Strategic Analysis of Google

Strategic Analysis

Presented By:Sonal Ram

Google's Strategic Analysis 2

Introduction Type Subsidiary of Alphabet Inc.

Industry Internet computer Software

Headquarter US

Current CEO Sunder Pichai

Number of Employees 57,100 (Q2, 2015)

Main Competitors Apple Inc., Facebook, Microsoft, Samsung Electronics


Vision Statement“To provide access to the world’s information in one click.”

• Explanation:The company’s nature of business is a direct manifestation of this vision statement. For instance, Google’s most popular product is its search engine service. This product enables people to easily access information from around the world.


Vision Statement Analysis• Google’s vision statement has three variables• World’s information• Accessibility• One click

• The firm fulfills the world’s information component of the vision statement by crawling webpages. The company maintains databases containing indexes of these websites. • Google fulfills the accessibility component by offering its search engine

services to everyone around the world. • The one click component of the vision statement refers to easy access to

information. The firm fulfills this component by offering innovative products, such as the easy-to-use Google Search. • Thus, the company effectively follows its vision statement.


Mission Statement“To organize the world’s information and make it universally accessible and

useful.”

• Explanation:• Ever since its beginnings, the company has focused on developing its

proprietary algorithms to maximize effectiveness. Google continues to focus on ensuring that people access the information they need.


Mission Statement Analysis• The mission statement has four variables:• World’s information• Organization• Universal accessibility• Usefulness

• As noted, the firm fulfills the world’s information component by crawling webpages. • The company organizes the information through its proprietary

algorithms or programs. • Google also fulfills the universal accessibility component of its mission

statement by offering its services worldwide. Such processing and organizing of information also makes search results useful. • Therefore, Google effectively follows its mission statement.


Generic Strategy (Porter’s Model)• Google’s generic strategy, based on Porter’s model, is differentiation• It involves a broad market scope• It offers products to everyone around the world, but the generic strategy

of differentiation, involves developing certain unique capabilities that make the business competitive. • The increasing variety of its products, inclusive of Google Search, Google

Fiber and Google Glass, is a manifestation of this innovation under the differentiation generic strategy. The Google Search algorithm also evolves over time to ensure competitive advantage against Yahoo! and Bing, among others.


Contd.• It is of critical importance for the firm to continue innovating.

• A corresponding strategic objective is to develop new products or continue improving existing products.

• Google will be able to keep its competitive advantage in using the differentiation generic strategy in the face of competition from other technology firms.


Strategic Analysis• Google follows its mission statement and vision statement. The company

is known for effective products, like Google Search, that satisfy the specifics of the firm’s vision statement and mission statement. • The company’s leadership in the market satisfies the universal

accessibility component of the mission statement by making Google’s products widely used. • Innovative strategies contribute to the company’s capacity to maintain its

leadership in the industry. This leading position empowers Google to continue following its mission statement and vision statement.


Intensive Strategies• Market Penetration• Google relies on market penetration as its intensive growth strategy,

especially outside the United States.

• In the United States, the company already has a leadership position. However, in other countries, such as China, Google directly competes against other large search engines and online advertising firms.

• Thus, in the market penetration intensive strategy for growth, Google continues to strive for a bigger share of the global online advertising market.


Contd.• Market Development• Google also uses the market development intensive strategy for

growth• Within the United States, the company uses this intensive strategy for

its Fiber product. Currently, the Google Fiber Internet and cable television service is available in only a few states, such as Kansas, Missouri, Texas, and Utah. • Thus, using the market development intensive strategy for growth,

Google aims to offer its Fiber product to more states in the future.


Contd.• Product Development • The product development intensive strategy for growth is applied

through Google’s innovation. • The company continues to develop new products, such as Google

Glass and the driverless car. The company also develops new models of Nexus mobile devices. • Through the intensive growth strategy of product development,

Google creates more channels for income generation.


Strategic Analysis • Google’s generic strategy of differentiation, based on Porter’s model,

contributes to the company’s leadership in the market. • Such leadership is important for the firm to satisfy its mission statement

and vision statement. • The combination of the intensive growth strategies of market

penetration, market development, and product development also contributes to the capability of Google to maintain its leadership position, which in turn empowers the company to maintain its financial viability.


Current Performance • Google primarily concentrated on the areas of search, advertising,

operating systems and platforms, enterprise and hardware products. These programs include AdWords, AdSense, Google Display and Google Mobile, with Android and Google Chrome serve as its operating system and platforms.

• Google generate revenues primarily through delivering advertising to promote products and services for businesses.


Contd.• Google launched Pixel this year which is a rebirth of Google's

unrealized Motorola dream.

• It may seem like mere Nexuses in disguise, but the company's shift in strategy is far more monumental.

• This new effort represents a renewed attempt at what Google sought to do with Motorola when it bought that company in 2011 only with even more ambition and without the accompanying complications.


Strategic Shift From Nexus to Pixel• Nexus: stood for products created in partnership with a rotating cast of

Android manufacturers, typically using an existing handset model as a base and then tweaking it to make it feel like a Google original. Google's hand in Nexus hardware development generally started once a device was already about 90% done.

• Pixel: is overtly poised to provide a "pure Google" experience, an extra Googley take on Android that puts Google services and concepts front and center. It's "the best of Google," as the Pixel marketing materials explain it.