Case Study on Googles Strategy in 2008 free essay sample

Case Analysis (Google’s Strategy in 2008) Introduction Google is the most used search engine worldwide as of 2008 (Gamble 2008). This is largely due to the consistently reliable search results it produces as its core product, in effect creating confidence amongst consumers. To keep this competitive advantage Google needs to identify forces that seem most likely to bring about major change to the industry within the next 3 – 5 years. In doing so, Google need to identify 3 – 5 factors that promote success in the search industry to help focus and navigate through the coming half decade. Forces most likely to bring about major change to the search industry in the next 3 – 5 years Innovative and game-changing concepts have been the driving force behind the success of Google over the past decade. Google need to look to the future to remain on top and maintain their competitive advantage against the competition. The introduction of the Android operating system for mobile phones was designed to compete with Apple’s iPhone and at only a fraction of the cost (Gamble 2008). Over the coming decade the Android will play a vital role in increasing Google’s mobile search market and increase its share of banner ads (Gamble 2008). The Android still needs time to mature and develop a more extensive range of apps for its mobile users to hold a larger share of the market. Over the next 3-5 years it will be evident that the Android will be a one of the most dominant players in the search industry. The ‘cloud computing’ concept may be one of Google’s most anticipated due to the idea that all computers can be linked up to one, anywhere in the world, is a major advantage to any global business. The licensing of Google’s online Beta word processing application will rival the Microsoft office version and at a 600% price difference it makes Google’s application look more attractive (Gamble 2008). As this concept may be easy to imitate by other firms, Google will have the upper hand firstly by having their reputation and secondly by the vast amounts of cash reserves Google can afford to spend in order to make their ‘cloud computing’ application unsurpassed. The agreement between Google and the U. S federal Communications Commission grants permission to use unused television airwaves. Newer and more advanced technologies will be designed to accept and transmit these frequencies, in effect creating larger Wi-Fi areas (Gamble 2008). The possibility for any device to have multi-frequency accepting transmitters provides communication in remote locations and around the world with endless possibilities. Not only will this bring about major change to the Search industry; it will dramatically change the Communications Industry. Key Factors that define success in the search industry 1. Google’s number one principle of corporate Philosophy is ‘focus on the user and all else will follow’ (Gamble 2008, p. C262). When Google made this statement they emphasized that its main objective was to please the customer, by putting the user’s interests first and success will follow accordingly. Being upfront by advising users that they refuse to make sacrifices to increase shareholder value shows uninterrupted user focus. When it comes to usage, the users appreciate basic ingredients; easy to use, instant results, search placement is unavailable for purchase and relevant advertisements to your search (Gamble 2008). Communication between the user and the application are the insights that so many companies miss, and are probably the easiest to grasp. Many companies spend time and money on inventing new technologies to what their understanding is of what people want; where majority of the time†¦it’s usually not. By focusing on what the user wants, other applications can be formed around this base of information. . While Google may have many applications that may be mind blowing, they believe that to be successful in the search industry you must be able to conduct your core service extremely well (Gamble 2008). This type of approach can be seen as building from the inside out, by focusing on what is important and applying yourself to what you’re good at. Nike does running shoes, Porsche does Sports cars, Starbucks does coffee and Google does search. In all of these companies, it’s simple to identify their bi-products but without the quality of their core product, these companies would cease o exist. 3. When it comes to search, instant gratification is priority number 1 (Gamble 2008). For success to be achievable it is a necessity to either meet expectations or to go beyond, and for the search industry; the standard is one of instance. By showing that Google are different from other corporations also helps in their success. It may be noted that Google may be the only company whose goal is to have users leave its website as quickly as possible (Gamble 2008); leaving the website quicker means the user found what they were looking for quicker, which encourages repeat use. This standard of timeliness expectancy can be seen across man different industries; building a house is 6 months, basic letter postage cross country is 1 week, ordering a coffee is 5 minutes and search is instant. 4. Being able to trust the accuracy of your search engine will, at the bottom line, make or break your company. Many companies have lost trust among users by manipulating partner sponsors to be displayed even if they have nothing to do with what the search is about. An example of this may be an advertisement for an electrician where the search indicated plumber. Google go to great measures to ensure that the veracity of search results are not compromised, it is not possible to buy a better Page Rank and sponsored links are relevant to the search item indicate (Gamble 2008). As Google pride them self on the simplicity and user friendly interface, it is essential that the search results and advertisements are not confused for being one or the other. Having a clearly defined area where advertisements may be relevant to the search is the key to the quality of the engine. Conclusion Google are at the forefront of search technologies and it seems as though the future is bright for the company. By pushing the boundaries of what is possible, Google will embrace and most likely cause change within the industry. Success will come naturally if Google maintain their innovative thinking and maintain their user focused philosophy. References Gamble, J. E. 2008, Google’s Strategy in 2008, (case 14, pp. C259 – C276). University of South Alabama Gamble, J. E. 2008, Exhibit 1, The Principles of Google’s Corporate Philosophy. Source: www. google. com