Google’s competitive forces and value chains

Google is one of the greatest business success stories of all times. From a small online company founded by two enterprising Stanford University students, it now became a household name and the world leader among search engines and online advertising facilities. Innovative ideas and concepts, low operation costs, freely accessible technologies, fast processing of transactions, efficiency and cost-effectiveness and a commitment to continuous investments in information technology all brought enormous benefits for the international search engine giant. Because of its sound industry strategies and able approaches, Google was able to lord over its competitors in a billion dollar global e-market where cutthroat competition between rival players is rife.

Google_s competitive forces1
Forces and Value Chain

Google’s low-cost operations, user-friendly features and services and powerful or revolutionary innovations are among the competitive leverages that the firm has over its counterparts. The company’s line of services had helped businesses advertise online with better chances of securing welcoming results.

Big established players such as MSN and Yahoo never cease to threaten Google. Aside from a lengthier industry experience and clout, MSN’s integrated structure may enable the growth of a monopoly. Microsoft’s huge R&D budget and already built comprehensive global IT infrastructure are also challenges that Google must confront.

Google_s competitive forces2

Google responding to the challenge by its stiff competitors. Its drive to further develop its current line of products and invent more is very evident. And from its success in search engine capacity, the company has now diversified its interests, now offering email, enhanced web advertising options, geographic mapping and even computer applications that run parallel to Microsoft Office.

If Google with its efficient and effective style of operations and sustained its zeal for unceasing refinements and innovations, the company will not be far from retaining its paramount market position.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s