Week 4 CASE STUDY FINAL
Google Case Study
Victor D. Lattuca
University of the Incarnate Word Online
Google Case Study
Introduction
The following is a case study reviewing Google’s customer value proposition and profit formula linked to its business model. A brief overview of the company will be provided, as well as strategies Google has relied upon to build competitive advantage in the industry, product line, and market. Financial performance, investor relations, and the company’s key resources and competitive capabilities will be discussed, as well as competitive liabilities and resource weaknesses. In conclusion, recommendations shall be provided to Google’s top-management team to sustain its competitive advantage in the search industry.
Overview
In 2013, Google was the leading Internet search engine with the majority of the market share in search from home and work computers and nearly 97% from mobile devices (Gamble, Peteraf, & Thompson, 2013). Its popularity rose partly due to the ease of internet searches made available from their business model. As the author states, “ Google’s business model allowed advertisers to bid on search terms that would describe their product or service on a cost-per-impression (CPI) or cost-per-click (CPC) basis” (Gamble, et al, 2015, p. 315). Acquiring new business operations continued to allow Google to sustain its competitive advantage and extraordinary growth in revenues, earnings, and net profit provided by these operations (Gamble, et al, 2015). Introducing the Cloud, a virtual database afforded the company to continue expounding its profit formula linked to its business model (Gamble, et al, 2015). The company's CEO, Eric Schmidt viewed these new ventures as an opportunity to “organize the world’s information and make it universally accessible and useful” (Gamble, et al, 2015, p. 315).
Customer Value Proposition & Profit Formula According to Gamble, Peteraf, & Thompson, “the two elements of a company’s business
Victor D. Lattuca
University of the Incarnate Word Online
Google Case Study
Introduction
The following is a case study reviewing Google’s customer value proposition and profit formula linked to its business model. A brief overview of the company will be provided, as well as strategies Google has relied upon to build competitive advantage in the industry, product line, and market. Financial performance, investor relations, and the company’s key resources and competitive capabilities will be discussed, as well as competitive liabilities and resource weaknesses. In conclusion, recommendations shall be provided to Google’s top-management team to sustain its competitive advantage in the search industry.
Overview
In 2013, Google was the leading Internet search engine with the majority of the market share in search from home and work computers and nearly 97% from mobile devices (Gamble, Peteraf, & Thompson, 2013). Its popularity rose partly due to the ease of internet searches made available from their business model. As the author states, “ Google’s business model allowed advertisers to bid on search terms that would describe their product or service on a cost-per-impression (CPI) or cost-per-click (CPC) basis” (Gamble, et al, 2015, p. 315). Acquiring new business operations continued to allow Google to sustain its competitive advantage and extraordinary growth in revenues, earnings, and net profit provided by these operations (Gamble, et al, 2015). Introducing the Cloud, a virtual database afforded the company to continue expounding its profit formula linked to its business model (Gamble, et al, 2015). The company's CEO, Eric Schmidt viewed these new ventures as an opportunity to “organize the world’s information and make it universally accessible and useful” (Gamble, et al, 2015, p. 315).
Customer Value Proposition & Profit Formula According to Gamble, Peteraf, & Thompson, “the two elements of a company’s business