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The importance of the Value Chain analysis
Write a short note on the history of google
The importance of the Value Chain analysis
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Google has come a long way from its simple beginnings as a grad school project to becoming a defining icon of the culture of the Internet age. Google has been a leading force on the internet for web browsing. Google has not only managed to hold its own, but to also take first place in the overall per share data and growth categories and take second place in overall profitability. Google has developed a business-level strategy that works and also stays true to the culture of the organization (Hitt, Ireland, & Hoskisson, 2013).
Google started as a grad school project for Larry Page and Sergey Brin. They were both attending Stanford University. Google was incorporated in 1998. The founders made an epic decision in hiring Eric Schmidt as
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These qualities, complemented with the culture of Google. Google made a few acquisitions and were now on their way to stardom. Eric and the founders developed a business-level strategy for success. The purpose of a business-level strategy is to create differences between the firm’s position and those of its competitors. To position itself differently from competitors, a firm must decide whether it intends to perform activities differently or to perform different activities. The firm’s business-level strategy is a deliberate choice about how it will perform the value chain’s primary and support activities to create unique value (Hitt, Ireland, & Hoskisson, 2013). Google’s strategic leadership structure was key in the adaptation of the business-level strategy and core competencies. Larry Page, co-founder of Google, holds a bachelor’s degree in computer engineering, and a master’s degree in computer science. His father was a computer science professor at Michigan State University, it’s safe to say he was protégé in the making. Sergey Brin, co-founder of Google, doubled majored in …show more content…
Google’s top competitors are Yahoo! Inc., Microsoft Corp, and Apple. Google’s competitive environment is extremely complicated, involving different industries and markets, each with its own set of competitors and challenges. Googles main areas of focus are Search, Advertising, Apps, and Mobile (Hitt, Ireland, & Hoskisson, 2013). To look at this competition in more debt, let’s look at the term value chain analysis. "Value chain analysis" is a systematic method to study key competences and activities of the organization that determine competitive advantage. Value chain analysis enables companies to identify those areas of business that create value, namely those that do not create value. To know these aspects is essential in a competitive environment: to be a source of competitive advantage, the company must perform an activity better than competitors or to perform an activity that creates value which competitors cannot perform. Regardless of whether is limited to internal activities of an organization or includes links to other companies, value chain analysis is used as a strategic management tool that allows understanding the strengths and weaknesses of the systems that are studied, and identify new ways of conducting activities in order to generate value added (Popescu & Dascălu, 2011). Google was able to deliver products to the world effectively and efficiently while keeping profitability and value
In a high competitive world market and with the increasing rational buyers a company can only win by creating and delivering the best customer value than the others competitors do. To succeed, a company needs to use the concepts of value chain.
Batson, Trent (March 13, 2009). Campus Technology. Response to Nicholas Carr’s ‘Is Google Making Us Stupid?’ http://campustechnology.com/Articles/2009/03/18/Response-to-Nicholas-Carr-Question-Is-Google-Making-Us-Stupid.aspx?Page=1
Google’s corporate environment has always been groundbreaking and cutting edge since the company was founded. A significant portion of the company’s success must be given to the far out ways in which it develops it products and services, therefore, standard business practices probably will never work for Google.
Google has many competitive advantages over other search engines in its industry. According to the textbook, the four building blocks of competitive advantage are efficiency, quality, innovation, and customer responsiveness. Google’s performance in all of these categories supersedes its competitors in the internet information provider industry.
INTRODUCTION The Google company has engaged the controlling location and position in its industry since the launch due to its unique product which is a result of its unparalleled working location. Google has moved out on to achieve the largest share of online search engines as it affords its users with a product that is difficult to find even though there are a lot of challenges. By analyzing and examining the internal and external environment of the company, it is obvious that Google company is running an efficient machine, giving attention to the most of its customers and it ensures that it offers a quick and reliable product to its customers. Origination structure at Google :
The leaders of Google have well understood the means to make Google’s company different to the other companies. They established since the beginning an original way of work, controlling the recruitment of the new members, and imposing their vision on the employees.
2009 was a negative period for the United States economy. A big recession hit the country, and the founders of Google were trying to make a plan in order to make to limit the damage caused by an economic decline. Brin and Page the two creators of the giant Google were shocked form the situation that was occurring. Their company was feeling the effect of the economic downturn. Google’s stock price dropped 51 percent. The two entrepreneurs were trying to figure out a way to keep the company from drowning. Google main problem was how to maintain the culture that made the company successful in the previous two years. Some consequences that the company had to face was eliminating products that
As defined in the textbook, functional strategy is the approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity. (Wheelen and Hunger, P. 238) There are four levels of functional strategy, Marketing, Finance, Research and Development, and Operations. The Two that I have analyzed for Google are Marketing and research and development. Marketing Strategy deals with pricing, selling, and distributing a product. Research and development s strategy deals with product process innovation and improvement. It also deals with the appropriate mix of different types of research and development and with the questions of how new technology should be accessed. (Wheelen and Hunger, P. 239)
Google Inc. is a company that started in 2002 and has gradually grown to become an international technology company. Google’s business is mainly focused around vital areas, like advertising, search, operating platforms and systems and platforms, hardware products and enterprise. The company produces its revenue mainly by distributing online advertising. Google also produces revenues from Motorola through selling products. The company offers its services and products in over 100 languages and in over 50 regions, territories and countries. The company assimilates various features in its search service and gives dedicated search services to aid users modify their search. Google also gives product-listing advertisements, which comprise of product information, like price, merchant information and product image without needing ad text or extra keywords.
The way in which Google ruled the world was easy and fast, it detected and identified a void where no other company or authority was will or in a position to make the World Wide Web trustworthy, useable and stable. It was the right step at the right time, but the main concern is whether the dominance of Google is for the best of the future of the information ecosystem. Before the coming of Google, no one believed that the internet and the Web would be governed since it was supposed to be a perfect libertarian space that was free as well as open to all voices (Vaidhyanathan,
Google continues to grow and innovate. Google focuses on the user and all else will follow. Since the beginning, they have focused on providing the best user experience possible, and take great care to ensure that they will ultimately serve their customers(Google.com n.d.). In relation to market development and product development the core values “Its best to do one thing really, really well (Google.com n.d.),” fits in with these strategies. “You don’t need to be at your desk to need an answer (Google.com n.d.),” describes Goggle’s innovation to mobile platforms. “The need for information crosses all borders (Google.com n.d.).” Google company has grown and has offices in more then 60 countries, maintaining more then 180 internet domains, and serve more then half of their results to people outside of the United States, and this relates to concentrated growth strategy. “Great just isn’t good enough(Google.com n.d.).” Google continues to strive to reach for better ways of doing things, through innovation and integration, continue to improve things in unexpected ways (Google.com n.d.).
Google is an example of a business that employs an intrapreneurship approach, giving staff time for personal projects. As a result, Gmail was created and launched in 2004. Currently Gmail is one of the world’s most popular webmail
Search engines, specifically Google, have probably contributed more to the distribution of knowledge than any other invention since the creation of the printing press. Google was created by Larry Page and Serge...
As any other company that managed to rise to fame, it was successful due to an exceptional organizational belief and value, Google company is no exception. Google Inc. practices a routine type of working condition for the scalability and its storage solution, managing the large scale application, as well as making a new platform. It is well known that a routine work is more stressful than any other work.
Explain how the company’s value-chain activities can be better linked to create value for the company.