Google is a multinational corporation based in the US. It specializes in internet-related services such as online advertising technologies, software, search and cloud computing. The main profit generation mode is AdWords, which is an online advertising service that places ads near the list of search results.
Google has experienced a rapid growth; from a mere search engine now it offers an array of different productivity software including cloud storage service by the name Google Drive, office suite by the name of Google Docs and many more.
The factors that played a major role behind Googleâ€™s success as the leader of its industry include, technology, as they implemented the best one to cater the needs of the concerned parties. Their innovation and R&D based technology gave them first mover advantage. The business model that Google had was another important factor as it was based on a free service and income came from advertisers. Other factors that also played an important role include products that were based on the userâ€™s experience, most capitalization was on industry growth and size and lastly; the company formed strategic partnerships which also contributed to their success.
Building a full-fledged portal like Yahooâ€™s
On the question that should Google also branch out into new arenas and build a full-fledged portal like one that of Yahooâ€™s. The CEO of Google, Eric Schmidt delivered a statement that they were not in the portal business instead they were in the business of creating all the information in the world accessible and useful to the user.
A portal can draw more customers than an online market place as Yahoo and EBay hold 345 and 80 million respectively. It is mainly because a portal encompasses shopping as a product offering.
Becoming an experienced-content portal like Yahoo! or MSN may be unusual in terms of growth for Google if done properly; however, the risks inferred could be even bigger. Googleâ€™s strong point relies on being an innovative business and handling that innovation properly from the bottom-up.
Copying the action of an old service provider would be a negative step as both internally and outside it would be thought that Google has changed its corporate values. Also, in the internet based industry, innovation is best appreciated overall. As followers, they would lose independency of creating their own rules.
Other cons include tired business model, low switching costs, and multiple players already available in the market.
Targeting Microsoftâ€™s desktop software hegemony
Google is aligned with its corporate values and obligation of leveraging a technological edge, it targeted Microsoftâ€™s hegemony to break down its supremacy in the market for its future company portfolio in the diversification of services and products. Creating a free web base portal and personalized web page allowing its users to run applications in different OS such as Linux, thus, challenging Microsoftâ€™s traditional model of charging users a fee for software.
The benefits of linking prevailing services and product increases performance and attractiveness, incorporating altogether in a single web base platform, adding more significance to its customers. Also, the companyâ€™s model will inspire more online users will shift to Google because of their free Bundle service (calendar, office programs Etc.), as they would feel more relaxed by the user friendly interface.
Other benefits are that the switching costs will be more and two-sided market will be served by a single platform.
Gaining a robust competitive positioning advantage over MSN and Yahoo in technical innovations and enveloping the supremacy of Microsoft in PC operating system, the strategy strengthens the companyâ€™s abilities of keeping the users attention, and continuing future sustainability, hence, escaping……………..
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