Google’s Strategy
Google stands the best internet search firm with the biggest share market. The search firm is applicable for searches in both computers and those performed on mobile devices. The growth in revenues and dominance, in the market has made Google management come up with strategies and new ventures that will seek for additional opportunities to sustain the growth. Apple‘s iPhone was internet enabled, and this triggered Google to launch its Android operating system for mobile phones that enabled internet connectivity on wireless phones. Entering into alliances with other technology firms also enabled the launching of Google TV, which would allow users to search and stream videos from providers. The new ventures of organizing the world’s information and making it accessible took Google into new industries and entered into competition with companies like AT&T, Apple and Microsoft (page, 1). Among the five competitive forces, threat of new competition, threat of substitute products and services and bargaining power of customers were strongest. Google added new features using its vast cash reserves that led to new internet applications that offered advertising opportunities (page, 3).
Internet users were enabled to search satellite images using Google Maps, and this was a crucial step ahead of other competitors. Customers were allowed to use Google from their mobile devices from the launching of Android operating systems developed for wireless, mobile phones. Competitiveness of Google was not determined by the intensity of the competitive rivalry. This is because Google’s innovations and achievements led to a competitive advantage of Google. Search industry is highly dynamic. There has been the addition of new features such as Google Maps, Book Search, Music and Video Search and extension of Google News.
The search engines now offer services in wider languages enabling more users to benefit from the services. Offering the services on the mobile device is also a significant change in the search industry. There have been releases of services usd on mobile phones such as web search, maps for mobiles, Google News, and Blogger Mobile. Businesses and public companies licensed to use Google’s search, which allowed employees to search for company documents (page, 9). Success in the search industry is determined by dominating in the internet searches and advertising.
A search industry with additional features such as Google maps, local search and Gmail also define the success of that industry. Revenue sources and amount also are a key factor that defines success in the industry. Google key competencies started through focusing on the user more than increasing shareholder value. This resulted in changes that offered benefits to the users. Focusing on doing one thing and doing it well is another competence of Search Engine Company.
Google’s research groups are focused on solving the core service problems of searching in the internet. The speed for the search also defines search engine capability. Good example is Google that has repeatedly broken its own speed records. Offering genuine services and more information are also a competence of successful search engines.Google values the focus on the customer more than focus on increasing shareholder value. Any changes they make are aimed at benefiting the user and this has resulted in creating a loyal audience on the web for Google.
In order to build a competitive advantage, Google has set up strategies in research and development activities. Additional features such as Google maps, airline travel information, weather, Gmail, blogger, book search and other features have given Google more opportunities and increased traffic (page, 12). Providing the search services in diversified languages has also played a vital role in making Google the top search engine company, not only in the United States but also all over the world. Launching of Android for phones allowed an increase in the mobile market share as many Americans above age 13 were using the phones (page, 14). The entry of the Android software achieved remarkable success and increased the market share. Google’s business model has proven successful.
The development of keyword-targeted advertising expanded the revenues. The revenue from advertising increased overall annual revenues from $220,000 in 1999 to $ 86 million in 2001; investors should be impressed with the financial performance of the company. This is as a result of the remarkable revenues received from the business model and the strategies Google takes that keeps it ahead of the competitors. Google’s financial performance far much exceeds that of Yahoo and Microsoft. From 2006 to 2009, the financial analysis of Google rose from $10.
604 million to $ 23.888 million in total revenues. For Yahoo, in 2006 it was $ 6.425 million. In 2007, Yahoo recorded $ 7.208 million, and in 2009, the revenue decreased to $ 6.
460million. For Microsoft, between 2006 and 2009, the revenues increased from $ 44,282 to $ 60,420 in 2008 and then decreased to $ 58,437 in 2009. Comparing the three competitors in the search industry it is obvious, that the financial performance of Google is stable and records a gradual increase. The revenues rise without making any decline compared to those of Yahoo and Microsoft. Google has achieved the resources from the wider market in computer device users as well as mobile device users.
The additional applications and services have also played a key role in increasing the company’s revenue. Despite Google’s unrelenting success, it faces continued competition from rivals Yahoo and Microsoft with part of their market share of the internet search engine users.Google’s top management should capitalize in the cloud computing. They should invest more on efficient servers that will host many applications from the hard drives to the internet. They should do more research on data security for the internet applications and email users. Phones operating on Android operating system should be made cheaper and more accessible to the market.
They should work with motor vehicle manufacturers to create vehicles with devices using Google applications in automatic map and direction search.
