GOOGLE CASE STUDY 2010
1. Discuss competition in the search industry. Which of the five competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness?
The search industry is based on the ability of providing higher technology to users, lower prices for advertising and the capacity to engage suppliers to subscribe to the search engine. Some of the big players, besides google, are;
* Yahoo, which has a challenger’s and loser’s position
* Bing, this is new brand name for MSN Live search
* Baidu, China search engine
* AOL, where search engine is powered by google
The bargaining power of buyers in 2008 was almost 97% of ...view middle of the document...
But Microsoft has identified itself as a big threat to Google and it is estimated that it will grow a lot more by 2012.
The second trend impacting the industry is raising a competition in mobile search/advertising, with more and more mobile devices coming out and offering internet services Google has more competition with Bing and Yahoo trying to offer the different mobile devices the mobile search/advertising and Google Apps.
The third trend impacting the industry raising in the Google TV, now you can do all the things you can do on your desktop, laptop and mobile device on your TV. This TV is powered by Google and has all the apps and features any Google/Android phone offers. These will all be things to look into for the future to see how Google changes/ improves its services.
3. What are the key factors that define success in the industry? What are the key resources and capabilities required of successful search engine companies? How do these compare to the key success factors of the smart phone industry?
- Consumer demand for innovative and interoperable products or services (platforms, internationality, interchangeability)
- Net Neutrality
- Improved search algorithms(fast, accurate, impartial and easy to use)
- Trust (user security, privacy concerns and protections)
- Awareness of user habits and needs (supply solution to anticipate and meet needs)
Key resources and capabilities;
- Constant innovation of search algorithms
- Impartial algorithm used t grade data weight
-Open transparent organizational culture
People-Profit Corporate Reputation = Brand Trust continues to build on that
4. Describe Google’s customer value proposition and profit formula linked to its business model What strategies has Google relied upon to build competitive advantage in the industry?
- Google generates revenue by providing advertisement on their page and search results
- They offer companies the opportunity to advertise by matching keywords the users’ searches.
- Google’s business model is based on three keys factors, advertising when you search, Adwords, Adsearch, and Search Appliance.
Search appliance is the way Google sells to their customers. The search appliance offers accurate search result through the different document.
Search appliance was created for business to be able to market their business and give accurate information to searchers.
The strengths of Google’s business model are;
- Reliable pricing system
- Disruptive business model
- Efficient ads
5. Have Google’s business model and strategy proven to be successful? Should investors be impressed with the company’s financial performance? How does the company’s financial performance compare to that of Microsoft, Apple, and Yahoo? Please conduct a financial analysis to support your position—you may wish to use...