Google's business strategy, vision, and competitive position in search

Google Case Study

The vision that Google focuses its activity on is represented by developing Internet search services that would lead to gaining loyal followers among most Internet users. The mission of the company consists in organizing a rather infinite amount of information on the Internet. The principles that Google relies on are represented by: focusing on the user, focusing on a reduced number of activities that the company can work on continuously improving, fast services, democracy on the web, providing information through wireless services, and others. Although Google's objectives are similar to those of other search engines available for the Internet, the company is interested in increasing the number of users. Google intends to reach this objective by expanding the range of products and services it provides and by addressing other platforms used by customers. These mostly refer to mobile phones and television.

The company's strategy seems to be a combination of stability and expansion, with increased focus on expansion. Therefore, Google intends to be the leader of this industry through a series of acquisitions. This helped the company significantly expand the number of services it provides to its customers. These services include Google Maps, local search, airline travel information, weather, Book Search, Gmail, and others. Google also worked on diversifying its Internet advertising to include banner ads. The company has also developed an online socializing platform, but it did not report the success expected by company owners in comparison with Facebook, Twitter, and others.

3. The company's business strategy is based on differentiation. This is because Google addresses a wide target scope. Even more, the company is interested in continuously expanding its market and increasing its number of customers. In order to reach this objective, Google focuses its efforts on research and development of improved programs and platforms that can help users communicate more efficiently.

4. Competition from rival sellers

The most important competitors of Google are represented by: Yahoo, Microsoft, Ask.com, AOL, and others. Google reaches 63.7% of searches, while Yahoo reaches 18.3%, and Microsoft reaches 12.1%. Although there is a big distance between Google and its followers, this means that there is still room for improvement. The most important competitor is represented by Yahoo. The importance of this website relies on the fact that almost any information on the Internet can be accessed through Yahoo. In addition to this, Yahoo users can set up an account, a personal calendar, an email account, check the news, weather, maps, TV listings, watch movie trailers, track stock portfolios, search for job listings, and others.

Competition from producers of substitute products

In this case competitors are represented by social networking sites like Facebook and Twitter, and by sites like Youtube. The number of users of these websites is continuously increasing. This leads to increased competition regarding advertising space.

Supplier bargaining power

In this case, the power of suppliers is quite low. This is because Google dominates the search engines markets. This allows Google to impose its conditions on suppliers. In addition to this, Google ensures the stability of incomes of its suppliers, helping the company maintain a successful relationship with them.

Customer bargaining power

The bargaining power of customers is low in their relationship with Google. This is because customers are numerous, fragmented, and cannot significantly influence their relationship with Google. In addition to this, Google addresses both large and small companies, reducing its dependence on them, and not allowing these companies to control or influence the conditions requested by Google.

5. The company's internal capabilities are represented by:

Revenues - $23,650 million

Net income - $6,520 million

Cash and cash equivalents - $24,484 million

Total assets - $40,496 million

Total liabilities - $40,496 million

6. Recommendations

There are several issues that the company should focus on in order to increase its market share and create competitive advantage. It is recommended that Google continues its mobile search strategy. This is an opportunity that must be addressed by Google because of the increased number of individuals that use smartphones and that require search engine services. In this segment, Google has a very small market share in comparison with applications developed by Apple, Microsoft, and others. This means that Google is required to make significant investments in improving partnerships with mobile phone producers. Another aspect that must be improved is represented by the Google Chrome browser. The company should exploit the opportunity provided by the high number of people that use the search engine and better advertise the characteristics of its browser. When doing so, it is important to focus on security issues. This would allow the company to increase its profits and to improve the products and services it provides.