Google Strategic Audit

Topics: Google, Web search engine, Advertising Pages: 9 (2933 words) Published: March 20, 2011
Executive Summary:
Beginning in the 1990’s, the world has witnessed a tremendous growth in the World Wide Web. This boom has resulted in an unstoppable technological revolution that continuous to change our lives. The 20th century has blossomed with the rapid expansion of the Internet. Yet, this expansion has brought with it both, opportunities and challenges; particularly, in the “dot- com” industry. As a result, companies of all kinds employed the Internet as a tool to expand their business reach. For others, the Internet was a new “gold mine” that gave birth to a multi-billion dollar business, named “Google”. Google is one of the most successful corporations that have ever been established. Through innovation, persistence, growth, and cooperation, Google has become a major public corporation in the United States. Today, it is a recognizable world brand, a technology leader, and a top Internet destination. “Google is everyone’s friend”. Google made the search engine industry a pleasant experience for every party involved. Investors, users, and employees were at the heart of Google’s business; as a result, they were the main reasons behind its success. Google is not merely a search engine; it is a legend, a role model, and a company that has always been first to explore new opportunities, expands, takes risks, and succeeds.

Conducting a strategic audit in an essential process in order to assess Google’s strategy and evaluate its performance. This multi- stage process will help us develop a conceptual understanding of the company’s opportunities and threats. In addition, it will set the first step towards establishing precise and solid business goals. In the long run, these goals will enable the company to build on its strengths and minimize its weaknesses. In this paper, we will begin by studying the history of Google and its growth, followed by a thorough analysis of its culture and corporate governance. Similarly, we will study the external environment in order to highlight the key opportunities and threats. We will also shed the light on Porter’s five forces analysis to develop an understanding of the company’s task environment. This will be followed by an analysis of the internal environment to determine the company’s core competencies and competitive advantages. We will also study the company’s strategic direction in terms of its competitive strategy and strategic fit. Finally, we will conclude this paper by proposing some suggestions and recommendations.

General presentation of the company:
Google offers products and services that combine three giant industries; search engine, advertising, and computer software. Being the most operating and the leading internet search engine by offering targeted search results from billions Web pages. Results are based on a proprietary algorithm -- Google's technology for ranking Web pages is called PageRank. The company generates nearly all of its revenue through ad sales. Advertising companies can deliver their relevant ads targeted to search queries or Web content. The Google Network is a network of third-party customers that use Google's ad programs to deliver relevant ads to their own websites. Google subsidiaries include YouTube and DoubleClick. History:

Google was found by Sergey Brin and Larry Page who are computer science experts. There studies of methods of searching and organizing large datasets has lead to the birth of the leading internet search engine, Google. Google was found in the year 1997 after the discovery of the formula that ranks the order of random search resultants by relevancy. After proposing to the World Wide Web in 1999 and raising $30 million from private investors, Google was launched. The entrance to the Advertising industry was in 2001 with Google launching AdWords, the search based advertising service. Following that year Adsense was launched that specialized in context based advertising. With its $1 billion investment in...
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