Report on Strategic Analysis of GoogleInc.

Table of Contents

●Introduction to Google Inc.

●Analysis of Google inc resources and Strategic Capabilities

●Discussion on Strategic direction of Google Inc.

●Potential reasons for future Success or failure of Google Inc.

●Appendix

●Bibliography

Introduction to Google Inc

“Google is American multinational company who specialise in internet products and services. Such Services include Search, Cloud, Computing software and online advertising technology. Google was founded by Larry Page and Sergey Brin when we're PhD students University of Stanford together own 16 per cent of company. Google mission statement “to organise the world information make it universallyaccessible anduseful” (Cult, 2013).The move new headquarter in 2006 called Googleplex in Mountain View California. Rapid Growth has since trigger to go into range product than just search engine, for example email (Gmail),office suite (Google Drive) and Social networking in (Google +). The desktop product include organising editing, photo instant message. Also company is leading way when comes Android mobile operating systems and only chrome OS known as chromebook. (United States Sercurites and Exchange Comission, 2012)Google is increasing moving forward communication market and trying gain bigger market share in production high end nexus device and Motorola Mobility in May 2012.The also have future plan offer Google Fiber Broadband. They Corporation estimate more than 1 million data centre around and process 1 billion search requests and also 24 petabytes of user generated data each day. (Pandia Search Engine News, 2007)Google own popular website like YouTube and blogger. In Dec 2012, Google was listed by Alexa as most visited website in world

Analysis of Google Inc resources and Strategic Capabilities

Google have many resources. Starting off with physical resources which include have 70 offices in over 40 countries example is Googleplex which is in California is well known for supplying employee with technology the use very importance to power sites e.g. PC and tablets (Cutt, 2013) Google are strong when comes to financial resource have invested heavily in product services and technologies. They have market capital of 268.44bn and 47th most innovative and 5th most powerful brand according to Forbes. (Thomson Reuters Fundamentals via FactSet Research Systems; Forbes, 2013)They have generate large portion of their Income from ads at google.com.Google have strong human resources this has resulted in them having highly qualified staff. Google also display they always on lookout for new talent that can benefit their company HR manager on Google job says “we find them grow them and keep them” there main objective is to bring world most innovative people to Google and them building training program in order so people can be successful. Rather they recruiting developing core program there main objective is to inject more fun in lives of googlers.The type approach they “bring is data driven approach in human resourcesfield”, (Cult, 2013)Google receive a lot application for jobs there every year they even made movie about it called the internship starring Owen Wilson and Vince Vaughen, Google intellectual capital power mean that they worldwide popular brand. There completeness is way asset are utilised effectively. Google functional capabilities is that there global technology leader that shows good marketing capabilities, Is that they base the ability to develop new product like web search, news maps,translate,blogs,search etc which in hand make them better than competitor, Special having alot funding available, which add to their Competitive advantage over competitor, plus strong relationship with customer, supplier and distributor is what make company so successful in relation to their management capability the tend to employ highly skilled and qualified personnel so that they can grow effectively. When comes to specialise capabilities Google have invested heavily into new business such as Googlemobile. While still mountain competitive advantage over other firm Bing.The do this by making sure there search engine is faster than anyone else. They are no longer just search Engine Company anymore as they have developed Google Maps, Google Nexus and Google Earth. So more consumers come google.com to do more than just search go another company, they come Google to read latest news in their local area. (Smart Advantage Inc, 2010)

