Enviornmental Scan

Topics: Strategic management, Google, Management Pages: 4 (1403 words) Published: May 1, 2013
Environmental Scan
Conducting an environmental scan is the first step in developing a quality strategic plan for a firm moving forward. All major corporations use a variation of this technique in their planning process. Google and Kroger are two very different companies, but they both evaluate their competitive environment both internally and externally prior to developing future plans. I intend to determine each companies competitive advantage and what strategies they use to attain them. Google’s mission is “to organize the world’s information and make it universally accessible and useful” (Google Inc, p. 1). Sheer size is Google’s number one competitive advantage. In 2011 Google averaged over 4.5 billion searches per day (statistic brain, 2012), which is equal to approximately 66% of the market share. Compare this to Yahoo’s 13% of the market, and it is easy to see that the data that Google uses to compile statistics is excessively unequal. Google uses advanced analytics to measure the Internet usage history of its customers. This technology combined with the unequal amount of information allows them to improve its advertising campaigns at alarming rates. Google creates value through its simplicity. The data collected enables them to provide the user with a quality link within their search criteria in the first few options. The value to the user is also increased because the search results are not limited to well-known subjects such as professional sports teams and celebrities. Quality links will be found for equally unknown queries such as lawn mower replacement parts and home remedies. This rare ability coupled with the sites extreme ease of use proves that Google has created a sustainable business strategy. Google has earned enough money for its major stakeholder to supply its ownership a luxurious lifestyle 10 times over. This makes it highly unlikely that they are motivated by the monetary success that most business owners would gauge their...
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