International Strategic Management

International Strategic
Management
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Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Analysis of business model and business strategy......................................................................3
Analysis of Macro environment .................................................................................................6
Analysis of micro- environment and competitive success factor................................................6
Analysis of innovation strategy...................................................................................................8
Appraisal of organisation's strategic situation...........................................................................10
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Introduction
Businesses operate in a dynamic environment and changes in the components of the
environment presents both opportunities and threats for the organisations operating in it. Those
organisations which are able to develop innovative offerings to exploit those opportunities and
dodge those threats are able to attain success and lead itself on the path of sustainable growth and
development. Technology is one such aspect that has presented both opportunities and threats for
the organisations. Digitalisation has presented itself both as an industry in itself as well as the
aspect that can help companies transform their fate by developing innovation in their strategies
(Ansoff and et.al , 2018). This report is aimed at assessing strategic management at Google to
assess organisation's business and innovation strategy with a view to explore those factors that
has helped it reach the pinnacle in its industry. Google LLC or Google, as it is popularly referred
to as, is an American multinational company that specialises in technology and offers internet
related services and products like search engine, cloud computing, online advertising and others.
It was founded in 1998 and has its head quarters at California, US. In 2015, company
reorganised its multiple offerings into a conglomerate and named it Alphabet Inc. Google is now
a subsidiary of Alphabet and deals in internet related services of the group. This report takes
inspirations from various case studies that have been based on the Google to develop an
understanding of the aspects that has held the helm of company's operational and strategic
control in the field on internet search services. This report explores business model and strategy
for innovation of the company to take a look and appraise the strategic situation of the
organisation. Further, factors presented in macro and micro environment of the company that
catalyses and acts as its competitive success factor have been explored to draw conclusions
regarding the innovation strategy of the company.
Main Body
Analysis of business model and business strategy
Business model refers to that core strategy adopted and followed by company which, it
believes will lead it to the sustainable path of success, growth and development (Ritter and Lettl,
2018). It is designed around the pricing and costs of the business products and services and
includes anticipation of the future to determine movement of sales, target market and other
factors that drives its operations. There are mainly four types of traditional business models –
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Business to consumer (B2C), Business to Business (B2B), Consumer to Business (C2B) and
Consumer to Consumer (C2C) but with the advent of digital technology, new models has been
coming up like Direct to Consumer (D2C), Drop-shipping, subscription services, etc. and some
companies are like Google, which have been developing their own business model (Srnicek,
2017).
Google is a digital company and offers internet related services. For example, it acts as a
facilitator and facilitates information exchange between information provider and person seeking
information. In return, it makes money through advertisements which forms major part of its
revenue. There are various models that can be used to assess business models of company.
Below mentioned is Business model canvas of Google:
Business model canvas - Google
Key partners Key business partners for the Google includes hardware
manufacturers, electronics manufacturers and other distribution
partners. Also, it has acquired or been in a strategic partnership with
companies like Applied Semantics, DoubleClick, Waze, etc.
In addition, other key stakeholders for the company include its
umbrella company – Alphabet Inc., shareholders, employees,
content creators, internet users, developers community, etc.
Key activities Key activities for the company include data indexation, search
optimisation, cloud computing, online advertising, algorithms,
software development, IT infrastructure, operations and projects,
digital innovations, research and development, etc. (Anwar, 2018).
Key resources Primary resources of Google are the distinguished services that it
offers like its page rank algorithm, its innovation business model
and company culture, its intellectual patents, its talented staff and
content developers. Additionally, it has huge financial resource that
supports its infrastructure, platforms and ecosystem to make use of
the another key resource that it possesses i.e. big data.
Value propositions Google has a simplified business structure and targets diversified
products and services to make life simpler and easier i.e. like free
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