Google’s Competitive Strategy

In: Business and Management

Submitted By wangli01
Words 1000
Pages 4
Google’s Competitive Strategy
Tiffin University
MGT622 Strategic Management
Li Wang

Google’s Competitive Strategy
Google was the leading Internet search firm in 2012, with a nearly 67 percent market share in search from home and work computers and a 95 percent share in searches performed from mobile devices (Gamble, 2012). It started out as a search engine company but in the next few years it added various products such as Gmail, Maps, Earth, and YouTube that all of them has millions of users and become benchmarks in their own industry. In 2007, Google developed its operating system Android and released an open source browser Chrome that both had considerable market share. However, its social network product Google Plus released in 2011 faced a failure by competing with Facebook, Google believed it would finally grow to challenge Facebook though.
Due to its target market and special product attributes, Google can be seen as a company that “concentrates on well-defined market niche keyed to a particular product”. So Google applies a focused differentiation strategy.
“Successful competitive strategies are resource-based. For a company’s competitive strategy to succeed in delivering good performance and the intended competitive edge over rivals, it has to be well-matched to a company’s internal situation and underpinned by an appropriate set of resources, know-how, and competitive capabilities” (Thompson, 2012).
To succeed in the focused differentiation strategy, Google must have the capability to do an outstanding job of satisfying the needs and expectations of niche buyers, as well as to incorporate unique attributes into its product that worth paying for.
So this essay is aimed to identify Google’s resources and then analysis its strengths, weaknesses, opportunities and threats to see how Google can utilize its resources to compete with its…...

Similar Documents

Competitive Strategy

...Competitive Strategies: Apple Vs. Microsoft Paul Brouse BUS 508 February 4, 2013 Competitive Strategies: Apple Vs. Microsoft Since the mid-80s Apple and Microsoft have been locked in a heavy weight battle to become king in the technology industry. While Apple released its first Macintosh computer in 1984, Microsoft followed shortly after with the release of Windows 1.0 just a year later. The two struggled to gain a foothold on the market, and have been trying to outdo one another ever since. Corporate Culture Apple has long been known to have a very uncompromising corporate culture. For years Steve Jobs ran the company as a perfectionist who, while very successful, was not typically willing to alter his vision in any way. Where some corporations are a collaboration between the ideas of many individuals with some give and take, Apple products were almost one hundred percent Steve Jobs uncompromising vision. With Microsoft Windows maintaining a huge market share in the personal computing business, Apple never swayed from the concept of putting their Mac OS only on Apple hardware, instead of licensing it to various hardware manufacturers so that it may be on a wide variety of systems. Apple has always been about the vision of Steve Jobs, and the man was almost more of a designer than a technology guru, which is an indication of why the Apple iPhone with its superior design has been so successful. Another noticeable concept of Apple’s corporate culture is its......

Words: 1517 - Pages: 7

Competitive Strategies

...STRATEGIC MANAGEMENT Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. This definition captures two main elements that go to the heart of the field of strategic management. First, the strategic management of an organization entails three ongoing processes: analysis, decisions, and actions. That is, strategic management is concerned with the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and external environment of the organization. Next, leaders must make strategic decisions. These decisions, broadly speaking, address two basic questions: What industries should we compete in? How should we compete in those industries? These questions also often involve an organization’s domestic as well as its international operations. And last are the actions that must be taken. Decisions are of little use, of course, unless they are acted on. Firms must take the necessary actions to implement their strategies. This requires leaders to allocate the necessary resources and to design the organization to bring the intended strategies to reality. As we will see in the next section, this is an ongoing, evolving process that requires a great deal of interaction among these three processes. Second, the essence of strategic management is the study of why some firms outperform others. Thus, managers need to determine how a firm...

