Google's Bcg Matrix
Google is the crucial contributor to make global village possible by interlinking every part of world together via internet. It is also excellent in diversifying risk by creating different businesses including search appliance, mobile search, cloud computing and internet advertising. This article is divided as two parts---first part is to analyze Google’s businesses by using BCG matrix. [1] Then, another part is useful recommendations on how Google can formulate corresponding strategies to capture and sustain competitive advantage in each business.
BCG matrix is commonly used to analyze business portfolio by comparing relative ratio of one’s market share to the largest competitor’s in the industry. Google’s search industry is cash cow which has high relative market share and generates large amount of cash to support other divisions. In June 2009, Google accounted for 65% in search market while Yahoo! occupied 19.6% only. [2]
Furthermore, both mobile search and cloud computing are stars with high relative market share and growth rate. In 2008, 63% of searches on internet-enabled mobile phones were come from Google browser. [2] Google expects mobile search will have high growth rate in foreseeable future so it decides to dominate this industry by continuous product development. Cloud computing is another business that Google puts utmost emphasis on. With its growth potential, Google predicts that it will grow to a $95 billion market in 2013. [2] Google’s other emerging markets are question marks that currently have low market share but potential growth is foreseeable because of considerable amount of population in these markets. Hence, ongoing development is needed to transfer these emerging markets from question marks to stars.
After identifying status of different divisions, corresponding strategies can be established to sustain competitive advantages or enlarge the markets. The followings are my recommendations to each Google’s division:
Firstly, with regard
BCG matrix is commonly used to analyze business portfolio by comparing relative ratio of one’s market share to the largest competitor’s in the industry. Google’s search industry is cash cow which has high relative market share and generates large amount of cash to support other divisions. In June 2009, Google accounted for 65% in search market while Yahoo! occupied 19.6% only. [2]
Furthermore, both mobile search and cloud computing are stars with high relative market share and growth rate. In 2008, 63% of searches on internet-enabled mobile phones were come from Google browser. [2] Google expects mobile search will have high growth rate in foreseeable future so it decides to dominate this industry by continuous product development. Cloud computing is another business that Google puts utmost emphasis on. With its growth potential, Google predicts that it will grow to a $95 billion market in 2013. [2] Google’s other emerging markets are question marks that currently have low market share but potential growth is foreseeable because of considerable amount of population in these markets. Hence, ongoing development is needed to transfer these emerging markets from question marks to stars.
After identifying status of different divisions, corresponding strategies can be established to sustain competitive advantages or enlarge the markets. The followings are my recommendations to each Google’s division:
Firstly, with regard