Case 1: Analysis of Google from a Business Point of View
Google is an exploration engine which is usually used for the search of everything under the sky by the people all around the world. This search engine was founded by the Sergey Brin and Larry Page in the year 1989. It is considered as the special heart of the people who use internet and more than seventy percent requests of the operational search is controlled or handled by the Google. They have different head offices all around the world. Now it is not just a search engine but also provide more than 50 online services to its users which include email, products and many other things. (Hosch, 2015)
Now in 2012 the Google has acquired the Motorola Mobility and because of this now they are able to sell the hardware. Google is now not just found in laptops or computers but there are apps for the mobile phone users like Google, Google + and many others. The portfolio of the Google is extremely extensive and broad which make them in the list of the four impactful companies of the world. Apple, Microsoft and the company IBM is along with the Google in this list. In 2011 Google made ninety seven percent of its income through just publicity grounded on users’ search requirements. (Hosch, 2015)
The company income for the year 2015 was $74.5 billion which is way high than the last year. (Martonik, 2016)
They believe in the open culture as they have a lot of employees with different backgrounds, cultures and ethics. They believe in openness because they value and promote new thoughts and ideas by its employee to make the running of the company more effective and active. (Google, 2016)
Research and Analysis
In this part of the case we will discuss and analyze all the possible competencies and it will also include different analysis like SWOT analysis and PESTLE analysis etc.
- Review of internal and external environments
The SWOT analysis of the Google Company is described below
- Good image in the mind of consumers (users)
- Large size of the organization with many employees
- Patented proprietary products
- Diversified portfolio
- Available in more than 88 languages
- No biasness towards advertisers
There could be many strengths of the Google Company but it main strength lie in its very strong brand image all around the world. People know google and everyone use it off and on every day. So the positive brand image helps them to add value in their brand equity and the reason of their drastic growth.
- More dependent on software rather than hardware.
- No physical existence.
- Issues related to the rank base services.
- Issues with the algorithms accuracy.
The biggest threat to the Google Company could be just dependent on the internet and no physical existence. However they have entered in the hardware market in 2012 because of its acquisition on Motorola but the core part of this organization is highly dependent on the internet service. Another problem which is the weakness of the google is that Google ranking based on link did not service the actual analysis of the traffic.
Appropriate search algorithms are not accurate hundred percent and they make mistake many times. They also do not use the attractive sticky notes which is used by the Yahoo and MSN and this is a very useful way by which one can attract users.
The threats to the Google Company are mentioned and explained below:
- Increasing competition and increasing competitors.
- The constraint of the some product length.
- The puzzling and unclear ranking on Cost per Click and the charging policy.
- The solely dependence on the portals which includes AOL.
- Privacy issue could be major threat for them if not worked on it properly.
There are many opportunities available for the company like Google who has a lot of cash in hand and can avail these opportunities to make themselves grow more and more in future.
- They should try to make the use of internet worldwide easily.
- They should also focus more on the mobile users as most of the people now use smart phones instead of heavy laptops or computers.
- They should penetrate themselves in the market of the electronics so that they can grow more and more in the coming future.
(Thompson, 2015) (Google Case Study , n.d.)
Competencies and Analysis of Competitive Approaches
The core competencies and strategies were developed by the Hamel and Prahalad in the year 1944 and the google still focuses on its core competencies because it believe that these competencies are unique and will help them to grow and prosperous further and will also help them to gain competitive edge.
The core competency of the google lie in its
- Software engineers which try to do innovation and work for the betterment and growth of the company.
- Incorporation or combining of the different technologies.
- The loyalty of the employees towards to the company.
- The products of the google are developed on the basis of the core competencies which will help them to gain competitive edge.
- A broad and extensive portfolio by the google.
- A value of the continuous innovation is its strongest competency.
- Global reach and users worldwide.
These core competencies have helped them a lot in gaining the competitive advantage in the short run and in the long run as well.
