Case Study 8
1) Google management believed its main competitors to be Microsoft (Bing) and Yahoo!. But many other competitors out there exist like Ask.com and AOL for examples. Google’s strongest competitive force is their search engine. It is hard to substitute Google’s technology. Google uses 500 million variables and 2 billion terms to generate a list of best-matching search results. It is generated in a fraction of seconds. Internet users found Google’s search results more relevant than results generated by competing search engines. The weakest competitive force would be Orkut which was a complete flop. It could not serve as a substitute to facebook.com or myspace.com. I would say the industry attractiveness is very good. You can diversify like Google did and expand upon profits. For example AdWords allows advertisers either independently through Google’s automated tools or with the assistance of Google’s marketing teams to create text-based ads that would appear along Google search results. This allowed Google to generate great revenue through a specific target market. 2) Things could take a downturn even because of the recession with people cutting back on spending and companies cutting back on marketing expenses. Thus Google’s strategic priorities might be focused on expanding its applications for mobile phone users with the launch of Android and pushing forward with its plan to become the dominant provider of cloud computing solutions. Cloud computing software would allow corporate software user to access Google’s data centers to run software applications and store files that might be needed by other users engaged in collaborative projects. Many companies are cutting back on traveling and doing workshops but this allows for companies to still operate together as one unit. Especially international businesses. Many IT analysts agreed cloud computing could grow to a $95 billion market by 2013. 3) Success in the industry is not on search results it is:
a) Marketing and Advertising – Google has revenue from the placement of highly
targeted text-only sponsor ads to its search results.
b) Searching techniques – Notice the results are an afterthought. Google uses 500
million variables and 2 billion terms to generate a list of best-matching search results.
c) Diversification – many users on the internet go to one search engine for their e-mail,
travel tips and reviews, directions, and even web based documents! Key competencies:
Fast search engine results and accuracy of those results: results. It is generated in a
fraction of seconds. Internet users found Google’s search results more relevant than
results generated by competing search engines.
Market Share: As of June 2009, Google has 65% of the search engines amongst Google,
Yahoo, Microsoft, AOL, etc…
Advertising: It has the largest market share amongst search engines by a wide margin
and has a highly targeted audience for those ads.
Android Software: I feel as if there are only 2 phones anymore the IPhone or another
phone with the Android Software. Android has provided as an excellent substitute to
the IPhone. Microsoft is pretty much absent in the market as for these are the industry
giants. 4) Google’s value propositions providing cheap software compared to their competitors. Google Apps (which includes Gmail, a calendar, instant messaging, word processing, spreadsheets, presentation software, and file storage space) could be licensed for $50 a year compared to Microsoft’s $350 per year. Goggle Chrome browser was also launched but is free like other browser like Mozilla and Internet Explorer. Chrome is supposed to be a smoother and more efficient browser. Google’s business model had evolved since the company’s inception to include revenue beyond licensing fees charges to corporations needing search capabilities on company intranets or web sites. The addition of advertising...
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