Google Inc
Executive Summary
Google is a very profitable organization that operates on the concept of innovation. Its core business from web search and advertising has provided continuous streams of revenue and profits, and its reputation as the market leader has built a strong interest in the organization from both the investor as well as the user community.
The key challenge being faced by Google at this point is that it should find ways of growing sustainably, and expand in a way that it can effectively utilize its resources while staying true to its core objective as an organization. Google being an innovative organization needs to constantly ensure that it’s creating value on its course of expansion and not getting carried away by the plethora of opportunities. This value might come from existing businesses or from diversification.
As stated in the case and the report, Google has engaged in extensive diversification in the past and seen both success and failure due to these decisions. Diversification is likely to produce best results for Google if it’s related to the core of its business and is strategically relevant. Additionally, it’s also important for Google to evaluate what the competition is up to, so as to ensure a leading edge in the market. But along with integration along the value chain (vertical or horizontal) and competition assessment, it is important for Google to gauge whether its resources, skills and capabilities would be able to support these actions and whether this will ultimately translate into an improved bottom-line.
This report assumes Google’s internal as well as market situation of 2014.
Introduction and key issues
Google is moving into a variety of businesses, some directly related to the core of its business, search and advertising, and some others of exploratory nature which involve innovative products and technologies. With expansion, there is increasing competition from many different directions. The advent of smartphones, increased
Google is a very profitable organization that operates on the concept of innovation. Its core business from web search and advertising has provided continuous streams of revenue and profits, and its reputation as the market leader has built a strong interest in the organization from both the investor as well as the user community.
The key challenge being faced by Google at this point is that it should find ways of growing sustainably, and expand in a way that it can effectively utilize its resources while staying true to its core objective as an organization. Google being an innovative organization needs to constantly ensure that it’s creating value on its course of expansion and not getting carried away by the plethora of opportunities. This value might come from existing businesses or from diversification.
As stated in the case and the report, Google has engaged in extensive diversification in the past and seen both success and failure due to these decisions. Diversification is likely to produce best results for Google if it’s related to the core of its business and is strategically relevant. Additionally, it’s also important for Google to evaluate what the competition is up to, so as to ensure a leading edge in the market. But along with integration along the value chain (vertical or horizontal) and competition assessment, it is important for Google to gauge whether its resources, skills and capabilities would be able to support these actions and whether this will ultimately translate into an improved bottom-line.
This report assumes Google’s internal as well as market situation of 2014.
Introduction and key issues
Google is moving into a variety of businesses, some directly related to the core of its business, search and advertising, and some others of exploratory nature which involve innovative products and technologies. With expansion, there is increasing competition from many different directions. The advent of smartphones, increased
References: 1. (n.d.). Retrieved from www.google.ca/finance: https://www.google.ca/finance?fstype=ii&q=NASDAQ:GOOG 2. Google Inc. in 2014, 9-915-004 (September 13, 2014). 3. Grant, R. M. (2013). Contemporary Strategy Analysis. Wiley. 4. Porter, M. E. (1987, May). From Competitive Advantage to Corporate Strategy. Harvard Business Review. Retrieved from https://hbr.org/1987/05/from-competitive-advantage-to-corporate-strategy 5. www.google.com. (n.d.). Google Inc. ANNUAL REPORT. Retrieved from https://investor.google.com/pdf/20131231_google_10K.pdf