The competency are of great importance as the competency help to build up the culture and the direction of the company as well. The competencies of the Google are also mentioned in the Harvard Business Review.
The competency have taken google at a place where it is now. It is the most user friendly app and almost everyone is well aware of the Google. Google has a broad portfolio and it provides both software and hardware facility to its users. Its most important areas and products are
- Google is use at the individual level and at the businesses level as well
- The search engine
- Google Scholars article search engine
- Google map
- Gmail use for email purposes
The company try to innovate and make its all product up to date for its users. They also focuses on the quality of their all products because quality is to be taken account according to their core competency. This all is achieved by the extremely motivated and loyal workforce which consider google as its own company and work for it.
The core competency of google is also to have a strong human resource because the mental knowledge and skills cannot be replicated while the other things can. So they always look for the best of the employees and provide them all the possible benefit which they can. The best part is that the competency are the one which are for life time and do not get lessen with time and this concept is the part of the Google.
(Uk Essays, 2013)
Although google is kind a market leader in more marketing term in the world but there competitors are not way back from it. They are giving a tough competition to the google. So it is very important for them to play carefully in this competition to maintain the position and growth.
Google is successfully implementing its strategy and core competencies to bring out the best for it users but it’s still lacking behind in some are which should be address. The strategy which I would like to recommend them is
- The more effectual Research and development department with more spending on this department.
- Solve the issue related to the ethics by creating awareness.
- Operationalize and take advantage form the loop hole or gaps (opportunities present in the external environment)
- Overcome its weaknesses aby adopting different strategies which suit them.
Discussion of the strategy
Google have achieved a very good place in the market and in the minds of the people but still the company is facing issues related to the ethics.
- Problems related to the communications and of the pricing.
- Issues like indifference customer ethical difficulties.
- Privacy issues
These problems are not big at the moment but it can get bigger with time and can be harmful for the Google Company. It can be solved by adopting the human right approach in which they have to ensure people or consumers that they are using the right app.
Along with the privacy issue they should also focus in the area of R&D they should focus on the two areas which lie within the Research and development department.
- Make the brand image of google more positive with the help of different unique advertising tactics.
- Chase of telecommunication which can be very beneficial for them in the future. This is because now people are using cell phones like androids, windows and apple. So Google should focus on this area.
The google is a well-known company and using its core values and competencies well and growing at a very past pace. Whenever we want to search something we will always go for the google search engine and then it comes to yahoo and MSN.
The best part of the google is that it is overcoming its weaknesses by entering the hardware along with the software. So this will add an advantage to their value and image. The image of the google is very strong but they should look at their weaknesses and threats critically in order to maintain a secure and unbeatable position in future.
The google should not underestimate there competitors as they are also very strong and the competition is very tough and close. So a little mistake by the google can be very damaging to their image and to the revenues as well. Above mentioned strategies should be taken in account by the company in order to make them stronger.
Google. (2016). Our culture. Retrieved from google.com: https://www.google.com.pk/about/company/facts/culture/
Google Case Study . (n.d.). Retrieved from najishukri.files.wordpress.com: https://najishukri.files.wordpress.com/2010/05/google-swot-analysis.pdf
Hosch, W. L. (2015, 11 8). Google Inc. Retrieved from britannica.com: http://www.britannica.com/topic/Google-Inc
Martonik, A. (2016, February 1). Google announces Q4 and FY 2015 earnings: $74.5 billion in revenue for the year, $21.3 billion for Q4. Retrieved from androidcentral.com: http://www.androidcentral.com/google-releases-q4-and-full-2015-earnings
Thompson, A. (2015, August 21). Google’s SWOT Analysis & Recommendations. Retrieved from panmore.com: http://panmore.com/google-swot-analysis-recommendations
Uk Essays. (2013, November ). Analysing The Core Competencies Of Google Inc Business Essay. Retrieved from ukessays.com: http://www.ukessays.com/essays/business/analysing-the-core-competencies-of-google-inc-business-essay.php