Market Commonality and Resource Similarity - Assignment Example

Google Case Study Affiliation Student name Q1: Market commonality and resource similarity, competitive behaviour influence and the intensity of rivalry Market Commonality is the number of different marketplace in which it involves direct competitors. It deals with the level of significance every entrant provides to the market. Resource similarity deal with how the every of the company’s assets both concrete and intangible evaluated. Generally, three Google’s principal products comprise the search engine google.com which localized in a number of nations and states; the apps market which comprise Google Docs, Google Calendar, Gmail, and other assorted apps such as talk and YouTube, Google maps, Picasa, sketch up, reader, and Orkut. They have also ventured mobile by developing mobile applications and started open handset alliance. This was possible by persuading seventy one companies. They developed android mobile operating system which is the first open source operating system (Google, 2009). Yahoo, on the other hand, has a dream to be the core of the client internet exists by providing custom-made and significant internet familiarity. It is also mainly a software corporation containing numerous internet related products. Just similar to Google, Yahoo also works in diverse geographic borders and has diverse merchandise in their portfolio. The market comprises end clientele. A number of the significant products are yahoo search engine, custom-made familiarity like yahoo toolbar, my yahoo, yahoo homepage and yahoo local. The other group of products is application products, which comprises of, yahoo answers, yahoo groups, yahoo messenger, yahoo mail, and flickr. It has also other informative products in a category of media products such as games, sports, movies, music, and travel (Gather, 2009). Google and Yahoo are very aggressive opponents. They have an outstanding market commonality in numerous goods and their marketplace. To begin with, Yahoo has a search engine wide open to all, comparable to Google’s search engine which is their main source of income. Subsequently, the mail in yahoo is a web based email product same as Google and provides nearly similar features and operates in the same geographic boundaries as that of Google. Flickr a widespread photograph distribution product is a straight competitor to the Google’s Picasa (Gather, 2009). Microsoft functions in numerous geographic positions throughout the globe. It is mainly a software firm but has ventured into internet services and is behind goods in the market which is in opposition to Google. Their market comprises end-clients, venture and organization same as Google. Their products are Bing which is search engines same as Google.com and Microsoft ad center a direct challenge to Google’s Ad Sense. In the category of application products, we have Windows and a variety of project grade paraphernalia like Azure, Dynamics, Visual studio, Silver light e.t.c. among others (Google, 2009). Apple Company mainly deals with hardware. It has existence in approximately one hundred and five dissimilar firms and zone. Nevertheless they have developed outstanding software. Their operating system is second most common in the globe today for desktops. They also are at the back the most admired Smartphone and tablet. They are mainly a group customer corporation nevertheless their goods are extremely well recognized in the venture world, in addition to some learning, and authority based establishments (Lenssen, 2009). The Apples product comprises hardware like iPad, iPhone, and Mac a number of other associated goods. Under apps, they have various applications such for creation and edition of music, video and photos. Web services include iTunes, Apple Care services, and third party application sales services. While Apples expertise has always in designing excellent hardware products, their recent foray into the software field has also made them one of the biggest software companies in the world. The competitive behaviour Google adopts is so strong and have a very big influence on the potential clients, therefore, posing a very stiff challenge to the competitors (Gather, 2009). Q2. Competitor Analysis: Future objectives, Strategies, possible assumptions and Capabilities of Google's three main competitors. Google has three competitors. Google itself dominate in diverse markets, geographic positions and with diverse artefact for the markets, therefore, it has a multimarket corporation. Google since it is an internet corporation, the region which they operate practically covers the whole world. It has a market that comprises of the end-clients, ventures and establishments (Stettinus et al., 2007). Even though Yahoo mainly started as a search engine and leader to internet, then again when its search engine overpowered by Google, they branch out into other specialization. Now, Yahoos strong point is into tailored subject matter and web media related services. They are a big business and possess a large amount of possessions spanning from newscast and information spot to leisure. They have faith in the strength of substance, and their aim is to progressively expand adequately to turn into the center of persons’ online existence. Therefore, in reality, Yahoo is a