MGT703 Strategic Management: A Business Strategy Report on Google

This report provides an analysis of Google's strategic management, examining both functional and business-level strategies implemented by the organization. It delves into functional level strategies within departments like human resources and marketing, highlighting employee retention programs, recruitment processes, and marketing approaches such as segmentation, targeting, and positioning. The report also explores Google's business-level strategies, focusing on generic strategies like broad differentiation and intensive growth strategies including market penetration, market development, and product development. The analysis considers Google's competitive landscape, emphasizing its unique capabilities and innovative activities that contribute to its market leadership. Recommendations are provided to further enhance Google's strategic approaches for sustained growth in the technology industry. The report uses secondary data to provide insights into Google's operational strategies.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT
Executive Summary
The report is built on the analysis of the business level approaches and the practical level
approaches that have been implemented by an organization over the years of its operations.
The company that is considered for the study is Google. The functional level strategies
implemented in the various departments of Google and the intensive growth as well as the
generic strategies have also been analysed in the report. The recommendations are provided
based on the ways by which Google can further develop the strategies that are already being
implemented to ensure proper growth in the technology industry.

2STRATEGIC MANAGEMENT
Table of Contents
1.0 Introduction..............................................................................................................3
1.1 Purpose of the report............................................................................................3
1.2 Limitations...........................................................................................................3
1.3 Scope of the report...............................................................................................3
2.0 Functional level strategies of Google.......................................................................4
3.0 Business level strategies of Google..........................................................................6
4.0 Conclusion................................................................................................................9
5.0 Recommendations....................................................................................................9
References....................................................................................................................11

3STRATEGIC MANAGEMENT
1.0 Introduction
1.1 Purpose of the report
The key purpose of the report is to examine the strategies that are implemented by a
multi-business based organization. The firm that has been considered for this study is Google.
Google is a global technology based firm that mainly specializes in providing internet based
products and services that include, search engine, online advertising based technologies,
cloud computing (Aaby 2015). Google has been able to gain a major place among the Big
Four technology based organizations along with Apple, Facebook and Amazon. The
organization was recognized in the year 1998 by Sergey Brin and Larry Page when they were
studying as Ph. D students at Stanford University. Google mainly operates as a subsidiary of
an organization named Alphabet. Sundar Pichai has been recently appointed as the CEO of
Google and has been successful in providing an effective position in the industry
(Google.com 2019).
1.2 Limitations
The major limitations that are related to the proper study of the functional level and
business level approaches is based on the lack of direct access to major information based on
the organizational operations. The entire study is mainly based on the secondary data that is
available on the web.
1.3 Scope of the report
The scope of the report is based on the ways by which different strategies have been
implemented by Google in order to uphold its operations in the technology related industry.
The functions and business operations of Google will be analysed in the report in detail.

4STRATEGIC MANAGEMENT
2.0 Functional level strategies of Google
The functional level approaches that are developed by different companies are mainly
built on the methods by which the management takes decisions based on various functional
areas that include, finance, human resources, marketing, public relations and information
management. The strategies that have been implemented by Google in these functional areas
will be analysed with the help of business level strategy based discussion (Adamides and
Karfaki 2017).
Human resource management in Google – The success that has been gained by
Google in the technology industry is mainly based on the high quality based human resources
of the organization. The organization provides high emphasis on the ways by which the levels
of smartness and excellence can be maintained effectively among the employees
(Google.com 2019). The employee retention programs that have been implemented by
Google are also an important part of the human resource functions of the organizations
(Agwu and Onwuegbuzie 2017). Google uses an effective mixture of the interior as well as
the exterior recruitment based sources in order to hire the employees in different positions.
The internal recruitment sources that are used by the company include, transfers and
promotions and recruitment of trainees or interns. The external recruitment process on the
other hand is based on the responses that are provided to job advertisements and the
educational institutions as well. The criteria of recruitment in Google is mainly based on the
levels of smartness and support that the employees can provide to the innovation based
approach (Anand and Gray 2017).
The compensation packages that are offered by Google are considered to be major
employee retention based tools of the organization. The retention of employees is considered
to be a significant aspect that is able to influence the operations of Google in the technology
based industry. The levels of creativity and fun in operations of Google are high and the

