BUS6002 Strategic Management: Google's Competitive Strategy

This case study report provides a strategic analysis of Google, examining its development of company strategy, strengths, and weaknesses. It uses the PESTLE framework to analyze political, economic, social, technological, legal, and environmental factors impacting Google. Porter's Five Forces model is applied to assess competitive rivalry, bargaining power of customers and suppliers, and the threat of new entrants and substitute products. The report further explores Google's competitive strategies using Porter's generic strategies and assesses its growth strategy with the Ansoff Matrix. Recommendations are provided for transforming strategy development, focusing on financial perspectives, internal processes, customers, and innovation. The analysis aims to provide insights into Google's strategic management and competitive advantages, contributing to a comprehensive understanding of the company's strategic position in the global market. Desklib provides access to this and other solved assignments to support student learning.

Strategic management

TABLE OF CONTENT
TASK: 1 ..........................................................................................................................................4
1. Analysing the development of company strategy....................................................................4
TASK 2............................................................................................................................................5
a) PESTLE analysis of Google....................................................................................................5
b) Porter’s Five Forces.................................................................................................................7
TASK 3............................................................................................................................................9
a) Porter's generic strategic Framework- analysing Google's competitive strategies..................9
b. Assessing the growth strategy- Ansoff matrix adopted by google .......................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic management plays a vital role in the company's success, as it is the ongoing
planning, assessment, analysis and monitoring of all the relevant necessities a firm required so
that they can easily meet the objectives which has been set by them. As we all know that in this
world of competition, changes in business environment will need companies to constantly keep
track on trends and assess their strategies for success. The present report will be based on google
which is one of the most popular brand in the world. Further, it will highlight Google's strategy,
major issues and relevant theories which is helpful to achieve competitive advantages and
improving growth.
TASK: 1
1. Analysing the development of company strategy
The company used to make the strategy that helps them to know about the long-term plan
in order to attain their goals. It basically includes the goals and objectives of the company which
makes them to grow in the market. This also makes the company to know about its target
customers in order to have better profits. Google has renamed its named as Alphabet that include
the search company and various other business. The company is having good growth after
having the Initial Public offer in year 2004. In order to grow the cited organization has also
faced some challenges from which the company always used to overcome (Sinha, 2019). This is
the main reason that makes the company to have good development in the market.
The company used to follow the emergent strategy which makes the company to have the
unplanned innovations in order to grow in the market. As the emergent strategy used to describe
the unplanned actions and innovations that the company used to do which helps them to grow in
the market. For example, the company has done some innovations that were not planned and that
helps them to grow in the market (Fletcher and Barroso, 2019). This is the most appropriate
strategy for the company provide the support to grow and have better market share. The
employees and manager of Google must have the good efficiency that helps them to adopt the
new technology and innovations in the market.

By adopting this strategy this allows the organization to have to put their resources all
together and have the more effective strategies in the company. This is one of the best strategy
which makes the company to learn about new techniques and their results in the market. The
emergent strategy allows the cited company to have more flexibility and also provide them new
opportunities to survive in the market (Chandra and et.al., 2021). Google must focus on the
growth and development by having planned and unplanned actions in order to have better market
share in the market. This will also make them know about the right decisions in order to have
sustainable future.
Strengths and weaknesses of Google’s approach and important recommendations for
transforming strategy development
From the very beginning google was different from other, they have launched a kind of
open IPO auction with buyers deciding on the fair price for a share. As we all know that handling
large organization is quite difficult and emergent approach of the firm has its own weaknesses
and strengths (Chidiac, 2018). Talking about its strengths, it can allow firms to put their
resources towards their systems which can be more effective in nature than a company's
deliberate strategies. Google has amalgamated methods for maintaining innovation for stability
and change strategy on the basis of operations. While on the other side, there is few weaknesses
which needs to be taken into consideration relating to financial perspective of google. From the
current study it has been evaluated that the firm is dependent on the ad based revenue which is
threatened increasingly by their competitors named as Facebook, YouTube.
Recommendations- In order to cope up with this and transforming strategy development,
it is recommended to focus on decisions they take in the context of strategy development and
then make alignment with their future goals and study about the external environment who can
easily impact their decisions or can be impacted by their decisions by using relevant theories.
Not only this, the company needs to divide its strategies into main perspectives such as finance,
internal processes, customers and innovation so that it will help senior management to achieve
more success in the future.
TASK 2
a) PESTLE analysis of Google
PESTLE analysis of the company used to show about the different macro factors and these
factors used to have great impact on working. By examine these factors it helps the company to

