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Module Name: Strategic Management

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Table of Contents
The Development of Google Strategy.............................................................................................3

Strategic Viewpoint of Google........................................................................................................3

Analysis of Google’s Strategic Approach.......................................................................................4

Strength and Weakness of Google Strategic Approach...................................................................4

Involvement of Google's Executives in Strategic Developments....................................................5

Recommendation on Google’s Strategic Approach........................................................................5

PESTEL Analysis............................................................................................................................5

Evaluation of Google’s Response to the Major Issues....................................................................7

Porter’s Five Forces Analysis..........................................................................................................7

Evaluation of Strength and Attractiveness of the Industry in which Google Operates...................8

Google’s corporate and competitive strategies................................................................................9

Google's Generic Strategy.............................................................................................................10

Differentiation Strategy.............................................................................................................10

Google’s Growth Strategy: Ansoff Matrix....................................................................................11

Product Development................................................................................................................11

Product Diversification..............................................................................................................12

Recommendation for Google’s Growth Strategy..........................................................................12

References......................................................................................................................................13
The Development of Google Strategy
Businesses are constantly on the lookout for new strategies to get to the top. Corporations that
have a huge advantage over their rivals may nevertheless be replaced. Nokia is the most recent
illustration of the significance of a company's ability to preserve a competitive edge. Google is
certainly lagging behind its rivals when it comes to digital forums. When Google originally
began, it was evident that it had the upper hand. According to (Shen et al., 2017), an open
auction was used instead of an investment bank to set the price of an IPO share. Larry Page sent
an open letter to the company's shareholders in which he said that Google was unconventional
and had no desire to become conventional.

In Europe, a two-tiered board of directors is common, but not so in the United States. The
benefits accrued to Google's founders Page and Brin when they were allowed to run the firm in
any way, they saw fit. As a result, Google LLC's (previously Google, Inc.) strategy decisions are
strongly related to the company's characteristics and industry features. There is a substantial
influence on the company's internet advertising efforts as a result of its overall business strategy.
Combining aggressive tactics with a more broad-based orientation to the competition will be
critical to Google's long-term success (Llerena and Valverde, 2020).

Strategic Viewpoint of Google

Planned and unplanned aspects are both parts of Google's strategy, depending on the company's
present needs. For a corporation to fulfill its stated goals, its tactics must be addressed from a
wide-ranging standpoint. Because of Google's meticulous attention to detail, the deliberate
approach to strategy has had a significant impact on strategy. Employees may now put their ideas
into action after receiving all the essential information from the company's senior management.

In order for a business and its management to be considered deliberate, they must engage in
purposeful, intelligent, and structured activity. A lot of the time, it's a result of a lot of data
crunching. Large, well-established companies are more likely to make use of a strategic plan.
They have enough knowledge and experience thanks to history and stability to develop a long-
term plan they are confident in putting into action as said by (Tran, 2017).
Analysis of Google’s Strategic Approach
Search engine giant Google LLC has a wide-ranging strategy to address industry-wide issues
The company's capacity to accomplish its objectives is directly impacted by these consequences.
When it comes to Google, the competitive climate has a direct impact on the company's business
strategy. When faced with fierce competition, the company relies heavily on ambitious market
potential techniques. Many factors contribute to Google's success, including market expansion,
new product development, and more. Google LLC would do well to concentrate its efforts on
product development. As opined by (Shen et al., 2017), many sectors and markets have slammed
them for what might have been a random approach to product development. As part of Google's
overarching competitive strategy, the company has developed a broad range of products that
enable it to expand its worldwide reach. First and foremost, Google should focus on the
sustainability of its present products before expanding into new markets.

Strength and Weakness of Google Strategic Approach

Google's business model relies heavily on diversification, which enables the corporation to
expand into new industries while maintaining a strong relationship with its current clients.
Diversification has made it possible for the Internet behemoth to promote itself as a one-stop-
shop for all Internet-related demands. In addition, the Internet giant broadened its horizons (Tran,
2017). Since it has allowed Google to grow into new technological sectors, acquisitions have
always been a crucial strategy for the corporation, as they have been for other big companies
with established industry impact.

As a result, the organization knows exactly where it wants to go and how it intends to get there in
the near future. However, the first judgments made at the beginning of a new approach may be
correct or incorrect. The company's current problems may be solved concurrently with the
company's new strategy. Learning, experimenting, and working together are all possible in
Google's innovative and R&D environment and because of the developing strategy. As
mentioned by (Dolata, 2017), technical aspects of cooperation at Google or any other technology
company lessen the risk of conflict. Excellent outcomes may be achieved by an incremental
strategy that incorporates a variety of factors. It is possible that decision-making may be delayed
because of the long procedure. It is more difficult to carry out incremental strategy than
purposeful or emergent strategy. In contrast, the emergent technique may work well with it.
Involvement of Google's Executives in Strategic Developments
Long-term strategic development at Google relies heavily on the analytical insights provided by
Google's management. This division forecasts and implements projects that are crucial to
Google's development in the medium and long term. When business plans are developed with the
notion of people in mind, workers will have the confidence and motivation to increase corporate
performance (Dolata, 2017). Google is a technologically advanced, forward-thinking
corporation.

