...Yahoo! was founded in 1994 by Stanford Ph.d. students Devid Filo and Jerry Yang, and incorporated in 1995. The company’s offerings to users fall into five categories: Search, communications and communities, media, connected life. Microsoft was incorporated in 1981. Its business includes five major segments: Client, Server and Tools, Online Service Business, Microsoft business division, entertainment and devices division. On February 1st 2008, Microsoft initiated the bid for Yahoo! by bear hug. The offer represents a 62 percent premium above the closing price of Yahoo! common stock on Jan. 31, 2008. It is controversial to define whether the deal is a hostile takeover or not. The fact is Microsoft indeed publicly delivered the bid letter with premium price to Yahoo! boards, which seems genuine and generous. But on Apr 6th, Microsoft also threatened that they would claim to the existing Yahoo! shareholders to elect a new board and replace Jerry Yang, which is a typical hostile takeover approach. In order to analyze the reasons behind Microsoft’s decision to acquire Yahoo!, let’s look at the market share of search engine first. As we can see from the graph above, in Feb 2007, Google had moved up to 50% while Microsoft slipped to 11%. Before 2008, the top 3 profitable businesses for Microsoft are Windows Desktop, Windows Server, and Office. But in terms of the search space and online advertising market, which is highly profitable and potential market, Google had continued...
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...สำหรับความสำเร็จของผู้ก่อตั้งกูเกิลในช่วงแรก การพลิกปัญหา Keyword spam บนเวปให้กลายมาเป็นโอกาส โดยการแก้ไขมัน ในขณะที่นักเรียนที่ Stanford นำไปสู่ชุดคำสั่งแบบเรียงตามลำดับหน้าที่มีชื่อเสียงของ Sergey Brin’s และ Larry’s แทนที่จะมานับจำนวนคำของ keywords เหมือนการหาข้อมูลแบบเก่าๆ พวกผู้ก่อตั้งได้คิดค้นการหาข้อมูลที่เขื่อถือได้ผ่านทางเวปไซต์ที่เชื่อมต่อกับหน้าเพจ หรือ ใช้การ votes เพื่อที่จะชั่งน้ำหนักของผลลัพธ์ที่มีความเกี่ยวโยงกัน Google focusing on the user คือ กูเกิลใส่ใจผู้ใช้งาน ถือเป็นสิ่งสำคัญที่จะดึงดูดผู้คนในเริ่มแรก เนื่องจาก นอกจากการค้นหาใน White search page ที่ง่ายและเชื่อถือได้แล้ว ความแตกต่างของตัวโลโก้ที่มีสีสัน ไม่มีโฆษณาหรือ Editorial content (เนื้อหาความคิดเห็นจากบรรณาธิการ) อยู่บนหน้าเพจทำให้ค้นหาได้ง่ายและรวดเร็ว ซึ่งเป็นสิ่งที่ Yahoo ยังไม่สามารถทำได้ นี่เป็นสิ่งที่ได้อธิบายไว้ในคำกล่าวครั้งแรกของกูเกิลว่า “ใส่ใจผู้ใช้งาน แล้วทุกอย่างจะตามมาเอง” ซึ่งพวกเข้าพูดถึงการเข้าไปใช้งานได้ง่าย และความเร็วในการโหลดหน้าเพจเป็นจุดสำคัญ Google delivered search result people really wanted กูเกิลได้จัดหาผลลัพธ์ตามที่ผู้คนต้องการค้นหาจริงๆ ทำให้เกิดความเชื่อถือตามที่กูเกิลได้สัญญาว่าจะไม่ขายพื้นที่ในการค้นหาข้อมูลให้กับเหล่าโฆษณา และหันมาใส่ใจกับการค้นหาเพื่อนำส่งข้อมูลที่ผู้ใช้งานต้องการค้นหาจริงๆ ในขณะเดียวกันพวกลิ้งค์สปอนเซอร์ต่างๆก็ถูกเชื่อมโยงกับการค้นหาคำ keywords เพื่อที่เวลาผู้ใช้งานค้นหา จะได้รู้สึกว่าลิ้งค์สปอนเซอร์เหล่านี้ดูมีประโยชน์ หรืออย่างน้อยที่สุดผู้ใช้งานก็รู้สึกว่าถูกลิ้งค์สปอนเซอร์เหล่านี้ก้าวก่าย เหมือนกับพวกโฆษณา banner ต่างๆที่มาก้าวก่าย โดยลิ้งค์สปอนเซอร์จะ...