5STRATEGIC MANAGEMENT
organization is able to uphold its processes in an active way with the support that is provided
by the employees (Bocken et al. 2016).
Marketing strategy of Google – The marketing strategies are able to play a significant
part in the methods by which a firm is able to develop its place in the industry (Google.com
2019). The organizations are also able to develop awareness based on the services and
products that are provided to the consumers with the support of appropriate marketing
approaches (Davcik and Sharma 2015).
Segmentation, targeting and positioning is considered to be a significant portion of
the marketing actions that are completed by Google. The products and services of Google are
segmented with respect to different factors like, psychographic, geographic and demographic
variables. The technology and IT industry is considered to be wide in nature and can be
regulated by different national as well as international bodies (Feurer, Schuhmacher and
Kuester 2019). The targeting strategies that are followed by the organization are thereby quite
different in nature. The position that has been gained by Google in the technology industry is
also based on the ways by which the company is able to target a specific group of consumers.
The value-based positioning strategy is mainly used by Google for the purpose of
maintaining its place in the highly competitive technology based industry (Furrer 2016).
The major competitive advantage that is a part of the marketing strategy of Google is
based on the uniqueness of the work culture and brand image that has been created as well.
Google has been able to gain the topmost rank as a company that is able to best for
employees to work in. The product portfolio that has been developed by the company is also
able to play a key part in the ways by which needs and demands of the consumers can be
fulfilled. The levels of technical innovation and technology is considered to be the most

6STRATEGIC MANAGEMENT
significant aspect is able to help the company to gain a major advantage over its competitors
(Gast, Gundolf and Cesinger 2017).
Distribution strategy of Google – The distribution strategy that is implemented by
Google is mainly built on the methods by which the company can provide its products to
more number of consumers within a less time. The Android operating system is being used
by Google in order to provide the services to a large group of consumers (Goel and Jones III
2016).
Competitive analysis of Google – The large portfolio that has been developed by
Google has been able to play a key part in the ways by which the organization has emerged as
the largest organization in the technology industry. The organization is way ahead of its
competitors and has been able to develop a major place in the technology industry. The rise
that has been seen in the levels of literacy among the consumers has been able to increase the
potential and growth of the organization (Jenkins and Williamson 2015).
The leadership place that has been established by Google in the market is based on the
levels of effectiveness of the functional level strategies that have been implemented in
diverse operations of the organization. Google has been able to uphold its employees and
consumers with the help of the effective functional level strategies that have been
implemented in various departments (Olson et al. 2018).
3.0 Business level strategies of Google
The strategic choices that have been made by Google are mainly related to the nature
of its business operations and the type of industry in which it operates. The generic business
level strategy that has been implemented by the organization has a major impact on its
operations in diverse countries of the world (Google.com 2019). The intensive growth based
strategies have played a key part in providing support to the company so that it is able to

7STRATEGIC MANAGEMENT
maintain its place in the highly competitive industry (Ruizalba and Soares 2016). The
organization has been able to provide a major influence on the competitive landscape with the
proper implementation of the generic strategies and the growth strategies. The major need of
the firm is to maintain its growth and develop the leadership based activities The proper
combination of the generic business strategy and growth has been able to fulfil this major
need of Google (Salavou 2015).
The generic business level strategy that is used by Google in order to uphold its
operations in the market is based on the Porter’s model of generic strategies. The broad
differentiation based approach has been applied by Google in order to target a broad market
scope. The organization offers the products that are developed to everyone in the world. The
generic strategy based on differentiation however involves some major unique capabilities
that are able to provide a competitive edge to the business (Wheelen et al. 2017). Google is
also able to set itself apart from the competitors with the help of the unique capabilities and
differentiation that has been developed in the technology industry. The wide variety of
products that are offered by the organization including, Google Glass, Google Search and
Google Fiber are able to offer a picture of the innovation based capability of Google (Salavou
2015). The Google Search based algorithm also has a major competitive edge over the
organizations like, Bing and Yahoo. The uniqueness in the operations of Google have been
able to play a major part in the methods by which the company has maintained the
competitive benefit in the market (Jenkins and Williamson 2015).
The approach of market penetration is used by Google for the purpose of maintaining
intensive growth outside its home country US. The organization has already gained a
leadership position in the industry in the US. However, the development of a unique position
in the countries like China is also considered to be extremely significant for the methods by
which Google aims to maintain its growth. Google has direct competition with the other large

8STRATEGIC MANAGEMENT
organizations or search engines and the online advertising based firms as well (Salavou
2015). The process of market penetration is considered to be highly important for the growth
potential that Google aims to maintain in the industry. The online advertising activities of
Google have also become highly important for the organization to gain a large share in the
market (Goel and Jones III 2016).
The strategy based on market development is also an important part of the operations
of the organization that have been maintained in various countries. Google has implemented
the intensive strategy of market development in different parts of the US. The Google Fiber
Internet based services are offered by the organization in different states like, Kansas, Texas,
Missouri and Utah. The implementation of this intensive strategy of growth is also based on
the ways by which Google wishes to continue expanding its market in the future (Anand and
Gray 2017).
The product development based intensive strategy for growth has also been
implemented by Google with the help of its innovative activities that have been performed in
different parts of the world. The organization has continued with the development of new
products like Google Glass in order to ensure the growth of its market (Adamides and
Karfaki 2017). The Nexus mobile devices have also been offered by Google in the industry as
a part of the intensive growth strategies that are implemented by the organization. The
intensive growth based strategy of the product development has helped Google to develop
more channels for proper income generation (Goel and Jones III 2016).
The intensive growth related strategies like, market development, market penetration
and the product development are considered to be highly important for the ways by which
Google has aimed at maintaining its position in the industry. The organization further
continues to grow and expand the strategies that are based on effective market development

