Business Model Canvas Google – These videos are about Google’s business model and its business strategy. I explain Google’s business model using Alexander Osterwalder’s Business Model Canvas and explain how Google makes its money. I examine who Google’s key customers are and how it delivers value to them through search and advertising. We then cover …

Business Model Canvas Google

Business Model Canvas Google – These videos are about Google’s business model and its business strategy. I explain Google’s business model using Alexander Osterwalder’s Business Model Canvas and explain how Google makes its money.

I examine who Google’s key customers are and how it delivers value to them through search and advertising. We then cover Google’s key partnerships that are the keys to its success and how it continues to dominate the market.

Business Model Canvas Google

Business Model Canvas Google

Based on this, we look at how Google takes care of its customers and the marketing channels it uses to attract them. Finally, we cover the key resources Google needs to deliver all of this and its critical days of activities.

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The result is an excellent explanation of not only Google’s business model, but also great insight into its business strategy and the moat it has built around its advertising cash cow.

There are three important groups of customers for Google. Most important to its business model are the millions and millions of websites that provide information to Google for free. They allow or invite Google to crawl and index the information on their website. Without this raw data, Google has no business. Website owners allow this because they benefit from additional readers of their content. You don’t write a book that nobody reads.

Google then processes this information so that when people perform a search, it can use its index to provide high-quality, relevant search results. This is a value proposition for all free users who use its services. They can find what they want. Google then looks to see what these people are searching for and then sells advertisers the ability to place ads in front of all search results.

I haven’t really differentiated between Google and YouTube (click the link to see YouTube’s business model) on video. This is because I see the business models as very similar. The difference is that with YouTube, Google owns the entire platform on which the content is hosted. In other words, as if every website in the world is hosted by Google. That’s a scary thought! Once the content – ​​the video – is placed on the YouTube platform, it is processed and marketed to advertisers in the same way.

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This is a list of Google’s database of all the content its spiders are crawling on the web for free. The faster and more reliably this index can be updated, the more accurate the search results will be.

Algorithms (many of them) determine which index pages should appear in search results and in what position. These are focused on several things – maximizing relevance and value for users. Minimize low quality results (keyword filled pages or off-topic pages) and maximize performance for advertisers

Finally, computing power provides all of this. I see computing power as a combination of physical assets, software assets and the people who create the software. Physical assets include cables, data centers, and Google VPN. Software assets include codebases and websites, while people create and optimize the code. These are key resources in Google’s business model canvas.

Business Model Canvas Google

The rest of Google is not really relevant to the Google business model described above. 95% of Google’s revenue comes from AdWords. 5% is not material anymore. Google has a number of other web features such as Drive, Docs, Gmail, Waze, Maps, Flickr, etc. The purpose of owning these is to “buy” additional information that it uses to help refine the targeting data it sells to advertisers.

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It also helps create a large defensive moat around Google to protect the main money-making machine. Any platform that attracts large numbers of people seeking or exchanging information provides a potential avenue for competitors to sell advertising. To continue the medieval castle analogy, Google clears the forest for miles around its castle so that no one else can approach it.

“Big” companies are civilization. I stay in the wilderness and guide entrepreneurs and startups on their journey to make it big. Google’s business model is a multifaceted platform. What started as a search company is today a tech giant with several offerings. Can you imagine business, education and entertainment without Google today? Google put an end to the yellow pages by making it possible to find businesses not only in your city, but around the world with one click of the mouse!

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This search engine also reduced students’ visits to educational institutions’ libraries by providing access to collections and files scattered across the globe. After all, any question that comes to mind, at any time of the day, just pick up the phone and do a quick search for the answer. But what does Google benefit from this? Learn how the search engine monetizes this service and turns it into a billion dollar machine.

Google is based on a hidden business model, which means that it is not the user who pays for the service.

Software As A Service (saas) Business Model

In Google’s case, its main source of income is the same as communications companies: paid media. Companies pay to advertise on search engines and are seen first by the users who make up their target audience. And it’s a good deal for brands because of Google’s vast reach, which covers more than 90 percent of all searches made on the Internet, totaling more than 80 billion searches per year.

Google’s history dates back to 1995, at Stanford University when Larry Page was about to tour campus facilities and was credited with showing the place to current student Sergey Brin. At the beginning of what became a friendship, they agreed on almost nothing. But both wondered how all the information on the Internet was found by the search engines of the time.

Then, they started working on a type of technology where searches relied on a website’s backlinks (the number of other pages linking to them). They named their new search engine “BackRub” because of its processing system. Later, the name was replaced by “Google”, which reflects the term

Business Model Canvas Google

After raising a million dollar investment from family, friends and other investors, Google was officially born. In the following years, the company grew exponentially, hiring engineers and salespeople and moving to its current headquarters, known as the Googleplex, in California. Google’s 2004 IPO raised $1.66 billion, thus creating 7 billionaires (including the two founders, of course) and another 900 millionaires from early shareholders.

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By the end of 2011, Google was processing three billion searches every day. The company needed to build eleven data centers around the globe, each with hundreds of thousands of servers. Today, Google relies on 60,000 employees in 50 different countries to develop hundreds of products that are used by billions of people.

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Google is the main subsidiary of Alphabet Holding Group, which has Google founders Larry Page and Sergey Brin as executive directors. In the case of Google, Sundar Pichai has replaced the founders and today holds the position of Chairman and CEO since December 2019.

More than 80% of Google’s 2019 revenue was obtained through advertising (Google Ads and YouTube Ads). But this company has other important businesses and acquisitions, take a look:

Google works with something called performance advertising. This means that the advertiser only pays when the user takes an action, such as clicking on a link. These links are tracked and the cost per click (CPC) is measured by the average cost per click over the duration of a particular ad. In addition, there are brand advertisements. In this case, advertisers pay cost-per-impression (CPM). This strategy works best when a brand wants to reach a much wider target audience to increase brand visibility. There are five advertising platforms:

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This is the smartphone brand of Google. It still doesn’t have much representation among market players or among Google’s revenue streams, but it has been growing. When Google bought Nest Labs, it integrated it with Google Home. The company develops technology tools for homes such as cameras, doorbells, alarm systems, smoke systems, locks and thermostats.

YouTube Premium is a subscription model that offers ad-free streaming content across YouTube, YouTube Music and YouTube Gaming.

It is a set of cloud computing services that run on its own infrastructure and provide resources for running web applications. It is a subscription business model where companies pay according to the number of resources they use. It accounts for 5.5% of Google’s total revenue. Finally, it’s worth noting that in addition to these revenue streams, Google has also invested in other acquisitions such as Waze, Motorola Mobility, DoubleClick, Looker, Fitbit, and ITA Software. And the company also invests in bets on the future that include Loon, Waymo, Wing, Verily, and Sidewalk Labs, all aimed at technological innovation in different places on the planet.

Business Model Canvas Google

Google’s main distribution channels are certainly its search engine and apps

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