Google’s Strategy in 2009, Case Study Example

1. Discuss competition in the search industry. Which of the five competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness?

Given that the customers or the clients of the industry change in population every year as well as that of their behavior, it is their influence that has the strongest impact on how the search industry operates in the internet hence insisting on the bargaining power of the customers to be appearing as the strongest driving force of the matter. On the other end, the weakest driving force is the Intensity of competitive rivalry a google seems to be getting the best traffic from users as well as relative reaction from the clients due to the popularity it has around the globe [especially in non-European and non-western countries].

2. How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years?

Continuously, it is expected that it is the deciding factor that drives the users to choose from one search engine to another that pushes the industry to incurring several changes. Understandably, it is the ranging population of the users of the said internet tool and their decision on which search engine to use that defines the industry’s competitive advantage between players.

3. What are the key factors that define success in the industry? What are the key competencies, capabilities, and resources of successful search engine companies?

It is the customer-centered motivation of each player that imposes a great role on how one search engine becomes competent in the industry. It is the way each organization embraces the need to please and meet the demands of the growing number of clients that counts in defining their position in the industry’s competitive field.

4. Describe Google’s customer value proposition, profit formula, and key resources linked to its business model. What strategies has Google relied upon to build competitive advantage in the industry?

Information outflow has been effectively used by Google as their own form if business edge. Being able to link several websites together has been the core reason of their success in the search engine industry. Besides this, venturing into other services that makes the users more welcome into their search site has become the come-on factor that they present to their prospect clients. The more information there is, the better. The extra features simply serve as bonus offers to their regular patrons.

5. Have Google’s business model and strategy proven to be successful? Should investors be impressed with the company’s financial performance? How does the company’s financial performance compare to that of Microsoft and Yahoo? Please conduct a financial analysis to support your position—you may wish to use the financial ratios presented in the Appendix of the text as a guide in doing your financial analysis of the company.

Observably, the global recognition of Google as an effective search engine plays a great role on how it has earned as much profit as it did between 2008 and 2009 compared to Microsoft and Yahoo. Take into consideration that in the year 2008, Google’s share has been recognized to be divided into three sectors [European, Western and Other Countries] which if placed altogether amounts to $21,795,550. On the other end, Microsoft and Yahoo have their markets focused and saturated to specific regions of the world only giving them revenues of $424,298 (yahoo) and $17,681 respectively.

6. What are the company’s key resource strengths and competitive capabilities? What competitive liabilities and resource weaknesses does it have? What opportunities exist? What threats to its continued success are present?

As for its strength and competitive capabilities, Google continues to thrive to focus on their client-centered approach hence completely providing access to users based on their changing demands and behavior towards the information industry. The liabilities and weaknesses they may have could include the fact that they do not appear as much appealing to both European and Western countries as do Yahoo and Microsoft which they may want to work on during the coming years. Furthermore, great opportunities exist in consideration with the possibility of expansion on the part of the company’s scope of control in the industry. Possible threats would be the emergence of new entrants, yet this threat is still considered weak at present.

7. What recommendations would you make to Google’s top-management team to sustain its competitive advantage in the search industry? How should it best capitalize on its strategic initiatives in mobile search, cloud computing, emerging markets, and other ventures?

Being specifically functional and relatively appealing to both European and Western countries should be worked upon. Relatively though, this does not mean focusing on them alone as the performance of the company in other parts of the world is rather compelling and efficient. Perhaps researching upon what the two regions mentioned hopes to conceive about the company should be given attention to in a way that it does not ruin how the company operates perfectly for the demands of others.