“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 with the infrastructure. Google uses data centers to process the information they collect and provide to consumers. Although Google, Inc. does not state exactly how many data centers it operates at any given time, due to the large amount of data the search engine processes, it can be assumed there are many worldwide. According to Royal Pingdom in 2008, “Google owns 36 data centers worldwide with expansion plans to different geographical sites such as Taiwan, Malaysia, and within the United States. An estimated 900,000 servers run in the data centers, with the figure envisioned to be 10 million in the future,” (Unrealist, 2014). While these data centers are substantial, according to the Google web page, “our data centers use 50% less energy than the typical data center,” making them incredibly efficient compared to others in the industry. By designing and building their own facilities, Google is able to minimize the environmental impact of their data centers with innovative technology such as...
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Competitive Advantage, and Profitability. In Strategic Management Theory (11th ed., pp. 93-147). Stamford: Cengage Learning.
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Lessons from the billion-dollar brand - Ivey Business Journal. Retrieved November 12, 2014, from http://iveybusinessjournal.com/topics/leadership/distributed-leadership-at-google-lessons-from-the-billion-dollar-brand#.VGOj4vTF8VE
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