Strategic management exam questions and answers
Attractiveness of the web search industry in which Google is competing
Google’s organization design as well as their prominence on innovation and also their creative work environment have allowed them to be able to attract and also retain employees that are very productive (Pride & Ferrell, 2014). Google takes a strategic approach towards the entire process of strategic planning and in creating new products. Most of their initiatives in strategies as well as products are in most cases driven by small technical teams that are very innovative. The environment in which Google operates has managed to attract some of the most talented people in the industry.
The rivalry is very high in the internet search. Google is facing a lot of competition from Yahoo, Microsoft as well as Apple. Most of these companies have been diversified to include many industries that have a common goal towards all the businesses in providing products that are very innovative which will provide their consumers the ability to access them. There are also other competitors such as networks of online advertising that are posting threats on potential revenue earned by Google from advertisements.
This industry has a few barriers for new companies that are joining the market (Dess 2012). New entrants are only required to heavily invest in creation computer storages as well as searching algorithms. Creation of new technologies is likely going to usher in more competitors in the industry. However, while the powers of entry may be tiny, barriers to success in the sector may be considered to be very high.
The power of supply is tremendously fragile; this is because the content of the internet and also the bandwidth is easily available. In case the competitors will make a choice of challenging the current success obtained by the inescapable there is the availability of enough skilled labor.
There are a few substitutes for the capability of the web search engines. Traditional options for searching that are available are fragile when compared to the online search. However, substitutes for online advertisements for business are very many thus it is easier for advertisers to abandon the use of internet in the ad for traditional methods.
Google’s pricing strategy that is aiming at making advertisements of various products is a crucial part of the plans held by the company and it fits well in the Google brand. Pay-per-click type of advertising is a representation of two-thirds of revenue generated by Google. The PPC model of pricing which was pioneered by a proposal from Google’s competitors is a form that is used in discriminating prices in an auction based form. It makes attempts to charge customers as per how they are willing to pay. In most cases, advertisers will bid for placement of their ads alongside the web search engine results. Google is very ready to have some of its outcomes forgone to have an improvement in the user experience.
In as much as Google has grown to be a leader in the search industry, an industry that has a complex structure of highly competitive companies. Google and its competitors such as Yahoo are providing a broad range of products in the search industry. Strategy held by Yahoo gives a demonstration of an information portal that is getting into the search market. Yahoo has posed a significant challenge to the dominance of Google by coming up with a Yahoo search which is intended in coming up with easier ways for its users in finding their solutions on the internet.
Strategic management quizlet
Conducting a value chain analysis on Google
Value chain analysis is an investigative framework that helps in identification of activities carried out in the business which may assist in creating value for the business as well as a competitive advantage (Dess 2012). There is the use of inbound logistics. Google does not openly reveal some of the basic details of its management of the supply chain as well as the inbound logistics. There are reports that the company is making attempts in getting a digital transformation in its supply chain through projects that are aimed at making automatic delivery of products. Google has managed to maintain a very dedicated supplier site which enables its suppliers to submit their invoices to receive payment. This site also checks the status of the invoice and also deals with a range of different aspects of the administration of their cooperation with the company in a manner that is very convenient.
Google is operating through more than seventy offices located in more than forty countries. The Google offices are well known for their creativity in design as well as its distinctive features which include sharing of cubes, some of the video games and many others. Google headquarters that are located in Mountain View in California is made up of 4.8 million square feet office as well as building space that is accompanied by 15-acre land which can provide more space for more offices shortly.
There is also the use of outbound logistics. Research that is conducted online as well as the integration of advertisements into the search web engine results is a representation of major business that is conducted by Google and also there is no outbound logistics that are associated with running this business. Google is also selling products that are made using a high level of technology such as Smart watches, technological accessories through its website.
In addition to that, there is marketing and sales. The marketing strategy used by Google heavily relies on the integration of the offline as well online channels of communicating the marketing messages. Google has made use of popular components of the marketing communication mix which includes advertisements, experiences, and events as well as relations with the public. The company has also made use of promotions as well
The constant pursuit of Google to have to have an expansion of its collection of tools and services has helped it in sustaining its competitive advantage. Since it was incorporated, it has managed to acquire more than 100 companies that are helping it in expanding its services. Google has succeeded in dominating the industry as a result of its search engine. The search engine is assumed to be Google’s source of income that is most valuable. Google also has a huge portfolio of original technology, as well as the number of patents that are held, have also risen as a result of acquiring Motorola Mobility. Google also offers its customers an unmatched way of getting their information retrieved quickly as this can be very difficult to have it substituted.
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