Google's Bcg Matrix

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Google is the crucial contributor to make global village possible by interlinking every part of world together via internet. It is also excellent in diversifying risk by creating different businesses including search appliance, mobile search, cloud computing and internet advertising. This article is divided as two parts---first part is to analyze Google’s businesses by using BCG matrix. [1] Then, another part is useful recommendations on how Google can formulate corresponding strategies to capture and sustain competitive advantage in each business. BCG matrix is commonly used to analyze business portfolio by comparing relative ratio of one’s market share to the largest competitor’s in the industry. Google’s search industry is cash cow which has high relative market share and generates large amount of cash to support other divisions. In June 2009, Google accounted for 65% in search market while Yahoo! occupied 19.6% only. [2] Furthermore, both mobile search and cloud computing are stars with high relative market share and growth rate. In 2008, 63% of searches on internet-enabled mobile phones were come from Google browser. [2] Google expects mobile search will have high growth rate in foreseeable future so it decides to dominate this industry by continuous product development. Cloud computing is another business that Google puts utmost emphasis on. With its growth potential, Google predicts that it will grow to a $95 billion market in 2013. [2] Google’s other emerging markets are question marks that currently have low market share but potential growth is foreseeable because of considerable amount of population in these markets. Hence, ongoing development is needed to transfer these emerging markets from question marks to stars. After identifying status of different divisions, corresponding strategies can be established to sustain competitive advantages or enlarge the markets. The followings are my recommendations to each Google’s division: Firstly, with regard to current successful Google’s search appliance, product improvement and diversification are important to sustain competitive advantage. For product improvement, Google can consider to purchase satellites to strengthen its internet infrastructures, enhance speed of internet access and improve connection accessibility in developing countries. [3] Although it involves huge amount in infrastructure investment, future profit is guaranteed especially in a business world regarding time as money. For product diversification, Google’s search technology can be expanded from internet to intranet targeting business sectors. [2] The search appliance can be tailor-made to particular company and allow employees to search company’s internal documents. It can enhance information flow and knowledge transfer throughout the entire company, however, security feature should be inserted in search appliance to ensure no outsider or business spy can access to those confidential documents via intranet. In terms of mobile search, Google should strengthen its dominant position by making the search become more advanced. For instance, introducing voice search [4] in which mobile users just speak keywords of search topic instead of typing or writing them via touchpad, then Google transcribes the voice and starts the search process. It further enhances users’ convenience which will increase browse rate in future. However, users from different cultural backgrounds may not have correct accent and external noise can affect voice recognition. To overcome it, Google can match users’ keywords with search popularity from their browse history in order to validate voice recognition. Hence, mobile search becomes more personalized to users. Google’s clouding computing, a software platform, is another important division that gains lots of attention. It offers software pack including word-processor and spreadsheet that can be comparable to Microsoft Office pack. However, it is more attractive than Microsoft...
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