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Google Growth Strategy
- 1. By- Hrucha, Supreet, Jayesh,Jil STRATEGIC MANAGEMENT CASE PRESENTATION GOOGLE
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- 3. GOOGLE Market Share 67.49 10.77 10.67 8.13 Total SearchEngine Market Share Google Global Yahoo Global Bing Baidu
- 4. GOOGLE Revenue 59 4.6 3.2 5.25 Revenue in $(billions) Google Yahoo Bing Baidu
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- 6. GOOGLE Levels of Strategy Corporate level Business level Functional level •Stability - Stability approach to set a steady course • Growth - Sustainable growth strategy • Retrenchment – Orkut (Sept 2014) • Combination type - many times • Focus on the user • Believes in constant improvement • Speed is priority • Democratic approach is used • Hungry of betterment •Work from home •Innovation labs •Individual startups
- 7. GOOGLE Primary Strategy Focus onDifferentiation through • Robust data centers world over • Unique page search algorithm • Continuous improvement through innovation
- 8. GOOGLE Secondary Strategy Focus ongrowth and expansion • Mergers & Acquisitions in related segments (YouTube, Android, Motorola) • Innovative products (Cloud computing, Mobile computing, Gmail, Social Media, etc) • Quick adoption of new technologies • Forming strategic alliances to avail product collaborations
- 9. GOOGLE Internal Environment Analysis •Competition fromFacebook •Mobile Computing •Competition from Facebook •Mobile Computing • Android OS • Diversification into non-Ad business models • Google Glass and Google Play • Cloud computing • Android OS • Diversification into non-Ad business models • Google Glass and Google Play • Cloud computing • Excessive reliance on secrecy • Privacy issues • Falling ad rates • Lack of compatibility with next-gen devices • Excessive reliance on secrecy • Privacy issues • Falling ad rates • Lack of compatibility with next-gen devices • Market leader in search engines • Ability to generate user traffic • Revenue from Ads and Display • Introduction of Android and mobile technologies • Market leader in search engines • Ability to generate user traffic • Revenue from Ads and Display • Introduction of Android and mobile technologies Strengths Weaknesses ThreatsOpportunities
- 10. GOOGLE External Environment Analysis PESTELAnalysis POLITICAL • Globalization (opportunity) • Stable political climate in most of the major markets (opportunity) • State-sponsored online companies (threat) ECONOMICAL •Economic stability of most major markets (opportunity) •Rapid growth of developing countries (opportunity) •Growing interest in sustainable business (opportunity) SOCIAL • Increasing use of social media (threat) • Rising diversity of users (opportunity) TECHNOLOGICAL • Growing Internet access in developing countries (opportunity) • Rapid adoption of mobile devices in the global market (opportunity) LEGAL • More regulations on online privacy (opportunity) • More regulations on intellectual property rights (opportunity)
- 11. GOOGLE External Environment Analysis Competitive Rivalrywith existing firms (Moderate) Threat of substitution (low) Bargaining power of suppliers (low) Threat of new entrants (high) Bargaining power of buyers (low)
- 12. GOOGLE BCG Matrix High MarketShare High Market Growth Low Market Growth Low Market Share
- 13. GOOGLE BCG Matrix STAR • YouTube •Android • Gmail • Google+ CASH COW • Search Engine • Advertising QUESTION MARK • Google Docs • Google Drive • Google Glass DOGS • Orkut • Google News • Google Group • Google Reader High Market Share High Market Growth Low Market Growth Low Market Share
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