...Competitive Strength Assessment 1. Reveals strength of firms’ competitive position. Google’s gigantic infrastructure is the big barrier to entry for its rivals, and will remain so, as long as the company keeps spending billions on it Google upholds the position as the dominant search engine in the world, with 65 percent of the total search market, according to Hitwise. To maintain Google’s competitive advantage, the company has developed an infrastructure that guarantees a fast and efficient search engine, as well as branching out their efforts in other directions beyond search. Let’s first examine the speed of an average Google search. Any random search takes between 0.06 to 0.12 seconds (Gigaom). Google’s competitive edge is traced to the fact that they’ve built their own infrastructure of servers, storage systems, bandwidth and hardware that supports the fastest search on the web. While the cost for the company is high, as Google spends billions of dollarsin development and upkeep, this competitive strategy builds a formidable wall for other general search engines, such as Bing (formerly MSN Search) which is merging with Yahoo!. At the same time, the cost of building the advanced infrastructure is an investment for Google to ensure that the cost of conducting a query keeps going down. Google’s advantage over competitors is its rapid speed that keeps users coming back. The results of the search may vary, but because of the incredible speed, a user can search...
Words: 1022 - Pages: 5
...Fall 13 Fall 13 Google’s Strategy in 2011 Zhengzheng Bao, Brian Haggard, Win Qin Google strives to “organize the world’s information … and make it universally accessible and useful”. The most effective and profitable way to accomplish this mission is to put the needs of Google’s users first. How will Google accomplish this immense goal in an ever-changing market? Google’s Strategy in 2011 Zhengzheng Bao, Brian Haggard, Win Qin Google strives to “organize the world’s information … and make it universally accessible and useful”. The most effective and profitable way to accomplish this mission is to put the needs of Google’s users first. How will Google accomplish this immense goal in an ever-changing market? 08 Fall 08 Fall BA5080-Business Strategy BA5080-Business Strategy Table of Contents 1 Executive Summary 3 2 Analysis 6 3 Appendix 14 4 Specific Strategic Statement 17 5 Functional Strategies 17 6 Critical Assumptions 17 7 Works Cited 19 Executive Summary In January of 1996 an Internet search engine company initially named BackRub soon grew into what is now Google Incorporated. Partners Larry Page and Sergey Brin, along with a few investors lived on a shoestring budget. By year-end 1998 Google Inc. was handling 10,000 search queries each day. Google was also voted one of the top 100 Web Sites and Search Engines in 1998. Google was recording successes at a lighting speed pace and embarked on their Initial Public...
Words: 3975 - Pages: 16
...OVERVIEW The number of people worldwide accessing the Internet to read breaking news, conduct library research, make consumer e-commerce transactions, use web-based business applications, and perform other online tasks had grown at an astronomic rate since the 1994 introduction of the Netscape Navigator browser. The number of Internet users worldwide had increased from about 360 million in 2000 to nearly 1.5 billion in 2008. North America had the world’s highest Internet penetration rate with 73.6 percent of North America’s population having Internet access. About 220 million of the 248 million Internet users in North America resided in the United States. Even though only 15.3 percent of Asians had Internet access in 2008, Asia’s 578.5 million Internet users made it the world’s largest and fastest growing geographic region for Internet usage. The growth in the number of Internet users worldwide and in the United States had caused a shift in how advertisers communicated with consumers and had allowed Internet advertising to become the second most common form of advertising used in the United States in 2007. Only newspaper, with 2007 advertising revenues of $48.6 billion, controlled a larger share of United States advertising dollars. Cable television, radio, and network television each accounted for about $20 billion each in advertising revenues during 2007. The prospects for Internet advertisers looked strong in 2008 with Internet advertising expected to grow from $21 billion...
