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Google Strategic Plan

Brent Hummer, Greg Jones, Audre Wilde, Steve Ellison

MGT 578 Strategy Formulation and Implementation

Ray Sherwood

January 25, 2006

Executive Summary

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Company Background

"Google is now the most dominant search tool on the web, setting the standards that others try to follow and better, as yet unsuccessfully"(Websearch, 2005). Founded just eight short years ago, Google was developed by Larry Page and Sergey Brin. From the walls of a garage the Google business was born.

The Google search engine has continued to grow at a rapid rate since

the initial launch in 1998. "The search engine and the company grew

quickly through word of mouth, initially with regular web users coming

across the tool and finding the results to their liking" (Websearch,

2005). The augmenting popularity of Google has continued with strong

user acceptance worldwide. "Google took a major step forward in 2000

when it replaced Inktomi as the provider of supplementary search

results on Yahoo 3/32 this gives Google exceptional coverage of web

searches and it now has more than 50% share of the total search

market, making it the clear market leader" (Websearch, 2005).

Google serves three primary market segments: end users, advertisers,

and partner web sites (Google, 2005a). Google does not charge users

for searches. Google displays advertisements with the results of each

search requested by a user. Whenever a user clicks on an

advertisement, Google collects a fee from the advertiser.

Long Term Objectives

Google's long-term objectives are to deliver new advertising

technology, develop tracking mechanisms, and enable users to search a

larger base of information.

Strategic Analysis and Choice

Google's search engine business is the dominant business of the

company. Google has built a competitive advantage based on search

engine differentiation. Google's...