Consequently, it has adopted an international model in which operational level management

develops much of the strategy, as they are better familiar with the business environment. They
are actively encouraged to participate in the establishment of goals and strategies (Williamson,
2018). Employees and management are at odds over many topics, and Google opposes the
formation of a union, so things aren't exactly the same as they used to be.

Recommendation on Google’s Strategic Approach

Google's capacity to preserve its position as a dominant player in the business depends on
constant innovation. Google's dual strategic methodologies may help it find new risks,
possibilities, and growth potential in order to speed up innovation, which is a source of learning
for strategists in general. For this plan to be successful, Google must make significant
investments in operational design and resource management at the company's core.

PESTEL Analysis
Political: Foreign Trade Administration (FTA) interactions have been enhanced as a result of
globalization for the growth of Alphabet Inc (Google Store) Take, for example, the fact that free
trade agreements benefit Alphabet Inc while making it simpler for Google to sell Pixel devices
outside the US. In a politically stable atmosphere, Alphabet Inc. can grow.

Economic: The stability of major foreign markets may help Google's development. Google will
be able to increase the number of mobile computers that can be accessed in the future. A
decrease in the price of renewable energy might lead to a rise in Google's energy supply. Do a
search for "sustainable" In terms of corporate social responsibility (CSR) for digital/online
advertising service providers, expanding their renewable energy program is a win-win. Google
might enjoy the rewards of economic success if it uses the appropriate business methods.

Social: Because of the rise of digital advertising, social media sites like Facebook and Amazon
are cutting into Google's advertising market share. It is possible to expand a company's consumer
base by using sociocultural trends and digital and technology resources. When it comes to
improving your company's marketing approach, it's never too late to start again.

Figure: PESTEL Analysis of Google

Source: (Madsen and Grønseth, 2022)

Technological: Access to the internet in developing nations has created new business
possibilities, including hardware and software sales as well as the supply of various online
services. There is an opportunity to publicize the Pixel smartphone and its Google Play Store.
The cloud service industry is expected to have an extra 27% growth in revenue by 2021.

Environmental: Ecologically friendly items draw in customers. Google has previously taken
this step when it comes to adopting renewable energy. Technology companies are paying more
attention than ever before to this problem. Alphabet Inc., the parent company of Google, may be
able to enhance its public image by doing business with green technology firms.

Legal: Customers' private information must now be protected, giving technology businesses a
new chance to provide better service and more personalized solutions. Intangible Assets of
Google (Intellectual Property) Google Intellectual property rights can be better protected with the
utilization of Google's intellectual property assets. Google depends solely on data when it comes
to delivering services and marketing online. This puts the privacy of its customers at risk. This is
a chance for Google to improve its current methods and procedures in order to attract new
customers and keep the ones they currently have.

Evaluation of Google’s Response to the Major Issues

Growth and success at Google might be aided by variables beyond the company's control.
Threats, on the other hand, have been made public in order to be dealt with correctly. Google is
well-equipped to take advantage of opportunities and avoid hazards because of its wide range of
activities, resources, and commercial capabilities. As an example, if Alphabet Inc. is trying to
acquire market share, it may push Pixel devices. New operations or the acquisition of small tech
firms may be used to address long-term developments like the Internet of Things and the creation
of new products (IoT). According to (Rittinghouse and Ransome, 2017), adaptability in the
online service market may be boosted via quick innovation.

Porter’s Five Forces Analysis

Analysis of Google's business environment using Porter's Five Pressures provides insight into the
external factors that affect the company. Its wide range of goods and services creates a diverse
industrial setting. Porter's Five Forces analysis will have a significant impact on Google's ability
to fulfill its stated goals and objectives (Aithal, 2016). One should not merely concentrate on the
business or market while doing a Five Forces study on Google LLC.

Competitive Rivalry: Google's market share and growth potential are being challenged by
Internet service providers including Amazon, Comcast, Apple, Microsoft, IBM, and Snap. In
light of the large variety of goods and services supplied by the technology sector, Google is
faced with a more complicated business environment. Internet service competition has made it
simpler and less expensive for clients to transfer from Google to another service provider.

