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.