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Strategic Management Google Case
Google has maintained a dominant market share in search engines of over 67% through continuous innovation and improvement of its core search algorithm. It has diversified its revenue streams beyond advertising through acquisitions and development of products like Gmail, Android, YouTube, and cloud computing services. Google pursues both a differentiation strategy through its data centers and search technology and a growth strategy of M&As, partnerships, and rapid adoption of new technologies. It faces opportunities from trends like increased internet access and mobile usage globally but also threats from competition and potential over-reliance on secrecy and advertising revenue.
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Strategic Management Google Case
- 1. By- Hrucha, Supreet, Jayesh,Jil, Darshan 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
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- 5. GOOGLE Revenue 59 4.6 3.2 5.25 Revenue in $(billions) Google Yahoo Bing Baidu
- 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 • 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 •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)
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Editor's Notes
- #11 Google’s PESTEL/PESTLE analysis shows that most of the external factors in the firm’s remote/macro-environment are opportunities. The company must focus on exploiting these opportunities to maintain the company’s competitive advantage. For example, Google can use its culture of innovation to develop capabilities, such as improved responsiveness of Google products on mobile devices. In effectively addressing the opportunities identified in this PESTEL/PESTLE analysis, Google can expect stronger competitiveness and influence in the industry.