Discussion on Strategic direction of Google Inc

The type strategy that Google use is Broad differentiation strategy. What is the differentiation strategy? It is attempted to make product unique in term attribute which desirable to customer, People must willing pay difference. The company must be mindful cost of extra product features. The competitive advantage gained through particular unique of product. Customer is not as price sensitive. Google have use two type value to implement this strategy which are functional value create product that unique to market for example e.g. Google Drive and also emotional value (brand, prestige) by using market based approach of naming all product “Google” which name company. So always thinking of Google when using there product. Now look how Google use differtion strategy further analysis the have build strong foundation of broad differentiation on of lot complementaryproduct. Thencomplementing product serve each other in order to create brand awarness.Many these unique product include Docs & Spreadsheet productivity suite,Piscan image organising and editing program, Earthmaps, These product are likely increase competitive edge in advertising business and expanding breath brand. Google further reinforce its brand image by keep its name to nearly all its products. From Google point view the more person use Google product greater opportunity to show them ads. Also know that more internet users, more people will use google,this is why in 2008 Google encourage free internet access city wifi and lobbied Federal communication Commission allow use of “white space” first week in November 2008.Unused frequencies between television channels can be used to create situation where a person can freely connect to the internet. This means people always viewing Google advertisement. In 2008 Google introduce T-mobile G1 which was equipped with operating system calledandroid. (Morrow, 2009)This phone was built around the internet and Google search service and technology was integrated Google search service and technology into device, Google was pushing Smartphone in 2008 and now in 2013 we can see it been successful as nearly everyone has Smartphone these days. What Google managed to do was change they managed to change consumer old perception of mobile phones, they now look for more from phone when buying it than to just make mobile calls. In turn now they had gone against Differnation strategy gone toward cost leadership strategy as they have now made communication cheaper and made product cheaply available. Consumer now able meet wide range need through Google products and services, (Morrow, 2009)Google better suited to an incremental innovation traditionally managed company. As they do not fit nicely into BCG matrix, Google does not make money off many product for example “advertisement in have notorious low click rate” simple because people not shopping for product when they are checking there emails. Google refuse to be worried over Ad words service, Adsense on outside site are extremely popular in keeping the company profitable. Secondly Google strategy is about making less money with products and more about gathering information. The more information Google can gather about individual accounts more they aim ads at individual needs on what the really want. Eventually ads will personalised in according hobbies, interests and even person trying purchase specific product online. Fig 8 show humorous approach maximise information gathering of individuals.

(Pardise Publications, 2005)

Potential reason’s for future Success or failure of Google Inc.

Google next big venture to remain one most successful company in world is a project Loon. The idea is send Google balloon in stratosphere. If it is successful it will beam down wireless internet signals into remote rural areas, communities that have poor access to broadband. This was launched in June as pilot project in New Zealand. Project Loon is appearing become another one Google moonshot “this term use by Google experimental project that will either become industry success or totalfailure. (Akkad, 2013)Earlier this year Google recruiter want out trying recruit seem stress and balloon engineers, it was odd set profession for company who run the world most popular Internet search Engine Company. Google receive on average 5000 job applicants a day, Many people approach by Google were not even told what they were being hired for but signed up anyways “We get people who want to work on next big crazy thing” says Todd Carlisle, Google director of staffing.(Akkad, 2013)On outskirt of Google main campus, roughly about 24 km from downtown San Jose. There is building where company future is being created. The building is refer to as X-plex by many of its employee .In X-plex group engineers and designers work in open concept cubides,surround by wall than often donate as drawing boards. Compare some of Google other building which include feature such as indoor green space,swings,hammocks,the plex is downright conservative, But over the past couple of year the grown some of the technology in world most audacious plans. But not all Google plan come from X-plex,last year it announce that Google was creating new genetic company called Calico. Giving Company new focus to cure age related disease, there is huge potential for technology to improve people's lives e.g. Spend does suffering from disabilities (Akkad, 2013)Google method operation is to find problems that are completed or frustrating for large number people find out a way in which that technology can help then and example take traffic that is great killer of human time. Google has developed mapping software so can help users find fastest possible route, but then it can’t give back the time stuck behind wheel. So the company have backed technology which essentially “creates a 3-D map of the Car’s surrounding an environment using a roof mounted lasers. This loser will produce a detailed map and measure of distance to various obstrantes there is another camera in which is near the rear view mirror is built to recognize traffic lights. The car is able to recognize speed limits and direction information that is coming from Google massive map database. So far Google has tested many of these cars over hundred of thousand miles without any accidents. Google have no such plans to convert technology into currency But Driverless car could prove very profitable. As there are two features to be sold automaker and generator of data have people get around. (Akkad, 2013)The only reason I can see Google failing is the rate that technology world as moving these day. There reason think might gone in 5-8 yrs, But not bankrupt gone. More like MySpacegone, I also found academic theory back up this new observation on recent history, DonHam brick who is scholar has through that senior teams and director have out sided influence on organisational outcome. What more is the senior team and director background have big effect on how they see world this influence various situations and choices they make, In Internet we have had 3 generations

●“Web 1.0(Companies founded from 1994-2001 including Netscape, Yahoo! (YHOO),AOL (AOL),Google(GOOG) Amazon(AMZN) and ebay (EBAY),

●Web 2.0 or Social Companies founded from 2002-2009, including Facebook, (FB), LinkedIn (LNKD) and Groupon (GRPN).

