Competitive Advantage: Google Case Study Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Due to the tendency of businesses to develop more quickly than their consumers’ demands change, most businesses eventually produce goods and services that are too smart, costly, and complex for most of their market’s customers. A company’s comparative advantage demonstrates how it may differentiate itself from rival businesses. An organization has a comparative advantage if it can produce an item or service at a lower opportunity cost than other businesses. Its standout product, marketing plan, and customer outreach achieve this. Thus, the paper aims to discuss disruptive innovation and the aspects of competitive advantage in the business market.

In economics, a circumstance is said to as having a comparative advantage, which allows for the possibility that one party may create an item or service at a lower opportunity cost. It demonstrates a nation’s economic edge over other nations when manufacturing a certain commodity or service. Sometimes it is thought that specialization and labor division will lead to comparative advantage. To put it another way, trade between nations may be advantageous for both sides if one nation specializes in producing one item or service. In contrast, another nation specializes in offering a different good or service. Among all technological companies, Google currently has the biggest competitive advantage (Matthews, 2021). This is because they can apply all three elements of Clayton Christensen’s disruption architecture.

They offer services at no cost, with great performance, such as a continually developing search engine, and little distinction because they provide products not unique (Matthews, 2021). The organization’s competitive advantage is primarily its capacity for innovation. The company uses the disruptive innovation principle to learn more about customers’ desires and how they will utilize a product or service. They then employ this knowledge to develop new products that meet those demands practically and affordably. One of the best disruptive innovation instances is Uber, which has impacted the taxi industry by providing an app-based ride-sharing service that enables customers to book rides from their smartphones (Dooley, 2019). Making it easier for passengers to find local drivers available for pickup or drop-off has changed how people see transportation and move about cities. Another is Amazon which originally served as an online bookshop but has now added eBooks and services for cloud computing (Dooley, 2019). Still, Google has been able to capitalize on its position as a market leader by developing new products and through the open communication channels provided by its flat organizational structure, which fosters innovation and design.

Function-based, product-based, and flatness are the three primary pillars of Google’s cross-functional organizational structure. Roles and the organizational function they fulfill are used to arrange the structure’s function-based branch. As a result, Google is split into the worldwide marketing and financial sections. Top-down communication is made easier by these categories, and they also aid in navigating any disruptive internal or external changes. To maintain its position in the market and find new methods to improve its corporate structure and business strategies, Google continuously assesses its rivals. One of Google’s most significant and striking components is flatness, which describes open communication channels between lower and top management levels within a business. As a result of its efficient usage of open communication, Google generates a wide range of concepts and cutting-edge tactics from all parts of the company to accomplish a single objective.

Overall, to assess a firm’s competitive advantage, it is necessary to use Clayton Christensen’s disruptive innovation theory because it assists in deciding on a company. They can take advantage of all three elements of Christensen’s disruption framework—low cost, high performance, and low differentiation. Google currently has the strongest comparative advantage of any technology company because they provide products that are not unique. Due to this, they are at a disadvantage to larger companies with equivalent resources. Businesses might avoid being disrupted by new technology or products by concentrating on incremental improvements instead of ground-breaking discoveries. However, throughout time, this method frequently results in stagnation or even decline when compared to rivals that emphasize innovation more than little modifications.

References

Dooley, R. (2019). . Uber. Web.

Matthews, J. (2021). Turbo Future. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2024, January 11). Competitive Advantage: Google Case Study. https://ivypanda.com/essays/competitive-advantage-google-case-study/

Work Cited

"Competitive Advantage: Google Case Study." IvyPanda, 11 Jan. 2024, ivypanda.com/essays/competitive-advantage-google-case-study/.

References

IvyPanda. (2024) 'Competitive Advantage: Google Case Study'. 11 January.

References

IvyPanda. 2024. "Competitive Advantage: Google Case Study." January 11, 2024. https://ivypanda.com/essays/competitive-advantage-google-case-study/.

1. IvyPanda. "Competitive Advantage: Google Case Study." January 11, 2024. https://ivypanda.com/essays/competitive-advantage-google-case-study/.


Bibliography


IvyPanda. "Competitive Advantage: Google Case Study." January 11, 2024. https://ivypanda.com/essays/competitive-advantage-google-case-study/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1