Google Case Background

In: Business and Management

Submitted By twentyfifteen
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Individual Case Study – Google

PART ONE: HISTORY & CURRENT STRATEGY

Background Google was the leading Internet search firm in 2013 with a mission to “organize the world’s information and make it universally accessible and useful.” Larry Page and Sergey Brin, both computer science graduate students, met at Stanford University in 1995. In January 1996, they began development of Google’s search technology. They first named the search engine BackRub. By 1997, BackRub had gained a loyal following by Silicon Valley Internet users because it was so accurate. Yahoo founder, David Filo, was hooked on BackRub and even tried to convince Page and Brin to leave Stanford to focus on making their technology the support of a new Internet company (1). BackRub was renamed to Google, which is a play on the mathematical term googol, a number represented by 1 followed by 100 zeros. The new name echoed the mission of Brin and Page: to organize an infinite amount of information on the Internet. After renaming the company, Page and Brin opened a company bank account and went on to raise $1 million in venture capital from family, friends and investors by the end of 1998. Even with this large amount of money, the two partners ran Google on a small budget (2). Google recorded successes very quickly. In 2000, Google expanded with wireless search technology, search capabilities in 10 languages and a Google Toolbar. On April 29, 2004 Google offered an initial public offering (2). At the end of the first day of trading, Google’s shares had appreciated by 18 percent (1). With all of this growth since the beginning, Google has many strategies to continue the growth. Strategies and Business Model Forbes Magazine describes Google’s strategies as the 4 E’s; earn, entice and defend, expand the pie, and experiment. Google earns 95% of revenue from advertising (3). Google…...

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