Words: 1650 - Pages: 7

Google’s Strategy in 2010

...CASE 12 Google’s Strategy in 2010 Assignment Questions 1. Discuss competition in the search industry. Which of the five competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness? 2. How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years? 3. What are the key factors that define success in the industry? What are the key competencies, capabilities, and resources of successful search engine companies? 4. Describe Google’s customer value proposition and profit formula linked to its business model. What strategies has Google relied upon to build competitive advantage in the industry? 5. Have Google’s business model and strategy proven to be successful? Should investors be impressed with the company’s financial performance? How does the company’s financial performance compare to that of Microsoft and Yahoo? Please conduct a financial analysis to support your position—you may wish to use the financial ratios presented in the Table 4.1 of the text as a guide in doing your financial analysis of the company. 6. What are the company’s key resources and competitive capabilities? What competitive liabilities and resource weaknesses does it have? What opportunities exist? What threats to its continued success are present? 7. What recommendations would you make to Google’s top-management team to sustain its competitive advantage in the search industry? How......

Words: 251 - Pages: 2

Competitive Strategies

...Competitive Strategies Case Study Assignment 2 STUDENT NAME: Professor: Dr. Wright BUS 508: Contemporary Business Raleigh, NC May 5, 2013 Determine how each corporate differs from the other The corporate cultures of the two companies are very different. One example. GM pulled its ads from Face book. Ford is doing more with Facebook. Another, GM bailed out by the government, Ford weathered the storm. The social media strategy of each company is extremely interesting. GM is going to go the traditional route. Ford has embraced the tools of social media to connect with its customers. I think that gives Ford a competitive edge. General Motors Company is an American multinational automotive corporation headquartered in Detroit, Michigan, and among the world's largest automakers by vehicle unit sales, employing 202,000 people and doing business in some 157 countries. They also have five different business segments. They also provide on star vehicles safety, security and information system. As the second-largest automobile company in the world, Ford Motor Company represents a $164 billion multinational business empire. Known primarily as a manufacturer of automobiles, Ford also operates Ford Credit, which generates more than $3 billion in income, and owns The Hertz Corporation, the largest automobile rental......

Words: 772 - Pages: 4

Competitive Strategies

...environments using environmental scanning and objective 2.2, Determine relevant business competitive strategies are the easiest parts of the reading this week to understand. The team has decided that most difficult objective to understand is objective 2.4, choose measurement guidelines to verify strategy effectiveness. The team believes that objective 2.1 is easy to understand because it encompasses environmental scanning, this just takes a good look at the organization to help determine the strengths, weakness, and resources available internally. In the reading we began to understand that environmental scanning involves studying an organizations industry or business field along with opportunities and threats from an external perspective. Our team came to the conclusion that 2.1 is basically like the SWOT analysis. Companies should use this objective to scan its market for opportunities and make the essential adjustments or change to remain competitive. When the team analyzed objective 2.1, we had some question regarding how can an organization prepare for a new product, especially when it has not been launched. What are the steps and how are a company to prepare for a new or potential threat? Our Team C has analyzed the aforementioned questions and had developed solutions. One solution is that a company can launch a new product by just creating value from the onset to sustain a competitive advantage. Creating value is difficult sometimes especially, when everyone......

Words: 817 - Pages: 4

Google's Strategy in 2011

...Fall 13 Fall 13 Google’s Strategy in 2011 Zhengzheng Bao, Brian Haggard, Win Qin Google strives to “organize the world’s information … and make it universally accessible and useful”. The most effective and profitable way to accomplish this mission is to put the needs of Google’s users first. How will Google accomplish this immense goal in an ever-changing market? Google’s Strategy in 2011 Zhengzheng Bao, Brian Haggard, Win Qin Google strives to “organize the world’s information … and make it universally accessible and useful”. The most effective and profitable way to accomplish this mission is to put the needs of Google’s users first. How will Google accomplish this immense goal in an ever-changing market? 08 Fall 08 Fall BA5080-Business Strategy BA5080-Business Strategy Table of Contents 1 Executive Summary 3 2 Analysis 6 3 Appendix 14 4 Specific Strategic Statement 17 5 Functional Strategies 17 6 Critical Assumptions 17 7 Works Cited 19 Executive Summary In January of 1996 an Internet search engine company initially named BackRub soon grew into what is now Google Incorporated.  Partners Larry Page and Sergey Brin, along with a few investors lived on a shoestring budget.  By year-end 1998 Google Inc. was handling 10,000 search queries each day.  Google was also voted one of the top 100 Web Sites and Search Engines in 1998.  Google was recording successes at a lighting speed pace and embarked on their Initial......

