Google Inc Case Analysis

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“Google Inc. is an Internet giant with a record $22.9 billion in advertising revenues in 2009 and the indisputable leader in Internet search,” (Unrealist, 2014). Within the industry of Internet Information Providers, Google, Inc. is ranked number one over Yahoo!, MSN, and Facebook, Inc. The majority of Google’s revenue comes from advertising sales.
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.
With regards to efficiency, with Google, it starts
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excels in among its industry competitors is its distinctive competencies. They are defined as, “firm-specific strengths that allow a company to achieve superior efficiency, quality innovation, and responsiveness to customers,” (Hill, Jones, Schilling, 2013). Name recognition is one of Google’s strongest distinctive competencies. The word Google has become a synonym for “search” which has increased Google’s status as one of the most widely known search engines on the Internet. Another distinctive competency of Google’s is its human resources department. This refers more to the inner workings of Google, Inc. instead of its customer. Google’s human resources department is in charge of hiring the best engineers and innovative employees who will help grow the company and continue to distinguish it from other companies. Google also makes innovation one of their top public priorities, setting it apart from other competitors who do not provide new services or enhancements to the customers. The fact that Google is so open about everything from their innovative employee policies and benefits to their ever changing technology lets customers be sure they will never fall behind by using any of Google’s products or…show more content…
Learning Effects are a large part of efficiency-enhancing practices. Google is always educating its employees on the newest technology, which increases productivity and makes employees themselves more efficient at tasks they perform. This lowers productivity costs, which benefits the company as a whole. Another efficiency-enhancing practice google is using is its research and development in creating new innovative products. A good example of this would be Google Fiber which is a new internet and TV service. Google used intensive R&D before entering the internet and TV provider market and their product in aggressively competing with top brands. Their internet service is said to be 100 faster than most companies and their TV service is more innovative and clear. Also their human resources department is helping enhance efficiency by constantly working on how to increase employee satisfaction which increases productivity. Their human resource department is always conducting research and studies on what makes their employees happier. As mentioned before, Google 's infrastructure is constantly being upgraded to become more efficient which can lower their cost structure. With regards to quality enhancing practices, google uses a similar approach to total quality management. Google prides itself on quality, and always offers
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