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Describe Google 's business model. What strategies has Google relied upon to build competitive advantage in the industry?

The Google business model is one built around its primary business of licensing fees for supplying search functions to corporate clients and content-targeting advertising. The company utilizes its popular internet search engine to match Google advertisers with Internet users. It targets advertising to search results which are more likely to attract potential customers. The Google philosophy to "do one thing really, really well" , its search function, has built its loyal customer base and its success has enabled Google to enhance the features it offers to more than just search. Google competitive strategies are aimed squarely at holding and increasing their core customer base, internet search users and advertisers, and building on their dominant position as the search engine of choice by broadening the number of products that they offer.

The Google Search Engine

Designed to help people retrieve information from either a computer network within an organisation or the World Wide Web, Google 's search engine differs from prior engines in that it sorts information by a ranking of relevance. This relevance is determined by the number of times other web pages refer users to a particular webpage to find their requested information. An uncluttered and clear user interface simplifies the search function. Users are able to get fast and more relevant results to their search queries. This initially helped to form the competitive advantage which Google once held over its rival search engines, since imitated by Microsoft with its MSN Search. The relative ease of the search interface for internet search users has helped to place Google firmly in the position as the current US market leader, as shown in Table 1.

Table 1: Top 4 Search Providers for May 2007, Ranked by Searches (U.S.)
Source: Nielsen//NetRatings MegaView Search, June 2007

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References: Niccolai J(2007)"Google 's back-up plan: the enterprise. Eric Schmidt said Google 's enterprise business will keep the company thriving if the online ad market ever crashes." Retrieved from the web 16th July 2007 from www.computerworld.com. Available on the web at http://www.computerworld.com.au/index.php/id;1761895540 Porter, M (1979) How competitive forces shape strategy Harvard Business Review 57, 2 (March April 1979) 137-45. Schwankert S. (2007) "Google trails in Asian markets. Google is playing catch-up in Asia, according to a new survey released Sunday." Retrieved from the web 16th July 2007 from www.computerworld.com. Available on the web at http://www.computerworld.com.au/index.php/id;1302860366 Thompson Jr. AA, Strickland (111) AJ, Gamble JE, (2007) Crafting & Executing Strategy: The quest for competitive advantage 15th Edition, McGraw Hill/Irwin, New York. Thompson C (2006) "Google 's China Problem (and China 's Google Problem)" New York Times, Published April 23, 2006 Retrieved from the internet 16th July 2007. Available on the internet at http://www.nytimes.com/2006/04/23/magazine/23google.html?pagewanted=1&ei=5090&en=972002761056363f&ex=1303444800

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