This case report entails an analysis of the innovative strategies in Google’s business model, and the company’s innovations in maintaining its position in the search market and changing its business model. Additionally, the report looks at the challenges facing Google in terms of executing the innovations, and recommends various priorities for the company to maintain its lead in the market.
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Google started off in 1996 through a research project conducted by Larry Page and Sergey Brin. Currently, the company runs its business from California, which is the headquarters, and other regional offices located in Australia, China, France, Germany, India, Ireland, Japan, and the UK.
In addition, the company has a total of 20,000 employees working to ensure that the global information is readily organized, accessible, and useful. As a result, Google aims at providing its clientele with a high-class user experience.
Google has several internal functions, which are accomplished through various departments such as Engineering, Sales, Legal, Products, Finance, Business Operations, and People Operations.
Each department is headed by a group executives reporting to the Operating Committee, which also reports to a 9-member Board of Directors. Additionally, Google appears in the NASDAQ list, and since its IPO was launched in 2004, the company has experienced a significant financial growth, which currently stands at $583.55.
Google offers different products such as Web Search, Web Directory, Ad Words, Audio Ads, Gmail Notifies, Hello Pack, Blogger Web, Blogger Mobile, iGoogle, and many more. Conversely, Google’s services include providing a leading and efficient search engine, advertising technologies, messaging applications, social networking tools, and various online productivity software.
Furthermore, Google has several key competencies relative to its efficiency in innovation, strategic management, human resource execution, and financial management. Moreover, Google’s culture entails focusing on small company and creating a unique environment for all employees.
Google’s SWOT analysis shows that the company has a clear market vision and efficient strategies. For instance, Google’s “SO” strategies entail consolidating its position in the search market, market development, customer development, and market penetration.
Moreover, Google’s “ST” strategies involve horizontal integration and product development. Conversely, Google focuses on solving user problems and promoting efficiency in service delivery through the “WO” strategies. Furthermore, Google aims at converting external threats into innovative opportunities through the “WT” strategies. However, Google has not adequately ventured into other sectors besides its search engine business.
Thus, relative to Porter’s Five Forces Model, Google’s current supplier power is low while its buyer or Customer power is high. On the other hand, the threat of new entrants relative to Google’s case is relatively low. Furthermore, Google is facing a relatively low threat of substitute products.
Lastly, Google’s current competitors are in the medium to high range. Therefore, there is the need for Google to continuously innovate and diversity its product base to outdo its competitors. Additionally, there is the possibility that Google’s current products may be outdated and redundant within a short period.
On the other hand, Google’s business model entails manipulating the process of organizing and making the world’s information accessible and useful to all users. Therefore, Google focuses on providing all the information needed by the public through the Google Search Engine, Google Maps, Google Earth, YouTube and other applications.
Furthermore, an analysis of Google’s business model shows that the company has two types of customers, the advertisers and the information seekers. Furthermore, through value proposition, Google aims at providing timely and relevant information to all types of users. As a result, Google uses different channels such as the Internet-based services and mobile-phone applications to reach out to all customers.
Additionally, Google provides information to users at no cost. However, the company derives its revenues from advertisers and partners such as the New York Times. Conversely, Google’s major revenue channels include Ad words and Ad sense.
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In addition, Google needs a strong human resource base and hardware support to accomplish different activities such as innovation and advancement in information search, advertisement, product development, and maintenance of existing products. Moreover, research and development (R&D) should be Google’s major cost stream to maintain its success in the market.
Overall, Google is efficient in providing its advertisers with quality services such as Google analytic, which enables them to place Ads relative to market targets. However, Google needs to devise ways of generating revenue from animations, videos, and pictures. Furthermore, Google should aim at identifying its customer locations and provide them with location-based Ads.
On the other hand, Google has undertaken different initiatives in terms of improving the quality of information available to customers. However, Google could be facing several lawsuits for violating the intellectual property rights of customers and information providers. Therefore, the company should aim at protecting its customer information database from abuse.
Lastly, Google has developed several innovations in information provision to date. However, there is the need for the company to continue developing more innovations and expanding the number of languages and regions it serves in order to stand out against the stiff competition from Facebook, Yahoo, Microsoft, and Apple.