We begin by studying the situation of the e-services in Google and a thorough analysis of its business model to explain its success. Secondly, we examine the leading position of Google, particularly by analyzing the strategic map of this industry, to examine the limits of this leadership with change scenarios and possible weaknesses of the Google model. Finally, using the preceding analysis and in particular by using the positioning of strategic groups on the map, scenarios and diagnostic resources, we will propose a strategy for the leader and a strategy for the challenger.
Nothing can be done today without the Internet – this is the general feeling of the net savvy population who just cannot envisage a world without the Internet. Therefore, it comes as no surprise that the number of Internet users continues to increase. The e-services industry is massive in terms of the range of products and in its geographic scope. The whole world can now find, buy, sell, communicate, and share information anytime, anywhere on the globe.
Diversification:
Google appeared on the market at a time when it was dominated by a handful of heavyweights (Yahoo, Alta Vista and others) and imposed its "revolutionary" technology to make its presence felt in a big way and dethroned the big competitors. The company has benefited from the development of the Internet and its expansion, both geographically and in the range of services available to Internet users, and of course, the explosive growth in the number of Internet users.
One can also mention the evolution of diversification initiated by Google:
• Search engine in 1999: Google Search
• Technology Adwords in 2000
• 2001: Google Image
• 2002: Google News
• 2003: Google Adsense
• 2004: Gmail and Blogger
• 2005: Google Video, Google Home, Google Earth, Google Talk, Google Blog Search, Google Reader, Google Analytics
• 2006: Google Trends, Google Docs & Spreadsheet
Since 2001, Google has tackled other services than the search engine, initiating a trend including a wide range of products. And this trend is not ready to stop!
Google ID:
The identity of Google appears to be relatively homogeneous: this document proceeds to reflect a consistency between the professed identity, corresponding to the ambitions of the leading companies, the identity experienced in-house and manifest identity and the identity assigned.
This gives greater credibility to the company and gives the image of a solid entity.
We may add that the identity of Google is more on the lines of the pattern of the young, dynamic entrepreneur, but simple worker, who guides the strategic choices. An example of this is how everyone is encouraged to give their opinions and share ideas on existing products, or new projects to be developed.
The "search engine" constitutes the heart of Google's business. It was the original service developed by them and has gone on to become the premier search engine of the online world. This is a free service, powered by the advertising activities and has brought in massive profits for the company.
Tags: Google origin and growth, Online search engines, Strategic Business Activities of Google
[...] So we locate the e-services industry as follows: specialization Fragmented Impasse Volume The strategy in this kind of competitive system is to focus on selected segments and to build cost differentials, differentiate themselves through marketing or through distinctive technological know-how, multi-specialist strategy possible if there are economies of range (according to Diagnostic and Strategic Decisions, T. Atami and Calori 2nd edition). Google can leverage its technological expertise, to preserve and develop, and play the card of "simple" and modest marketing as it has been doing so far and that seems to be successful. III. Maturity The e-services industry is currently in growth stage. [...]
[...] The following diagram summarizes the various facets of the identity of Google. Segmentation We studied "Technology-Application-Client" trinomials and the key success factors for internal and external segmentation as follows: So we have four SBUs (Strategic Business Units), which have different weights in the overall activity of Google: the "search engine" activity is the heart of Google's business. It was their first service to be developed and is very successful in this area. This is a free service, powered particularly by "communication, advertising companies" activity which generates very generous profits for the company. [...]
[...] Is an opportunity to dethrone Google feasible? A. Strategy Map Several entities in the e-industry are present in several key areas (web portals, search engines, e-commerce), including Yahoo, MSN, AOL, and Google. However, today those involved in e-business share more than these three areas, and one must take into account the disparity between different regions of the world. That is why we chose to take into account the number of visitors per site in the world, and the degree of diversification, not the presence in a particular area, for the two axes of the strategy map. [...]
[...] Calor, 2nd Edition www.google.com Google Story - David A. Aims and Dominique Handle, Wiley 2006 www.manageo.com Size of the competitive advantage Weak High Limited Sources of differentiation e-services Multiples= Low competitive intensity: 0.5 High attractiveness Macro environment: Political development of antitrust laws Economic: The Internet is an engine of the economy, the economy and services are closely related Sociological: strong growth in the number of Internet users Technology: rapid technological change. Their development requires more resources and capital Legal: restrictions on the use of some services (eg Google Earth that now uses restrictions in Europe, to protect privacy) INTERNAL RIVALRIES Google Yahoo Lycos MSN Alta Vista . [...]
[...] The willingness of Google to develop as ISP is also a way to grow in the context of internationalization. While Internet access is totally democratized in many countries, it is in the process of democratization also in others - R & D It is important for Google to constantly innovate, something they continue to do, as we can see with Google labs (Example: Google Ride Finder is a new service in order to find a taxi or a shuttle bus available in real time). [...]
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