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Core Competencies of Google Inc

Mariam Peyton
Latest posts by Mariam Peyton (see all)

    There is an intense increase in the number of negotiations that take place on the Internet. Hence, it is essential for organizations to take on innovative approaches and effective business models so as to strengthen a business’s competitive advantage. An organization that can adjust effectively to the changing market conditions and customer preferences will have a better chance of maintaining its position in the market. An organization that can leverage its core competencies and create value for its stakeholders will have a higher potential of achieving long-term success. Google’s main strategy is to provide two different but complementary services i.e. the Web search engine and the online advertising service. The search engine allows users to find relevant information on the Internet, while the advertising service enables advertisers to reach potential customers through targeted ads on the Web. 
    The core competencies of Google Inc. are its ability to store and analyze the search intentions of online users and to provide them with relevant results. This paper contends that the company’s competence is strengthened by the use of its services, such as Gmail, Google Maps, Google Drive, etc. These services increase the value of Google's products for the users and attract more users to its platform, creating a positive feedback loop. Google is widely recognized as the world's leading search engine, but how did it achieve this dominant position? This paper examined the core competencies of Google, which are the unique capabilities that give it a competitive edge over its rivals. We will also analyze the strengths, weaknesses, threats, and opportunities that Google faces in the dynamic and complex online environment.
    Google has established itself as a leader in the IT, Internet, Software, and services industry by leveraging its core competencies, which are the unique capabilities that give it a competitive edge over its rivals. These core competencies include its innovative culture, its technological expertise, its global reach, and its vast data and information resources. These competencies enable Google to offer superior products and services that meet the needs and preferences of its customers, as well as to generate revenue streams from various sources such as advertising, cloud computing, hardware, and software. Google's core competencies have not only contributed to its current success, but also to its long-term sustainability and growth, as they allow it to adapt to changing market conditions, explore new opportunities, and create value for its stakeholders.

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    Core Competencies of Google Inc Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Understand the concept of core competencies and how they relate to the strategic management of a business
    • Identify and analyze the core competencies of Google Inc. 
    • Explore the challenges and opportunities that Google faces in maintaining and enhancing its core competencies in a dynamic and competitive environment.

     

    1.0 INTRODUCTION


    Founded on September 4, 1998, by Sergey and Larry Page, Google Inc. is an American search engine. It is currently a subsidiary of the holding company Alphabet Inc. which currently controls a diverse range of business services including ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube among others (Alphabet Inc. Annual Report 2022). The company primarily focuses on the areas that include search, advertising, operating systems, platforms, and enterprise and hardware products (Forbes, 2022). Google offers more than 200 internet services including Google Ads, Android, Chrome, Google Cloud, Gmail, Google Maps, Google Photos, Google Play, Google Assistant, and Google Classroom among many others.

    With more than 83.4% of the global online search market, Google has become the biggest search engine in the world operating in 219 countries globally (Google Website), ahead of competitors Bing, Yahoo, and Baidu with 9.1 %, 2.7 %, and 0.3% respectively as of 2023 (Statista 2023). Google has been growing from strength to strength, with its revenue growing from $257.63 billion in 2021, $282.83billion in 2022 to $289.53 billion in 2023 (Statista 2023) with advertising through Google sites and its network being the biggest contributor to the overall revenue.

    In this paper, we will explore the key competencies of Google, which are the distinctive abilities that enable it to outperform its competitors and create value for its stakeholders. We will also assess the internal and external factors that affect Google's performance and prospects, using the SWOT framework to identify its strengths, weaknesses, opportunities, and threats in the rapidly changing and highly competitive online environment.

    Google has established itself as a leader in the IT, Internet, Software, and services industry by leveraging its core competencies, which are the unique capabilities that give it a competitive edge over its rivals. These core competencies include its innovative culture, its technological expertise, its global reach, and its vast data and information resources. 

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