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...people and businesses throughout the world to realize their full potential. It develops software, hardware, service and solution to achieve this goal since it established at 1975 by Bill Gates and Paul Allen in Albuquerque. In 1980, Microsoft formed a partnership with IBM that allowed them to bundle Microsoft’s operating system with IBM computers, paying Microsoft a royalty for every sale. With a real big range of service IT service, we can say the client of Microsoft is unlimited, from OEM, business, and individuals. And the competition is all over from every division, such as Apple in PC Market and Google in Online Service Market. [pic] Yahoo! Was started at Stanford University in January 1994 by Jerry Yang and David Filo. Both of them were Electrical Engineering graduate students when they created a website named “Jerry and David’s Guide to the World Wide Web”. The Guide was a directory of other websites, organized in a hierarchy, to a searchable index of pages. In April 1994, Jerry and David’s Guide to the World Wide Web was then renamed to “Yahoo!”. Unlike Microsoft, they focus more on Online Internet Service. It provides the popular portal website “Yahoo!” with many kinds of application software, such...
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...Despite some interesting technological and marketing moves, however, the company was still a distant third to Google 5 years later and was losing money. In the early 2009, Microsoft’s executives were wondering which bold strategic moves could be made to change this situation. How the Microsoft adventure began At the end of 2008, Microsoft, founded by Bill Gates in 1975, was a giant with revenues of $60 billion and operating cash flow of $22 billion. A large part of Microsoft’s success had come from operating systems for personal computers. Operating systems were the core software that coordinated a computer’s activities. In the early 1980s, Microsoft was chosen by IBM to develop the MS-DOS and to tailor it to IBM needs. Bill Gates, who believed that many other companies might also adopt the same system, sold IBM the rights to use the software for $80,000 but insisted that Microsoft kept the copyrights on MS-DOS. This worked beyond expectations as the many competitors -for instance, Compaq or Dell- who imitated the IBM PC adopted MS-DOS as well, paying Microsoft licence fees of $15 per machine. By the early 1990s, Microsoft had over 90% of the operating system business, Apple gathering most of the rest. Armies of developers were also developing hundreds of software applications that ran on MS-DOS. Microsoft’s dominance over the computer industry was under way. Microsoft upgraded its operating software many times, especially through the different versions of Windows, the first operating...
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...MICROSOFT’S SEARCH | STRATEGIC MANAGEMENT | ASSIGNMENT # 04 | Submitted by: 1. Sheheryaar Mahmood 2. Amna Aslam 3. Madeeha Tahir Class: MBA-IV (F) Submitted to: Sir Suhaib Baluch Date: 12.03.2012 MICROSOFT’S SEARCH SUMMARY * In September 2008 the executives at Microsoft looked at alternatives to improve the company’s position. * The company got serious about search five years back, made great progress, but still lacks behind Google. The division leader is looking for a new ‘game changer’ move which helps then catch and pass Google. Microsoft in 2008: * Since its origin, Microsoft has grown to sell a complex line of software, services, and hardware. * The historical heart of the company was its line of operating systems for PCs, which was introduced in 1980. IBM had come to Bill Gates looking for someone to build a PC operating system. Gates purchased an OS and modified it to meet IBM’s needs, and named it MS-DOS. Rights to use this system were sold to IBM. * During the 1980’s this system dominated a rapidly growing market for PCs. * By 1990, clone makers (Compaq, Dell, etc.) were licensing MS-DOS for $15 per PC. Microsoft’s OS ran 90% of the worlds PCs, while Apple had a 7% share. * Apple launched Macintosh in 1984, and Microsoft introduced Windows 1.0. In 1990 Windows 3.0 was introduced, then Windows 95, 98, XP and finally Vista in 2007. * Development costs rose from $500 million for Windows 95 to $10 billon...
