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Google

An exploration into Google's growth
by

Callum Brooks

on 23 January 2014

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Transcript of Google

History of Google 1995-2000
History 2000-Present Day
Google's Mergers and Acquisitions
1996, Larry Page and Sergey Brin create a search engine called Backrub. They use experience and make Google!

The Future of Google
With Google having so many services: Android, Play Store, You Tube, Search, Music, Drive and Gmail, it has a lot of paths to go down.


2000
May:
Google announces 10 language versions of Google.com to grow internationally by: gaining more customers, and also by entering the global market. This is an example of
internal growth.
But has led to
external growth
later on in its history when Google decided to takeover foreign companies.
Larry Page
Sergey Brin
Maps
On the 11th June, Google bought Waze, an Israeli app that uses a social network to share accidents, beating Facebook and Apple with a bid of $1.3 billion. They plan to implement this in their google maps.


Google has bought over 140 small companies since 2001, some for hundreds of millions, or even billions of USD
Well-known Google-run companies include Android, the most popular smartphone OS, YouTube, the most popular video sharing social media, and Google Chrome, based on the open source Chromium, now the most popular desktop web browser.
Google inc. is now a
conglomerate
, with a foothold in markets as diverse as military robotics and internet security.
This
external expansion
now makes Google worth over $250Billion
Android
With Android now commanding over 80% of the world market share Google are now looking to capitalize on it and make more money.
In 1997, google.com is a registered domain.
2003
March:
Google announces Adsense, another advertising service that enables online publishers access Google's vast network of advertisers. This would have led to
internal growth.
YouTube
With over 1 billion unique viewers on YouTube each month Google has masses of advertising potential
2006
Google takes over YouTube. This
horizontal takeover (external growth)
has created the third most visited website in the world.

YouTube actually makes Google a heavy loss each year, despite its popularity because of an inability to get firms to advertise on the website (copyright infringements, royalty payments etc.)
Play store
With the Android app and movie Store now branching out to sell phones, books, music, magazines and newspapers this is a massive source of revenue and will likely be developed further


Apps

Since Google recently bought Timely, the alarm clock app, they could be looking to design their own apps or games
Google is an American-originating multinational corporation which specializes in Internet/technology related products. Since 1998 it has grown into a hugely successful firm with impressive growth figures.

October:
AdWords, a self-service online ad program is launched by Google including the features of key word targeting and performance feedback and reviews.Today AdWord offers pay-per-click advertising and is now Google's main source of revenue. Google's total advertising revenues were USD$42.5 billion in 2012.
The research and development
of AdWords has resulted in huge
internal growth.
2004
Google takes over a series of firms
(external growth)
that will develop over the years through
research and development
into hugely popular products (e.g. Google Maps, Gmail, Picasa, Google Earth etc.)
2007
In conclusion

Google has achieved its large growth because of...
Google announces Android, the open-source operating
system which has in fact become the world's largest smartphone OS with 80% of the smartphone market share. Through
research and development and successful market techniques (internal growth)
(i.e. giving the android OS for free) it has been able to gain a huge market share and gain money from its complementary products (apps). Google makes its money from licensing apps from the Play Store- even free apps give Google money. A lot of ad-sponsored apps are also likely to be using Google Mobile Ads which is how Google really makes money.
2008-11
Google aquires and launches even more
firms and projects and many are ad-related furthering their revenue from advertising.
Android continues to grow at an enormous rate with 1 billion app downloads per month.
Google Wallet is introduced to make app payments easier.
The fact that Android is open-source continues to entice the big firms such as Samsung and HTC to invest in it.
2012
Motorola is taken over
(conglomerate/forward vertical)
and this
external growth
allows Google to create some excellent value phones (because of driven down costs- (easier to manage costs)) e.g. the Moto G.
Google also teams up with Asus to sell the Google Nexus 7,
(internal growth due to diversification)
one of the first major budget tablets sparking a new generation of cheaper android tablets which is sure to help Android's tablet market share in the future.
2013
Waze is bought by Google to improve the Google Maps traffic information.

Android passes 1 billion activations.
Smart-homes

With google' new purchase, Nest, they could be looking to control your home from your Android device or a chrome browser. Nest was founded in 2010 and sells a variety of smart thermostats and smoke alarms

1998, Sun co-founder Andy Bechtolsheim writes a check of $100,000 for Google inc.
On September 4, Google files for incorporation in California. Larry and Sergey open a bank account in the newly-established company's name and deposit Andy Bechtolsheim's check.
By the end of 1998, Google had an index of about 60 million pages.



Internal Expansion






External Expansion

2014
Nest is bought.
Buying a wide range of firms to
spread risk
around multiple markets
Services such as Chrome and YouTube allow Google to gather information about its consumers, meaning its AdSense is specially targeted to each consumer, and increasing the click-through rate, generating more revenue.

1999, They outgrow their garage office and move to Palo Alto with just eight employees.
Their first press release announces a $25 million round from Sequoia Capital and Kleiner Perkins; John Doerr and Michael Moritz join the board.



Google has expanded into 40 countries, including Japan, the UK, the Republic of Ireland, Nigeria, Brazil, and of course, the USA, allowing it to market and sell its products world-wide.
Full transcript