This paper examines Google's core business strategies through established analytical frameworks, including a SWOT analysis and an IE Matrix assessment. It identifies Google's current strategic position — requiring a "hold and maintain" approach — while recommending market development and product proliferation as supplementary growth strategies. The paper discusses the advantages and disadvantages of each alternative strategy, presents a three-year itemized cost estimate, and compares the recommended strategies against those actually adopted by Google. It also addresses implementation requirements, including the need for sponsors, coordinating committees, and facilitators, and outlines a formal review and evaluation process to measure strategic effectiveness over time.
In many circumstances, a business strategy aims to describe efficiently how a business is supposed to succeed in a particular market against numerous competitors. The strategy therefore provides a firm's management with the best approaches to adopt in securing the business's future success. Precisely, a business strategy should be able to answer several key questions: the scope of the business, ways to address both current and future customer needs, and the steps a firm must follow to expand its competitive advantage. Competitive advantage must integrate both the distinctive capabilities and unique competencies of the firm.
Google is a corporate organization that has specialized in innovative and entrepreneurial marketing strategies. The internet search engine has a rich history of engaging with online technological advancements. Regardless of its dominance as a leading search engine, the organization has also specialized in producing innovative products. In particular, Google's marketing strategy focuses on the youthful segment worldwide, aiming to provide young people with tools to gain knowledge, seek information, and have fun. The Google search engine also gives users the opportunity to stay acquainted with global developments. Within the Google portfolio are many other organizations, including Small and Medium Enterprises (SMEs).
Google has always strived for a competitive advantage position through continually reviewed strategies. Its strategy has been to participate in innovative projects whose end result is profit maximization. The acquisition of other companies adds extra value to users and brings in quality staff, which in turn generates additional profit. However, there are several other strategies the organization could adopt to further maximize its competitive advantage.
One such strategy is a strong recruitment strategy. Google must maintain an efficient recruitment process and ensure it attracts prospective employees who can fill different roles within the organization, while also providing a convenient work environment. The human resources unit bears responsibility for implementing the best recruitment procedures, including providing job descriptions for required roles and coordinating and controlling interviews (Billsberry, 2007).
Google could also leverage its rich organizational culture, which balances a productive working atmosphere with space for relaxation. The organization's culture welcomes people from all backgrounds and embraces multicultural job opportunities, meaning employees of all ethnicities are welcome at Google. This culture also encourages dedication and focus at work — employee determination and loyalty to Google are key sources of added value for the organization (Weber, 2008).
Additionally, Google needs to implement a policy development strategy. A culture of innovation and encouragement ensures that employees work on interesting projects that ultimately add value to the organization. A creative and innovative policy allows Google's technicians and engineers to spend time working on prospective projects to enhance income generation. All of Google's major services — including Gmail and Google News — have emerged from this culture of innovation and creative thinking.
A SWOT analysis is a method used to evaluate the competitive position of an organization by assessing both its internal and external environment. The framework assists in auditing an organization's objectives alongside its operating conditions (Ghazinoory, Abdi & Mandana, 2011). The SWOT matrix for Google is summarized below.
Strengths: strong marketing strategy; high brand popularity; diversity of products; strong management.
Weaknesses: lack of consistently innovative products; poor recruitment procedures in some areas; lack of sufficient employee motivation mechanisms.
Opportunities: expanding into the broader market arena; producing more engaging products and services for competitive advantage; reinforcing the organization's culture.
Threats: competition from related organizations offering search engine services; lack of monopoly in the services and products offered.
The IE Matrix is typically constructed using the External Factor Evaluation (EFE) matrix plotted on the y-axis and the Internal Factor Evaluation (IFE) matrix plotted on the x-axis. After calculating both matrices, vertical and horizontal lines are drawn and the point at which they intersect indicates the company's current strategic position. For Google, the EFE matrix's total weighted score is 2.47 while the IFE total weighted score is 2.81. As shown in the diagram below, the company sits in the position that calls for a "hold and maintain" approach for most of its strategies. However, the recommended strategies must be implemented to move the organization toward a stronger position. This position specifically calls for market penetration and product development strategies.
IE Matrix Diagram: EFE Score (y-axis) = 2.47; IFE Score (x-axis) = 2.81 — intersection falls in the "Maintain and Hold" quadrant (Medium/Average zone).
Although the recommended strategies for Google are market penetration and product development, other strategies offer their own advantages and disadvantages. Two notable alternatives are market development and product proliferation.
Market development involves finding new market segments for existing products and services. The advantage of this strategy is that it increases revenue, as more products and services become accessible to a larger market. The disadvantage is that it requires significant capital to conceptualize and execute, adding to organizational expenses.
Product proliferation involves offering a range of different products tailored to relevant market segments, so that all segments are served by appropriate offerings. The advantage is that it allows the organization to compete across all market segments, thereby increasing overall income-generation capacity. The disadvantage is that quality may suffer due to a lack of specialization in any single product. Product proliferation also demands extra expenditure because of the increased volumes of output (Hill & Jones, 2009).
The following table outlines the suggested action items and their estimated costs over a three-year period.
2012: Expand the market through a market development strategy — Estimated Cost: $850,000.
2013: Adopt and implement the product proliferation strategy in newly acquired market segments — Estimated Cost: $640,000.
2014: Enhance employee development and sustain efficient management capabilities, including cash rewards for top-performing employees — Estimated Cost: $250,000.
Though the organization's actual strategies — market penetration and product development — are currently effective, outcomes could improve further with the implementation of the recommended strategies. Market development and product proliferation are both income-generating strategies that would contribute to better profit rates. The new strategies would also help Google expand its market segments and target a larger population, as more markets would be developed and products would be made available across all segments (Mair, Ventressa & Mart, 2012).
"Details how to implement and assess recommended strategies"
The management of strategy development and implementation begins with the appraisal of both internal and external factors affecting organizational performance. Once strengths, weaknesses, opportunities, and threats have been thoroughly analyzed, an organization is in the best position to adopt the right strategies. Proper implementation of strategies consistently leads to competitive advantages in business-oriented corporations — and Google is no exception to this principle.
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