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Google Case Study Questions

1. How is Google’s mission statement related to its business strategy?
Google’s mission is to make the world’s information universally accessible, demand products that support assistive technologies and provide a useful and enjoyable experience for everyone, including those with physical and cognitive limitations (Google, n.d.).

Google uses the Internet to make its’ products universally accessible. The value proposition for the Google user involves receiving free Internet tools and applications in exchange for viewing content relevant advertising. Google believes relevant advertising can be useful and enjoyable for the user (Google, nod.).

In order to increase revenue, Google must increase the number of places where it can display advertisements. Google continually creates new products which provide new advertising opportunities for Google. The advertiser is concerned with the amount of sales volume generated by the Google advertisement. Because a user is specifically searching for a topic when an ad is presented, Google advertisements are relevant to the user. When a user views a relevant ad, there is a greater likelihood that the user will purchase the product or service.

Google’s contribution to advertising relevance is the hybrid paid search ranking scheme which rank search ads based on the combination of bid price and click through rate. By adding click through rate, Google not only maximized income but also increased the relevance of those paid search ads (Moran, 2008).

2. How does Google’s information systems strategy support its business strategy?

Enterprise Alignment is defined by Fonstad and Subramani as IT and business managers working together to coordinate potential synergies across business units and local alignment efforts such as creating an efficient and effective shared IT infrastructure platform, developing common business processes, and sharing customer data across units (Fonstad & Subramani, 2009, p. 31).

The value proposition for the Google user is based on receiving free applications and services, so Google creates an IT competitive advantage by creating customized systems which are cost efficient to operate • The company purchased a 30 acre data center with low-priced hydroelectric power for computing and cooling (Claburn, 2006). • Google custom orders hardware to maximize aggregate throughput and performance (Claburn, 2006). • Google uses custom software to maximize the efficiency of the hardware (Claburn, 2006). The custom software provides a shared IT infrastructure platform for the development of new applications. The major portions of custom software include the following: o MapReduce – programming model to simplify processing and to create large data sets o BigTable – system for storing and managing massive amounts of data o Sawzall – interpreted File system, a distributed file system for data-intensive applications o Workqueue – system that groups queries and schedules them for distributed processing.

The value proposition for the Google search user involves the use of a tool that provides the most relevant results. Larry Page, co-founder of Google, stated “We stand alone in our focus on developing the perfect search engine something than understands exactly what you mean and gives you back exactly what you want (Google, n.d.).” In a quest to provide the user with the perfect search engine, Google has developed patented PageRank algorithm which provides a competitive advantage. The PageRank algorithm to examine the entire link structure of the web to determine which papers are most important (Google, n.d.). The PageRank algorithm analyzes which sites have been “voted” to be the best sources of information my other pages across the web (Google, n.d.).

3. How does Google’s organizational strategy support its business strategy?

According to the “IS Strategy Triangle” by Michele Gribbins, organizational strategy has the following three dimensions (Gribbins, 2009): 1) Administrative Infrastructure such as the organization structure, roles and responsibilities, and reporting relationships

Google demonstrates an alignment between the Administrative infrastructure and business strategy by

• Google sets a cultural expectation that all employees throughout the organization are expected to constantly innovate (Pearlson & Saunders, 2010). Google must continually improve its product portfolio to remain competitive in the industry. • Google hires employees who are creative to ensure constant innovation in the Google product line. Wayne Rosing, Google Engineering Manager, stated “We look for smart. Smart as in, do they do something weird outside of work, something off the beaten path? That translates into people who have no fear of trying difficult projects and going outside the bounds of what they know (Hammonds, 2007).” • Google creates an environment IT encourages innovation in all employees by allowing them to spend 20 percent of their time on a project of their choosing (Pearlson & Saunders, 2010). • Google creates an environment of teamwork where members work toward a shared vision which enables Google employees to collaborate on new products. . Marissa Mayer, VP Search Products and User Experience for Google stated, “The consensus-driven approach where the team works together to build a vision around what they’re building and still leaves enough room for each member of the team to participate creatively, is really inspiring and yields us some of the best outcomes we’ve had. (Elgin, 2006).