Words: 1803 - Pages: 8
...Google’s Purchase of Zagat Google is an American multinational public corporation started in 1998 as a research project by Larry Page and Sergey Brin. Google has been invested in internet search, cloud computing and advertising technologies, which hosts and develops a number of internet based services and products. (Google) With Google’s most recent endeavors their strategic plan is to become the marketplace for reviews. It seems like now and days the best critics are the actual customers themselves. Zagat Survey LLC is the Zagat is the world's leading provider of consumer survey-based information on just about anything. (ex. Restaurants, hotels, Night clubs, etc.). With this in mind, Google set out to purchase Zagat as an attempt to now control the marketplace for reviews. The article that will be referenced in this paper, “Zagat Deal Extends Google's Influence”, is an article supporting the purchase; this article was published in The Wall Street Journal on September 9, 2011 by Amir Efrati. (Efrati) Strategic Action There are over 350,000 customer opinions surveyed from around the world, on which Zagats’ ratings and reviews are based upon. Zagat has become the world’s most trusted source to help customers make informed and smart decisions. One way Google plans to incorporate Zagats’ established reviews are by putting it into Google Maps and places, which are also integrated on cell phones and across the internet. With Google being the company with the ability to reach...
Words: 2521 - Pages: 11
...advertisers, Google network members, and other content providers. Its automated search technology helps users to obtain instant access to relevant information from its online index. The company provides targeted advertising and Internet search solutions, as well as hosted applications (Google profile, 2010). Mission, Goals & Objectives Google, the name of the company, reflects the immense volume of information that exists, and the scope of Google's mission: to organize the world's information and make it universally accessible and useful (Google’s corporation information, 2010). Google’s goals and objectives include the following: The company • Wants to have an improved infrastructure to make their engineers more productive. • Wants to be the best in search in the world. • Wants to push their ad system. • Wants to push their communities and content. • Tries to make sure their tools are running everywhere. • Google is always focusing on innovation (Google’s Internal Company Goals, 2010). Overall, Google wants to make the internet searching experience best for its customers and search results more accurate. Overview of the External Environment The number of people world-wide accessing the internet had grown at an astronomic rate since 1994. The number of internet users worldwide increased from about 360 million in 2000 to nearly 1.5 billion in 2008. The growth in the number of internet...
Words: 3693 - Pages: 15
...Google Case Study 1. Competitive forces of search engine industry Search engines have become necessity of life for the individuals. Their dependency on these search engines have been increasing to a considerable degree. In this context, their popularity has given rise to few search engine players in the market, among which the Google is holding the largest share of market and great popularity (Montgomery and Porter, 2004).They are offering various services like relationship with internet users through social networking, wed search and advertising which in turn have enhanced the competition among search engine players. According to Porter’s five force model, power of buyers can be considered as the strongest competitive factor that has been attracting many shareholders to get associated with Google’s services. The business men are investing big amount on advertising and fast communication with companies. Outsourcing of work has become even easier through these SEO’s. On the contrary, the threat of new entrants is the weakest competitive factor as per Porter’s model. New search engine players are trying to penetrate the market constantly. However, the Google’s popularity has been restricting the forceful entry of new players. In addition...
Words: 1560 - Pages: 7
...1. Discuss competition in the search industry. Which of the five competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness? Ever since Google was created there really haven’t been any competitors that have come close to giving them a scare as far as competing with what they offer. Of the five competitive forces the threat of substitute products or services and the power of buyers are the highest. The weakest of the five for Google is the threat of new entrants because the entry barriers for the industry are high, and high customer loyalty to Google would make it much more difficult for a new entrant. 2. How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years? Throughout the case, it mentions many times that the next big thing in the search industry is cloud computing. However, there are many other new areas that Google is entering such as Google TV, and they are continuing to develop their Google Maps and other areas such as their Android market (phones, tablets, and Google TV will be powered by android). After reading the case and thinking about what will bring in a major change, I think it will be cloud computing. Although most companies are still in the early stages of this, Google is projecting this to grow up to $95 billion by 2013. 3. What are the key factors that define success in the industry? What are the key competencies...
