Issues: Google Inc.3
Strategies for Google Inc.5
Better Search Engine:5
Improve web-based productivity applications:5
Real Time Search:6
Views (strategy suggested):6
New Strategies for GOOGLE INC.7
GOOGLE INC. STRATEGIC ANALYSIS
Google has been starting its business as the search engine industry leader through innovation and product development. Google consist of the external environment for the internet search engine industry and also the financial and internal environment for Google, but however there consists some gaps between these environments such as problem in utilizing its core competency, search technology, product innovation and so on. Since there exist very high and intense competition, so the industry with new innovation and ideas, it will determine which companies to survive. In case of Google Inc. developing and implementing reliable mobile search will provide the firm the opportunity to apply its core technology to a new segment of the search industry. Beside this, cloud computing offers Google the opportunity to develop new products to use to diversify its current business model. The scope of Google is to organize the world’s information and make it universally accessible and useful through search, ads, applications, and mobile technology through their dedication to their users and the endless opportunities of the internet (Google Inc., 2009). There are some gaps between the external environment and Google’s internal capabilities which the company should address. And it can be identified through the SWOT analysis of the company.
The main/intense competition that Google is facing is with Yahoo and Microsoft but beside these it also faces the completions with small startup companies with unique technology. So in order to maintain a competitive advantage in the industry, Google must continue to expand their product portfolio. Google, Yahoo and Microsoft dominate the industry with 90.4% combined market share. Google is the industry leader with a market share of 51.4%, Yahoo is second with 23.8% share followed by Microsoft with 14.2% share.
In comparing the resources and capabilities of Google with the industry’s key success factors, several gaps were identified.
For the supply side, the competition is intense. This requires companies in the industry to spend significantly on R&D to continually develop new products and services. This can result in companies spreading themselves too thin. Because Google has grown so fast and so quickly, many are concerned that they are approaching this point. Another gap, which is a lack of product integration. Although Google continues to add new products to the portfolio, in some cases these products do not fully complement each other. As they continue to move to more desktop applications, this will become more critical, especially with regard to developing a suitable operating system.
On the demand side, the major gaps concern providing quantity and quality of information to potential advertisers. Although Google has a dominant position in the search industry, one area for improvement is in the mobile search segment. This is a growing sector of the business and growth opportunities fit with Google’s core competency. Another potential area for improvement is the quality of their search in order to return more accurate results. This would benefit both the end users and advertisers.
The final gap concerns Google’s performance in China. This is a huge potential market but Google is currently facing many obstacles including government intervention and the success of a “local” provider, Baidu. At this time, the company has adopted a strategy of holding onto the share they have and waiting.
Gap Analysis of Google Inc. (SWOT Analysis) :
Strengths: * Strong Brand recognition * Innovative initiatives * Revenue from...