Words: 3975 - Pages: 16

Competitive Strategies

...Competitive Strategies and Government Policies Learning Team A ECO/365 Competitive Strategies and Government Policies To call the automobile the single most important contribution to fuel the wheels of industry for the last century might be an understatement. Not only did this new invention and the market it created change the literal face of this nation, it created hundreds of new markets and industrial opportunities for a rapidly growing country (U.S. Department of Transportation). In the driver’s seat of this revolutionary new world was Henry Ford and Detroit; also known as the motor city. The landscape of the auto industry has seen significant changes over the century, be it mergers, new players, buy outs, labor disputes, federal loans, federal regulations, economic booms, and economic disasters. The industry and its ever changing climate has been endured and survived by 3 major American companies, a handful of companies originating in Japan, and a few higher-end manufactures in Europe. The industry has seen its fair share of changes over the decades, mostly consumer driven, but not limited to. The highway system and most of the safety innovations we have seen over the century have been direct results of the automobile industry (FEDERAL MOTOR VEHICLE SAFETY STANDARDS AND REGULATIONS U.S., 2011). The automobile industry today is much the same, with companies competing to provide consumers with the lasts in driving technology. One of the biggest......

Words: 1821 - Pages: 8


...Forum to be rigorous and relevant to business context in future. Month July Programme A Marketer's View of Competitive Strategy Director PROF. JOHN A. CZEPIEL New York University, Leonard N. Stern School of Business Place Delhi Hyderabad Chennai Bangalore Delhi Pune Mumbai Bangalore Delhi Hyderabad Bangalore Chennai Date 12th July ’10 14th July ’10 16th July ’10 19th July ’10 20th August ’10 16th August’10 19th August ’10 17th August ’10 9th September’10 10th September’10 13th September’10 14th September’10 August Retail Competition: Strategies PROF. VISHAL SINGH in the Changing Retail New York University, Leonard Landscape N. Stern School of Business September Financial Risk Managment and the 2008 financial Crisis PROF. PIETRO VERONESI University of Chicago Booth School of Business Contact us: Daya Jadhav (Mumbai / Pune) M. : +91 9870702408 S. Devi Swapna (Chennai) M. : +91 9962022191 Sameera Sachdev (Delhi) M. : +91 9873912328 Shraddha Nanavaty (Bengaluru) M. : +91 9900985483 Deepak Kallakuri (Hyderabad) M. : +91 9849041318 Prasun Kumar (Ahemdabad) M. : +91 9376163199 July 2010 A Marketer's View of Competitive Strategy Delhi 12th July ’10 Hyderabad 14th July ’10 Chennai 16th July ’10 Bangalore 19th July ’10 • • • To......

Words: 1870 - Pages: 8

Competitive Strategies

...Competitive Strategies with Mobile Phone Providers ECO/365 Competitive Strategies with Mobile Phone Providers The following report details cellphone analysis that will deal with cellphone services. In order for the different existing cellphone providers such as AT&T, Sprint, Verizon, T-Mobile, and Metro PCS to survive in the business market, they need to implement competitive strategies. It will establish stability and profitability in the long term. The key personnel and maintain for each service is the customer's loyalty. Mobile phone providers can have a challenge entering in today’s market. For a new company to be successful they would need to find a way to give the customers phones and service cheaper than the other companies or have a new innovative phone available. T-Mobile does not require their customers to have a contract making the upgrade at the contract renewal time obsolete. The purchase of the initial phone when signing up with T-Mobile is where they make most of their money. The monthly plans with T-Mobile are not exorbitantly priced giving them an edge on the other phone companies. T-Mobile was also the first to give customers access to international services for free. A new smaller provider can be merged with one of the larger companies easily. It would be a horizontal merger between these companies because they provide the same services. In 2004 AT&T merged with Cingular Wireless. This merger gave Cingular customers a wider network to use...

