Google Brand Strategy Essay Essay
This paper will give you an inside expression as to how Google Inc. has evolved into a multi-billion dollar imperium since it was foremost developed in 1996 by two Stanford University graduates working out of a garage. The paper will besides compare Google to its strongest rivals in the hunt engine. web advertisement and nomadic phone industries. The paper will besides uncover what the cardinal elements to success are in those industries. The paper will besides detail the resources and cardinal competences that Google has to do them the taking internet hunt engine with over 60 per centum of market portions. The paper will besides discourse the concern theoretical account and schemes used by Google to assist them go one of the fastest turning companies in history. The paper will besides touch briefly on some of the menaces and failings they face in the market place. The paper will besides include a recommendation to Google’s top direction to assist them prolong its competitory border and fiscal success in the industry.
Background History and Company Growth
In 1996. Stanford pupils Larry Page and Sergey Brin teamed up to develop a new hunt engine they named BackRub. They chose this name because of the engines ability to rate web sites in relevance based on metatags and keywords. Backrub was rapidly deriving popularity and in 1998 Yahoo’s cofounder. David Filo talked Brin and Page into go forthing school to set their focal point doing Backrub a major portion of Yahoo. Backrub was subsequently named Google. which was taken from the word googol. Googol is mathematical term for a figure represented by the numerical 1 followed by 100 nothings. The laminitis of Sun Microsystems was the first individual to put in Google with $ 100. 000 in August of 1998 which raised $ 1 million by the terminal of September.
Google was named “Top 100 Web Sites and Search Engines for 1998” by PC Magazine and was recorded successes at record gait. Google saw possible for net incomes in other sections of the market and made advanced thoughts to derive market portion. In 2000. their inventions included wireless hunt engineerings. hunt capablenesss in 10 linguistic communications. and Google Toolbar browser. Google expanded its merchandise line once more in 2004 with the launch of Google News. Google Product hunt. Google Scholar and Google Local. Google’s index of web pages besides grew to more than 8 billion and increased its state sphere to more than 15.
Google so entered the nomadic phone market in 2004 when they created a characteristic leting users to text a hunt petition and Google would supply consequences to the hunt. Google Earth was created in 2005. which was later enhanced in 2010 when it included an Earth View manner leting users to see 3D images of assorted locations at land degree. Between 2005 and 2010. Google besides added Book Search. Music Search and Video Search. Google created characteristics for its web site to include Gmail package. web-based calendar. web-based paperss. spreadsheet applications and linguistic communication interlingual renditions to suit 51 linguistic communications.
Discuss competition in the hunt industry. Which of the five competitory forces seems strongest? Weakest? What is your appraisal of overall industry attraction? Google has been able to prolong its competitory advantage because of the strong relationships they have built with Internet users. advertizers and web sites. In 2010. Google was the most visited web site with more than 147 million cyberspace users sing their site on a monthly footing to seek for information. Google’s direction believes its strongest challengers are Microsoft and Yahoo. although market portion rankings from June 2006. June 2009 and May 2010 showed Google has more than twice their rivals combined.
Yokel was foremost founded in 1994 and in 2010 held the top 3rd place for most visited hunt engine site. Almost any information available on the web can be viewed through Yahoo’s portal. Yahoo has many of the same characteristics as Google such as. personal calendar. electronic mail. intelligence. conditions. telecasting listing and on-line exposure albums. Yahoo has besides partnered with nomadic phones allows users to seek from their nomadic devices merely as Google has done and the hunts performed through Yahoo accounted for 35 per centum of the market in 2010.
Yahoo’s many characteristics and services have generated grosss from many beginnings. Yahoo’s relationship with Google goes back to 2000 and has at times been concerted and other times adversarial. In fact. Yahoo was one of Google’s first clients. but in 2002 they parted ways when Yahoo purchased other companies to develop hunt engines and since so they have been considered rival companies.
Another of Google’s top rivals is Microsoft whose grosss in 2009 were about $ 58. 4 billion. with $ 14. 6 billion net income. They were able to do these impressive net incomes through gross revenues of computing machine package. consulting services. video games hardware and online services. Microsoft’s computing machine package Windows 7 and Microsoft office raked in half the company’s grosss in 2009 and most of its operating net incomes. Their on-line gross revenues of $ 3. 1 billion showed a loss of $ 2. 3 billion during 2009.
The online services generated income came from streamer ads on the company’s MSN web site and other attached sites. every bit good as search-based ads displayed with Bing consequences. Microsoft entered the hunt engine industry during 2004 in an attempt to vie with Google. This happened because Microsoft noticed occupation posters for Google were about indistinguishable to Microsoft specifications. Microsoft believed Google was trying to plan package applications that compared to Microsoft office such as Word. Excel and PowerPoint.
