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Case Study 5

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12 views1 page

Case Study 5

Uploaded by

Sibib
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Google had been growing steadily since whiz kids Larry Page and Sergey Brin had

founded the company in 1998. Furthermore, its growth had been built on a reliable,
market-dominating product: a unique and effective search engine.

So why weren’t these projections showing a more positive picture of Google’s growth
potential? Or were the financial analysts making some faulty assumptions? If they
were advising a value investor who was taking a look at Google, would they
recommend the investment at today’s stock price or not? And why or why not? They
kept staring at the calculation of discounted cash flow projections (NPV), hoping that
the answer would somehow materialize before his eyes.

Questions:

Analyze Google’s current situation—the state of the company today (2013).

 What can you discern about Google’s strategy?


 About Google’s competitive position?
 About Google’s prospects for the future?
 How do these inform your assessment of its current stock price?

In the real world, all relevant case facts and information will not be handed to you.
Analysis of this case requires the collection of data and information from public
sources. In doing research, you will cultivate your skill in making sense out of a
tremendous amount of information—or lack of it—and determining what is relevant
data that ought to guide your strategic analysis. The ultimate test of your skill as a
strategic analyst is whether you have the tools and judgment to make sense of the
information available and to make strategic decisions in the face of a great deal of
uncertainty.
Preparation should be neither more nor less time-consuming than that for a typical
case discussion. Good places to start collecting information include the company
website, its annual report and financials, and comprehensive databases such as
Hoover’s and Bloomberg. If you think that a particular piece of information is relevant
to our discussion of Google’s strategy, come prepared to discuss it.

That said, do not spend an inordinate amount of time on simple “case facts.”
Instead, employ the tools you have learned at EGP Strategy class to do some analysis
of Google.

Use the following tools:

SWOT analysis
Porter analysis
Value chain analysis
BCG matrix
Key factors of success analysis

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