9STRATEGIC MANAGEMENT
and market penetration (Gast, Gundolf and Cesinger 2017). The business growth of Google
mainly depends on the development of the intensive growth strategy of the development of
new products that are highly innovative in nature. The formation of proper business level
strategies has been able to offer a major chance of development to Google in the highly
competitive industry. The generic business level strategy on the other hand has facilitated the
company in proper development of a competitive edge in the industry (Ruizalba and Soares
2016).
4.0 Conclusion
The report can be settled by asserting that Google has been highly successful in
maintaining its position in the industry with the support that is provided by the functional
level and the business level approaches applied by the company. The organization has been
highly effective in the growth of a unique place in the industry with the help of the employees
or human resources. The growth that has been experienced by Google is also based on the
generic growth strategy that has been implemented in order to uphold the active operations.
The differentiation that has been developed by Google in the industry has been able to play a
key part in the accomplishment of the organization.
5.0 Recommendations
The key recommendations that can be offered to Google so that it is able to improve
the levels of growth are as follows,
Google needs to focus the efforts that are made in the development of new
products and develop new areas of income.
Google needs to ensure that the products that are already being offered to
customers in the market are effective and are able to fulfil their needs as well.

10STRATEGIC MANAGEMENT
Further, the company can aim at the development of new products and
services in order to maintain its growth in the technology industry.
The market development strategy also needs to be improved by Google in
order to gain a larger number of customers and improving the levels of
strategic alignment as well.

11STRATEGIC MANAGEMENT
References
Aaby, N.E., 2015. Making Marketing Strategy More Corporate. In Proceedings of the 1988
Academy of Marketing Science (AMS) Annual Conference (pp. 228-231). Springer, Cham.
Adamides, E.D. and Karfaki, E., 2017. How initiatives renew operations strategy and its
linkage to competitive strategy: a micro-level perspective. International Journal of Services
and Operations Management, 26(2), pp.141-161.
Agwu, M.E. and Onwuegbuzie, H., 2017. Strategic importance of functional level strategies
as effective tools for the achievement of organizational goals. Archives of Business
Research, 5(12).
Anand, G. and Gray, J.V., 2017. Strategy and organization research in operations
management. Journal of Operations Management, 53, pp.1-8.
Bocken, N.M., de Pauw, I., Bakker, C. and van der Grinten, B., 2016. Product design and
business model strategies for a circular economy. Journal of Industrial and Production
Engineering, 33(5), pp.308-320.
Davcik, N.S. and Sharma, P., 2015. Impact of product differentiation, marketing investments
and brand equity on pricing strategies: A brand level investigation. European Journal of
Marketing, 49(5/6), pp.760-781.
Feurer, S., Schuhmacher, M.C. and Kuester, S., 2019. How pricing teams develop effective
pricing strategies for new products. Journal of Product Innovation Management, 36(1),
pp.66-86.
Furrer, O., 2016. Corporate level strategy: Theory and applications. Routledge.

12STRATEGIC MANAGEMENT
Gast, J., Gundolf, K. and Cesinger, B., 2017. Doing business in a green way: A systematic
review of the ecological sustainability entrepreneurship literature and future research
directions. Journal of Cleaner Production, 147, pp.44-56.
Goel, S. and Jones III, R.J., 2016. Entrepreneurial exploration and exploitation in family
business: A systematic review and future directions. Family Business Review, 29(1), pp.94-
120.
Google.com 2019. Google. [online] Google.com. Available at: https://www.google.com/
[Accessed 9 May 2019].
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis.
Routledge.
Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human
resource management policies within the marketing organization: The impact on business and
marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73.
Ruizalba, J. and Soares, A., 2016. Internal market orientation and strategy implementation.
In Strategic Labor Relations Management in Modern Organizations (pp. 183-194). IGI
Global.
Salavou, H.E., 2015. Competitive strategies and their shift to the future. European Business
Review, 27(1), pp.80-99.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic
management and business policy (p. 55). Boston: pearson.