Organisational Changes in Google

This presentation discusses the organisational changes in Google and how they contribute to its competitive advantage. Learn about the complementary forces shaping company strategies and the analysis of the competitive industry. Explore the keys to Google's competitive advantage and how the company strengthens its structure for gaining a competitive edge. Find references for further reading.

Group Project
Organisational Changes in Google

Table of Content
• Introduction
• Complementary forces shaping company strategies
• Key to Google Competitive Advantage
• Analysis of Competitive Industry
• Strengthening its structure for gaining competitive
advantage
• References

Introduction
Google is a company that has evolved to be a business
house which is part of every single individual life.
This Presentation states about how various complementary
forces shapes a company like Google strategies and how
they aid in making it more strategically competent.

Cont...
An industry analysis will be conducted for the US market
based search engine advertising.
It will also be stated as how Google has solidify its
competitive advantage in the market.

Complementary Forces Shaping Company
Strategies
As stated by Porter, there are five forces that exist in the
immediate environment of company and has an impact on it.
The managers can use this tool for identifying level of
competition with a market place.
Porter's five forces model is used to identify variables that
can hamper organisation productivity and profitability in
future.

Cont...

Cont...
Application of porter five forces model is stated below:
Competitive Rivalry: This variable is considered to be very
HIGH as there are many rivals in the market. The switching
cost for consumers is low which puts a higher pressure on
company.
Threat of New Entrants: The level of risk is MODERATE
when it comes to the entry of new companies. The issues
faced by company is higher brand development cost.

Cont...
Threat of Substitutes: The level of risk is MODERATE.
The advertising services as well as open source forums can
be replaced by any company in the market.
Bargaining power of Buyers: The consumers power to
bargain is considerably WEAK. Usually they are separated
into individual groups or are in small numbers.
Bargaining power of Suppliers: The suppliers bargain
power is WEAK. The number of suppliers are high while
demand is low which reduces their bargaining power.

Keys to Google Competitive Advantage
The prime point that makes Google a major organisation in
the sector is the value that it creates and serves to customers.
Intellectual property: The company protects its products,
designs, logo, etc with the aid of intellectual property rights.
Dynamic product range: This is how Google has grown in
the market. It does not rely on a single product (advertising).

Cont...
Efficiency: The company constantly tries to improve its
process so that no new development can hamper is ability to
perform.
Employee relations: The managers are completely focused
on making sure that the working environment stays healthy.
Focused differentiation: The company aims to keep its
ability to differentiate. Basically, constant innovation and
changes allows it in gaining differentiation from
competitors.

Analysis of Competitive Industry
Google is leading the advertising industry in the market with
more than 63% market share.
The graph below states about the structure that exist:

Strengthening Its Structure For Gaining
Competitive Advantage
The company is concentrating on achieving competitive
advantage via introducing various innovative products and
services.
The adopted method is to fulfil consumer desire by offering
qualitative and innovative products.
Various programs are funded which are being developed
with a aim of attaining edge over competitors in future.

Cont...
The company understand that it is very vital to keep on
innovating and diversifying to stay ahead of its competitors.
There are certain changes which are made by company in
the system for attaining competitive edge over its
competitors:
Change in management: In 2011 Larry page became the
CEO of Google and started a changing whole managerial
pyramid.

Cont...
Project focused: Larry Page made certain changes in
management where he found out that new innovative
projects were becoming red wire as they were not getting
approval.
He streamlined whole process and made sure that they get
timely approvals and funding.

Cont...
Bifurcation of functions: Now there are seven separate
units, Search, Advertising, YouTube, Mobile, Chrome,
Social, Commerce.
Before there were only engineering and product
management department which slowed down decision
making.

References
Israelachvili, J. N., 2011. Intermolecular and surface forces.
Academic press.
Hesterly, W. and Barney, J., 2010. Strategic management and
competitive advantage. Pearson, ed., Pearson Prentice-Hall.
Harrison, J. S., Bosse, D. A. and Phillips, R. A., 2010. Managing
for stakeholders, stakeholder utility functions, and
competitive advantage. Strategic Management Journal,
31(1), pp.58-74.
Goldfarb, A. and Tucker, C., 2011. Search engine advertising:
Channel substitution when pricing ads to context.
Management Science, 57(3), pp.458-470.

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