Question

CONTINUING
CASE STUDY

UPDATED ON DECEMBER 5, 2019 BY ANDREW THOMPSON

Google LLC’s (formerly Google, Inc.) strategic choices directly relate with the nature of its
business and the characteristics of the industry. The company’s generic strategy is an
overarching influence on what the business does and its competitive advantages against
other firms in the online advertising market, such as Facebook Inc., Yahoo! (subsidiary of
Oath, which is a subsidiary of Verizon Communications, Inc.), Snap Inc. (Snapchat), Twitter
Inc., and Amazon.com Inc. On the other hand, Google’s intensive growth strategies help
support the company in keeping its position as one of the most valuable brands in the
world. For example, continuous improvement of products ensures that the business
maintains its share of the online market. Through its generic strategy, the company has
become a major player influencing the competitive landscape and development of the
online advertising industry, as well as other that depend on the Internet. The combination of
Google’s intensive strategies and its generic competitive strategy is effective in satisfying
the firm’s needs for continued business growth and leadership in the global industry.
Google LLC uses its generic strategy (based on Michael E. Porter’s model) to address the
external forces that influence the industry environment. These forces determine how the
business fulfills its goals. The Porter’s Five Forces analysis of Google LLC shows that the
competitive landscape imposes a strong force on the business. The company extensively
applies the intensive growth strategies of market penetration to ensure growth despite
competitive forces. The other strategies (market development, product development, and
diversification) also support the Google’s growth.
Google LLC’s Generic Competitive Strategy (Porter’s Model)
Google’s generic strategy, based on Michael Porter’s model, is differentiation. This generic
competitive strategy involves a broad market scope. The company offers products to
everyone around the world. The generic competitive strategy of differentiation involves
developing certain unique capabilities that make the business competitive. Google sets
itself apart from competitors through the uniqueness of its products. For example, such
uniqueness is achieved through innovation. Innovation adds to the competitive strengths
identified in the SWOT analysis of Google LLC. The increasing variety of products, inclusive
of Search, operating systems, desktop and mobile applications, and hardware, is a
manifestation of this innovation under the company’s differentiation generic strategy. The
Google Search algorithm also evolves over time to ensure competitive advantage against
Yahoo! and Bing, among others.
The generic strategy of differentiation means that Google LLC must maintain its competitive
advantage based on uniqueness. It is of critical importance for the firm to continue
innovating. A corresponding strategic objective is to develop new products or continue
improving existing products. In this way, Google will be able to keep its competitive
advantages in using the differentiation generic competitive strategy in the face of strong and
aggressive competition from other technology firms.
Google LLC’s Intensive Growth Strategies (Ansoff’s Matrix)
Market Penetration (Primary). Google primarily relies on market penetration as its
intensive growth strategy, especially outside the United States. The strategic objective is to
acquire more customers from the firm’s current markets. In the United States, the company
already has a leadership position. However, in other countries, such as China, Google
directly competes against other large search engines and online advertising firms. Thus, in
the market penetration intensive strategy for growth, the company continues to strive for a
bigger share of the global online advertising market. This intensive strategy determines how
Google uses its marketing mix or 4P to grow the business. Also, the generic strategy of
differentiation ensures competitive products that enable competitiveness in penetrating
markets and increase the company’s market share, especially in the market for online
platforms used for digital advertising.
Product Development (Secondary). The product development intensive strategy for
growth is applied as a secondary strategic approach through Google’s innovation. The
strategic objective is to develop products to increase revenues. Innovation is at the core of
the company, considering its technological nature. Google LLC’s organizational culture
promotes innovation among employees. This intensive growth strategy involves new
products or product lines, such when the company introduces new mobile apps. Also, the
business uses this intensive strategy to grow revenues when introducing new products like
Pixel smartphones, tablets and laptops. In addition, external factors such as those identified
in the PESTEL/PESTLE analysis of Google LLC help guide product development in this
case. The company continues to develop new products, such as cloud services, mobile
applications, and new Pixel devices. Through the intensive growth strategy of product
development, Google creates more channels for income generation. The differentiation
generic competitive strategy is integrated into product design and development processes
to support the company’s competitive advantage.
Market Development (Supporting). Google LLC also uses the market development
intensive strategy for growth. In market development, the company’s objective is to attract
customers in new market segments through new uses of current products. In this case of
Google, for example, this intensive growth strategy is applied by offering new uses of
current online services, such as in offering cloud services as new tools for application
programmers, in addition to current uses of the services. Thus, using the market
development intensive strategy for growth, Google aims to offer its products to more areas
worldwide. The differentiation generic competitive strategy provides the product
competitiveness needed to support the effective implementation of market development.
Diversification (Supporting). The diversification is used as a supporting intensive growth
strategy in Google’s business. The objective in this intensive strategy is to achieve growth
through new businesses, especially in other markets or industries where the company has
insignificant or absent operations. In this case, an example is Google’s 2006 acquisition of
Youtu*e to establish significant presence in the video hosting service market, and expand
the company’s online advertising presence. Any more to diversify the business affects
Google’s organizational structure. For instance, newly acquisitions require changes in the
company’s corporate structure to ensure seamless integration. The diversification intensive
strategy is supported through the company’s differentiation generic strategy, which ensures
competitive advantage in establishing or entering new businesses.
Strategic Analysis & Recommendation for Google LLC
Google’s generic strategy of differentiation, based on Michael E. Porter’s model, contributes
to the company’s leadership in the market. For example, highly effective services ensure a
leading share of the digital advertising market. Such leadership is important in satisfying
Google’s mission statement and vision statement. The combination of the intensive growth
strategies of market penetration, market development, and product development also
contributes to the capability of Google to maintain its leadership position, which in turn
empowers the company to maintain its financial viability.
A suitable recommendation for Google LLC is to focus its efforts, especially in the area of
product development. The company has been criticized for engaging in seemingly disparate
product development efforts in different industries and markets. Through its intensive
growth strategies and generic competitive strategy, Google’s wide variety of products helps
in building its dominance in the global market. However, to improve its strategic alignment,
Google can first focus on ensuring the profitability of more of its current products before
entering new businesses.

