Googles Strategy 2008
Case #14: Google’s Strategy in 2008
Table of Contents
Executive Summary 3
Competitive Forces 3 Force 1: Rival Sellers 3 Force 2: New Entrants 4 Force3: Substitute Products 4 Force 4: Suppliers 4 Force 5: Internet Users 5
Driving Forces 5
Key Success Factors 6
Google’s Business Model 7
Financial Analysis 8
SWOT Analysis 9
Recommendations 11
References 12
Tables 13
Executive Summary Google went from a startup company operating on a shoestring budget in 1998 to the world leading Internet search provider with revenues of $16.5 billion in 2007. The search engine industry is dominated by the organization that can provide users with the fastest and most accurate search results. Google has been able to surge ahead of their competitors by focusing on the needs of their users and their advertisers with continual refinements to their search computations and targeted ad matching techniques. Google’s major competition is coming from Microsoft’s semantic search technology. The future of the industry will likely be defined by advancements in cloud computing and semantic searches, increases in the use of mobile phone operating systems, and the expansion of international markets.
Competitive Forces The major competitors in the search engine industry include Google, Microsoft, and Yahoo. They primarily compete for search engine users, but they have begun to expand their offerings to include e-mail, maps, news, calendars, etc. in order to gain more users and hopefully surpass Google and obtain market dominance. Cloud computing and semantic search technology are believed to be the wave of the future.
Force 1: Rival Sellers Competitive pressures in this category are fierce as the three main competitors are constantly working to dominate the market. Rivalry in this category is strong because competitors are very active in improving their business offerings (word processing software, e-mail, news, maps, calendars, etc.)
Table of Contents
Executive Summary 3
Competitive Forces 3 Force 1: Rival Sellers 3 Force 2: New Entrants 4 Force3: Substitute Products 4 Force 4: Suppliers 4 Force 5: Internet Users 5
Driving Forces 5
Key Success Factors 6
Google’s Business Model 7
Financial Analysis 8
SWOT Analysis 9
Recommendations 11
References 12
Tables 13
Executive Summary Google went from a startup company operating on a shoestring budget in 1998 to the world leading Internet search provider with revenues of $16.5 billion in 2007. The search engine industry is dominated by the organization that can provide users with the fastest and most accurate search results. Google has been able to surge ahead of their competitors by focusing on the needs of their users and their advertisers with continual refinements to their search computations and targeted ad matching techniques. Google’s major competition is coming from Microsoft’s semantic search technology. The future of the industry will likely be defined by advancements in cloud computing and semantic searches, increases in the use of mobile phone operating systems, and the expansion of international markets.
Competitive Forces The major competitors in the search engine industry include Google, Microsoft, and Yahoo. They primarily compete for search engine users, but they have begun to expand their offerings to include e-mail, maps, news, calendars, etc. in order to gain more users and hopefully surpass Google and obtain market dominance. Cloud computing and semantic search technology are believed to be the wave of the future.
Force 1: Rival Sellers Competitive pressures in this category are fierce as the three main competitors are constantly working to dominate the market. Rivalry in this category is strong because competitors are very active in improving their business offerings (word processing software, e-mail, news, maps, calendars, etc.)
References: Thompson, Jr., A. A., Strickland III, A. J., & Gamble, J. E. (2010). Crafting and executing strategy: the quest for competitive advantage: concepts and cases. New York, NY: McGraw-Hill/Irwin.