multimarket contestant of Google and their rivalry continues. Their substantial and insubstantial resources are also analogous. For example, both have servers highly powered, big data hub that store and power a variety of online products. They have built trust among the best internet corporations in the planet. They have a wide experience in customer level applications and services. These competitions will go on and become tougher as new products come emerges (Wakabayashi, 2007). Their approach has for all time been presenting excellent and custom-made substance, however; it has not at all been at the front in technological modernization and possibly. This is precisely the reason why they have amalgamated with Microsoft to control their search engine. Their collaboration has forced them to cover a market share of up to thirty percent in opposition to Google. This means Yahoo is not an immediate opponent, but it is in direct opponent (Stettinus et al., 2007). Google’s most intense opponent is Microsoft. All through their chronicle of business, they overcome a number of antagonisms. Microsoft is into a multimarket opposition with Google. Its strength depends on software development. The Windows operating system is a family name and is nearly available on approximately ninety percent of the computers all over the globe. Beside this, they have a very solid venture upbringing and provide software goods and resolutions to numerous corporations and customers throughout the world (Wakabayashi, 2007). Microsoft also struggle with Google mainly in the online arena. Their know-how has for all time been into software as it is the most renowned software corporation. They have products which are directly competing with Google. This is has been the most dangerous competitor of Google since existence, they’ve gradually manage to come up with several products that go head to head with each other targeting the same market and geographic boundaries. This makes them the biggest, strongest competitor of Google and any sudden move by Microsoft in the market in which they both operate, is more than likely to get an aggravated response by Google (Google, 2009). In the mobile arena, Apple mainly competes with Google via Apples iOS. Whereas, iPhone was the main reason following how victorious the firm got in recent years and thus earning the designation of the important technology firm in the globe as of 2010. This shows the importance of this product division. It is the oldest firm amongst the three major opponents of Google. Supporting realized by outstanding monetary resources, advertising acquaintance, great sale presence and a robust combination of brilliant top point managers (Lenssen, 2009). Q3. Google’s external and internal environmental conditions, a SWOT analysis SWOT examination is a managing instrument that employed by the majority business firms in creating vital strategic resolution that assist the firm to be steady and attain long term sustainability. It is a management instrument (Bono and Heller, 2005) and (Stettinus et al, 2007). The strength and weaknesses are inside the company; whereas the threats and opportunities and are past the firm in the bigger outside atmosphere. Bono and Heller (2005) asserts that SWOT is to take advantage of the strengths, get rid of the weaknesses, grab hold of the most excellent opportunities and counteract the threats (Bono & Heller, 2005). Considering the strength and weaknesses; the threats and opportunities, Google is a consumerist and an inventive company with exceptional marketing approaches unmatched in the annals of online know-how. Google besides being the foremost internet exploration engine in the globe, also incessantly and constantly endeavor to produce to market a variety of inventive merchandise. The marketing approach employed concentrate on the young individuals who desire to look for information; have enjoyment; acquire learning; and well up to date with all that rotate in the surroundings they reside. Google has a varied client base varying from youths to the adults thereby capturing all people on the internet. In its portfolio it has thousands of business firms; a large number of, little medium, venture whom all utilize the internet exploration engine to seek, distribute and envisage their trade information for growth and advertising reasons (Stettinus et al., 2007). According to research by Opendb.net (2006), there are more than eight billion web pages indexed on the web. This implies that this is the most popular exploration engine on the web nowadays. Any online establishment that draws a reasonable figure of guests is a market target for Google. Their business approach is to be in front of the main opponents and will strive hard to be the top internet exploration engine in the globe. Reuters (2009) give an account that Google have penetrated the routing market and have turn out to be a direct threat it rivalries (Reuters, 2009). Despite the fact that Google CEO, Eric Schmidt maintain that growing into a fresh market with new opponents was not Google’s inspiration; the corporation is situating itself to the community, particularly mobile users (Reuters, 2009). There are numerous prospects in the outside surrounding for the company to use and develop more flexibility in the market they dominate. The capability to grab