Google Case Analysis

1521 Words7 Pages
HULT INTERNATIONAL BUSINESS SCHOOL

Google Inc.

Strategic Case Analysis

Fenway Cohort
Team 3
Nasrat Dernaika
Nikhil Srivastava
Kiet Long
Viktor Elkin
Jorge Vilaplana

March 28, 2012
Table of Contents
1.Google’s Early Key Success Factors 2
1.1 Innovated and Differentiated Search Engine 2
1.2 Innovated Advertising Ranking 2
1.3Expansion of Search-Related Advertising 2
2.Is Search A Winner-Take-All Business? 3
2.1 Multi homing costs 3
2.2 Strong network effect 3
2.3 Differentiated feature 3
3.Google’s Strategic Options: What is the Best? 4

1. Google’s Early Key Success Factors
1.1 Innovated and Differentiated Search Engine
By improving their existing search algorithm, Google resolved the
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• Advertisers: There is a very strong positivecross network effect for advertisers as they would have to follow the target market irrespective of the cost implications. Therefore, the increase in number of searchers will result an increase in number of advertisers.
2.3 Differentiated feature
• Searchers: The differentiating factor has very low impact as the platforms are mostly similar. Therefore, unless the competitor comes up with a breakthrough differentiator, it’ll be almost impossible to create a large segment to make any impact.
• Advertisers: Any small differentiating factor does not affect the advertisers, as the primary motive for any advertisement is to gain visibility, which compels advertisers to follow the network of users.
Based on the factors stated above, we have come to a conclusion that following the information provided in the case and these strategy pointers, ‘Search’ is NOT a winner-take-all business.
3. Google’s Strategic Options: What is the Best?
Option 1: building a full-fledged portal like Yahoo!’s.
Option 2: targeting Microsoft’s desktop software hegemony thru internet-based applications.
Option 3: becoming an e-commerce intermediate like eBay.
Options Can We Pre-empt? Can We Fulfill Unmet Needs? Can We Envelop? Reasoning
1 No Maybe Yes • Pre-emption: It is not possible for Google to

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