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Google Inc.

Google Inc. is a US-based provider of web search and advertising services. It is operated in handling a huge
index consisting of websites and related other online content. Its main revenue generating source is online advertising.
There are three main categories for Google¶s advertising business; AdWords, AdSense, and display advertising.

Users experiences from Google search engine are outstanding relevance, simple interface, fast, sub-second
response times, leverage tens of millions of testers and etc. Firstly, I would like to discuss the issue of sustaining
Google¶s competitive advantages in search engine industry.

Search engine is a software program that searches a database and gathers and reports information which contains
or is related to specified terms. The website¶s primary function is providing a search engine for gathering and reporting
information which is available on the internet or a portion of the internet. Google enjoys strong brand value and it had
been consistently registering an impressive top-line performance. Moreover, the alliance between Microsoft and Yahoo
is the biggest challenge for Google¶s search engine business. However, strategic acquisitions and a positive outlook for
internet advertising would keep Google in good stead of seize the market opportunist. Before we have to come out the
recommendation for sustaining competitive advantages, I would like to analyse the search industry by using Porter¶s Five
Forces.

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In this industry, advertising is the most important to make money. In 2009, there are 4 big players in the search engine
industry; namely Google, Yahoo, Bing and Ask. End of 2009, Google was 72.52% of market share and Yahoo was
14.99% in the industry. Since all competitors have similar products and service, there are competition in marketing,
R&D, innovation and brand. This competition is good for economics scale of this industry. Therefore, there are strong
competitors in the market which is relatively high in Rivalry.

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In this search engine industry, there are high barriers to enter. Providing this service is not easy for start-up the company.
Market players in this industry exhibit an advance technology and a lot of know-how. New entrants must provide better
and efficient service than other competitors. New company might not have data on search history of users. Therefore,
the treats of new market entrants are low.

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In this innovative and advance technology market, there are other suitable substitutes for search. Moreover, there are
increasing Internet users in world-wide. So, there might have other substitute product. However, Google is originally the
first market leader in organizing information and conducting search. So, threat from substitute product is average.

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Google is the biggest market share in search engine. People are advertising in Google because of Google¶s ad system
which is most reliable source of income. So, bargaining power of suppliers is low in this industry.

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In 2009, Google has 72% share in market. Google¶s revenue was advertising. Consumers realize that selling product
keywords is valued. So, they will definitely come and use Google. Consequently, bargaining power of consumers is low.

After analysed porter¶s five forces, we know Google¶s present among Competitors. Overall, I am able to identify
that the strongest competitive force is competitive rivalry. Google should alert in Industry and should aware that what its
competitors are doing for product development. Moreover, there are some competitive advantages in Google¶s search
engine. Google makes searching easier and users are able to conduct search in other languages, like French, German,
Spanish and etc. Google launched a toolbar, an innovative browser plug-in enable, where services like Google search,
Search site Page Rank, Page info, Highlight and Word Find.

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 Google should cooperate with institute, universities or organization to make Google as their default
search. Moreover, Google should do partnership, alliance or acquisition with mobile providers and information provider
to advance information retrieval technologies. In addition, Google should do collaboration with organization in business
solution. Google Inc. can create hosted enterprise search product such as Commerce Search to power online
retail stores and e-commerce websites to align customers¶ expectation from Google. This search will help retail
website stores reach their full potential as commercial hubs by improving the shopping experience for
customers and the associated conversion rates for retailers.

Secondly, I would like to discuss about strategic issue of capitalization on recent acquisition as its Double Click
banner ad management program and YouTube video sharing network'Youtube acquiring is to increase of monetization
in online video. Therefore, we have to think about how to capitalize for this acquisition and how to add value in online
video. There are a few value add ides to capitalize in YouTube; by broadcasting videos on YouTube Website and other
Google¶s site, by exporting videos to blogs, social media and social networks and by developing application programming
interface for advanced broadcasting on third party websites and lastly by broadcasting on all video device such as
television, mobiles, multimedia players, video consoles. Google acquired Double Click to gain an expertise in display and
global market shares specially in highly popular websites. In 2007, Google acquired Double Click, one of the world
leaders in display advertising. With this Double Click acquisition, Google can position itself on the banner market and
can reach for highly popular websites. Consequently, Google can move up itself in vertical integration and can gain more
market shares in online advertisers by relation to website traffic.

There are a few more strategic issues for Google such as internet security, brand equity, mobile
operation system, vertical and horizontal integration, cloud computing and etc. Among all these strategic
issues, I will focus on Mobile search and Cloud computing in this report.

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 One of the strategic issues is to make a success in mobile search which is to dominate search-based
advertising on mobile devices. In November 2007, Google entered into mobile phone networking. This
movement was to extend Google's business model to handheld devices. In 2008, Google introduced Android
operation system for mobile phones to increase its share of mobile searches and expand the market for other
types of Internet ads delivered on mobile devices. Android is a free, open-source mobile software platform that
allows developers to create applications for mobile devices and for handset manufacturers to install. Google
Mobile is able to extend its products and services by providing mobile-specific features, including voice input
and location-based technology, to mobile phone users. Google offers mobile ad products spanning its
advertisers and publisher-focused efforts, AdWords and AdSense. Consequently, these will optimize
smartphone targeting and AdSense for Mobile Appilcations.

Next issue is to success in cloud computing. Google intends to promote a significant shift from
information storage, processing and transport primarily managed at the edge of the network into the middle of
the network. Google launched the Office Google software pack; a word-processor, a spreadsheet program, a
presentation tool and a calendar, free alternative to Microsoft Office pack. By providing server-based services
that connect to end-user devices, Google can compete business with Microsoft, the Telcos, and other
Telecom/IT companies. There are many advantages to web-based application. If the user¶s PC crashes, it
doesn¶t affect either the host application or the open document; both remain unaffected in the cloud. Moreover,
an individual user is able to access the applications and documents from any location on any PC. Besides, since
documents are hosted in the clouds, multiple users can collaborate on the same document in real time.
Documents are always available to any authorized user. Comparison with Microsoft office, Google Apps is able
to create more advantage in price and features. Google Apps is able to sell less expensive and able to sell with
package which includes, Google Docs (word processing, spreadsheet and presentation creating tools), other
apps like Google sites, Google Talk, Google¶s Postini virus and spam protection and etc. We can apply the
theory of Targeted personalization. Google can develop with 2 or 3 versions for this Web Apps: One for
normal consumers account, one for hosted account and one for corporate account.






All in all, there are some issues in Google¶s strategy. However, Google should focus on and specialize on the
areas which can make more profitable for company and more interest of stakeholders. With differentiation and
diversification strategy, Google should invest in R&D for stimulate innovation, do strategic alliance such as
integration, integrate in mobile operation system, establish more services for cloud computing, enhance brand
equity and more invest and focus on internet security.


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