Managing Performance in Turbulent Times - Research Paper Example

Introduction Google is one of the largest and most popular brands in the world today (Carter et al, 2011 p147). Google started operating in 1998 as a web search engine and has grown steadily from there to become one of the most common internet and communication brands in our world today. In 1998, when Google entered the markets, it was hardly known by anyone. At that time, popular brands like Yahoo, Excite, Hotmail and Netscape dominated the market. These companies had the reputation of being the pioneers in the internet and e-business. However, in today's world, Google has beaten all these brands and is amongst the most popular brands in the world. This paper examines how Google competes in the world of the internet and e-commerce. It examines the various points which Google uses to gain an advantage of its competitors and remain at the top of the industry. Innovation as a Vision Barrows & Nechy (2011 p85) identify that the brain behind the success of Google lies in its ability to innovate. As compared to its competitors, Google spends more time and effort to identify new communication systems and methods at different points in time. Although Google started as a search engine company, it spent time and money to research and identify the true needs and desires of customers. In 2005, they launched personal email services which they believed was in demand by the markets. “They pursue a strategy that aims at increasing the capacity of computers and communication” (Png & Lehman, 2007 p3). This means that research and development are a fundamental part of Google. They put in more effort to find out what consumers need at every point in time and work to provide that specific service according to the highest standards and expectations possible. Google therefore sets out to organize the world's information rather than just make profit for the sake of getting money from the consumers (Carter et al, 2011 p147). They therefore try to find ways of satisfying consumer needs at specific times. Google therefore has competitors not only in the normal internet companies but also, traditional publishers and other outlets. People and Work Structures Google is aware that it operates in one of the most turbulent industries in the world. They therefore appreciate the fact that consumer needs change at a regular interval. Google therefore changes regularly to meet these demands. On the average, Google makes major changes to its strategy each month (Carter et al, 2011 p148). The internal structures of Google supports its vision of leading in innovation. Google's workers are grouped in teams of 20 – 50 employees under a single manager (Barrows & Nechy, 2011 p86). These teams are made up of independent minded professionals who look for opportunities for improvement and innovation and take it. Due to this, there are flexible work systems and structures that enable employees to give off their best and in a large variety of possibilities like telecommuting. Google therefore spends time recruiting the most innovative and smartest people with the eye for details in the industry. These employees are allowed to work in a mistake-friendly environment where errors are just seen as a means to an end and not an end itself (Carter et al, 2011 p148). Google has embarked on some projects which have not been successful like Froggle and Orkut (a social network site). However, when the errors were made, they found other alternatives to the problem. Growth & Expansion Google has come a long way as a mere search engine in 1998 to a series of multibillion dollar brands today. They have done this by carefully and systematically introducing new brands through two strategies: brand creation and competitor acquisitions (Davis, 2009 p262). Google created new brands like Google Earth and Google Books to satisfy locational needs as well as the need for research and study online (Girard, 2009 p169). Although these were everyday needs that are generally ignored, Google brought it to the fore of society through the internet. This was widely patronized and they focused on improving it on a regular basis. This made them expand market share tremendously. Google has also gotten a history of acquiring other brands. For instance, Google acquired YouTube when Google Videos failed. This is some kind of horizontal integration which makes Google capable of controlling complementary businesses which helps it to maximize its returns. These investments have proven worthwhile over the years and supported Google to expand its portfolio, balance risks and grow in a healthy fashion. Customer Value & Internationalization Google has remained a preferred choice in the internet industry because it seeks to provide the exact needs of customers (Vaidhyanathan, 2011 p18). This is because Google is sensitive to customer and consumer needs at every point in time on the market. They therefore monitor trends and preferences and continue to deliver what customers need at different times. Another way that Google has captured the market is the massive internationalization policy it has pursued (Vaidhyanathan, 2011 p18). Yahoo and other brands have always operated as if America is the only country in the world. However, Google has taken good care to research and find out the needs of different people in different places around the world. For instance, Google has concentrated its resources on promoting Voice over IP call services in India and Brazil (Vaidhyanathan, 2011 p18). Due to this, they are popular and in demand in these nations. Google has plans and policies to expand to new markets like China and other parts of the world. This keeps them competitive and successful. Conclusion Although Google started behind well known brand in the internet and communication industry, their focus on innovation has kept them ahead of their competitors. Google has maintained an effective system that has assembled the best brains in the industry and maintained a system of constant monitoring and improvement. Google has also grown its brands through proper acquisitions and the introduction of new brands that are in demand. Their focus on the customers' needs and needs of overseas customers has kept them at the top of the industry. References Barrows Ed & Nechy Andy (2011) Managing Performance in Turbulent Times: Analysis & Insights Quantum Press. Carter Chris, Clegg Stewart, Comberger Martin & Schweitzer Jochen (2011) Strategy: Theory & Practice London: SAGE Publications Davis John Andrew (2009) Competitive Success, How Branding Adds Value Hoboken, NJ: John Wiley & Sons. Girard Bernard (2009) The Google Way: How One Company is Revolutionizing Management as We Know it No Starch Press. Png Ivan & Lehman Dale (2007) Management Economics Hoboken, NJ: John Wiley & Sons Vaidhyanathan Siva (2011) The Googlization of Everything (And Why We Should Worry) University of California Press. Read More