Google HBS Case Study Analysis
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Chan Xin Yi Cindy Loh Yi Zhuang Renice Tan Shu Li About Success Factors Cost Revenue Outlook
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Transcript of Google HBS Case Study Analysis
Chan Xin Yi CindyLoh Yi Zhuang
ReniceTan Shu Li
About Success Factors Cost Revenue Outlook
Success Factors Cost Revenue OutlookAbout
CompetitorsMicrosoft, Yahoo, AOL
Customers
Why Choose Google? What Keeps Customers Coming Back?
Advertisers Users
Constant Improvements
PageRankPaid ListingsPaid Listings AdSense
Success Factors Cost Revenue OutlookAbout
Cost Structure2 Categories of Costs
About Success Factors Cost Revenue Outlook
Costs
Sustaining systemStart-up
Research & Development
Cost StructureStart-up Costs
Infrastructure
Bandwidth
About Success Factors Cost Revenue Outlook
Cost StructureCosts of Maintaining and Running Searches
About Success Factors Cost Revenue Outlook
Research & Development
Infrastructure
Bandwidth
• Fine-tuning search algorithms
• Improving search functions
• Improving user-interface design
Cost StructureCosts of Maintaining and Running Searches
Research & Development
About Success Factors Cost Revenue Outlook
Demand for fast services
Significant computing power required
Technical facilities
Cost StructureCosts of Maintaining and Running Searches
Infrastructure
About Success Factors Cost Revenue Outlook
Dependency on Internet
Traffic
Bandwidth
Cost StructureCosts of Maintaining and Running Searches
Bandwidth
About Success Factors Cost Revenue Outlook
Cost StructureComparison of Magnitude of Costs
About Success Factors Cost Revenue Outlook
Maintaining & Running Searches
• R&D
• Infrastructure• Bandwidth
Starting-up Operation
Setting up System
• R&D• Infrastructure• Bandwidth
RevenueAdvertising Revenue
About Success Factors Revenue Outlook
AdvertisingRevenue
Cost
Contextual Paid Listings or
AdsensePaid Listings
OutlookWhat Should Google do in the Future?
Cost Revenue OutlookAbout Success Factors
a) ↓ Cost Data centre Bandwidth
Profitable Business Model
b) ↑ Revenue Ad Rev
OutlookReduce Cost
Cost RevenueAbout Success Factors Outlook
OutlookIncrease Revenue
Cost RevenueAbout Success Factors Outlook
OutlookIn Conclusion
Cost RevenueAbout Success Factors
• Well-poised to remain as the market leader
• Constantly innovate and improve its services
• Cater to the ever changing needs, taste and preferences of its customers
Outlook
