Google's Competitive Strategy

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Google is a global technology company focused on improving the ways in which people find and use information. It began in 1996 as research project by Larry Page & Sergey Brin who came up with a plan to make a search engine to rank websites according to the number of other websites that link to it. It registered its domain “ in 1997 and later 1998 Google corporation located in Mountainview California was formed. Since then Google has developed lots of utility products and services for the public most of them at no cost or at low cost some of which; includes Gmail, Google Maps, and Google Chrome etc. The impact of the innovation

Innovation is rapidly becoming a capability that strengthens and focuses the corporate strategies. Over time has become a key enabler to many corporate goals and strategies. This has been driven by increased rate of change in competition. Google is among the most innovative company, it offers search products that fill a niche which is not covered by its competitors. It acts as a competitive threat to its competitors, forcing them to invest more in their search product and, in the process, improving the quality and of search data for every user on the Internet. It does innovate in some spaces but has largely innovated in order to gain entry in markets that already existed because innovation is the key driver of competitive advantage, growth, and profitability.  Firms which are successful in realizing the full returns from their technologies and innovations are able to match their technological development with complementary expertise in other areas of their business, such as manufacturing, distribution, human resources, marketing and customer services. The most important components in the field of innovation include strategy innovation, new product and idea management. A firm can adopt radical innovation which is concerned with exploration of new technology and from incremental innovation that is concerned with exploitation of existing technology. Radical innovation is a product, process, or service with familiar features that offer potential for significant improvements in performance and cost. It creates such a dramatic change in processes, products, or services that they transform existing markets or industries, or create new ones. Product innovation makes a company remain competitive, but process innovations are important because they often reduce costs, and it may take competitors a significant amount of time to discover and imitate them. Google is competes with Microsoft all specialising in search, collaboration tools and browsers. Undoubtedly, Google is the leader in search. That’s what they specialized in and continues to be their most cherished asset. It has outwitted its competitors by delivering solid search results and cool tools such as Street Views. Microsoft sites have increased their search share from 10.7% in August 2009 to 13.9% in August 2010 while Yahoo! has fallen from 16% a year ago to its current 13.1%, Google held steady at 65% Sean (2010). Though Microsoft is leading in browsing, but there is a steep competition between Google chrome and Internet Explorer. According to Ryan (2010), Chrome had continued to gain market from 6.1% to 6.73% against its rivals Firefox 24.59%, Opera, forcing Internet explorer to fall from 60.65% in 2009 to 59.95%.

A long term corporate success is linked to the ability to innovate. Although corporate investment in improvements to existing products and processes does bring growth, it is new game changing breakthroughs that will launch company into new markets, enable rapid growth, and create high return on investment. Therefore focal point of a corporate strategy should be to have a sustainable competitive advantage. This will enable a firm to survive against its competition over a long period of time. The resource based view argues that a sustainable competitive advantage is achieved by continuously developing existing...
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