Google is good cognizant of the competitory force per unit areas created by its challenger and they to the full understand what it takes to keep the competitory border. They created a scheme that would let themselves to keep their ain against its challengers. In their head. if the competition could make it. so could they. Competition stems from all kinds of waies for Google. They must vie against their challengers like Yahoo and Microsoft in the hunt engine industry. new entrants to this industry. the merchandise inventions of their challengers. every bit good as the bargaining powers their challengers may hold that they do non.
One of the biggest forces of competition is website traffic. If Google can acquire more cyberspace users to see their site over MSN or Yahoo. they will hold more bargaining power with advertisement gross revenues. Google must besides obtain qualified employees with the capablenesss to vie with the new and advanced merchandises that Microsoft continues to make. Because the hunt engine sites are so likewise. this causes the competition between rivals to increase because the merchandises are less differentiated.
What are the cardinal factors that define success in the industry? What are the cardinal competences. and resources of successful hunt engine companies? Success in the hunt industry can be defined by looking at several different factors. One of the most obvious marks of success is gross growing. Google’s grosss from its web sites have grown from $ 792. 063 in 2003 to $ 15. 722. 486 in 2009 as stated on its 10-k studies. Grosss from licencing have grown from $ 45. 271 in 2003 to $ 761. 759 in 2009.
However the value of their stock reached the high point in 2008 at merely over $ 700 per portion and has dropped to below $ 300 in 2008. gained a small in 2009 and dropped once more in 2010 to around $ 450. Some analysts believe Google’s recent diminution in gross and net incomes stemmed from their determinations to increase stock monetary values in order to accomplish gross and growing net incomes that pushed the boundaries of their corporate doctrine of doing money without making immorality.
In order to be successful. Google must go on to develop advanced merchandises at characteristics to better run into the demands of its clients. They need to offer these merchandises at lower monetary values than their rivals as good.
Have Google’s concern theoretical account and scheme proven to be successful? Should investors be impressed with the company’s fiscal public presentation? How does the company’s fiscal public presentation comparison to that of Microsoft and Yahoo? Google’s advanced merchandises and concern acquisitions have all played a portion into their scheme directed at increasing the company’s market portion in cyberspace advertisement. The add-on of these merchandises has increased traffic to Google’s web site. and hence. has given them more chances to publicize to Internet users. The scheme to rule the internet advertisement market was designed to be world-wide. China was a market that they were peculiarly interested in taking over since they have more than 300 million users.
Unfortunately for Google. China was non every bit interested in this and they were faced with challenges from their local hunt supplier. Baidu and the Chinese authorities. As of 2009. merely 31 per centum of China’s cyberspace users searched utilizing Google and 64 per centum used Baidu. Google’s concern scheme included making new merchandises and characteristics for the nomadic phone industry. In 2010. 234 million people owned nomadic phones. with 30 per centum holding internet entree from their devices. Google foremost introduced its Android operating system in 2008 free of charge to any phone maker selling nomadic phones with internet capableness.
The applications included the operating system had Wi-Fi capableness. electronic mail. web-based calendar. Google Earth maps. and GPS. T-Mobile was the first to utilize Google’s Android runing system with the launch of G1 in September 2008. The G1 had many of the same characteristics as Apple’s iPhone. but much less expensive. The Android operating system was highly successful with its market portion. increasing from nothing in 2008 to 13 per centum in May of 2010. Another country of Google’s concern scheme focused on computing machine package plans used by concerns. Senior direction believed the plans would travel from local difficult thrusts to the Internet.
These is referred to as cloud computer science. The market was believed to turn to every bit much as $ 95 million by 2013. The move would offer many benefits to corporate users such as lower package acquisition costs. lower computing machine support costs. and easier coaction amongst employees in different locations. Google foremost launched its beta version of free word processing and spreadsheet in 2006 and subsequently relaunched in 2008 to vie with Microsoft’s Office merchandises. In 2008. Google launched its Chrome Browser and Chrome operating system. specifically to suit cloud transposing applications.
The Chrome browser was created with a multiprocessor design that allowed users to run spreadsheets. word processing. picture redaction and other applications at the same time. Each check opened a new window so if one crashed the other applications running would non be affected. Besides in 2009. Google made understandings with Acer. Hewlett-Packard and Lenovo to get down production of netbooks that used Chrome OS and Chrome browser to entree cloud-based Google apps package.
