Market Commonality and Resource Similarity

Market Commonality and Resource Similarity
Google is a very unique organization within the technology industry. Its primary operation revolves around internet search databases and advertising. Nearly all of its revenue is derived from advertising, and it dominates the internet search market with 70% of worldwide usage (Archer, Dunphy, Carter, Ludwick, Nosack & Qadeer, 2013). This does not mean that it does not offer other products or services though. Nor does it mean that competition isn’t trying to aggressively attack Google’s dominant position. Google’s chief competitors are Apple, Microsoft, and Yahoo!. All four organizations are focused on being the internet related technology frontrunner through a diverse offering of hardware and software that enriches end user experience. Through each of their own targeted areas they work to strengthen their current position while growing into new markets that their competitors may or may not already be entrenched.
Google’s four major areas of focus are web search, advertising, applications, and mobile. Search and advertising jointly form the core of Google’s operations. This approach allows Google to divert a majority of their operating expenses into research and development as their products are virtual (Archer, Dunphy, Carter, Ludwick, Nosack & Qadeer, 2013). This gives them a resource advantage over their competition as they don’t have to spend a significant amount on “labor, production, warehousing, and distribution costs…..or spend a significant amount on sales and marketing (Archer, Dunphy, Carter, Ludwick, Nosack & Qadeer, 2013).” Where Google is limited though is currently in how consumers access their products. Since Google is part of the Open Handset Alliance (OHA) ...

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...1). Mason, OH: South-Western Cengage Learning.
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