Google Takes On The World Essay

Google Group Case Study: Google Takes On The World

Information Management SystemsFebruary 3, 2009IntroductionGoogle has become one of the biggest corporate conglomerates in the Internet and business world. How could a simple idea proposed in a dorm room by Larry Page and Sergey Brin grow into this huge giant of the business world? The purpose of this case study is to examine the reasons as well as possible scenarios that will help Google lead the charge throughout the new millennium.

1) Evaluate Google using the competitive forces and value chain models.

There are several information systems that companies may apply their business strategy to, in hopes, of achieving a competitive advantage. Two of these models that will be examined are Porter's Competitive Forces Model and the Business Value Chain Model. The first of these systems - Porter's competitive forces model refers to the five factors that affect competitive advantage. Although one may believe competitive advantage is about making better business maneuvers then a competitor/rival, four other factors that have an effect on competitive advantage or supplier power, barriers to entry/new market entrants, threat of substitutes and buying power.

In regards to Google, the article mentions many of the factors that lead to competitive advantage, but the most significant competitive advantage it has over its competitors is its closely guarded highly secretive IT infrastructure. This infrastructure is estimated to be around 450,000 servers from around the world localized in 25 sites (Louis, 2004). The company that was well known for its search engines quickly branched out into other avenues of computer operatives, which included using the Linux system, MapReduce, WorkQueue, and Google File System. Each entry into different market structures seemed to be done with relative ease which leads to a much more extensive competitive advantage. Google's worries of potential substitutes to their services are unwarranted as vendors seek advertising space on their abundant web servers with the use of AdWords. This easy new expansion allows vendors the ability to place ads designed to match search queries. Concerns about Google's competitor Yahoo!'s partnership with academic economists as well as researchers will impinge on Google's competitive advantage.

"The value chain model highlights specific activities in the business where competitive strategies can best be applied and where information systems are most likely to have a strategic impact" (Laudon & Laudon, 2007). This model is more focused towards improving the processes for business excellence. The competitive advantage revolves more around improving business than beating the competitors. Google is affected by suppliers and their suppliers. The business operations of Google then impact distributors and to a larger extent customers. Google goes about...

Loading: Checking Spelling

0%

Read more

Google Company and The World Essay

1682 words - 7 pages 1. Thesis Through the work performed by Google Company, the world has been able to experience evolution. This is because of services and information that has been made available to many people all over the world. Google was once the only source that most people relied on for online research (Lee, Newton 2013). Many people, all the same benefited from this procedure. Computer users on the other hand thought that there would develop malware sites,...

Human Resource Management Case Study: Google

2367 words - 9 pages TABLE OF CONTENTSTitle Page-------------------------------------------------------------------------------------- 1Table of Contents----------------------------------------------------------------------------- 2Executive Summary-------------------------------------------------------------------------- 3Introduction-----------------------------------------------------------------------------------...

Google Case Analysis

2796 words - 11 pages GoogleA.PositioningShort company historyGoogle Inc. was co-founded by Larry Page and Sergey Brin while they were attending Stanford University in 1998. The idea of this was a search engine that analyzed the relationships between websites would produce better ranking of results than existing techniques, like ranking results according to the most number of times the search term appeared on a site. Google was incorporated on September 4,...

The Google Culture

1920 words - 8 pages Introduction Google was created in 1998 due to the need for a more efficient Search Engine. Actually Google is one of the most successful internet based companies since the booming of “dotcoms” in the late 1990s and remains a leader. This success is based on its great organisational practices and core competencies. Google´s success is not only in its technology and the functionality of its product; it´s also in its aggressive ability to get...

The Power of Google

1105 words - 4 pages Advertisements, commercial, we see them every day. Commercial advertisements firmly grab hold of our attention, lasting anywhere from a few seconds to about a minute. That is their purpose; to enchant us in such a way that we do not forget their messages. Investorwords.com defines advertising as “a description or presentation of a product, idea, or organization, in order to induce individuals to buy, support or approve of it.” However, this only...

The Google Case: Aiming for an Evolutionary Advantage

2028 words - 8 pages Culture can be defined as “A pattern of basic assumptions invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration that has worked well enough to be considered valid, and therefore to be taught to the new members as the correct way to perceive, think and feel in relation to those problems”. Schein (1988) Organizational culture can be defined as a system of shared...

The Innovation of Google

1038 words - 4 pages Innovation has been around for many years in different environments, for example the invention of the telephone or the first TV set. Innovation is an important area of study for many business leaders today. Business leaders are able to use innovation to be competitive. Innovation needs to be constantly monitored and researched in order for any business to remain competitive. “The trouble is that innovation involves a moving target-not only is...

Case Studies: "Google, Inc." - Potential Acquisition Targets

1736 words - 7 pages PAGE PAGE 1-Group 19 Case Studies: "Google, Inc." - Potential Acquisition TargetsIn determining a future strategic direction for Google, it is important to look at Google's past strategy. When determining a potential acquisition, we can analyze past acquisitions, for example,

Google, The Human Resources Dilemma

1927 words - 8 pages IntroductionGoogle was created in 1998 due to the need for a more efficient Search Engine. Actually Google is one of the most successful internet based companies since the booming of "dotcoms" in the late 1990s and remains to be a leader. This success is based...

Comparison of Google and Apple: Two Giants in the Business World

1455 words - 6 pages Google is multinational public corporation of United States of America that invested in cloud computing, Internet search and several advertising technologies. Its main business is to develop and host Internet based products and services. The company makes profit through “AdWords” which is internet based advertising program. The CEO of the company is Eric Schmidt. The company was founded by Sergey Brin and Larry Page who are known as the “Google...

Google And The Government Of China

1745 words - 7 pages Google and the Government of China: A case study in Cross-Cultural Negotiations Develop a negotiations planning document using the Kellogg format in Exhibit 11 Issue Google Chinese government Purpose of negotiation Priority: 1 Position: focuses on profit and brand management Priority: 2 Position: technological, economic gaining Interests: A population of 1.3 billion along with a growing economy makes Chinese market extremely important...

Question 1: Evaluate Google using the competitive forces and value chain models.

Five forces affecting competitive strategy:Harvard Business School Professor Michael Porter identified five forces that drive competition within an industry:1.Threat of entry by new competitors -Many new entrants effectively decreases profitability2. Intensity of rivalry among existing competitors - Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc.

3. Pressure from substitute products -The more substitute products, the more customers can put the firm under pressure to lower their prices4. Bargaining power of buyers - Buyer concentration to firm concentration ratio5. Bargaining power of suppliers - Suppliers of raw materials, components, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources. (Porter, 1979)This model is beneficial to new and existing companies who are trying to be competitive.

According to the strategy, as the intensity of competition grows, margins and returns are driven down. An organization may require a change in strategy to compete and stay in business.

Porter's 5 Forces diagram: Source: Porter, 1980The forces determine the competitiveness and attractiveness of a market. Attractiveness refers to the overall industry profitability. An "unattractive" industry is when the forces drive down overall profitability. A very unattractive industry would be one approaching pure competition. A change in the forces normally requires a change in the company's strategy. The overall industry attractiveness does not imply that every firm operating in the industry will return the same profitability. Firms are able to apply their uniqueness in resource, business model or network to achieve a profit above the industry average.

Evaluation of Google Using Competitive ModelMicrosoft is being threatened by Google's power in the...


One thought on “Google Takes On The World Essay

Leave a Reply

Your email address will not be published. Required fields are marked *