Bargaining Power of Google’s Customers: Consumer preferences are the most important
economic factor; there is a significant increase in the demand for technological items for
educational, domestic, and professional purposes, and as a result, consumers have only a modest
effect on the sector as a whole. For example, in the internet advertising market, advertisers have
restricted access to dynamic analytics data.
Bargaining Power of Google’s Suppliers: Because of an overabundance of suppliers, Google's
negotiating leverage has diminished. Technical companies have a plethora of alternatives when it
comes to changing suppliers. If you want to work with a company the size of Google, you have
to fulfill their requirements. Google and its suppliers have a chance to align their objectives.

The threat of Substitutes: Due to the wide range of readily accessible alternatives, Google
encounters some resistance from consumers who are concerned about the expense of leaving
Google's goods behind. However, in terms of value for money, these cheaper alternatives aren't
all that effective. For example, compared to internet commercials, television advertising is a
more costly marketing method without any measuring component.

The threat of New Entrants: Only a small percentage of Google's search results are affected by
the investments and start-ups of large technology companies. For a newcomer to the technology
and internet service industry, it is necessary to follow all applicable regulations. For long-term
success, they must take into account the high cost of building a brand.

Evaluation of Strength and Attractiveness of the Industry in which

Google Operates
With a view to attracting a broader spectrum of clients, Google plans to widen the breadth of its
current product offerings. Because of Google's present infrastructure and resources, this new
business unit will be able to develop swiftly. Google has shown its ability to sustain a
competitive advantage by developing online products and services in a unique and distinct
manner. Organizations define their strategies for beating their rivals in a specific market in their
competitive strategy. One of its key objectives is to increase the quality and value of its services
while also staying one step ahead of the competition (Peres et al., 2020). A company's
competitive strategy must thus be in line with its broader strategic objectives. For a company to
prosper, it must be able to identify the right resources, identify the right processes, and identify
the right people. It's possible to utilize the VRIO model to examine global, micro, and internal
firm settings for the strengths, flaws, and core competencies that make up an organization.

As stated by (Levy, 2021), it doesn't matter whether Google's goods and services have a large
following since they can easily be reverse-engineered or replicated. As a result, how does Google
continue to run? Google's success in the technology business demonstrates its ability to foresee
possibilities, shape those changes, and then grasp them. In order for Google to maintain a
competitive edge over its competitors, it is vital for the company to nurture fresh talent.

Google’s corporate and competitive strategies

A strategy that Google has utilized to get a competitive advantage will be analyzed in the context
of Porter's generic tactics. In light of the ever-changing market and a wide variety of customers.
The company's overall performance would be enhanced if it adopted a cost-leading strategy. The
differentiation approach may cut the prices of goods and services for digital enterprises because
of the online aspect of the business. Cost-leadership or differentiation strategies may be used to
target a certain market or industry. Online giants like Google like brands that stand out.

Unique goods and services are developed as part of a company's strategy for distinction. Google
has distinguished itself in many ways, including its distinctive look and feel, its distinctive logo,
its innovative use of technology, and its top-notch customer service. Although the product or
service's security, performance, or quality may be higher in price, this generates revenue and acts
as a deterrent to competitors. For the most part, online companies lack a location where clients
may save money, like brick-and-mortar stores. Google has an enormous amount of market share
and technical resources, and Google maintains a competitive edge (Mazzei and Noble, 2017). In
addition, Google has unveiled a plethora of new goods.

Google may be able to charge higher rates for a variety of goods and services due to its long-
term advantage in the marketplace. In order to meet the needs of its users, Google often
discontinues products and services that fall short of its expectations. Instead, companies should
concentrate on enhancing or updating their goods and services so that customers aren't annoyed
when they can't utilize them (Tran, 2017). Clients are hesitant to take advantage of Google's
future advancements as a result. Google's philosophy, on the other hand, is that making
improvements to a current product or service is an obstacle to launching a whole new one. This
suggests that Google isn't interested in upgrading its present products and services, but rather in
inventing new ones.

The purpose and vision of Google may be fulfilled by acquiring a major share of the internet
service sector via the production and management of high-quality goods and services. As part of
its differentiation strategy, Google aims to provide more value for its goods and services than its
competitors.

Google's Generic Strategy

In Michael Porter's view, Google's overall strategy is to differentiate itself from its competitors.
Generic competition affects a broad number of industries. Anyone in the world may buy the
company's items. In general, it's a strategy that emphasizes the creation of a company's unique
selling points in the marketplace. Because its products are really one-of-a-kind, Google has a
significant edge over its competitors. This is an excellent illustration of how innovative issue
solutions can make a difference. As opined by (Firoz Suleman et al., 2019), competitive
advantages for Google LLC include its ability to invent, according to the company's SWOT
analysis Generic approach has led to the development of search engines and operating systems,
desktop and mobile applications and hardware. As a consequence, Google, Yahoo!, and Bing
must constantly improve their competitiveness.