Question: Use a quantitative strategic planning matrix (QSPM) to objectively evaluate Google LLC’s generic competitive strategy and intensive growth strategies

Answer 1

Porter's model of generic stratgy

Google's generic strategy,based on porter's model, is differentiation and it involves a broad market scope. It offers products to everyone around the world, but the generic strategy of differentiation, involves developing certain unique capabilities that make the business competitive.

The increasing variety of its products, inclusive of google search, google fiber and google glass, is a manifestation of this innovation under thedifferentiation generic strategy. The google search algorithm also evoles over time to ensure competition advantage against Yahoo|and Bing among others.

The baisc generic strategy of differentiation means that google llc must maintain its competition advantages based on uniqueness. It is of critical importance for the firm to continue innovating. A corresponding strategic objective is to develop new products or continue improving existing products.

The marketing development of generic competitive strategy involves a broad market scope. The company offers produtcs to everyone around the world. The generic strategy of differentiation means that google llc must maintain its competitive advantages based on uniqueness.

In the diversification of google llc generic strategy the company offers products to everyone around the world. The generic competitive strategy of differentiation involves developing certain unique competitive. google sets itself apart from competitors through the uniqueness of its products.

Now coming on the strategic analysis and recommendation for google llc. Google's generic strategy of differentiation, based on michael E. Porter's model, contributes to the company's leadership in the market. A suitable recommendation for google llc is to focus its efforts, especially in the area of product development.

Intensive growth strategies of google LLC generic strategy must maintain its competitive advantage based on uniqueness. it is of critical importance for the firm to continue innovating. a develop new products or continue improving existing products.