• Google challenges the current way of doing things and promotes a culture of innovation to encourage new product and process development. “Culture drives the way you do things, “says Douglas Merrill, VP of engineering for Google. “To the extent, like us, your organizational culture is unusual in important ways; you will have to build different ways of running your traditional systems (Claburn, 2006).”

• Google offers convenience features to employees to promote work-life balance such as an on-site gym, an on-site dentist, and on-site washing machines (Pearlson & Saunders, 2010, p. 44). This enables highly motivated IT developers to focus on new product development without the distractions of daily chores.

2) Management Processes and activities to implement strategy

Google demonstrates an alignment between the management processes and business strategy by

• Google focuses on the customer with the belief that if you satisfy the customer needs the revenue will follow (Pearlson & Saunders, 2010).

• Google focuses on creativity but provides the structure to make sure that the new product vision becomes a reality. Google believes in giving people a vision, rules about how to get there, and a deadline (Pearlson & Saunders, 2010).

• Google provides free meals to employees to encourage creativity and the sharing or ideas.

• Google promotes a culture of creativity by allowing employees one day per week to work on a new product development of their choice (Pearlson & Saunders, 2010).

• Google creates an environment of constant innovation. Google believes in innovation, not instant perfection: Google launches early and often in small beta tests before releasing new features (Pearlson & Saunders, 2010)

• Google believes in sharing information throughout the organization for every idea, project, and deadline to encourage collaboration (Pearlson & Saunders, 2010).

• In order to encourage innovation, Google accepts failure. “Fail, but fail early.” Stated Google Fellow Urs Holzle. Fail before you invest more than you have to or before you needlessly compromise your brand with a shoddy product. Google also uses the failures to create new products from the lessons learned in the development process (Pearlson & Saunders, 2010).

3) Organizational skills

Google demonstrates an alignment between the organizational skills and business strategy by

• Google has a very structured system in place for project implementation to ensure that decisions are made in a timely manner and plans are properly executed (Pearlson & Saunders, 2010, p. 44).

• Google encourages employees to make data driven decisions. Google tells employees not to politic to gain acceptance of new ideas, but instead use data to present the facts. (Pearlson & Saunders, 2010, p. 44)

4. Which of Porter’s three generic strategies does Google appear to be using based on this case? Provide a rationale for your response.

Google follows a differentiation strategy where products are viewed by customers as containing unique attributes. Google aims to provide a unique experience to the users of the product.

“The Google User Experience team aims to create designs that are useful, fast, simple, engaging, innovative, universal, profitable, beautiful, trustworthy, and personable. A product that gets the balance right is “Googley” – and will satisfy and delight people all over the world (Google, n.d.).”

Google differentiates by anticipating the user demand for products and to setting a new standard for the products and services provided to the user. We try to anticipate needs not yet articulated by our global audience, and meet them with products and services that set new standards (Google, n.d.).

Google differentiates by focusing on the needs of the customer to provide a superior customer experience Focus on the user and all else will follow – Since the beginning, we’ve focused on providing the best user experience possible. Whether we’re designing a new Internet browser or a new tweak to the look of your homepage, we take great care to ensure that they will ultimately serve you, rather than our own internal goal or bottom line (Google, n.d.).

Google differentiates by a focus on superior quality. It’s best to do one thing really, really well. – We do search. With one of the world’s largest research groups focused exclusively on solving search problems, we know what we do well, and how we could do it better (Google, n.d.). Through innovation and iteration, we aim to take things that work well and improve upon them in unexpected ways (Google, n.d.).

5. Using D’Aveni’s Hypercompetitive Framework, analyze Google’s strategy and the type of market disruption it created.

Google uses superior stakeholder satisfaction, strategic soothsaying, and shifting the rules of competition to disrupt the market.
1. Superior stakeholder satisfaction
Process of developing new advantages or undermining those of competitors begins with an understanding of how to satisfy customers. By discovering ways to satisfy customers, the company can identify its next moves to seize the initiative. Google accomplishes this by constantly innovating to develop new products and services for its customers.