know about the strategies in order to gain competitive advantage in the market. the PESTLE
analysis of Google is as described below:
1. Political factors: These factors used to determine that up to which extent the government
can influence the economy or the particular country. These includes fiscal policies, trade
and tariffs, etc. which used to have impact on the company (Google PESTEL/PESTLE
Analysis & Recommendations, 2022). As Google is one of the leading company and
having its area of operations in different market must has to follow this factor. The
company must comply with the policies related to different state that helps them survive
in the different market.
2. Economic factors: These factors used to determine the performance of the economy that
used to have direct impact on the working of the company. This includes the inflation
rates, tax rates, etc. which affects the buying behaviour of the customers. Google has to
consider the positive and negative aspects of the different country that helps them to grow
in the market. As company is the leading company so this is the threat for the company in
order to manage its performance in the different markets where it has it operations.
3. Social factors: These factors determine the social environment of the different market
where the company has its operations. This includes cultural trends, population,
demographics, changing needs and wants, etc. This factor is big threat for the company as
Google used to get affected by the social factors as it has its stores in different market. As
there are continuous changes in the needs and wants by the customers so cited company
has to comply with such factors in order to grow in the market. By satisfying the needs if
the customers supports the company to have better growth.
4. Technological factors: Technological factor are those factors which are related with
having the innovation in the market. This are the most affecting factor for the industry or
for company as well. Google has the opportunity as they can adopt the new technology in
order to have faster services in the market (Kabeyi, 2018). This helps them to have good
market share as from its competitors by having innovation in order to provide best
services. As smartphones are increasing rapidly there is more use of Google that helps the
company to have better profit. This is the great opportunity for the company that provides
them to have innovation in their technology for having target customers.

5. Legal factors: These factors used to have both micro and macro sides that includes the
certain laws and policies that used to affect the working of company. These legal issues
can have the negative impact on the Google as it used to have its operations worldwide.
As many countries are making privacy laws which affects the online business of Google.
The cited company must have the strong standpoint in order to have violation of
Intellectual property rights. By following the laws and policies that helps the company to
survive in the market.
6. Environmental factors: These factors determine the environment or surrounding that
affects the performance of the company. By having the better examining of the market it
helps the Google to consider those changes in order to survive in the market. The cited
company should also fulfil some social responsibilities which makes them to have better
image in the competitive market. This is the best opportunity for the company to focus on
the environment that helps them to have sustainability relationship with the suppliers in
the market.
As Google used to have different opportunities and threats that helps them to have the
better market share in the global market. By providing new and innovative services it will
have more consumers which used to draw attention of the people.
b) Porter’s Five Forces
Porters five forces is the framework that helps them to analyse the five competitive forces
that helps to determine the strengths and weaknesses of the industry. Google must have the
continuous examination of the market that helps them to have better corporate strategy (Five
Forces Analysis of Google, 2022). The Porters Five forces for Google is as described below:
1. Competitive Rivalry: In this force it helps the company to know about the number of
competitors and their ability to do work in the market. There is high level of competition
in the market faced by Google. As there are different players in the market who used to
have direct competition with the company. This is the weakness for the company to have
better growth in the market and this also affects the market share of firm.
2. Bargaining power of customers: This factor includes that the customers used to have
lower prices of the products in order to buy that product. It is basically affected by
having the number of consumers the company has in the market. Google used to have
very low bargaining power from the customer’s side. This is the strengthening point for

