Google Incorporation has succeeded because of its powerful business model. Google does not produce new products. The company focuses on the best business areas in order to emerge successful. The company uses unique strategies in order to deliver quality services to its consumers. The company has also acquired different firms in order to support the changing needs of its consumers. The approach has produced a powerful concept of innovation at the company.
The company has formed new partnerships in order to support its positioning strategy. Google Incorporation identifies the needs of its end users in order to formulate the best strategic approaches. This practice has made Google a leading competitor in its industry. This discussion begins by identifying the company’s ability to offer differentiated and innovative products to its customers. This practice continues to support the company’s business model. This strategic approach has also made Google a successful company in its industry.
Google’s Business Strategy
Google Incorporation uses a powerful business model in order to remain profitable and successful. The first aspect of the ‘company’s strategy is earning’ (Lavania et al. 2013, p. 339). The company uses powerful advertising practices and strategies in order to achieve its goals. This approach ensures the company earns over 95 percent of its revenues. This strength has encouraged the company to acquire new companies. The next aspect of Google’s Business Model is “enticing”. The ‘enticing strategy encourages more individuals to use the company’s services’ (Lippit & Lippit 1994, p. 75). The company ‘also collects appropriate data in order to target the best markets and age groups’ (Afuah 2009, p. 63).
Google Incorporation also encourages its employees to produce new ideas and business concepts. Most of these projects eventually become powerful products. The company also encourages its employees to produce revolutionary ideas and innovations (Saunders, Lewis & Thornhill 2000). Google Incorporation uses such innovations and experiments to identify new business opportunities. The company is currently promoting the concept of vertical integration. This business growth strategy (BGS) has made the firm a leading marketer of numerous services and products to its customers.
Google’s Ability to Offer Differentiated and Innovative Products
Google is one of the most successful companies in the globe. Google offers innovative and differentiated products to many customers across the globe. To begin with, the company has diversified its business operations and practices. This diversification strategy has made it easier for the firm to address the needs of its customers. The ‘company’s main source of revenue is from advertising’ (The Google Case Study: Differentiation in a Commodity Market 2011, para. 7).
The company uses ‘its websites and Google Network sites to inform more people about its products’ (The Google Case Study: Differentiation in a Commodity Market 2011, para. 11). The firm ‘introduced a powerful mobile device called the Google Nexus’ (Hamen 2010, p. 61). Google’s marketing approach ‘for its smartphone revolutionised the manner in which different companies supported their goals’ (Hamen 2010, p. 63). The next step was to market the device directly to its customers. The company succeeded without using distribution chains and stores.
Google has also achieved its goals because of its Android operating system (OS). This software has become common in many mobile phones. The product ‘has also been used in notebooks, tablets, e-readers, and car stereos’ (Seo et al. 2014, p. 6). The company has also produced a powerful operating system called Chrome OS. This operating system has revolutionised the experience of every computer user.
The Web Real Estate (WRE) has become relevant and beneficial to many organisations. Google.com is currently a leading search portal. The company also acquired YouTube in order to deliver more videos ads to its viewers. The company’s AdMob is ‘currently supporting the best relationships between many publishers and their customers’ (The Google Case Study: Differentiation in a Commodity Market 2011, para. 11).
Google does not produce adverts for specific consumers. However, the company provides the right platform for powerful advertising strategies. This approach has made it possible for many companies to achieve their business goals. The company’s website ‘encourages different firms and businesses to advertise their contents at low costs’ (Afuah 2009, p. 63). Google Incorporation ‘uses its platform to connect different companies with more internet users’ (Hamen 2010, p. 69).
Google is also a leading provider of Ad Technologies. Some of ‘these technologies include AdMob, Adsense, DoubleClick, and Teracent’ (Hamen 2010, p. 16). Such technologies encourage users to analyse different adverts within the shortest time possible. Google has ‘established and maintained the best relationships with many advertisers’ (Afuah 2009, p. 69). The company is currently ‘dominating every non-local direct-response advertisement strategy’ (Duncan, Ginter & Swayne 1998, p. 12). The company’s cloud computing strength encourages many individuals to get quality information.
Google’s Success and its Ability to Offer Innovative and Differentiated Products
Google uses its business model to offer differentiated products to its clients. The company’s industry is characterised by different strategic value chains. Google cannot dominate most of the existing value chains. That being the case, the company works hard in order to “commoditise” every value chain. This practice has made it possible for the company to deal with competition. Google has also ‘widened its market for every advertisement’ (Franco-Santos et al. 2007, p. 793). This fact explains why the company has acquired a large market for its contents and advertisements.
The organisation also ‘produces innovative services that can dominate and commoditise the existing market’ (Franco-Santos et al. 2007, p. 793). A good example of such products is Google’s Android. The company’s devices that run on Android have also become powerful commodities. This situation explains how the company achieves most of its business goals. Android has become a unique OS that supports the company’s superior devices (Treece 2010). This OS has become ‘a meaningful user-end product because it attracts more customers to the company’ (Hamen 2010, p. 65).
The company has also promoted the idea of disruptive innovation. This approach ‘has encouraged the company to address the needs of its clients’ (Hamen 2010, p. 65). The company also identifies new customers who might lack the required skills and competencies. The company has adopted a powerful strategy in order to market most of its diversified services and products. For instance, Google uses ‘a powerful natural selection approach in order to examine the major forces affecting its performance’ (Hamen 2010, p. 86). This strategy has made it easier for Google to detect every change encountered in the market.
Google has been innovating new services in order to attract more customers. The company also offers ‘such services to many internet users across the globe’ (Treece 2010, p. 186). The company supports this strategy using its revenues. Google Incorporation also identifies the changing demands of its customers. The company has widened its products and services depending on the needs of many people in the world. Google has therefore been using its business model in order to dominate every market.
Google produces revolutionary devices and applications in order to improve its performance. The above strategies have made it easier for Google Incorporation to offer a wide range of differentiated services. This development is currently supporting Google’s business performance. Google’s success story ‘becomes a powerful benchmark that can guide more companies to offer differentiated and innovative products to their clients’ (Lavania et al. 2013, p. 339). The approach attracts, retains, and empowers more stakeholders. The strategy will eventually make Google a successful company.
Google offers a wide range of services and products to many customers in every part of the world. The company uses its strategy ‘to dominate different market segments’ (The Google Case Study: Differentiation in a Commodity Market 2011, para. 17). The company offers ‘quality services to more customers without charging them anything’ (Treece 2010, p. 186). These services and applications have attracted the greatest number of viewers. This development has enticed and maintained an increasing number of people. The company has used the same customers to support its advertising strategy. This approach has made the company profitable. The company uses its resources and revenues to empower more individuals across the globe. This business model has supported the company’s growth strategy and profitability.
List of References
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Duncan, W, Ginter, P & Swayne, L 1998, Competitive Advantage and Internal Organisational Assessment’, Academy of Management Executive, vol. 12, no. 3, pp. 6-16.
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Hamen, S 2010, Google: The Company and Its Founders, ABDO, New York.
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Saunders, M, Lewis, T & Thornhill, A 2000, Research Methods for Business Students, Prentice Hall, Upper Saddle River.
Seo, H, Sadowski, C, Elbaum, S, Aftandilian, E & Bowdidge, R 2014, ‘Programmers’ Build Errors: A Case Study (at Google)’, ACM Journal, vol. 14, no. 1, 1-11.
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