The Google Strategy

Google's Strategy
by Eion Maison - BScEcons. MBA cum

Google is this era's transformational computing platform,” - Stephen Arnold
Any business would face options in the short run while pursuing its long run goals. Google is no exception. Google is not presently in the portal business but while being in the business of making the world’s information accessible and useful by applying the Delta Model the possibilities would be endless. E-commerce epitomizes the delta (change) in size, scope and market access of doing business in the 21st century.
Application of the Delta Model to the Google Case study is a reflection of how a modern business should strive to achieve customer bonding by creating the best product, with total customer satisfaction and unbeatable standards to lock in its customers through dominant exchange; Then continue to refine its mission statement while maintaining its competitive position with strong external factors which translate to an almost Industry superstructure.
The Delta Model as the name suggests caters for change in articulation and implementation of strategy that is necessary with emergence of the Internet. The original word "Googol" - coined by Milton Sirotta - is the mathematical term for a 1 followed by 100 zeros . Actually Google is so popular it has become a verb. Google's play on the term reflects the company's mission to organize the immense amount of information universally accessible on the web[1]. Hence both terms, Delta and Google, represents unimagined potentials for change and expansion in technologies or put another way, the application of technology known as innovation surrounding e-business and e-commerce.
Should Google stick to its core business/competence as defined by its original mission statement? No. Google should further expand into Web portal business like Yahoo and MSN and also e-commerce such as Amazon and E-bay and challenge Microsoft's hegemony in Software development through operational effectiveness, customer targeting, and innovation to provide a fast, accurate and easy-to-use search service and thereby lock out the competitors.
Other firms are afraid of Google’s expansion, but with competition the customer benefits all around. Hax and Wilde, developers of the strategy (organizing) framework - the Delta Model, believe a firm owes itself to its customers: Google has realized that the heart of strategy resides in the customers. Professor Arnoldo Hax notes that “Success in today's ever-changing world comes not from creating one perfect plan but rather from adapting as the environment changes”. Hence, Google has changed its way of thinking about the customer as we read in this comment by Google’s co-founder Larry Page:
“When we first wrote these “10 things” four years ago, we included the phrase “Google does not do horoscopes, financial advice or chat.” Over time we’ve expanded our view … products that then seemed unlikely are now key aspects of our portfolio. … the farther we travel toward achieving the mission, the more those blurry objects on the horizon come into sharper focus …”
Google’s customers expect further bonding: Search Market (SEM)[2] predicts the following 1. Google will launch a cross-platform bid management tool to work across all engine platforms. 2. It will create big new advertising opportunities for companies focused on natural search. 3. Google’s YouTube will launch their first foray into broadcast television. 4. Google Phone (or GPhone) will revolutionize the phone industry. 5. Its About Time for a Google Credit Card?
According to this assigned Case Study, Exhibit 1 of Google’s Financial revenue, earnings as at 2005 was $1,465.4 million as compared with a mere $253.8 million earned by its competitor Yahoo in the same year. Exhibits 2 and 4 tells the same story of market dominance in search query share in the U.S & International domain and U.S. paid -Listing spending Forecast.
Google has persistently pursued innovation and pushed the limits of existing technology over just a few years. Google has move from downloading 200 million web pages in the year 2000 to 100 billion today. With all increasing revenue that this profit maximizing firm is making, the expectation of consumers, and the application of the strategic triangle; Shouldn’t Google continue to expand?
[1]Dr. Moira Gunn of Bio Tech Nation. Interview with Larry and Sergey – co-founder of Google http://www.youtube.com/watch?v=qsocNnYEOk4&v3
[2] http://www.searchmarketingstandard.com/blog/2008/01/sem-predictions-for-2008.html