Internal Analysis of Google

Table of Contents

How well is the company's present strategy working? 2-3

SWOT Analysis 3-6

Relative Cost Position/Value Chain Analysis 6

Company's Competitive Position 7-9

Main/Most Important Issues 9

How well is the company's present strategy working?

Google has been on the right track for many years now. They have been on a 14-year march to become the largest search engine provider in the United States and the world. This proves that Google's strategy is working very well. Google has been able to achieve this lofty status with the help of their stead fast, non compromising principals of their Corporate Philosophy. Google has taken an end user (customer) first strategy in order to provide their customers with the information they desire. Google is known for providing quality and relevance to their end user searches. In order to keep revenues high for their share holders, they put a priority on speed and relevant information to their end users without compromising their revenue by not being partial to any particular advertising partner, which allows every advertiser that chooses them to potentially be number one on their searches. This approach helps Google's philosophy of keeping advertisers and end users happy.

While Google has increased advertising revenues continuously over the years, they have formed a very strong differentiation strategy. Through pursuing as much information, no fee to the end user, low over head, and lightning fast speed, Google has been able to achieve their goals of a high advertising sales volume and continue to grow more and more every year.

With this approach, they have also been able to gain customer loyalty. Their customers know that they will be able to find information at the click of a button for whatever they need. With these positive characteristics within the company, Google has been able to have an increase in financial performance every year since 1996. From 2001 to 2009, Google has increased their revenue from $86,426 thousand to $23,650,563 million. They have also increased their total assets from $146,331 thousand to $24,484,775 million in those eight years.

Another aspect in Google's successful strategy is their competitive scope. In 2009, Google's advertising revenues totaled almost $22.9 billion across the world. Google has a very large range of geographic coverage; they reach out to 150 plus countries including China. They control 60 plus percent of the market share.

Google's corporate environment

...