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...computers and mobile devices. The search industry is impacted by numerous forces that have strong, moderate and weak impacts on the industry. Rival firms, new entrants, buyer power, supplier power and substitutes are the five largest forces that impact the search industry. A rival firm is a strong force in the search industry. Google Inc, Microsoft Corporation and Yahoo! Are all competing for market share in the search industry in the United States and across the world? The fact that these three companies search engines are relatively the same to most users, it is hard to consumers to see the difference between them and it forces the companies to find various ways to distinguish themselves from each other. Microsoft’s Bing has tried to distinguish itself from Google by using an algorithm that looks at the context of the words in a search instead of just the words themselves. Microsoft Corporation has also launched a very strong advertising campaign to demonstrate the difference between Bing and Google search. Yahoo! Has recently adapted Bing as its default search engine but is competing with Microsoft’s MSN and Google for number of viewers and advertising income. The competitive force of new entrants is moderate to weak in the search industry. Google and Bing have such a large market share that it is difficult for new entrants to gain market share and make a large dent in these companies market share. Bing was the last new entrant to affect Google’s search dominance...
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...Strategic Analysis 1) ROLE OF GOOGLE IN THE GROWTH OF E-COMMEERCE: With the incredible growth of the eCommerce industry, experts around the world are expecting significant change in the future, and companies are taking stock in the market by investing more money than ever before in eCommerce technology. Google Shopping and recent changes to Google Analytics are also affecting retailers and their ability to effectively market their products and services. Google has introduced a new change that will “phase out free clicks on Google Product Search listings.” Once the new program called Google Shopping launches, ecommerce merchants will be required to bid on placement for their products for related search terms in Google. Online retailers will no longer see their listings appear in the comparison shopping service. Instead, this service will be replaced with the Google Shopping program, which will include paid product ad listings. According to Sameer Samat, Google Shopping’s Vice President of Product Management, “Google Shopping will empower businesses of all sizes to compete effectively, and it will help shoppers turn their intentions into actions lightning fast. Today’s changes are a first step toward providing technology, tools, and traffic to help power the retail ecosystem.” Google + has rolled out a new service that will now include local listings and customer reviews. Globally, eCommerce is up by more than 300% in the Middle East, with approximately 70% of transactions completed...
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...os t 9-806-105 REV: NOVEMBER 9, 2006 THOMAS R. EISENMANN rP KERRY HERMAN Google Inc. Google’s mission is to organize the world’s information and make it universally accessible and useful. — Google’s mission statement yo In December 2005, Google paid $1 billion for a 5% stake in Time Warner’s America Online (AOL) unit. The implied $20 billion valuation for AOL came as a surprise; JPMorgan had recently valued the unit at $13.7 billion.1 However, the partnership was important to Google, which had signed a fiveyear deal to continue providing web search results and search-based advertising to AOL, as it had done since 2002. Google was expected to earn about $600 million in gross advertising revenue from AOL searches in 2005.2 The share of ad revenue that Google would pay to AOL was not disclosed, but seemed likely to exceed the 85-90% estimated for the prior deal.3 No tC op In addition to its $1 billion equity investment, Google would provide a $300 million credit for ads on Google promoting Time Warner products and would showcase Time Warner content in a special box on some Google search results pages. Critics complained about reports that Google would provide Time Warner with information about its search algorithms in order to help its partner’s pages secure higher positions in search results. Commenting on Google’s accommodations to AOL, author John Battelle said: “Each of them represents a step closer to a slippery slope. What they...