Words: 1923 - Pages: 8

Google's Strategy

...To understand Google’s strategy lets delve deep into the years since 1998 and look into the way google evolved from an innovative search engine to a way of life. Google started initially with just Search, offering ways to find answers to user’s questions. This was during the period from 1998 to 2001. In 2001 google added tabs to offer users ways to search for other things online, including images. The tabs stayed on and “briefly crossed over Google’s Gmail and Calendar” to offer useful links atop those web apps. Starting with 2007, Google added a navigation bar atop, which included links to search items and Google apps. The navigation bar morphed into the Google menu in 2011, which offered a slicker, redesigned user interface ready to take users to their desired Google application and featuring a prominent placement for Google+. Starting with 2012, Google brought a major new element to search, the Google Now virtual assistant that debuted on Android and expanded on iOS and the desktop to deliver even more personal search results to users. Google has further refined in the following years, by offering a minimal navigation bar that doesn’t “steal” the user’s attention. The bar however still offers access to apps and Google’s Google+ social network. Google also added voice-based search support to, as well as quick access to favorite sites. Helping people get around online is still Google’s main product and everything else it does is......

Words: 1018 - Pages: 5

Competitive Strategies

...Competitive Strategies and Government Policies Paper Maryna Lambropoulos, Trenton Acrey, Jose Esquivel & Jorge Benitez ECO/365 January 7, 2015 Matthew Mulyanto Competitive Strategies and Government Strategies Paper Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified financial services company with $1.6 trillion in assets. Founded in 1852, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, approx. 12,500 ATMs, online banking and asset management at, and mobile apps for mobile devices so you can access your accounts on the go. With headquarters located in San Francisco, Wells Fargo has more than 265,000 team members in 36 countries across our approximately 90 businesses. At the end of the third quarter 2014, Wells Fargo ranked fourth in assets among United States banks and was the world’s most valuable bank by market capitalization. In 2013, Euromoney named Wells Fargo “Best Bank” in its Global Awards for Excellence, the first time a United States based bank has won the top award. Wells Fargo Bank is one of the largest banks in the United States. Prior to 2008 through 2010, WFB had many United States based competitors, but that number has decreased due to bank failures and mergers. The number of United States Banks fell by 12% between December 2006 and December 2010. During that same period, U.S. deposits held by the 10 largest banks rose......

Words: 1489 - Pages: 6

Competitive Strategy

...these resources. While the resource perspective varies among the different articles, the unifying themes are: the optimum utilization of resources drives above normal performance, utilization of resources would adapt to changing environments, and a unified strategy must exist to manage the resources. According to the resource based school, Barney articulates his vision of resources as comprising of the financial, physical, human, and organizational attributes of the firm. Similar to the other articles, Barney states that above normal performance could be derived from competitive advantages resulting from one or more of a firm’s resources and capabilities. In contrast to the other articles, Barney states that in order for a firm’s resource to lead to competitive advantages, it must add value, be rare, be non-imitable, and be implemented in a well-organized fashion. Barney does not elaborate on the process of acquisition and development of valuable resources, but focuses on what makes a resource valuable. In the same vein, Peteraf states that the appropriate utilization of resources could lead to a sustained competitive advantage. Like Barney, she states four conditions by which a resource could lead to a competitive advantage; however, Peteraf expands her analysis to the acquisition/development of resources and maintenance of the same. According to Peteraf, resources should have heterogeneity and imperfect mobility. These requirements are loosely related to Barney’s......

