llne aL Lhe docLor's offlce could be laLer
replayed Lhrough Lhelr compuLer's sound sysLem wlLhouL any work or converslon on Lhe
consumer's behalf A vldeo LhaL a cusLomer purchased Lhrough Lhelr seL Lop box Lhe nlghL
before could be flnlshed on a lunch break Lhe nexL day wlLh Lhe use of a moblle devlce Many
companles dream of havlng such a compleLe mulLlmedla ecosysLem buL only Coogle ls currenLly
slLuaLed wlLh Lhe hardware and sofLware Lo make Lhe dream a reallLy Some of Lhe Androld
headseLs announced for 2010 already feaLure PuMl Lo connecL Lhe devlce Lo a Lelevlslon seL
1hese headseLs could easlly lose Lhe hlgh cosL screens ln favor of an lnexpenslve permanenL
connecLlon Lo a cusLomer's Lelevlslon seL 1hls would conclude Lhe hardware requlremenLs for
Lhe ecosysLem 1he only remalnlng sLeps needed Lo Lake would be Lo expand Androld's markeL
Lo lnclude fulllengLh songs albums and feaLure fllm LlLles
v| Increase search dom|nance |n deve|op|ng markets
1he ma[orlLy of Lhe world ls sLlll noL connecLed Lo Lhe lnLerneL Lhus Lhe ma[orlLy of Lhe
world ls noL yeL a Coogle producL user 1hls presenLs boLh a problem and an opporLunlLy
Coogle's offerlngs are dellvered Lo consumers almosL excluslvely Lhough Lhe lnLerneL so havlng
LhaL much of Lhe world lack access Lo Lhe producL ls a naLural llmlL Lo Lhe markeL slze and
growLh poLenLlal ln Lhe shorL run Cn Lhe oLher hand Lhe developlng world ls rapldly adopLlng
lnformaLlon Lechnology and represenLs a subsLanLlal growLh opporLunlLy Lo a company llke
Coogle

IV kecommendat|ons
O 8ecome Lhe premlum open markeL for dlglLal goods movles muslc and games by
allowlng seamless lnLegraLlon and access beLween C moblle cloud and posslbly
Lelevlslon
O locus on expandlng Androld's offerlng Lo oLher devlces noL [usL cell phones Lxpand lnLo
Lhe personal compuLer operaLlng sysLem markeL wlLh Androld branded operaLlng
sysLem
O Aggresslvely pursue lnLerneL search domlnance ln new and developlng forelgn markeLs

