Sample Case Study On Google
Google is an international company providing internet services and products. The company is ranked top among the leading internet searches service provider. Founded by Larry Page and Sergey Brin in 1996, the company has grown to become the most successful information and technology company (Google. 2015). The company attributes its success to utilization of strategic competencies and innovation that keep it ahead of its competitors. However, the company faces some challenges such as maintaining user privacy of its internet services, threats of cyber attacks, and sustaining relevance of its android, operating system. This paper is interested in conducting an in-depth analysis of Google business environment. The paper will then suggest solutions to the challenges Google faces.
General environment analysis
Like any other business entity, Google operates in a competitive environment where firms focus on enhancing their market share. For the external environment, the company receives both positive and negative responses. On the positive side, the company’s strong brand has helped it attract many potential customers as well as investors. Through its corporate social responsibility initiatives the company has managed to build an enviable reputation that has helped it maximize revenues. With regards to the political and legal environment, Google faces a number of challenges especially in countries where there are legislative restrictions on access of internet services (Google. 2015). However, Google’s internal environment has been a critical source of success for the company. Starting from competent workforce who dedicate and deliver their best to enable the company achieve success. The company’s stakeholders including investors have helped provide support for the company. The company’s leaders have also been instrumental in steering the company to success. The leaders have helped the company stay ahead of competitors, thanks, to their innovative and strategic decisions.
The ever changing pattern of business especially for the external environment indicates that the company has great potential of venturing into unexplored sectors/markets. For instance, the company should enhance investment in service provision in the less developed nations. Although the company cannot control the political and legal environment, it can align its services to harmonize with the environment’s condition (Wetherly & Otter, 2011). For the competitors environment the company’s consistent research in innovative products provides it’s with an edge for the competitive environment.
It is undoubtedly, Google’s internal environment will have significant impact on the status of the company. Specifically, the company’s workers, managers, investors and, other internal stakeholders will help the company realize its goals. Besides that, the company’s external environment initiatives including people’s empowerment will have positive impact on the company’s reputation and brand.
Threats of entrants; this force features new firms that may opt to venture into the market.
Competition: Google faces growing competition from rival firms including Yahoo, Apple and Microsoft. These firms provide same services as Google to consumers.
Power of suppliers: The company’ supplies of inputs such as infrastructure also influence the firm’s profitability.
Threat of substitute products; Google faces threats of rival firms offering substitute services hence rendering its services irrelevant.
Customers: Determine if Google has the potential of making profits.
Although Google faces competition, it still enjoys the benefits of the internet industry since it controls close to 70% of the search engine services market (Google. 2015). The company’s diversification strategy enables it provide different services and products to different customers hence enjoy the benefits of the industry.
Ii As shown above, Google faces competition from different firms. Some rival firms such as Microsoft and Apple compete for the same target consumers since they provide the same services. Others such as Yahoo compete for a specific sector such as Search engine.
Four criteria of sustainable advantage
Inimitable: Google’s products and services are unique
Valuable: Google’ products are also valuable and this makes them enjoy high customer attention.
Rare: Consistent research has made Google products rare to find (Google. 2015).
Non-substitutes: The Company also produces products that lack substitutes in the market.
ii. Value chain analysis
Activity analysis-Google hires competent personnel and provides favorable working environment for them. The company also uses latest technology that delivers good productivity and enhances productivity.
Value analysis- Through research and innovation the company provides value analysis to its services to ensure they are effective and, efficient.
Evaluation- the Company regularly evaluates its services by conducting surveys and monitoring sales growth and then develops policies of enhancing values to the services.
Strength: Strong brand, good strategic decisions and, competent workforce.
Weaknesses: Lack of infrastructural capacity in some areas especially in the less developed markets as well as system failures.
Opportunities: potentials in the mobile, advertising, cloud computing and, search engine sectors.
Threats: Spread of internet may attract more new firms to venture in the internet industry.
Solutions and Recommendations
The target customers for Google are online users of internet services. Currently, the company satisfies the need of these customers through provision of a variety of online services such as e-mailing services, online advertising, and cloud computing.
Ii Business strategy: Google currently employs a diversification business strategy where it provides a variety of products and services to its target consumers (Wetherly & Otter, 2011).
Iii.Strategic alternative: Apart from diversification, the company capitalizes on its strong brand and reputation to enhance customer growth.
Iv. Alternative evaluation: Creativity and innovation stands as Google valuable strategy tool. The company researches on innovation that enhances service delivery.
v. Alternative choice: The Company also capitalizes on its high market share in some market segment such as search engine as an alternative choice to address market problems.
b. Strategic Alternative Implementation
I. Action items: The Company can rely on its innovative practices to stay ahead of its competitors. The company can also rely on its productive workforce to achieve business success (Wetherly & Otter, 2011).
ii. Action plan: To achieve business success the company should engage its managers to develop and implement appropriate strategies that address current market needs.
SWOT- Strengths, Weaknesses, Opportunities and Threats
Rival firms- Competitors including Yahoo, Apple Incorporation, and Microsoft
Google. (2015). Our history in depth – Company – Google. Retrieved from http://www.google.com/about/company/history/
Wetherly, P., & Otter, D. (2011). The Business Environment: Themes and Issues. Oxford: OUP Oxford.