Google Analysis
[Business & financial Analysis]
12/20/2009
Google Inc.
Prepared by:
Bakr Zohair EL-Daour & Osama Abdel Monem
Supervisor: Lecturer: Emad Abu Shaaban
Table of Contents
Executive Summary
Historical Background
Financial Statements Analysis
1. Consolidated Balance Sheets
2. Consolidated Statements of Income
3. Consolidated Statements of Stockholders’ Equity
4. Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
1. Financial Ratios and their Trends
2. Competitors and the Industry
3. Stock Price & External Factors
Accounting Analysis
1. Accounting Policies
2. Accounting Estimates
3. Accounting Choices
4. Accounting Risk
5. Effect of Recent Accounting Pronouncements
Industry Analysis
1. Google Industry Overview
2. Main Competitors
3. Outside Forces Impacting Competition in the Industry
4. Growth Prospects and Key Success Factors for Future Competitive Success
Corporate Structure, Governance,
Leadership, and Strategic Management
1. Introduction
2. Executive Roles
3. Corporate Structure
4. The Technology behind Search and Google User Products and Services
5. Software
6. Enterprise Products
7. Operating Committee
Company Analysis
1. Google’s Mission & Vision
2. Value added to Users, Employees, and Shareholders
3. Overall Business Strategy
4. SWOT Analysis
5. Value Chain Analysis
6. Google’s Competitive Advantage
Strategic Analysis
Recommendations and Implementations
References
Executive Summary
Google's mission is to organize the world's information and make it universally accessible and useful. From the beginning, Google had a lofty goal, but as time has passed, Google has without a doubt shown its potential. Leading the search engine industry in market share, Google is one of the largest and fastest growing technology companies in the world. Driven by advertising revenues, Google has gained success by providing relevant search results while also offering advertisements which are related to the content of each specific web page.
Additionally, Google offers a variety of free services and products, ranging from a myriad of free search services, to Google Maps, to services available for mobile phones. Because these services draw millions of users to Google’s websites every day, advertising revenues provide a steady stream of income.
Google has posted significant growth rates over the past seven years, resulting in a stock price of more than $700. While the market values Google’s stock at $600 as of December 19th, predicted valuation based on free cash flows shows that it is slightly overvalued by less than 0.3%. Despite lofty predictions and great potential for the future, Google’s stock price should only be valued at $503.32, which is based on free cash flow estimates. Overall, Google has tremendous potential as a company, while constant innovation may prove to be the cornerstone of Google’s continued success in the future.
Recommendations
We recommend making Global penetration to increase returns and protect and hold Google’s market power. And to Continue Keep it simple, stupid .And Continue to diversify the Google’s portfolio to Google chrome, and Mobile market. And Increase the amount of R&D .And Continue of acquiring companies.
Historical Background
Google's Name
Founders Larry Page and Sergey Brin named the search engine they built "Google," a play on the word "googol," the mathematical term for a 1 followed by 100 zeros. The name reflects the immense volume of information that exists, and the scope of Google's mission: to organize the world's information and make it universally accessible and useful.
Search
When we visit www.google.com or one of more than 150 other Google domains, we can find information in many different languages (and translate between them), check stock quotes and sports scores, find news headlines and look up the address of our local post office or grocery store. we can also find images, videos, maps, patents and much more. With universal search technology, you can often find all of these things combined in one query.
Of course, there is a lot of information in the world that is not yet online, so we're also working to get more of it digitized, such as in Google Books or the Google News Archive. Google also know that whenever we search the web we want it to be as fast as possible, with all our favorite websites at our fingertips, so Google offer software like Google Toolbar and Google Chrome to help us browse the web quickly and easily.
Search is how Google began, and it's at the heart of what we do today. Google have added services such as personalized search, which tailors results for you if you are signed in to your Google account.
Ads
A
s a business, Google generates the majority of its revenue by offering advertisers measurable, cost-effective and highly relevant advertising, so that the ads are useful to the people who see them as well as to the advertisers who run them.
Hundreds of thousands of advertisers worldwide use Google's AdWords program to promote their products and services on the web. Advertisers bid in an open and competitive auction to have their ads appear alongside the search results for particular keywords. They can specify the geographic location and time of day for their ads to appear. As a result, people see ads that are so useful and relevant that they become a valuable form of information in their own right.
In addition, hundreds of thousands of partners, from bloggers to major online publishers, participate in Google's AdSense program. This program delivers ads from our AdWords advertisers that are relevant to the content or search results on partner sites. The AdSense program enables advertisers to extend the reach of their ad campaigns, improves partners' ability to generate revenue from their content, and delivers relevant ads for their users.
In addition to Google's core AdWords and AdSense programs, Google offer a number of other services to advertisers, including various advertising formats on YouTube, Google TV Ads, as well as online ad serving and management services through DoubleClick. Finally, we aim to make advertising more measurable and efficient with free tools for advertisers such as Google Analytics, Website Optimizer, Insights for Search and Ad Planner. These tools help advertisers to analyze their campaigns, test them, and make them more efficient and effective.
Apps
Google build web applications, or "apps", to make it simpler for people to share information and get things done together. Gmail, Google Calendar and Google Docs help people communicate and collaborate more easily, whether planning a wedding or building a business itinerary. The information is stored securely online, accessible from any device with a web connection. And because it lives online, it's easy to share with a group of collaborators.
Today people want the same ease of use on their work computers that they have on their increasingly powerful personal computers. This is why we offer businesses a suite called Google Apps. It's powerful enough for large enterprises but simple enough for mom-and-pop businesses too. Google is continually improving Google Apps . And it's much less expensive than most traditional software. Google Apps is designed to fit the way people naturally live, work and socialize
Mobile
You should be able to access all of Google's services wherever you are – even if you don't have a computer nearby. Google make it easy for you to use your favorite Google products, from Google Maps to YouTube, right from your phone. As mobile devices become increasingly central to people's lives, Google work hard to find new and better ways to help you get the information you need when if you are on the go.
The Road Ahead
A lot has changed since the first Google search engine appeared. Google have grown and expanded it's offerings from a single service to dozens, often in as many languages. Google now have thousands of employees and offices around the world. But some things haven't changed: it's dedication to it's users and it's belief in the possibilities of the Internet itself.
2.2 Downloadable mobile products
3.3 Communication and publishing