Google's Business Strategy Analysis

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Executive summary As the global lead of emerging IT industry, Google has the core value of innovation as its business strategy. As a result, the company views its talented employees as the company’s most valuable resource and adopted a unique performance measurement system called Objectives and Key Results (OKRs) to ensure high motivation and build employee loyalty. Google has been using a decentralized organizational structure to encourage individual responsibility and innovation. However, the company is still facing serious risk issues and the example of regulatory risk issue will be selected in this article for discussion. Introduction Google is an American multinational technology company that specializes in Internet-related services…show more content…
that bring convenience to people. Besides software, Google moved increasingly into hardware from 2010-2015,it partnered with major electronics manufacturers in production of Nexus devices, and it released hardware products such as ‘Google Pixel smartphone’, ‘Home smart speaker’ , WIFI Mesh router’ and so on. Upon evaluating Google’s unique products and services and their different segments of consumers, currently the company is adopting Differentiation Strategy in terms of Porter’s framework. Differentiation strategy is one of the competitive strategy of porter’s framework. (1985) It is to offer products and services that are perceived by customers as being superior and unique relative to those of its competitors. Differentiation can be based on ‘Brand loyalty’, ‘function’, ‘image’, ‘customer service’, and ‘Quality’. This strategy gives Google a competitive advantage in the market. Google is mostly known for its searching engine product and service. Its web search engine has differentiated itself from competing search engine by making use of a patented system named PageRank. Page…show more content…
Departments within an organization is most common responsibility centers. The organization chart is one of the smart ways to explain it. - Cost center Cost centers are the departments, where costs can be allocated. Typical cost centers are not directly involved in the revenue generated processes and are accountable only for the costs. As shown in the organizational chart, sub-departments including engineering, research, corporate development, user experience, marketing and new business development departments have the characteristics that the managers can control only the costs. Therefore, Engineering department, Product department, as well as Legal department shall be classified as cost
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