Chan Xin Yi Cindy Loh Yi Zhuang Renice Tan Shu Li

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Competitors
Microsoft, Yahoo, AOL

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Why Choose Google?

What Keeps Customers Coming Back?

Customers

Advertisers

Users

Paid Listings

AdSense

Paid Listings

PageRank

Constant Improvements

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Cost

Revenue

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Cost Structure
2 Categories of Costs

Costs

Start-up

Sustaining system

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Cost

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Cost Structure
Start-up Costs

Research & Development

Infrastructure Bandwidth

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Cost

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Cost Structure
Costs of Maintaining and Running Searches

Research & Development

Infrastructure Bandwidth

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Cost

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Cost Structure
Costs of Maintaining and Running Searches

Research & Development

Fine-tuning search algorithms Improving search functions Improving user-interface design

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Cost Structure
Costs of Maintaining and Running Searches

Infrastructure
Demand for fast services Significant computing power required Technical facilities

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Cost

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Cost Structure
Costs of Maintaining and Running Searches

Bandwidth

Dependency on Internet Traffic Bandwidth

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Cost

Revenue

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Cost Structure
Comparison of Magnitude of Costs

Setting up System

Maintaining & Running Searches

R&D Infrastructure Bandwidth

R&D Infrastructure Bandwidth

Starting-up

Operation

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Revenue
Advertising Revenue

Advertising Revenue

Paid Listings

Contextual Paid Listings or Adsense

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Revenue

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What Should Google do in the Future?

Profitable Business Model

a) Cost Data centre Bandwidth

b) Revenue Ad Rev

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Reduce Cost

Fibre

1. Optimal efficiency
2. Cost 3. Speed

Optic
Technology

SR: Set-up cost LR: Cost savings

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Increase Revenue

Discount

1. GOOG Bargain: One-stop-shop for bargain hunters

Advertisement
Page

2. Another platform for advertisers

3. Reach out to more relevant users

Increase Revenue

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In Conclusion

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

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Cost

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