1. Why has the paid-per-click search business grown so rapidly?
2. Analyze the competitive structure of the market for search based advertising. What are the implications of this structure for the long run profitability of players in the market?
3. Why was it entrepreneurial startups, as opposed to established enterprises, that pioneered the paid search market?
4. What explains Google's success in the paid search market place? How sustainable is its competitive advantage?
5. What is Google trying to do strategically?
6. Does the search technology and business model pioneered by Google represent a paradigm shift? How?
This case looks at the establishment and subsequent growth of Google through until 2011. The case describes early Internet search technology, the revolutionary approach adopted by Google's founders, the development of their pay for click business model, and the subsequent growth of the company. The structure of the Internet advertising and search industries are discussed in depth, as are Google's strategy, organization, culture, and the company's ongoing competition with Microsoft's Bing in search, and Apple in the smart phone business. This is a great case for discussing industry analysis, business level strategy, strategy implementation through organization, and technological paradigm shifts.