Google’s 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 company does. 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. Through its generic strategy, the company has become a major player influencing the competitive landscape and development of industries. The combination of Google’s intensive growth strategies and its generic strategy is effective in satisfying the firm’s need for continued growth and leadership.
Google uses the generic strategy of differentiation, based on Porter’s model, and the intensive growth strategies of market penetration, market development and product development.
Google’s Generic Strategy (Porter’s Model)
Google’s generic strategy, based on Porter’s model, is differentiation. This generic strategy involves a broad market scope. Google offers is products to practically everyone around the world. However, the generic strategy of differentiation also involves developing certain unique capabilities that make the business competitive. Google sets itself apart from competitors through the uniqueness of its products. This uniqueness is achieved because Google is a highly innovative company. The increasing variety of its products, inclusive of Google Search, Google Fiber and Google Glass, is a manifestation of this innovation under the 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 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 advantage in using the differentiation generic strategy in the face of competition from other technology firms.
Google’s Intensive Strategies (Intensive Growth Strategies)
Market Penetration. Google relies on market penetration as its intensive growth strategy, especially outside the United States. 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, Google continues to strive for a bigger share of the global online advertising market.
Market Development. Google also uses the market development intensive strategy for growth. Within the United States, the company uses this intensive strategy for its Fiber product. Currently, the Google Fiber Internet and cable television service is available in only a few states, such as Kansas, Missouri, Texas, and Utah. Thus, using the market development intensive strategy for growth, Google aims to offer its Fiber product to more states in the future.
Product Development. The product development intensive strategy for growth is applied through Google’s innovation. The company continues to develop new products, such as Google Glass and the driverless car. The company also develops new models of Nexus mobile devices. Through the intensive growth strategy of product development, Google creates more channels for income generation.
The intensive growth strategies of market penetration, market development, and product development are of relatively equal importance in Google’s business. The company continues to expand and grow its global presence through the intensive strategies of market penetration and market development. As a highly innovative technology firm, Google’s business growth also significantly depends on the intensive strategy of product development.
Strategic Analysis and Recommendation for Google
Google’s generic strategy of differentiation, based on Porter’s model, contributes to the company’s leadership in the market. Such leadership is important for the firm to satisfy its 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 is to focus its efforts, especially in 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 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 its current products before embarking on the development of any new product.
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