Google’s concern scheme besides included spread outing into the telecasting market. In 2010. Google teamed up with Intel. Sony. Logitech. Best Buy. DISH Network. and Adobe to develop Google Television. Google Television was built on the Android platform. running the Chrome browser to seek unrecorded webs and overseas telegram scheduling that streamed pictures from suppliers such as Netflix. Amazon on demand picture. and YouTube. Google Television users would be able to utilize their telecastings to shop the web and run cloud based applications.
Google’s concern scheme besides focused on the add-on of targeted advertisement placed alongside hunt consequences on its web site. Google Adwords increased one-year grosss from $ 220. 000 in 1999 to more than $ 86 million in 2001. These ads were monetary values utilizing an auction system. where uses command on keywords that described their merchandise or service.
What are the company’s cardinal resources and competitory capablenesss? What competitory liabilities and resource failings does it hold? What opportunities exist? What threats to its continued success are present?
In order for Google to hold continued success in the hunt engine industry. they need to hold resources and capablenesss to make competitory advantage over its challengers. Many of theses resources needed for success are intangibles. They included human assets and rational capital. This means holding employees with experience. instruction. creativeness and invention to develop new merchandises and characteristics to vie with its challengers. Another of import resource is their company image. Google’s 10 principles’ of Corporate doctrine includes “You can do money without making evil” . Their image is different from many other concerns. Google believes in carry oning concern in unconventional ways.
They believe their work should be disputing. but merriment. The company puts accent on squad accomplishment and single achievements that contribute to the company’s overall success. They work in a topographic point where there is great communicating and chumminess in order to hold the tools necessary to bring forth Google users with the information they are seeking. Google besides believes being great will non do them successful.
They must expect the future demands of its user and develop innovate merchandise and services in order to be successful in the hunt engine industry. Building relationships or confederations with providers is another cardinal constituent of success. These relationships can assist to cut down costs and heighten merchandise quality and public presentation. A perfect illustration of this relationship is Google offering its Android runing free of charge to mobile phone suppliers or its coaction with Sony. Logitech. Best Buy and DISH web to develop Google Television.
Some of the touchable resources needed for success include fiscal assets. technological assets and organisational resources. Google must hold hard currency and marketable securities in order to finance new merchandises and investings every bit good as wage dividends to its stock holders. Some technological assets are its right of first publications and production engineering. Production engineering refers to the procedures used to develop new merchandises to vie with its rivals. Organizational resources included the company’s workstations and waiters used in developing these merchandises.
Some of the menaces that Google faces in the industry include new entrants in the market and merchandise inventions from its rivals. Overall. Google has done a comparatively good occupation in viing with the development of rivals merchandises. They created the Android operating system in order to come in the nomadic phone industry and they are developing new applications for cloud commutation to vie with Microsoft office package. They need non worry excessively much about the entryway of new concerns as they have developed a trade name and corporate image that has already earned trueness from many consumers.
What recommendations would you do to Google’s top direction squad to prolong its competitory advantage in the hunt industry? How should it best capitalize on its strategic enterprises in nomadic phones. cloud calculating. emerging markets. and other locales?
Because Google’s challengers are viing with comparatively the same merchandises. I would propose to Goggle’s top direction to concentrate in carry oning concern in an ethical mode that conforms with the concern doctrine. They have received much unfavorable judgment late because of their impressive grosss growing during the recession. They need to concentrate on constructing their trade name image that consumers are appealed by. I would besides propose happening ways to offer merchandises and services at a lower monetary value to its consumers in order to rule the market. With merchandises being so comparable and easy substituted they need to vie on monetary value.
It would be in Google’s best involvement to concentrate on the markets in the United States and Canada. instead than in China. China does non desire them viing at that place and they are passing excessively much clip and money seeking to acquire in when there is plentifulness of chance here. The lone thing they are deriving from this is bad promotion. It would be in the best involvement of the company to set much of their focal point on the thing they do best and that is the hunt engine. Google should remain with the industries they have performed good in. such as hunt engine and nomadic phones.
Their biggest rival. Microsoft. is the leader in advanced merchandises and they will most probably be more successful than Google in the cloud transposing market because concerns are familiar with their merchandises and have already created a following where Google has non. They should concentrate on the countries they do good in and leave the other markets to rivals. Management needs to add characteristics to do their current merchandises more appealing to consumer instead than looking for new markets to come in.
Thompson. A. . Peteraf. M. . Gamble. J. . & A ; Strickland III. A. J. ( 2012 ) . Crafting and put to deathing scheme. ( 18 Edition ed. ) . New York: McGraw-Hill/Irwin.
Thompson. A. A. . Peteraf. M. A. . Gamble. J. E. . & A ; Strickland. A. J. ( 2012 ) . Cases m for crafting and put to deathing scheme. ( 19 erectile dysfunction. . Vol. 1 ) . The McGraw-Hill Companies. Inc.