Words: 1113 - Pages: 5

Competitive Strategy

...Assignment 1 – Competitive Strategy Group Members: Abhishek Rana, Matthew Ross, Michele De Simon, Mohit Kumar How would the different theories discussed by Conner (1991) explain differences in performance among firms? Conner has discussed the differences in performances amongst firms by analyzing the following list of theories: 1. Neo-Classical Theory: Performance is the same across the industry because the industry is characterized by ‘Perfect Competition’. Perfect competition comprises of the following assumptions – Larger number of buyers and suppliers, Homogeneity of the demand, Mobility of resources and Rationality of complete market information. Therefore in such a market setting firms cannot achieve economic profit. 2. Bain-type IO Theory: Above normal performance could be achieved only through collusion encouragement, which in turn leads to monopoly. In an industry characterized by collusion and monopoly, the largest firm has the power to set prices and expand its own market share further, leading to above normal performance. 3. Schumpeter Theory: The core of this theory states that the performance of a firm is driven by Innovation. Monopoly is a more favorable condition for process of innovation because it decreases inherent investment risks involved. Through innovation a firm can achieve indistinctive competence and edge over competitors leading to higher returns and performance. 4. Chicago Theory: This theory is driven by efficiency in......

Words: 1196 - Pages: 5

Google’s Strategy in 2008

...were immediately searching for. In 2008, Google was the worldwide leader in Internet and mobile search advertising because of consumers’ faith in the search engine. Internet users trusted Google’s results because its paid search results were not interspersed with other search results and were clearly marked as Sponsor Links. Perhaps Google’s most important feature was its capability to retrieve highly relevant results to search queries that was made possible by its innovative text-matching techniques and PageRank technology. Internet users’ preference for Google’s search results produced 2007 revenues of nearly $16.5 billion and profits of more than $4.2 billion. The highly scaleable business model added relatively little additional fixed cost as volume increased, which helped boost the company’s cash, cash equivalents and marketable securities to $14.2 billion at the end of 2007. Google’s stellar growth rate in revenues and net income was destined to continue into 2008, since its revenues and net income for the first nine months of the fiscal year stood at $16.1 billion and $3.8 billion, respectively. Neither Microsoft’s Live Search nor Yahoo, which were the industry’s second and third most used search engines, seemed capable of slowing Google’s growth in 2008. 741 742 Case 14 Google’s Strategy in 2008 With Google controlling the market for search based ads, much of the company’s attention was focused on new initiatives that might allow the company to sustain its......

Words: 1803 - Pages: 8

Competitive Strategy

...Strategy Writings[1] Dr. Mary A. Hamilton MBA, Ph.D. University of Rhode Island Dr. Mark Lehrer Ph.D. University of Rhode Island Module #1: Introduction by Mark Lehrer 3 Module #2: Industry Analysis by Mark Lehrer 6 Rivalry 8 Entrants 9 Bargaining Power of Suppliers / Buyers 9 Two Cases: Breakfast Cereal and Personal Computers 9 Module #3: Value Chain Analysis by Mark Lehrer 12 Module #4: Industry Value Chains by Mark Lehrer 16 Module #5a: Generic Strategies (by Mary Hamilton) 16 Module #5b: Resource-Based View (by Mary Hamilton 16 Module #6: Industry Life Cycle (by Mark Lehrer) 16 Module #7: Competitive Strategy by Mary A. Hamilton 16 Theory 16 Types of Competitive Strategy 18 Offensive strategies 18 Defensive strategies 19 Collusive Strategies 19 Strategic alliances 20 Application 21 Module #8: Business Models by Mark Lehrer 23 Beyond Strategizing 23 Business Models: A Typology 23 Business Models Beyond the Internet 25 Module #9: Corporate Level Strategy by Mark Lehrer 28 Module #10: International Strategy by Mary A. Hamilton 28 Global Opportunities 28 International Strategic Orientation 29 National Advantages 31 Mode of Entry 32 Competitive Performance 33 Module #1: Introduction by Mark Lehrer How can one introduce such a multifaceted subject as strategy? What is strategy? Why does it matter? The concept of strategy comes......

Words: 11026 - Pages: 45

I am not satisfied with the viewing links quality! | Project : Battle APK | Watch now!