But, in addition to satisfying the customers Google also attempts to satisfy internal stakeholders. By empowering employees, the company can gain the internal motivation and vision needed to carry out new product development efforts.

2. Strategic soothsaying

Google seeks the new knowledge necessary to predict and create new opportunities that competitors will eventually enter but that are not now served by anyone else. These opportunities can be found by creating new products, understanding trends in business environment that will open up new opportunities, and serving new customer markets with existing products.

By pre-positioning itself for speed and surprise, Google creates the ability to react quickly to opportunities in the environment or to proactively out-maneuver competitors. Marissa Mayer, Vice President of Search Products and User Experience, “We believe that we should be launching more products that what will ultimately become phenomenally popular. The way you find really successful new innovations is to release five things and hope that one or two of them really take off. I think by that metric we’ve been doing really, really well. We like to put products out there early, see what users say about them, what additional features they’d like to see, and then build those out. We’d rather put something out on Labs, have it be a little bit low-profile and grow by word of mouth. That gives the team a little bit more time to scale with the requirements. Also, it gives us some very important indications about whether or not this product fills a core need well, how big the market is, and how strong our product is relative to others (Elgin, 2006)”.

3. Shifting the rules of competition – Finding new ways to serve customers which transform the industry

Shifting the rules of competition is concerned with actions that redefine the battlefield. By shifting the rules of the game, Google creates new opportunities to satisfy customers. Google finds new ways of satisfying customers that transform the industry. Peter Norvig, Google Engineering Director stated, “The cardinal rule at Google is, if you can do something that will improve the user’s experience, do it. It is a mandate in part born of paranoia: There’s always a chance that the Google destroyer is being pieced together by two more guys in a garage (Hammonds, 2007). “

References
Claburn, T. (2006). Google Revealed: the IT Strategy That Makes IT Work. Information Week. Retrieved from http://www.informationweek.com/story/showArticle.jhtml?articleID=192300292

Claburn, T. (2006, August 28). Google Revealed: The IT Strategy That Makes It Work. Information Week,

Elgin, B. (2006). Inside Google’s New Product Process. Business Week. Retrieved from http://www.business week.com/print/technology/content/jun2006/tc20060629_411177.htm

Fonstad, N. O., & Subramani, M. (2009, March). Building Enterprise Alignment: A Case Study. MIS Quarterly Executive, 8(1), 31-41.

Google (n.d.). Google Corporate Information Business Overview. Retrieved September 16, 2009, from http://www.google.com/corporate/business.html

Google (n.d.). Google Corporate Information Our Philosophy: Ten things we know to be true. Retrieved September 17, 2009, from http://www.google.com/corporate/tenthings.html

Google (n.d.). Google Technology Overview. Retrieved September 16, 2009, from http://www.google.com/corporate/tech.html

Google (n.d.). Google User Experience. Retrieved September 16, 2009, from http://www.google.com/corporate/ux.html

Gribbins, M. L. (2009). The IS Strategy Triangle. Unpublished manuscript.

Hammonds, K. H. (2007). How Google Grows...and Grows...and Grows. Fast Company. Retrieved from http://www.fastcompany.com/node/46495/print

Moran, M. (2008). What’s Google’s Strategy?. Retrieved September 18. 2009, from http://www.mikemoran.com/biznology/archives/2008/03/whats_googles_strategy.html

Pearlson, K. E., & Saunders, C. S. (2010). Managing and Using Information Systems: A Strategic Approach (4th ed.). Hoboken, N.J.: John Wiley and Sons, Inc..

Porter, M. E. (1979). How Competitive Forces Shape Strategy. In On Competition (pp. 21-38). Boston: Harvard Business Review.

QuickMBA (1999-2007). Strategic Management - Porter’s Generic Strategies. Retrieved September 16, 2009, from http://quickmba.com/strategy/generic.shtml

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