Analysis on Business Level strategy of Google Search Engine by Agam Talwar

2011-06-16T02:30:00.000-07:00

Business Level strategy of Google Search Engine

Google currently pursues the generic business level strategy of differentiation by offering many unique products and services to many different kinds of customers. The web search engine is the most popular service offered by Google as it provides user the most reliable way to search.

Porter Generic Strategies

Porter Generic Strategy

Google web search engine has differentiated itself from its competitors by using a patented system PageRank. PageRank comes across search inquiries by computing a recursive score of web pages based on the weighted sum of the PageRanks of the pages linking to them (Levy, 2010). This means that related web pages can be accessed based on a users search interest instead of based on how many times a search term occur on a webpage which is how competing search engines work. The page rank algorithm is consistently being restructured to make sure the most excellent likely search result. Moreover, workforce at Google keeps many of the algorithm’s criteria secret (Kovacevich, 2010); therefore since it is difficult to imitate intangible products, Google has maintained its competitive advantage and will continue to do so for a long period of time.

Google claims that PageRank is one of its search engine’s main competitive advantages due to the several features.

Features of Page Rank

Bowman’s strategy clock is the way of analyzing company’s competitive position in comparison of offerings to competitors. Bowman (1996) created eight strategies according to which Google Search engine uses differentiation strategy.

Google’s product that supports its differentiation strategy is Google’s internet-search-driven advertising. Google AdWords specialized for advertisers who want to reach a qualified audience as efficiently as possible (Abdul-Rahman .& Hailes, 2007). The ease of creating ad text and manage online advertising accounts with no large upfront payment required also differentiates Google product from its competitors as well as the ads appearing across Google’s growing roster of partners. Advertisers can even target customers in specific geographical locations (Google, Advertise your business on Google, 2010).

Bowman's Strategy Clock

The biggest advantage of Google’s differentiation business strategy is the development of customer loyalty. Google’s web search engine currently holds 66 percent of global internet searches (Brandt, 2009). Customers continually use the Google search engine because of its simplicity and reliable search results (Beswick, 2009).

In 2010 Google announced completion of new web indexing system called Caffeine (Grimes, 2010). Caffeine provides 50 percent fresher results for web searcher than previous index, which makes Google search engine more competitive.

Additionally, Google launched Google Instant, which reduce the time needed for the search, provide predictions and more dynamic results. This option previously was the competitive advantage of Bing, however currently Google time needed for the search is much less than Bing’ (Wanger, 2010). Moreover, instant impacting the price of paid search campaigns and AdWords, which previously was higher than competitors. Currently the pricing range for Google search engine can be viewed as moderate comparing to the competitors (Copeland, 2010), which provide company with extra competitive advantage.

Analysis of Google Growth & Development Strategy

Ansoff Matrix (Google Search Engine)

The existing market in which Google Search operates continues to witness change in trends due to the increase in number of users of internet and diversify needs of the customer (Kirkpatrick, 2005). Google Search Engine strategic direction would fall under market penetration, Product development, market development and diversification.

Initially Google search started with market development strategy entering USA market with Google search engine product and using penetration strategy they captured the market. Google continuously has been using market development strategy by opening their offices in different countries and making Google search available for customers in more than 144 countries (Mahno, 2009).

At the same time Google was using product development strategy by improving their search engine technology exponentially, adding host of new features with in just five years of time span which help them dominating the world market. In addition, Google runs a large number of vertical search services.

In October 2000, Google went for diversification strategy by launching AdWords which was a new product for a new market. By launching this product Google was targeting Businesses which was interested to put their advertisements on Google search. AdWords is a beneficial support for Google search in terms of generating revenue (Auletta, 2009); currently AdWords is one of the highest sources of income for Google. AdWords is a vital part of Google search, without AdWords Google search would continue to provide its search’ services free of charge; however without Google search AdWords would not be applicable due to the lack of initial platform (Battelle, 2005); therefore AdWord is an essential part for Google growth strategy.