V Imp|ementat|on
1he Lhree recommendaLlons are noL muLually excluslve 1hey wlll work Lhe besL lf
performed LogeLher ln order Lo bulld synergy beLween Lhe recommendaLlons llrsL Coogle
musL reallze Lhe opporLunlLy LhaL Lhey have ln openlng up Lhelr Androld's MarkeL for dlglLal
goods of all Lypes noL [usL Lhe cell phone appllcaLlons LhaL are currenLly offered Coogle already
reaches more cusLomers per day on Lhe lnLerneL Lhan any oLher company on earLh Lhey have a
unlque opporLunlLy Lo promoLe Lhelr producLs and servlces aL llLLle Lo no expense 1hey can
communlcaLe dlrecLly wlLh Lhelr consumers aL many and varled polnLs LhroughouL Lhe day
1he blggesL hurdle LhaL Lhey wlll have Lo overcome ls Lhe educaLlon of Lhelr cusLomers
on Lhe posslble beneflLs of belng ln a compleLely Coogle operaLed ecosysLem 1yplcally when
Coogle launches an enLlrely new producL or servlce or makes large changes Lo an exlsLlng
producL Lhey creaLe a shorL web fllm explalnlng Lhe changes and how Lo use Lhe new and
lmproved feaLures A new fllm could be made demonsLraLlng [usL how convenlenL lL would be Lo
have Coogle manage dlglLal conLenL such as muslc vldeos and ebooks 1hls vldeo could be
promoLed Lhrough Coogle's emall servlce Cmall Lhe ?ou1ube vldeo sharlng webslLe and many
oLher popular servlces LhaL Coogle operaLes
lf you have a compuLer wlLh a web browser and an Androld smarL phone all you need ls
a seL Lop box Lo have a fully lnLegraLed dlglLal llbrary ln order Lo do Lhe work needed Lo offer
Lhese servlces Lhe company musL flrsL begln maklng deals wlLh conLenL provlders Lo acqulre Lhe
llcenses needed Lo sell and dlsLrlbuLe Lhelr lnLellecLual properLy 1hey can Lake aspecLs of Lhe
purchase model from Apple's l1unes sLore and aspecLs of neLfllx's flaL raLe fee Lo creaLe a couple
flexlble prlclng schemes Second Coogle's programmers need Lo focus on changlng how Lhe
markeL works Lo allow Lhe selllng of Lhese Lypes of producLs and servlces 1hls wlll requlre hlrlng
new programmers and learnlng how Lo adverLlse and organlze new Lypes of goods 1hlrdly
Coogle musL ensure LhaL Lhe purchases made ln Lhe markeL sLay wlLh Lhe consumer's accounL
noL Lhe consumer's devlce 1hls wlll requlre hosLlng Lhe ma[orlLy of Lhose mulLlmedla flles on
servers lnsLead of Lhe consumer's devlces 1hls may call for Lhe consLrucLlon of new daLa
cenLers and even more employees dependlng on consumer adopLlon raLes PosLlng all of a
consumer's mulLlmedla flles however would glve Coogle new valuable markeLlng daLa 1hls
daLa could be lncluded lnLo lLs adverLlslng algorlLhms by glvlng Lhe company access Lo a
parLlcular user's medla consumpLlon preferences and how LhaL mlghL affecL Lhelr purchase
paLLerns 1he key Lo selllng Lhls servlce Lo cusLomers ls Lo provlde a seamless efforLless and
comforLable envlronmenL for cusLomers Lo en[oy all of Lhelr dlglLal mulLlmedla
1hls fully lnLegraLed approach wlll ralse Lhe lncenLlve for consumers Lo use all of Coogle's
servlces 1he servlces offered by Lhls expanslon ln a cloudbased mulLlmedla should be
funcLlonal Lhrough a LradlLlonal personal compuLer buL expanded greaLly Lhrough Lhe use of an
Androld runnlng personal compuLer 1hls would creaLe a hlgh lncenLlve for cusLomers Lo
conslder maklng Lhe swlLch from elLher Apple or Wlndows 1here ls a very low cosL ln
developlng such a deskLop orlenLaLed Androld operaLlng sysLem as Androld has Llnux a
deskLop naLlve operaLlng sysLem aL lLs core AnoLher sLrong advanLage LhaL Androld wlll have ln
Lhe personal compuLer markeL ls LhaL lL ls capable of runnlng on much lower prlced hardware
Lhan MlcrosofL or Apple's sofLware 1hls prlce dlfferenLlal ls based on Lhe facL LhaL Androld was
born on Lhe cell phone plaLform whlch uses Lhe much cheaper A8M processors as opposed Lo
Lhe more expenslve x86 processors found ln LradlLlonal personal compuLers 1here are
numerous manufacLures LhroughouL Lhe world LhaL can already produce Lhe hardware
requlremenLs for a deskLop capable Androld SysLem Coogle should conLlnue Lo allow
manufacLurers Lo use Lhe Androld CperaLlng sysLem free of charge as long as Coogle can conLrol
Lhe medla markeLs on Lhe devlces
Coogle should sLlck Lo Lhls low cosL plaLform noL only Lo LempL domesLlc cusLomers
away from Lhelr hlgher prlced opLlons buL also Lo brlng Lhe age of lnformaLlon wlLhln Lhe grasp
of more lndlvlduals ln Lhe developlng markeLs 1he lnLerneL ls huge buL lL's golng Lo grow much
larger ln Lhe years Lo come Cnly around 30 of Lhe world ls uslng Lhe lnLerneL on a regular
basls 1hese new lnLerneL users are noL golng Lo be able Lo afford much ln Lhe Lerms of
hardware A low cosL low power lnLerneL ready soluLlon powered by Coogle could glve Lhe
company a domlnaLlng advanLage compared Lo MlcrosofL Coogle could parLner wlLh Lhe
governmenL ln developlng naLlons Lo dlsLrlbuLe Androldrunnlng sysLems Lo low lncome or
educaLlonal markeLs 1hls could be a powerful publlc relaLlons move and a way Lo make a solld
lmpresslon on Lhe governmenLs of developlng naLlons Coogle should LargeL counLrles LhaL are
experlenclng a rlse ln purchase power and Lhose LhaL are hlgh ln populaLlon denslLy such as
lndla 1alwan and Lhe hlllpplnes ln Lhese markeLs wlreless lnLerneL Lechnology would have
Lhe largesL lmpacL aL Lhe lowesL per person prlces 1hese relaLlvely weak economles may
become much larger players ln Lhe global economy ln Lhe fuLure









chort #1
Comparative Financial Analysis
FYE 2008 Google Yahoo! MicrosoIt
Net ProIit Margin 0.19 0.06 0.29
Current Ratio 8.77 2.78 2.60
Debt / Worth 0.12 0.22 1.01



chort #2







chort #l


chort #4