Google Strategy

Q1
·         The ability to offer superior services to its customers in relative to offerings from competitors. Google search engine page ranking was just an example of this superior offering.
·         The ability to get the needed financing for most of its innovative activities. This was exemplified in the 2004 IPO where the company was able to raise $1.67 billion in exchange for a 7% stake to the public. Prior to this, Google had successfully benefited from two rounds of venture capital financing.
·         The company has also had a flexible mission statement. This has seen it increase user experience in its core business of search thereby generating more value. Flexibility in the mission statement also allowed Google to venture into other business areas.
·         Making good strategic decisions like the acquisition of Android. This was to enable the growth of its advertising market into the mobile sector.
·         Ability to protect its market turf. For instance, the introduction of chrome browser was meant to allow the continuity of targeted advertising that would have been heavily limited by the introduction of Microsoft explorer version 8.
Q2
In terms of customer base, Google was able to attract many customers from the simplicity of its service offerings such as the superior page ranking. The initial growth was also characterized by the introduction of new service offerings such as the paid listings service. Even more important for the achievement of initial growth was the availability of venture capitalists ready to fund Google. The company managed two rounds of that.
Q3
Critical issues facing the company include concern by various regulators that the company practices may be breaching the privacy of its customers.Practices like the linking of Google’s tracking data to identifiable individuals has been a particular concern of the U.S Federal Trade Commission.  The EU has also been apprehensive that Google could be breaching the former’s data protection guidelines. Besides privacy concerns, government in the U.S and Europe are also concerned about Google’s practices as they relate to patent infringements and competition laws. Another important challenge to Google is its ability to remain competitive in the wake of continuing growth.
Q4
Google can still survive despite the critical challenges facing it at the moment. One reason for this sense of optimism is the innovative culture that has been a key identity of the company since its founding.
Application of the analytical tools
Resource Based View (RBV)
Google was able to acquire a competitive advantage the moment it came up with a superior page ranking system. The RBV as an analytical tool attempts to explain the internal resources that enable a company to have a sustained competitive advantage (SCA). Thus, it is not enough that Google had a competitive advantage at the time of founding. Rather, it must be able to sustain that advantage. The achievement of that state requires that Google must acquire and control resources that are valuable, rare, inimitable and non substitutable. There is no doubt that the internal resources at Google are valuable.  Those resources include talented technologists who are hired in a very selective process to end with the best that can ever be found in the market. Those resources are also rare in the sense that not all engineers are innovative. This aspect is also amplified by the fact that Google can use the protection of intellectual property law-especially patents- to make some of its technologies unavailable to competitors. This is in fact happening as Google has managed to acquire a considerable number of patents. 
Value Chain
Google operates in a highly competitive industry and the ability to earn profits by any industry player depends on how well a firm is able to tilt the value chain in its favor. Google has been trying to do this either by dominating the value chain in some areas or leveling the playing field in others so that it can be in a better position to compete with the other players. The dominating strategy is visible in Google’s dominance of the web search element of the value chain. Its efforts to continually monetize this dominance are illustrative of a market player manipulating the value chain to its advantage. In contrast, its involvement with the advancement of open standards for mobile devices was a strategy to level the playing field that was still dominated by other players. Open standards would allow Google to grow its advertising market.
Porter Five Forces (External)
Of the five forces, the threat of entry is very minimal. For one, a new entrant to the industry would have to possess absolute cost advantage to compete with players like Google. Customers for many of the services offered by Google have a very bargaining power for various reasons such as low switching costs. For instant, switching from Google search to another search engine would not be a costly affair for a customer. Besides the bargaining power of suppliers, all the remaining threats are strong.
SWOT (Internal)
Google’s search engine is one of its strengths owing to its superior page ranking. In addition, the flexibility in interpreting the mission statement is also an important strength given that some of its competitors have rigid mission statements. Having Android with has been adopted by many handset manufacturers is also strength. The only weakness relates to the problem of managing new business areas where Google is expanding into.
Cash Flow
Google recorded the highest revenue in 2011 of $ 37,905,000,000 and the lowest in 2004 at 3,189,000,000.
Motorola Acquisition
The many advantages from this acquisition include an increased bargaining power arising from the rich portfolio of patents that came with that acquisition. In addition, Google is also able to integrate the development of both software and hardware in the Smartphone market. The acquisition is also an important way for Google to build its presence in the mobile internet market.



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