Analysis of corporate strategy of Google
- Strategy Analysis
- The State of the overall market demand
- Competitive Analysis
- Regulatory Developments
- Research of the strategic choices
- Conceptual Analysis
- Strategic approaches
- Justification of strategic choices
- Justification in relation to internal capabilities
- Justification in relation to the changing environment
- Change in Strategy
- Changes likely
- Rationale of the strategy by a strategic analysis tool
- Analysis of coherence between the strategic choices of the firm and the accounting and financial information.
- Structure Analysis
- Evolution of the operating cycle
- Analysis of results
The State of the overall market demand:
The consumer is a connoisseur, as he turns to different search engines depending on the type of research he needs to do. For example, the engine "All the Web" has a specialized search option for MP3 files, images and video. The consumer will therefore prefer this type of engine, rather than an engine termed "generalist" such as Google if he has a specific requirement.
The growth of the engine is based on the revenue generated by the advertisements that Google hosts. We see that the competition in this market is fierce. In such a scenario, Google needs to do better than the competition to stand out. The market is buoyant because Google is in the phase of launch, and its growth is greater than 1.5%.Indeed between 2007 and 2008, Google has grown by 31%.
The market of Google is segmented. There is both customer segmentation and product segmentation.
-Customer segmentation, generally takes place in the basis of age.
Indeed, the use that customers have for Google depends on their age.
-From July to December year, consumers use Google to play. They go on the search engine to find games, music, images, and video clips.
-Customers from 13 to 25 years go to Google to share music, and videos, as well as for academic research. They also look for sites to create a social network, such as MSN, Facebook, or blogs.
-Among customers from 25 to 60 years who are in full working life, there is a distinction between private research and professional research. As part of private research, they turn to websites which help them to maintain a social network (like the previous category), but also browse sites which facilitate practical research (forum to address issues of daily life, recipes) tourism (SNCF).
They also perform increasingly "smart" buying on the Internet (eBay).
-Seniors, themselves, are increasingly spending time on the Internet. They most often research practical information, about topics such as culture. With respect to segmentation by product, Google offers several services that meet different needs:
-mapping (e.g. - Google Earth Street View)
An element of direct competition: The Company is up against competitors with the same range of services and the same clients such as Yahoo, Live Search etc. They are also used by Internet users for research, because they are generalist search engines. In this context of direct competition, when the competitor offers a new service the company should comply. They thus offer the same basic services: such as Yahoo Maps, a mail box etc.
Elements of indirect competition: These basically have the same clientele, but with a range of more services which are more specialized. In this context we may consider the example from 'the entire web" which specializes in research of web videos and audio files, or the site-?Justice "which is a search engine for legal and judicial professionals. Their field of research is more limited and they can thus increase their credibility, as the research will be targeted in a specific area.
Tags: Yahoo Maps, indirect competition, search engines, Internet Search, MSN, Facebook, market demand, Google
[...] Capital - all of the assets were equal to 1,485,728,000 Euros in 2004 and 8,018,207,000 in 2008.The company has increased its working capital to 6,532,479,000 in 4 years, an increase of from 439%.Although Google has a cash flow which is increasing significantly, it is not growing as fast as its tangible assets. To conclude, we can say that the strategy adopted by the company is in agreement with its structure indicators. On the other hand, we note that Google's acquisitions are mergers rather than acquisitions, because fixed assets have increased about three times more than the tangible assets, which means that Google still not bough all the shares of companies that it controls. [...]
[...] With respect to segmentation by product, Google offers several services that meet different needs: - Internet Search - mailbox - mapping Google Earth StreetView) - office software - News 1.2 ) Competitive Analysis An element of direct competition: The Company is up against competitors with the same range of services and the same clients such as Yahoo, Live Search etc. They are also used by Internet users for research, because they are generalist search engines. In this context of direct competition, when the competitor offers a new service the company should comply. [...]
[...] Google is now part of a strategy of external growth as evidenced by the acquisition of Doubleclick, Google's rival company, specializing in the management of online advertising .2) Strategy versus competition It is a strategy of brand differentiation as evidenced by the acquisition of YouTube, which is an expert in video searches Justification of strategic choices 3.1 ) Justification in relation to internal capabilities Google is always on the front of the stage with many innovations such as Street View, Google Chrome (new web browser) etc. [...]