1. Business IndustryProfile: Google, Inc.Brandon BeckhamReed MathewsKayla McDonald

2. The Search Engine Industry and Google Inc. An overview of the Information Search Industry will be provided. Googles current state will be discussed. Information on Googles four leading competitors will be presented. An annotated list of websites on Google and its competitors will also be presented. 3. The Search Engine Industry History The first search engines weredeveloped in the 1990s as findingaids for the World Wide Web. Indexing the web this way requiredmillions of computers to be runsimultaneously in parallel. Sergey Brin and Larry Page studiedthe major problem of relevanceranking of search results. Googles rise is a direct result ofSergey Brin and Larry Pagesrelevance ranking algorithm. 4. The Search Engine IndustryAdvertising Google developed AdWords a web-based automated auction by which customers could place advertisements to be displayed in conjunction with Googles search results for any given search term. AdWords was a key to Googles financial success. Google produced its AdSense program in 2003 for its Google network partners. Similar to search advertising, advertisers bid on keywords relevant to their ads. With content advertising, however, the ad is displayed on websites with content related to the keyword. Together, search advertising and content advertising account for 96% of Googles revenue. The search engine industry in general depends on advertising to a similar degree. 5. The Search Engine Industry Googles Financial Growth In 2004, Google made itsinitial public offering (IPO)under the ticker symbol GOOGat the New York Stockexchange, capitalizing at $1.6billion. (Auletta 2009) Google is currently capitalizedat $171 Billion. (Morningstar) 6. The Search Engine IndustryDomestic Market Share Google currently controls 64.1% of the domestic market (based on the number of searches). Yahoo! is at 18% of domestic searches performed. Microsoft Corporation ranks at 13.6% of domestic searches. Ask accounts for 2.8% America Online accounts for 1.4%. (IBISWorld) 7. The Search Engine Industry World Market Share Search engine Market share Google 82.80% Yahoo!6.42% Baidu 4.89% Bing3.91% Ask0.52% AOL0.36% (Net Market Share) 8. The Search Engine IndustryMajor Players Major players in the search engine industry include Google, Microsoft, Yahoo! and America Online. Microsofts Online Services Division includes its MSN.com portal and its search engine, Bing. In July 2009, Microsoft entered into a 10-year partnership with Yahoo! 9. The Search Engine IndustryTrends Advertising has been moving from traditional media to online sources. Growth in high speed access to the internet is increasing and will continue to increase. Growth in mobile access is also increasing and will continue to increase. Domestically, internet access is quickly becoming a key feature in most consumer electronics. (IBISWorld) 10. The Search Engine IndustryOutlook The future remains bright for thesearch engine industry. Advertising continues to migratefrom traditional forms to theinternet. The trends toward faster internetaccess, toward more mobile accessand toward higher connectivityserve to amplify needs for searchservices Growth for the Search Enginesindustry will finally slow over thenext five years. IBISWorld placesthis industry in the Growth state ofits industry life cycle. 11. Googles Current StateGoogle Company FinancialsNet Income: $8,505,000,000Net Sales: $29,321,000,000Total Assets:$57,851,000,000Total Liabilities: $11,610,000,000EBITDA:$10,381,000,000MarketCapitalization: $171,093,025,852Outstanding Shares: 321,301,457(Morningstar) 12. Googles Current StateGoogle OfficersEric E. Schmidt, ChairmanLarry Page, Chief Executive OfficerPatrick Pichette, SR VP, ChiefFinancial Officer & ChiefAccounting Officer Urs HolzleDavid Drummond, GeneralCounsel, SR VP & SecretaryCraig Silverstein, Chief TechnologyOfficerBen Fried, Chief InformationOfficer 13. The Information Search IndustryGoogle Core Competencies Advertising from Googles search is the companys main source of revenue. Google has offered cloud-based services. Web-publishing accounts for only about 16% of [Googles] total revenue, or $5.9 billion.(IBISWorld) Googles has developed operating systems and enterprise software. 14. Googles Current StateGoogles Venture into Smartphones Google acquired Android, Inc. in2005 to venture into theburgeoning smartphoneindustry. In 2007, Google and severaltelephone manufacturers joinedforces to develop Android. The Android market insmartphones has grown rapidly. Androids advance has affectedthe entire smartphone market. 15. Googles Current StateGoogles Venture into Smartphones Google has not derived muchrevenue from Androids success. Googles purpose in promotingthe Android platformapparently follows the interestof its main business model.Google hopes to developservices for mobile computingand to develop the vast marketfor advertising. Googles venture into theAndroid market brings thecompany into directcompetition with Apple. 16. Googles Current StateGoogles Legal Problems Google has been challenged in court on privacy issues. Recent patent infringement attacks on the Android platform pose a threat to Googles plans. Googles monumental project to digitize the worlds books, Google Books, drew a class-action suit from American publishers and writers who accused Google of copyright infringement. The largest legal problem that Google faces stems from the companys phenomenal growth and its complete domination of the search engine industry. 17. Googles Current State Three Recent Events In January 2011, Larry Page becameGoogles new Chief Executive,replacing Eric Schmidt. A second momentous event occurredwhen the U.S. Justice Departmentannounced in 2011 that it was bringingGoogle under investigation of allegedantitrust violations. A third major event occurred August15, 2011 as Google announced itspurchase of Motorola, inc. The deal ifapproved by government authoritieswould represent Googles largestacquisition in its history at $12.5Billion. 18. THE COMPETITIONGoogles competitors are manyRecent efforts created more competitionFour Selected Competitors:AOL, Yahoo, Microsoft, and Apple 19. AOLAOL nowindependent ofTime-Warner.AOL operating at aloss.CEO Tim ArmstrongAd revenues are upAOL looking to beacquired. 20. YAHOOOne of the originalgiants.Broadbandinternet/advertising aremain revenue sources.Yahoo in decline.Cooperative deal withAOL, Microsoft.Consortium looking tobuy Yahoo. 21. MICROSOFTMicrosoft-Worldsleading softwaregiant.Windows, MS Office,MSN, and Bing.Video GamePlayer with X-BoxExpanded intomobile devicemarket. 22. APPLE, INC.Leadinghardware/softwaremanufacturer.OS X operatingsystemMac computers,iPhones, and iPads.Enjoys strong brandrecognition.Looking into mobileadvertising market. 23. Business Source Complete Business Source Complete containsthousands of profiles for companiesCorporate Affiliations Corporate Affiliations is a source for up-to- date business information on approximately 850,000 companieswww.CorporateInformation.comLocator for publicly traded companyinformation. 24. DataMonitor Company ProfilesProvides access to profiles for companies andtheir competitorsDialogWebDialogWeb is an excellent source for businessand industry information.Disclosure Online Database-US PublicCompany ProfilesContains financial data for 8,000 businesses inthe United States.FactivaFactiva can be used to locate business data on42,000 companies. 25. Gale Group Company IntelligenceIt is a source for company information.Hoovers Company RecordsHoovers locates business data for 65,000,000corporate entities and more than 900 industryprofiles.IBISWorldIBISWorld is a primary source for industrysurveys.Lexis Nexis Academic-BusinessThis database contains industry information forAmerican as well as foreign companies. 26. Mergent OnlineContains comprehensive industry data forbetter than 10,000 publicly traded companies.Morningstar Institutional databaseThis database provides market analysis.Standard and Poors Net AdvantageStandard and Poors sets the industry standardfor market researchValueline.comValueLine provides financial data for UScompanies and industries.