Strategic Management Case Solution : Google
Q:1. What is the value that Google creates for (a) customers and (b) advertisers? How dose this value translate into higher revenues and profit?
Acts as an intermediary allowing businesses and customers to more efficiently find one another . It provides a middle ground where business can be featured either through advertising ( Google ads) or organic search and customers can search for businesses that they are currently in need of.
Through creating these value Google supports competition by informing customers and increasing choice as well as drives innovation by incentivising businesses to outperform competitors and creating differentiated faster services which enhance revenues and net profit for providing superior services and easy access to customers and advertisers.
Q:2. What are the sources of Google competitive advantage? How secure are these advantages from imitation by competitor? What must Google do to keep the competitors at bay?
Sources of Google competitive advantages:
1) technology
2) human resources
3) brand image
4) financial clout
By creating and maintaining Imitation- Barriers regarding tacitness, complexity and specificity Google can secure It's competitive advantages from imitation by it's competitors.
Google can keep the competitors at bay by these ways:
1) Faster innovation
2) Raise the motive of creation,don't compete
3) Creating moat
4) Strongest competition
5) Rasie prices
6) Build better relationship
7) Own the process
8) Build on user generated content
Q:3. Do competitors such as Yahoo! and Microsoft potentially have assets and capabilities that give them an advantage over Google in the search engine business?
Yahoo! and Microsoft potentially have the following assets and capabilities that gave them an advantage over Google in the search engine business:
1) Human resource capabilities
2) Effective software functionality
3) Growing portfolio for other platform
4) Large partnership network
5) AI capabilities
6) Strong brand image
7) Global presence
8) Leadership
9) Innovation
10) Financial performance
11) Customer loyalty
12) pricing strategy
Among those assets and capabilities Innovation is the key that give them an advantage over Google in the search engine business.
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