the company as customers does not bargain (Vardopoulos and et.al., 2021). This is
because as company used to have large customers at services provided by them is at
affordable rates. As it does not have differentiated product it is the positive point for the
company to grow in the market. The bargaining power of the company will be higher if
there is availability of the substitutes products in the market.
3. Bargaining power of suppliers: This factors includes that how fast the suppliers used to
drive up the cost of production. It is impacted by the different suppliers in the market
having the same type of raw material. The suppliers power is very weak against the cited
company. As there is availability of the supply is weak which makes the suppliers to
have weak forces against company. As Google is the software operating company and
does not require much raw material. This is the positive point for the company that they
do not have the bargain with the suppliers in the market. By having low force it helps the
company to have low cost of production and increases the operating margins as well.
4. Threat of new entrants: The company is also affected by entering of the new entrants
in the market. By having the strong entry barriers it helps the company to have less
threat of entrants of new firm. As Google is one of the leading company in the market it
has low threat of entrant of new firms. The new entrant will not able to survive in the
market as the company used to have high market share. This is the strengthening point
for the company which helps them to have better profits in the market. The entry barriers
in this industry is also very high which is the plus point for the company to have better
profitability.
5. Threat of substitutes products: This used to have increase in the number of
competitors and used to have negative impact on the profitability. As there are few
organizations that used to provide the same type of products and services. This is the
weak point of the company which used to have negative impact on the profitability. The
threat of the same products for the company mainly arises from Facebook, Apple,
Microsoft and Amazon. However having the entrants of new firms company used to
have high revenue in the market that helps them to survive in the market.

TASK 3
a) Porter's generic strategic Framework- analysing Google's competitive strategies
It is an effective tool used by firm in order to gain competitive advantage. By using this
strategy the firm is able to determine the direction of the firm (Firoz Suleman, Rashidirad and
Firoz Suleman, 2019). With the support of this framework, the firm is able to know about its
market position and productivity can be analysed.
source: (Porter's Generic Strategies, 2022)
Cost leadership- Talking in relation about cost leadership strategy, it helps to minimize
the costs incurred in providing value to a client. We all know that traditional method are really
effective in nature the reason behind that is market acceptance. There are two major ways of
achieving competitive advantage with a cost leadership strategy.
 The very first method is to increase profits by reducing costs, while charging industry
average prices.
 Another one is to increase market share by charging low price.

This is how industries work for their betterment and gaining competitive advantages.
Using strategy and implementing it is very essential step but it is totally dependent on the
business structure, its processes and systems. For example- if business is providing low costs
products to their clients and sustain overall cost leadership strategy, then it will be an above
average performer in that industry. It has been said that those companies who are successful in
achieving cost leadership usually have efficient logistics. While implementing this strategy,
business needs to go through its major drawback. The greatest risk in pursuing this strategy is
that these sources of cost reduction are not at all unique as anyone can copy this strategy which
can create threat for the firm. Hence, it is said that it is essential to focus on continuous
improvement and finding ways of reducing every cost.
Differentiation strategy- this strategy is very effective and useful for marketers because it
involves making company's services and goods different from competitors (Porter's Generic
Strategies, 2022). To be successful companies need to focus on providing something different
and unique to its customers. They need to try their best for providing more attractive than those
of competitors as it can hinder market position. For this, market research is essential to know
about trends and exact nature of industry. By using this strategy, google is able to deliver high
quality services to its customers. In order to make this strategy successful the firm is effectively
focused on research and development and focus on innovation.
Google uses differentiation strategy as generic strategy which helps them to make its
market position stable in the competitive world. With the implementation of its unique concept
the google sets itself apart from other players in the competitive market. Moreover, the company
is highly innovative as it offers unique products or services. Not only this the firm is also keeping
things up to date so that it can provide them success. Their recent achievement are google search,
google glass and google fibre. By providing these products to customer the firm is able to attract
more customers. The firm believes that by using sales and marketing method the business can
provide benefit to achieve customer base.
Moreover, to achieve success in the future, the firm needs to focus on differentiation
generic strategy as it can easily support them to achieve good market position. On the top of that,
by setting the strategic objective the firm is able to improve their product line in a new way and
also focus on continuous improvement. They can easily develop existing services in the world