●And Now-Mobile (from 2010-present including Instagram), (Jackson, 2012)”

With each generation succeeding the previous generation in tech world it show that prior generation can’t seem to wrap ahead what each new generation brings and find invisible compete with every new generation. Web 1.0 companies great job in considering data present portal fashion. Google did much better job organising chaos of web better than Alta Vista,Excite,Lycos and all other search engine precede it, when Web 2.0 companies begin to emerge it generate importance of social connection example “MySpace built network of people with passion for music initially,Facebook got college student. LinkedIn got the white collar professional, Digg Reddit, andstumble upon showed how users could generate content themselves the overall community more valuable, Yet, Web 1.0 companies never really able to gasp the importance of building a strong social community and tapping into background of them users. Evendoo it seems very obvious...It seem just not able to follow these models. Even though they pour billion at the problem, There primary mode that made than successful seem to override these new model and new ways of thinking. The failed history of Web 1.0 companies trying to adapt to social world, Suggest Facebook will fail to adapt social mobile as Google has been with initiative Google+ “ghost town” last year.Organizational ecologist talk about “liability of obsolesce” growing mismatch between product strategy and operating environmental time. (Jackson, 2012) This is good explanation to what seeing in tech world today. Are companies like Googleobsolete? But there still growing and still have huge audiences, and with combination of very talented manager & staff. But with each new model the older generation seem out touch and closer to significant decline. What make situation worse is they tech world they live in seem to be speeding up. Google will be facing multiple constructions, once it’s desktop search business, (still accounting for vast majority of property of revenue and profits) they will start decline dramatically once new ways found to search information that is faster and provide better results in the mobile world. (Jackson, 2012)

Appendix

A SWOT Analysis of Google Inc.

●Strengths

  1. Open source of Products and Services. - Mission statement “Is organise world information and make It universally accessible useful” They stick to this when design Product e.g. Google maps. Google openness key why number one in many Product & Services.
  2. Quality and customer experience are primary objectives - Google offer premium quality, Product aim solve customer problem excellent customer experience.
  3. Financial Situation. - Google is one most profitable companies in world, with 48 billion in cash only 7 billion in debt. Few other companies strong enough to compete with Google.
  4. Access to largest group internet users worldwide. - Google access 79% desktop search users and 89% mobile search market. Provide large market to promote, sell it product and services.
  5. Strong patents portfolio.-In 2012 Google added 1151 patents, intellectual property key computing with competitors with acquisition Motorola gain strong advantage over Competitor.
  6. Product Integration. -AllGoogle products from ecosystem that enriches customer experience, encourage up you use more product. Google compatible with OS or any device, it integrated on offer compare application, no tech organization offer this.
  7. Culture Innovation- Develop many unique product every year. According Boston Consulting group the second most innovative company in world. Google emphasis innovation as one main competitiveadvantage (Jurevicius, 2013)

●Weakness

  1. Relies on one source of Income.-More than 90% Google come online advertising. In 2013 suppose double but only grow revenue in short term, In long term may experience slow growth, or even decline reason Firstly market personnel computer is growing slowly and Google experience overall decline desktop search engine. If doesn’t push competition back will lose market share as well main source income. SecondlyGooglefind monetize mobile device user who represent highest growing group in online advertising. Thirdly advertising growth is driven by emerging economies where cost is low so will drive very little income for Google.
  2. Unprofitable products. -Many product add little value business, make only losses decrease firms profits.
  3. Patent litigations. -Others involved in litigation breach of patent and other intellectual properties. This litigation costly and time consuming restrict company from innovation(Jurevicius, 2013)

●Opportunities

  1. Growing number of mobile internet users. - has opportunity created better platform display ads mobile, hence increase firm income.
  2. Obtaining patent through acquisitions.-grow completely successful most acquire morepatents, way doing this acquire strong Patent Portfolio. Acquire Motorola in 2012 obtaining 17000 patents from business.
  3. Driverless electronics cars. - Google developed successful driverless car, no intention manufacturing them, company could sell the license to car manufacture for using technology and IP.
  4. Growing electronic Industry - already introduced notebook, tablet smartphones,Google strengthen introduced in Industry by Introducing more product to consumer group increase market share, Because tighter Integration software product and diversified income
  5. Google fiber cables- new fiber cables that deliver Internet 100 times faster than current providers. It wise Google invest such infrastructure would have vertically have no competition. (Jurevicius, 2013)

●Threats