Critical Analysis of Google's Strategic Management

Strategic Management

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1- Overview of google.................................................................................................................3
2.1 Critical analysing PESTEL of Google’s current turbulent in global environment and
evaluating the balance of opportunities and threats of Google in response to major issues........5
2.2Using porter's five forces analysis, evaluating the strength and the attractiveness of the
industry sector that Google is operating in..................................................................................7
3.1. Porter's generic strategy framework for analysing Google's corporate and competitive
strategies......................................................................................................................................9
3.2. Assess the growth strategies adopted by Google with the aid of the Ansoff Matrix with
future recommendations.............................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management refers to the process of assessing all the necessities that are
required by an organization in order to meet its daily objectives and goals. This management is
mandatory for every organization as the world of business keeps fluctuating every minute and
every day. The management involves setting of an objective for the organization, keeping eye on
all the operations, again ensuring the organizational inner structure, evaluating the present
strategies and finally ensuring that those strategies are regulated and implemented by the staff of
the company or not (Fuertes and et.al., 2020). Google is a technology company which focuses on
search engine, artificial intelligence, cloud computing, online advertisements, quantum
computing, consumer electronics, online advertising and e-commerce. The company is told to be
the most powerful and most valuable organization in the entire world as is has a great dominance
over the world's market, technological advantages in artificial intelligence area and data
collection. This report will comprise critical analysis of google strategy with the weaknesses and
strengths of the google approach. The report includes PESTLE analysis, porter five forces of the
Google's current environment. Later porter generic strategy and Ans off matrix shows the growth
strategies adopted by the company and what will be the best recommendations that google can
take into consideration.
MAIN BODY
1- Overview of google
DEVELOPMENT OF GOOGLE SINCE ITS IPO
Google in 2004 was already termed as the world's topmost search engine. The company
had set its image as the most ambitious and the powerful company. It came up with its first IPO
in 2004, exactly after six years of its existence. The company priced its IPO at $85 for per share
and overall valuation of $23 billion. But the IPO due to low demand, didn't get a very impressive
result so the company had to go public at $85 only, for per share. It sold 22.5 million of shares
and raised $1.9 billion from the market. But from that time onwards, the journey of google has
evolved beautifully and the company is getting very good results and impressive growth too
(Bilić and Prug., 2021). The entire development of google since the IPO launch can also be
shown by looking at some points such as its Financial success-where the revenue generation of
google has grown to $16 billion in the last quarter. The company generates 90%of the revenue
from its advertisements on the owned sites including search engines, you tube and gmail.

Secondly, by looking on the dominance of the mobile platform where the mobile phones are the
most used gadgets in today's world, Google is the most popular platform of all the mobile
phones. The company's strategic approach has lead to its success and with its dominance over
Apple, it has also passed 1 billion of sales this year.
GOOGLE USED STRATEGY
The strategic approaches used by Google has drive the growth of the company since the
beginning, be it the strategies related to the workforce or the strategies used for the organization
level. With help of new strategies the company is able to keep a pace with all the innovations,
creativeness and interdependency in the projects. Google make its plan of action by merging two
different strategies I.e. emergent and deliberate (Sinha., 2019). The emergent strategy refers to
the strategy which originates when there is unexpected occurrence of actions and initiatory done
within the company. Whereas, deliberate strategy refers to the strategy which is generally raised
from the organized actions and thoughtful decisions taken by the business. The need for
deliberate strategy is calculated mostly after the data analytics done by the company.
Here, Google is using both the strategies together by maintaining a smooth flow in the
organization through proper plans by identifying the need in the company through data and also
by coming up with urgent strategies when the organization faces some sudden occurrence of
events (Vătămănescu and et.al., 2020). In google this approach is used by the engineers team
when they work on individual projects. However, it becomes very challenging to manage such a
huge company but this strategic approach of the company provides efficient working in the
organization for example, Google is using deliberate and emergent approach in its organization
which is helping the company as the future is uncertain with all of a sudden risks that take place
in the world. The company by using emergent approach is able to avoid all the risks that are
associated with the uncertainty and at the same time is working towards its goals (Soliman,
Anchor, and Taylor., 2019). But the use of deliberate strategy comes up when, to work towards
the goal, the company also has to keep coming with the time to time strategies which it can only
be planned from the actual analysis of the data which helps to know the position of the company,
its target, employee management etc.
STRENGHTS AND WEAKNESSES OF GOOGLE'S APPROACH
Google uses the combination approach in its organization in order to run all its operations
efficiently and smoothly but even the approach has its own weaknesses and strengths.