GOOGLE SEARCH ENGINE BUSINESS

A Critical Evaluation of Google's Search Engine Business



Contents

Introduction3

Porter's Generic Strategy Framework3

Application of Generic Strategy Framework to Google's Search Engine Business4

Cost Leadership Strategy4

The Focus Strategy5

Differentiation Strategy6

Resources & Capabilities which Support the Strategies7

Strategies7

Operational Management8

Corporate & Organizational Culture9

Crowdsourcing10

Value Manipulation11

Google's Advertising12

Google's Prospects in the Next Five Years12

Current Scenario12

External Environment13

Conclusion13

References16

A Critical Evaluation of Google's Search Engine Business

Introduction

In this paper, we would attempt to apply Porter's generic strategy framework to the functioning of Google's search engine. Each strategy proposed by Porter would be discussed with respect to the functioning and business operations of Google search engine. The Competitive strategies tend to focus on ways through which an organization achieves its distinct position in the market (Pearson, 1999). The revenues of Google evolve out of the differences between the company's revenues and costs. Hence, higher revenues can only be achieved by cutting down the operational expenses and adequately tackling competitors.

Porter's Generic Strategy Framework

Michael Porter was one of the first management experts to propose a generic strategy framework; to be adopted by businesses. The generic strategies were first published in two books by Professor Michael Porter of the Harvard Business School (Porter, 1980). Porter (1980) asserted that most of the basic choices faced by organization's tend to serve as an indicator for companies to compete in their respective market.

Figure 1: Porter's Generic Strategy Framework

Application of Generic Strategy Framework to Google's Search Engine Business

Now, for a better critical evaluation of Google's search engine business; we would apply the strategies suggested by Porter (1980) to Google's business operations:

Cost Leadership Strategy

The cost leadership strategy suggested by Porter implies that in order to gain a competitive advantage over other companies; organizations should follow a cost effective approach (Barwise & Meeshan, 2004). It implies that Google should be looking to outplay its competitors by offering better products, and services.

If Google adopts a cost leadership strategy; it is bound to increase Google search engine's revenues. In today's world of heightened competition and global business; people tend to opt for a product or service which caters to their need in a cheaper way.

Google search engine should follow the following recommendations proposed by Porter under the Cost Leadership Strategy:

In order to achieve market leadership, Google search engine should intend to achieve its long term goals by increasing its revenues and by reducing its operational costs i.e. maintenance, infrastructure etc.

Google should keep its prices reasonable to attract a broader customerbase.

The leadership of Google should be looking to increase its market share by offering competitive packages; while earning a decent profit for its shareholders.

In pursuance of the Cost Leadership strategy proposed by Michael Porter; 'Google search engine' business should solely target the market in terms of costs. When applying the cost leadership approach; the search engine should keep a close eye on the strategies adopted by its competitors. Every attempt made by the competitors pertinent to costs should be paid attention to; and dealt with ...