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...os t 9-806-105 REV: NOVEMBER 9, 2006 THOMAS R. EISENMANN rP KERRY HERMAN Google Inc. Google’s mission is to organize the world’s information and make it universally accessible and useful. — Google’s mission statement yo In December 2005, Google paid $1 billion for a 5% stake in Time Warner’s America Online (AOL) unit. The implied $20 billion valuation for AOL came as a surprise; JPMorgan had recently valued the unit at $13.7 billion.1 However, the partnership was important to Google, which had signed a fiveyear deal to continue providing web search results and search-based advertising to AOL, as it had done since 2002. Google was expected to earn about $600 million in gross advertising revenue from AOL searches in 2005.2 The share of ad revenue that Google would pay to AOL was not disclosed, but seemed likely to exceed the 85-90% estimated for the prior deal.3 No tC op In addition to its $1 billion equity investment, Google would provide a $300 million credit for ads on Google promoting Time Warner products and would showcase Time Warner content in a special box on some Google search results pages. Critics complained about reports that Google would provide Time Warner with information about its search algorithms in order to help its partner’s pages secure higher positions in search results. Commenting on Google’s accommodations to AOL, author John Battelle said: “Each of them represents a step closer to a slippery slope. What they...
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...manufactures, develops, licenses, sells and supports consumer electronics, computer software, services and personal computers. Bill Gates and Paul Allen initiated this Company way back in 1975. My client wishes to invest in Microsoft. Analyzing Microsoft stock and financial performance is critical to allow me advice my client appropriately. 2.0 An Overview of Microsoft Corporation Microsoft is best known for its software products such as the line of operating systems, Microsoft Windows, Internet Explorer, Microsoft Office suite, Skype and Edge web browsers. Microsoft is the world’s largest software producer or maker by revenue. Microsoft is one of the most valuable companies in the world (MSFT: Summary for Microsoft Corporation- Yahoo! Finance). Microsoft is a worldwide Company traded as NASDAQ component. It operates in the computer software and hardware industry. The chairperson of Microsoft Corporation is John W. Thompson. Bill Gates is the Founder and Technology Advisor. Brad Smith is the President and Satya Nadella the CEO (Microsoft – Official Home Page). As of 2015, Microsoft had a total revenue of US$ 93.58 billion, a net income of...
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...Final PDF to printer case 6 Google’s Strategy in 2013 JOHN E. GAMBLE Texas A&M University – Corpus Christi Google was the leading Internet search firm in 2013, with nearly a 67 percent market share in search from home and work computers and a 97 percent share of searches performed from mobile devices. Google’s business model allowed advertisers to bid on search terms that would describe their product or service on a cost-per-impression (CPI) or cost-per-click (CPC) basis. Google’s search-based ads were displayed near Google’s search results and generated advertising revenues of more than $43.6 billion in 2012. The company also generated revenues of about $2.4 billion in 2012 from licensing fees charged to businesses that wished to install Google’s search appliance on company intranets. In addition, a variety of new ventures contributed to the company’s consolidated revenues. The most notable of which was the company’s recently acquired Motorola Mobility division that contributed revenues of $4.1 billion in 2012. New ventures such as the acquisition of Motorola’s smartphone operations were becoming a growing priority with Google management since the company dominated the market for search-based ads and sought additional opportunities to sustain its extraordinary growth in revenues, earnings, and net cash provided by operations. Another important initiative under way in 2013 was Google’s cloud computing productivity package that was intended to...