We'll use Porter's fundamental method to find out how much of a competitive edge Google has.
It is possible to increase a company's success via cost leadership in an ever-changing competitive
landscape. Online businesses may be able to reduce the price of their products and services by
using a differentiation approach. Cost-leadership or differentiation strategies may be used to
narrow your focus on a certain market sector. Differentiation is the best approach for a company
like Google that operates on the internet. Maintaining a novelty advantage is essential for Google
LLC's generic differentiation approach (Govindan et al., 2016). As a result, new ideas are needed
on a regular basis. Producing new items or making improvements to already current ones can
also be seen as a strategic objective. Google's differentiated generic strategy for competitive
advantage strategy will allow the corporation to maintain its competitive advantages in the face
of intense and brutal competition from other technological enterprises.

Differentiation Strategy
Differentiation strategy is on coming up with new and unique goods and services. A strong brand
image, cutting-edge technology, and great customer service have helped Google differentiate
itself from its competitors. Google has achieved these objectives. Despite the greater price tag,
security, performance, and quality are unaffected. This product/service produces revenue and
protects its users against its competitors' attacks infallibly. A look at Google's financial results
shows that the corporation is thriving and expanding.

As per (Tran, 2017), online businesses may provide cheaper prices on goods and services since
they don't require a physical presence. In light of the company's substantial technology
infrastructure, a wide variety of cutting-edge goods, and significant market share, Google may be
able to maintain its lead.

By providing personalized solutions, Google is capable of charging premium rates because it

can match the wants of its customers rather than imitating its product and service offerings.
Google often discontinues products and services that fail to satisfy the expectations of its
customers. When clients can't use a company's products or services, they should focus on
improving or upgrading them instead (Verhoef et al., 2021). As a consequence, customers are
reluctant to take advantage of Google's future innovations. Although it may seem paradoxical,
Google prefers to focus on bringing new goods and services to market rather than improving
current ones.

Google’s Growth Strategy: Ansoff Matrix

The Ansoff Matrix, also known as the Product/Market Growth Grid, is used by management
teams and analysts to plan and assess growth initiatives. A person's interpretation of the word
"markets" under the Ansoff framework might vary widely (Loredana, 2016). Customers may be
from any country in the world; however, jurisdictions can also include countries like the US and
Canada. Expanding into new markets and goods utilizing old ones may be compared to using the
Matrix tool.

Product Development
Many times, in this report, Google was mentioned as an innovative firm. Google's product
development approach incorporates a variety of technologies to some degree. Some kind of
restructuring and/or purchase of new technology and marketing expertise may be required to
finish the product development process. The ultimate cost of the product may rise if the
manufacturing process is delayed (Verhoef et al., 2021). In order to maximize profit margins, a
product development strategy should be implemented. As we saw in the last part, Google has
always taken great pride in its technical abilities.
In order to generate new revenue-generating product lines, such as cloud services, smartphones,
tablets, and laptops, Google supports a culture of innovation in the workplace. When it comes to
the creation and design of products and services, Google has opted for a differentiated generic
approach (Poliakova, 2017). It is possible for a corporation to achieve long-term success in a
number of ways, including via organic growth and acquisitions from outside sources. Google's
acquisitions throughout the years include the Android and DoubleClick operating systems, as
well as YouTube and the Android operating system.

Google's income and client base have grown as a result of these acquisitions. Some experts
advise organizations to avoid pursuing expansion since it might strain people and processes,
which can dilute the brand name and harm customer service as a consequence of inefficiency
(Verhoef et al., 2021). A high level of staff involvement and a focus on the needs of the client are
required. To a large degree, Google already does this, but in order to keep up with the times, new
ideas must be implemented constantly.

Product Diversification
Google's latest breakthroughs, acquisitions, and strategic moves all point to a product
diversification plan. As a result, Google is being driven to create new goods, which is a smart
approach since it enables the company to capture the whole market share. Variation is needed
and safe for the firm, which in this case is Google, as long as it is not a conglomerate (Vasi and
Roma, 2016). Many of Google's products and services are technological in nature. The
company's ability to outperform its competitors, whether they have all of the company's strategic
assets, and if they have the financial resources and management foresight necessary to catch up
to them should be examined. Only if their strategic asset can be transferred across diversification.

Recommendation for Google’s Growth Strategy

As a result of its business development and diversification initiatives, Google has a high chance
of remaining relevant in the market and retaining its financial viability. Google must be
cognizant of the dangers if it wants to succeed in product development and diversification.
Google must maintain a long-term competitive edge by pursuing product development and
diversity while maintaining a differentiation strategy.
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