DIVISION: BUSINESS ADMINISTRATION
INSTRUCTOR: PROF. SEONG-JIN CHOI
HARVARD BUSINESS SCHOOL CASE:
Google Inc. (Abridged)
2nd case report
Fall Semester 2013
Seoul, 10th September 2013
submitted by:
Karl Rempel
Asternweg 5
67551 Worms
+49 160 990 100 78
karl.rempel@fh-worms.de student-id: 9100420130
Summary
The Harvard Business Case “Google Inc. (Abridged)” from December 14 th 2010, written by
Benjamin Edelman and Thomas R. Eisenmann, describes Google's history, business model, governance structure, corporate culture, and processes for managing innovation.
The main business of today’s Google is hosting and developing Internet based services and products. The profit hereby mostly comes from advertising. Google have 44700 employees and
Google’s mission is: “to organize the world’s information and make it universally accessible and useful”. The question is: How became Google as successful as it is?
In early days of the World Wide Web the need of search services become very important in order to manage the more and more expanding information.
Search engines in these days worked with an algorithm which counted the search word on webpages and ranked it related to the number of keywords on each page. More and more the website owners manipulated their pages to get high ranking any search request (even if the keyword wasn’t related to the topic of the website). The users become very frustrated because of spam answers of their search requests.
In 1997, the two Stanford students Larry Page and Sergey Brin solved this problem by their research project “PageRank” algorithm. This algorithm favoured linked-to pages and rankedit this way.
Trough 1999, Google’s revenue came only from licensing it’s search algorithm (technology9to yahoo and others. In different words: Google had no ads!
Until 2001, Google was the 9th largest website while Google doesn’t spend one single dollar in marketing – but this should be