Corporate Strategic Management Analysis: Google's Business Strategies

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This report offers a comprehensive analysis of Google's corporate strategic management, addressing the challenges it has faced due to anti-trust issues and market competition. The report examines Google's practices, particularly the forced installation of its applications on Android devices, and the fines imposed by the European Commission. It explores alternative strategies Google could have employed, such as product innovation and lucrative offers to smartphone organizations, while also analyzing Google's strengths and weaknesses, including its over-reliance on advertising revenue and compatibility issues. Proposed tactics include market development and penetration strategies, emphasizing the importance of leadership qualities and innovation. The report concludes with recommendations for Google to improve its position, including innovations in search-based operations to increase user-friendliness and strengthen its customer base. The study references various academic sources to support its findings and recommendations.
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Running head: CORPORATE STRATEGIC MANAGEMENT
CORPORATE STRATEGIC MANAGEMENT
Name of the Student
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Executive Summary
The report is based on the analysis of issues that have been faced an organization due to some
wrong practices which have been undertaken by them. Google has been considered as an
example in the case study and has faced major issues due to the forced installation of its
applications in the Android based smartphones. The ways by which these issues can be
resolved have been suggested in the report. The alternative methods which could have been
used by the company to face the competition has also been analysed in the case analysis.
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Table of Contents
1. Introduction................................................................................................................3
2. Background................................................................................................................3
3. Possible alternatives...................................................................................................4
4. Proposed tactics..........................................................................................................5
5. Recommendations......................................................................................................6
References......................................................................................................................7
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1. Introduction
Google is a multinational organization of American origin which operates in the
technology industry. The organization mainly specializes in different internet-related
products and services which also include, different online advertising related technologies
and cloud computing. The organization was founded by Sergey Brin and Larry Page in the
year 1998. Google provides its products and services to customers all over the world. The key
competitors of Google in the industry are, Facebook, Microsoft, Yahoo, Apple ("Google".
2018).
The company has however faced a major issue based on the ways by which Google
has tried to reduce the competition that has been developed in the market. Google had been
hugely fined for the breach of anti-trust rules that has been formulated by The European
Commission (Bootz 2010).
2. Background
The company was fined by The European Commission as Google had tried to gain a
dominant position in the internet search based industry in comparison to others in the
industry. The organization had forced the mobile handset organizations to pre-install Google
search based application and the Chrome Browser in order to create huge pressure on the
competition in the industry. The company was also accused of making payments to the other
organizations in order to install its apps. Google had also prevented the manufacturers who
wished to pre-install the search based apps provided by other organizations which operate in
the industry ("Google". 2018).
Google however denied that it had engaged in these practices which were anti-
competitive in nature. Google had also decided to appeal against the decision that had been
made by the commission based on the issues faced by the company. Google was further
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accused of making plans for many years based on ways by which the competition in the
highly competitive technology industry can be faced. The Android based smartphone
organizations have been using the apps which are provided by Google in order to reduce the
competition. Google was the original developer of Android. This was an important way by
which Google had been able to force the smartphone organizations to use the apps that are
provided by the company ("Google". 2018).
3. Possible alternatives
The possible alternatives which can be used by the company in order to face the
competition in the industry are as follows,
Google can create innovation in the products and services in order to attract
the customers. This can help the company to create a loyal customer base.
Google can also provide offers to smartphone organizations which are
lucrative in nature so that they are able to choose the products and services
that are provided to them (Durbach 2014).
These alternatives were mainly rejected by Google as the company had tried to win
over the competition in an easier way. Google had planned to reduce the competition with the
help of various practices that have been developed by the company for many years. The huge
levels of competition which has been formed in the technology industry has been aimed at
mitigating in such a manner which can provide Google with a different position (Foss and
Tina 2018).
Opportunities for growth of Google –
Google aim at diversifying the business operations into non-ad based
revenues.
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Google play can be improved by the company which can further prove to
become a game changer in the industry (Garbuio, Dan and Elif 2013).
Weakness of Google –
The major weakness that has been faced by Google in the industry is based on
the overdependence that the company has on advertising based incomes.
The lack of compatibility of Google with different next generation devices has
been a major weakness of the company in the technology industry (Hilliard
and Don 2018).
4. Proposed tactics
The issues that are being faced by Google in the technology industry are based on the
ways by which the company can provide effective justifications to the European Commission
in order to save itself from the fines. The different solutions which can be implemented by
the company are as follows,
The market development strategy has been implemented by Google in the
course of its operations in the technology industry. The company can thereby
implement this strategy in order to develop an effective market area for its
products.
Google needs to implement effective advertising and promotional strategies to
operate in the technology industry. This strategy of Google can be named as
market penetration strategy. The distinct aspect of the business model of
Google is based on the effective leadership qualities (Osterwalder et al. 2011).
The solutions have been chosen in such a manner which can help Google to reduce
the effects of its activities on the other organizations which offer search engine based
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services. The levels of innovation in the industry has been able to play an important role in
the ways by which Google develops its services and products. Innovation in an industry is
able to improve the business strategies that have been developed by organizations.
Competition plays an important role in the ways by which organizations can create their
position in the market. The services and products that are offered by technology based
organizations can be improved with the help of high levels of competition. The customers
will thereby be able to take advantage of the competition that is created in the market with the
help of huge number of organizations (Osterwalder et al. 2011).
Financial resources - The implementation of the solutions is feasible for Google as
the company has been able to create huge amounts of financial resources.
Human resources – Google has developed highly capable human resources. These
resources will play an important role in the proper implementation of this strategy (Postma,
Thijs and Frank 2012).
5. Recommendations
The challenges that are faced by technology organizations can be managed with the
help of the creation of proper competitive advantage. The opportunities which are provided to
the organizations are based on rapid changes that take place in the technology industry.
Solution - Google can thereby aim at developing market penetration strategies that
can help the company to improve its position. The company has been able to create a huge
customer base in the search engine based industry, however, the recent issues which have
been faced by Google have affected the reputation that had been developed in the industry.
Google can bring necessary innovations in the search based operations and increase its user-
friendliness. This will help the company to increase the customer base in the industry in an
effective manner.
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References
"Google". 2018. Google.Com. https://www.google.com/?gws_rd=ssl.
Bootz, Jean-Philippe. "Strategic foresight and organizational learning: A survey and critical
analysis." Technological forecasting and social change 77, no. 9 (2010): 1588-1594.
Durbach, Ian N. "Outranking under uncertainty using scenarios." European Journal of
Operational Research 232, no. 1 (2014): 98-108.
Foss, Nicolai J., and Tina Saebi. "Business models and business model innovation: Between
wicked and paradigmatic problems." Long Range Planning 51, no. 1 (2018): 9-21.
Garbuio, Massimo, Dan Lovallo, and Elif Ketenciouglu. "Behavioral economics and strategic
decision making." (2013).
Hilliard, Rachel, and Don Goldstein. "Identifying and measuring dynamic capability using
search routines." Strategic Organization (2018): 1476127018755001.
Osterwalder, Alexander, Yves Pigneur, Manuel Au-Yong Oliveira, and João José Pinto
Ferreira. "Business Model Generation: A handbook for visionaries, game changers and
challengers." African journal of business management 5, no. 7 (2011): 22-30.
Postma, Theo JBM, Thijs LJ Broekhuizen, and Frank van den Bosch. "The contribution of
scenario analysis to the front-end of new product development." Futures 44, no. 6 (2012):
642-654.
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