Words: 870 - Pages: 4
...Google’s Strategy in 2012: A Strategic Case Analysis BUS 5480: Strategic Management Professor: February 6, 2014 Executive Summary The origin of the name Google might explain the excess in capture of vast business verticals by Google’s internet and technology services. ‘Founders Larry Page and Sergey Brin named the search engine they built "Google," a play on the word "googol," the mathematical term for a 1 followed by 100 zeros’ (Bhatia, 2012). Through our strategic analysis of Google Inc. we provide for a discussion on profitability of Google. Based on competitive advantage, strategic management and the Five-force model of competitive forces, we better understand the nature and strength of competitive pressures within the internet and technology industry. Google must remain a differentiator among competitors to retain market share. The evolution of “search” capabilities on the internet has been the driving force from the beginning. In 2012 Google is the leading search firm with nearly ‘67% market share in search from home and work and 95% market share performed from mobile devices’ (Thompson, et al, 2013). For Google to remain profitable is to focus on the key business model that is still driving hard revenue and to reach into those verticals that are working, while leaving the losers behind. In the year of 2012 Google captured 67% of search in the U.S., with 29% of the balance going to Yahoo and Microsoft. Advertising revenues from search drove over $36...
Words: 2063 - Pages: 9
...__Savitree Sinchai____ CASE 14: Google’s Strategy in 2008 1. BACKGROUND INFORMATION |Timeframe |Country(s) Involved |Key Individuals & Titles |Company Type & Size | | | | | | |1998-2008 until |USA |Global internet search solutions, |Big size, American public corporation earning revenue from | |now | |advertising solution |advertising related to its internet search, e-mail, online | | | | |mapping, social networking, and video sharing services as well | | | | |as selling advertising-free versions of the same technologies. | 2. BRIEF SUMMARY OF CASE SITUATION |Business or Industry Description |Particular Company Situation | | | | |Providing advertising solutions, global internet search |Google’s innovative search technologies connect...
Words: 3671 - Pages: 15
...Company Motivational Profile Google is a company which was formed in 1998 by two men; Sergey Brin and Larry Page. The search engine was named “Google” after a similar word “googol” which means a number “1” followed by “100” zeros, meaning “a lot” of information. The two men shared one mission which was to organize information on the internet, making it so everyone could access, making it more useful overtime. When Google.com was formed in 1998, it was basically a search engine which allowed people to search for basic information. Today’s Google.com offers a much broader selection of services which can be found through their search engine. Google also offers many services along with its famous search engine such as Google Maps, You-Tube, Google Apps, Google Earth, Gmail, Google Calendar and Google Docs which are all programs designed to help users find information more efficiently. Google also earns profits through advertising; from displaying text ads for mobile advertising to large and small companies as well. Google first came to light with their first advertising program in 2000 called Ad Words, which was a program that allowed people to see how ads can be useful. Currently, the company is involved into display advertising which is growing rapidly due to products such as their Google Display Network, comprised of over 1 million partnered websites including other Google-owned websites such as YouTube. Google has recently posted a third-quarter revenue of $7.20...
Words: 3140 - Pages: 13
...INDIVIDUAL PAPER WEEK 6 BUSINESS PROPOSAL MIANQI SHEN ECO/561 MARCH 23, 2015 MARK ERENBURG GOOGLE'S NEW WIRELESS SERVICE About the end of March 2015 Google will begin offering its own wireless service. Google's market structure as a wireless provider will be an oligopoly market structure which is when a standardized product is sold by a small number of sellers. Providers must differentiate their services. Each provider makes its own decisions. The wireless industry is regulated so providers are not completely free to set their own prices and offerings. Google is starting its wireless service on a small scale. When Google enters a new market it usually does so in a big way. Google’s next move is launching a wireless carrier service sold directly to end users (Epstein, 2015). We will look at the business feasibilities based on the economic conditions and the impacts. According to the Economist Intelligence Unit (EIU), the world economy will grow by 2.9% in 2015. The world GDP was estimated to have increased by 2.5% in 2014. Global growth will be boosted by lower oil prices: a 10% fall is thought to add 0.2 percentage points to world GDP. The world economy most likely will be held back by weakness in the euro area and Japan, and by slower growth in emerging markets. China will see expansion slow to 7%, but America will be the best-performing rich-world economy in 2015, with growth forecast at 3.3% (The Economist, 2015). Let us referring...
