Google's strategy for the future

Google's strategy for the future



Google's strategy for the future

Introduction

Google 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. (John Battelle, 2005, 67-73)

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. (David Vise and Mark Malseed, 2005, 123-054)

Strategies And Actions

This means that 'management's job isn't to build strategies', but to enable them. At Intel, Grove expresses the same vital point in a different way. He is convinced that strategy is shaped by 'strategic action' rather than by the convential, top-down plans. In his experience, the latter always turn into 'sterile statements, rarely gaining traction in the real work of the corporation'. The differences between plans and actions are critical:

• Strategic plans are statements of intention

• Strategic actions are already taken or being taken and imply longer-term intent

• Strategic plans sound like political speeches

• Strategic actions are concrete steps

• Strategic plans are abstract and usually have no concrete meaning except to management

• Strategic actions immediately affect people's lives

• Strategic plans deal with events far in the future and thus of little relevance to today

• Strategic actions take place in the present and thus command immediate attention.

About three years ago I turned to my Uncle Patrick and said that Google is trying to get into the general advertising game. I didn't think much of the claim until I started seeing countless articles and posts on Google Radio, Google Print, and Google TV, Google Gadgets, and Google Disply (or banner ads) over the last year or two (culminating a recent NY Times article). And then I kind of mentally slapped myself and realized, yeah, they're trying to be an old school advertising firm (see Mad Men!) ; maybe minus the creative design part! But, why would Google want to get old school and move away from Paid Search or Search Engine Marketing? The answer is easy and it's driven by two factors:

1. $$$ (or money) and,

2. Data (or what users do)

Google continues to get rich by playing in every media channel (not just paid search or keyword ...