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...SKYPE In the hands of eBay, Silver Lake, and Microsoft Larry Fan, Aly Kassim-Lakha, Betty Liu, Cristina Peruyera, and Kimberly Yao December 12th, 2014 Professor Emilie Feldman MGMT 249 Fan, Kassim-Lahka, Liu, Peruyera & Yao | MGMT 249 Executive Summary Skype was founded to build and provide a telecommunications application, and despite many changes in ownership, its core business has not drastically changed over the years. Over the past decade, Skype has seemingly thrived to varying degrees under the leadership of eBay, Silver Lake Partners, and now Microsoft. The different visions each acquirer had for Skype and its integration made all the difference in Skype’s value at each stage. In the following paper, we will investigate how each of the three companies chose to acquire, integrate, oversee, and potentially divest Skype, and thus unlocking or creating value through the process. By analyzing information databases and news archives regarding Skype as well as utilizing course frameworks and scholarly papers discussing merger and acquisitions, we will argue that Microsoft has been more successful in integrating Skype than eBay has, though Skype’s long-term success in the hands of Microsoft remains uncertain. In addition, Silver Lake Partners was able to unlock value in Skype using a different set of perspectives as a financial acquirer. Throughout it all, Skype has continued to innovate and provide free services to millions of users globally. Introduction In 2002...
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...however the results on those platforms could easily be skewed. Larry Page and Sergey Bin came up with a new algorithm to counter those problems. “The perfect search engine” says Larry Page “would understand exactly what you mean and give back exactly what you want”. This proved true hence rated high in customer productivity. Their home page interface is clear and simple, and pages load instantly providing convenience and simplicity to users. The aesthetic value is derived from the core value don’t be evil. Google do not sell the placements of search results and they are totally dependent on the algorithms designed to extract the most relevant information. Google improved advertising policies and its network offered lower CPC (cost per click) bids and more search traffic. Google...
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...GBA 490 4/7/2010 Case Report Table of Contents Executive Summary 3 Situation Analysis 4 Recommendations 6 Appendix 11 SWOT Analysis 12 Key Success Factors 13 Driving Forces 14 Increasing Globalization 14 Marketing Innovation 14 Diffusion of technical know-how across more companies and more countries 14 Dominant Economic Features 15 Market size and growth: 15 Number of rivals: 15 Number of buyers: 15 5 Competitive Forces 16 Competitive Landscape 17 Financial Analysis 18 Identification of Rivals 19 Percent of Searches 19 Financial Summary from 2007 19 Financial Summary from 2009 19 Yahoo 20 Microsoft Online Services 21 Analysis of Company Strategy 22 Executive Summary To: Eric Schmidt, CEO From: Tyler Echevarria, Amanda Osburne, & Samantha Smith Re: Strategic Analysis of Google Inc. Date: April 7, 2010 This report will make recommendations for improvement of Google Inc. based on the analysis of the company’s financial resources and industry evaluations. Several analytical tools will be used in determining the direction the company should pursue. These analytical tools and techniques include the following: * Evaluation based on SWOT analysis * Evaluation based on Key Success Factors * Evaluation of Google’s business model and strategy * Analysis of financial data * Evaluation of current industry conditions These tools will be used to recommend new opportunities for Google to pursue as they...
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...Trading Data 52-Wk Range Market Cap. Shares Out. Dividend Yield Avg Daily Vol. Float Yahoo! Corp. $18.58 - $34.08 $25,459 MM 1,336.4 MM 0.0% 27,140,000 NA Source: FactSet It’s not often that management of a company sees its stock skyrocket ~50% in one day and have to ask themselves “Is this the best day in company history or the worst?” We believe Yahoo!'s valuation has being hampered by near-term investment concerns which weighed on investor realization of the long-term potential and value of the company. As we pointed out in our 4Q earnings note, we thought the near-term investor disappointment created an opportunity for any suitor that was remotely serious. Fundamental Data EV/EBITDA Enterprise Value LT Debt to Total Cap. Book Value 16.4x $24,681.6 MM 0.0% $7.00 • Implications to Traffic and Search Market Share. Domestically, Yahoo! and MSN together command 11% in page views market share, more than double Google’s 5% market share. In the international market, however, Yahoo! and MSN jointly account for 8% of total page views, still slightly lower than Google at 9%. On Search, the combination of Yahoo! and MSN would represent 33% of query market share in the domestic market and 17% in the international markets, still significantly behind Google at 58% in the U.S. and 70% internationally. • Implications to Advertising Market Share. Yahoo! and MSN together add up to $5.3B in 2007 domestic ad revenues, assuming no synergies,...
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