full of technology and innovation. This is how google is able to keep them ahead from its
competitors and deal with high competition in the tech industry.
Focus strategy- basically, this strategy is used by company who are customer centric.
The focus strategy involves concentrating efforts on audience who have unique requirements
relating to trends (Porter’s generic strategies to firm performance, 2022). By using this strategy,
the firm is able to provide whatever the customer wants. By doing customer focus the firm is
able to produce a service with something unique features that can easily meet the requirements
and preferences of the focus market and its audience too.
There are two variants of this strategy which needs to be taken into consideration while choosing
the first variant is all about cost focus in which the firm seeks a cost advantage in its target
segment. While on the another hand, differentiation focus is used by company in which they seek
uniqueness in its target segment so that different services can be provided. Based on the present
case study on alphabet, it has been notified that there are major challenges which has been faced
by the company involves advertisers had not shifted their television ad budgets to internet and
YouTube at the pace anticipated. On the basis of this issue, the firm can focus on differentiation
offering so that it can easily attract customers.
From the above discussion it has been evaluated that differentiation strategy would be
very helpful for google as it can help them to sustain in the market and able to generate loyalty of
clients.

b. Assessing the growth strategy- Ansoff matrix adopted by google
Talking in relation with Ansoff matrix, it is a tool used by the firm so that they can
prepare for marketing planning process (Kurniawan, Iswahyudin and Suciati, 2020). Basically, it
is a method of strategic planning that can help the senior manager, top management of the firm
and marketers to devise strategies for the future growth of business. With the understanding of
each quadrant and concept relation to it, senior management team of the company can make
strategic planning successful which helps them to make decisions as well.
source: (Khajezadeh and et.al., 2019).
Market penetration- speaking about this strategy, which is used by management teams so
that they can evaluate growth initiatives (Islami, Mustafa and Topuzovska Latkovikj, 2020). It is
all about increasing sales of existing products into an existing market. This strategy is most
commonly used method which helps companies to increase their sales and increase performance.
By using this method, google can focus on expanding its existing products in existing market.
Moreover, the firm primarily relies on market penetration as its intensive growth strategy which
helps them to expand in business with uniqueness in the competitive market.
Market development- apart from above mentioned strategy, the company also uses
market development intensive strategy which helps them to achieve growth in the competitive
world (Khajezadeh and et.al., 2019). As we all know that firm's goal is to attract more new

customers and retain old clients in new market segments by using new uses of their current
product line. In the current case study, this market development is applied by offering new uses
of current services such as new tools relating to cloud services and other products.
Product development- speaking about this effective strategy, it is helpful for business
when they want to sell its existing products into new markets. By using this strategy, google can
easily increase their market segment because now they are entering in new market along with
their existing products (Yaqoob and Omer, 2021). For instance, now the company is focused on
innovation and using new technology to achieve its future goals. The strategic objective of the
firm is to develop their products or services to increase their sales and revenue. While
introducing new products such as laptops, mobile apps, smartphones named as pixel the firm
used this intensive growth strategy after identifying macro factors through pestle analysis. Now
the firm is able to continue its improvement relating to new products which involves mobile
apps, devices, cloud services and other relevant things. With the help of product development,
google is able to create more room for innovation and channels for income generations to gain
competitive advantages.
Diversification- nowadays, marketers don't want to take more risk in the competitive
world, so they avoid using such strategy which is riskiest (Greckhamer and Gur, 2021). It is very
difficult for business to establish new product into new market. As the major objective of google
is to achieve growth through new business in other market which is new to them where the firm
is not operating.
Recommendation to Google's growth strategy for the future
To order to achieve business success and growth in the future, google needs to focus on
increasing its marketing efforts and also concentrate on distribution systems/ processes so that it
would help them to attract more people. As people are spending more time on internet using
social media platform, the company can grasp this opportunities Plus, they must cater to a
different customer segment as it helps to develop their brand name. Not only this, it is essential
to invest in research and development so that it would help them to improve customer
confidence. Another one is providing effective training and development to staff members on
regular basis as it can help them to increase customer relationships. Plus, they need to develop
strategic partnerships so that it would help meet their goals.