Words: 2132 - Pages: 9
...competition in the search industry. Which of the five competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness? The search industry is based on the ability of providing higher technology to users, lower prices for advertising and the capacity to engage suppliers to subscribe to the search engine. Some of the big players, besides google, are; * Yahoo, which has a challenger’s and loser’s position * Bing, this is new brand name for MSN Live search * Baidu, China search engine * Ask * AOL, where search engine is powered by google The bargaining power of buyers in 2008 was almost 97% of Google revenue made by advertising The bargaining power of suppliers consist in the trust of Google’s as system as a reliable source of income. The threat of substitute products and services is not really relevant. There is no substitute for a search engine and the number of internet user is increasing every day. As far as the threat of new entrants, the barriers are really high. Current big players exhibit a high technology and a lot of knowledge on the industry. In order to compete as a new entrant you must provide a better technology and a higher speed search engine. Competitive rivalry is one of the strongest forces, and the weakest is bargaining power of the buyers. Rivalry among competitors is constant. They invent new application every day in order to have a strong competitive advantage. The industry has a high overall attractiveness;...
Words: 1222 - Pages: 5
...Analysing and Evaluating Google Inc. Business Strategy Introduction In today’s date, Google has become world’s famous and successful in internet search engine, as well as one of the most popular companies that people are highly desired to be employed. As a global technology leading company, Google is always improving their wed search engine and advertising. This report is aimed to evaluate and analysis how Google address the internal and external environment, by using SWOT analysis and Porters five forces to examination how Google viable and achieve within the environment. Moreover, in this report will be analysing how Google organising its resources and capabilities. Economic During the period of recession, many of companies had a significant impact on consumer demand. However, the company likes Google it seems to be no effect and still managing to make some profit. In fact, according to Schiffman (2008) says that company like Google focus on highly targeted looks particularly well-positioned to the recession. Compare with other businesses in same market, Google’s measurable advertising makes it more resistant during the recession. Grant (2010) add up, in order for Google to minimize the lost advertising revenue, Google should focus their strategy on a “clear recognition” from the recent recession. Political and Legal factors Over the years, Google holds mass amount of data from their internet, as lack of notification to both user and third party website owner...
Words: 1641 - Pages: 7
...growth in opportunities for advertising. Threat of new entrants – as what I have said, the entry barrier is low, because everyone has an access to technology. Because the barrier is low, new entries are capable in offering more rapidly search results then other competitors. But by entering this industry, it will be hard for new competitors to compete with reputable companies like Google and Yahoo because they have partners in advertising and different websites. Threat of new substitute products – the threat of substitute products is very low, since people would not opt in reading dictionaries, encyclopedia, or other documents, rather than searching the internet which is more convenient and time saving. Bargaining power of suppliers - Google's primary...
Words: 1224 - Pages: 5
...Google Abstract Google was started by Sergey Brin and Larry Page with a mission to organize the world's information and make it universally accessible and useful. The company with its innovative thinking, minimal competition and it’s brilliant, highly educated founders have built one of the most successful human endeavors in history. In 2001, Eric Schmidt became the Chief executive officer. He added maturity and organization skills to the creative dreams of the founders and since it went public in 2004 it has seen tremendous growth not only in its core business, but it expanded it various businesses from google maps to autonomous cars. This case study analysis shows how Google achieved it success and what strategies and opportunities it needs to take to be successful in the near future. Some analysts say Google is almost at the mature state of its core business but they keep coming up with new products. Introduction In 1996, Google was formed by Sergey Brin and Larry Page, in a friends’ garage in Palo Alto, California. The two intellects dropped out of the Ph. D. program at Stanford to launch a search engine that analyzed and prioritized Web links based on relevance of queries. Within months, Google moved out of the garage into a downtown office where they multiplied their success (Hartley, 2011). In the beginning, Google was founded on an enterprise wanting to make searching for information easier and free to users. This project was well received by users...
Words: 2599 - Pages: 11