and put into practice the chances will put it in an extremely secure place far at the forefront of their main opponents. Additionally, Wakabayashi (2007) assured that Microsoft has faith that new Web services will operate in concurrently with software put in on the workstation. This is visualization that varies from the view that the software as a service. It expected that services distributed on the Web will finally substitute software that is on the local computer. This is an enormous chance, for Google, to get bigger and maintain itself on the market since their new operating system is an improvement of the Google Chrome. The majority of internet users are equivalent to the number of online users impacted upon by Google depicting the captured market (Bono & Heller, 2005). From the SWOT analysis, the company ought to seize the opportunities presented openly to them and utilize them accordingly so as to compete and remain on top of the market. They need to take up the challenge for the expansion of its mobile platform. Q4. Is the company’s current strategy suitable for the existing situation and conditions? What recommendations can be made to address strategic concerns and safeguard Google’ financial stability? Google’s major focus is in the area of search, advertisements, applications and mobile. The environment is truly competitive and comprises diverse markets and industries. In search, it adopted several major areas for comprehensiveness and relevance so as to obtain continuous objectivity, ease of use, global access, multiple access platforms, and improving the web. This made possible by increasing the capital expenditure for better infrastructure, products, increased traffic, attracting advertisers, and set a standard that competitors cannot reach (Lenssen, 2009). In advertising, it employs a single strategy in sale advertising. This is to deliver cost effective, targets, relevance ads that are useful to the end user. Ad words and Ad sense are products developed to allow clients to target their ads to user searches for topics and geographical regions. This offer clients with adverts that are relevant to the place they are and their interest at that moment (Reuters, 2009). The Apps improve the web for users and an avenue for adverts. The company employ this to target areas where there is the existence of diverse clients ranging from the education sector, business, and ordinary users. The Google Apps Marketplace is very viable for cloud computing, therefore, increasing the utilization of Google Apps platform. They employ a third party for expertise (Shiels, 2009). In the mobile sector, they utilize free rich features offerings and the distribution of the operating system to handset producers for free. This has made a dramatic push in the market. The Android is highly versatile as it supports many mobile features. Google is promising that the next upgrade will support advanced Microsoft Exchange features. This is a strategy where Google is availing all features in Android for free (Wakabayashi, 2007). According to the Liedtke (2009) if adequate computer producers accept the Chrome operating system, it could reduce Microsoft whilst unlocking new ways for Google to convince clients and corporations to employ its set of online use and other services, creating more openings for Google to sell profitable Internet ads. This will really be a huge enticement for Google, and a discouragement for Microsoft since their operating system label Windows is rather costly. This is due to the fact that it increases an additional price to the acquisition of a computer. If Google’s operating system effectively introduced, it will be a violent contest to Microsoft who has the benefit of some domination for two decades with no frightening contest by any corporation (Liedtke, 2009). Correspondingly, Womack (2009) suggest that there is the likelihood that the latest operating system can rupture the hypothesis Microsoft and Intel formed over the last twenty years (Womack, 2009). This is certainly a signal that there is a lot of business opening for Google in the information know-how market. However, acquire clients and trade to replace to computers run by the latest operating system will not be simple as Google has well-read from the initiation of Chrome (Liedtke, 2009) The operating system introduced for mobile phone, and other related devices are a direct challenge to the ones by the competitors Microsoft Inc. and Apples Inc. Shiels (2009) propose that Google’s Chrome operating system will be an unswerving contest to the leader of the market, Microsoft and its Window system. This will change the market for operating systems (Shiels, 2009). An approach for coping with challenges from china, customer privacy, and Android growth management, I do recommend that the corporation must first of all observe the privacy rights by developing platforms that are not exposing clients’ information. This will eradicate the issue of customer privacy. Secondly, in order to manage Android growth, the company must avoid using a third party partners and endeavour to develop their own section specialising in the area. The issue of china, the company must ensure that all its products are way above the cutting edge in technology and to penetrate deeply in other states that have no censorship. Read More