Strategic Management - Google's Company - Essay Example

This company has been implementing a generic business level strategy, which involve differentiation through a process of providing unique products and services to their customers. Nevertheless, the company’s success is attributable to search engine services, since these services have increased reliability of internet searches. Therefore, this paper explores Google’s generic business strategies, their implementation and future challenges. Generic Business Strategies One of Google’s generic strategies is differentiation, and it is illustrated through their web search engine services.

In this case, this company has managed to differentiate themselves from their competitors by using a PageRank system, which is patented (Google, 2013, 1). In fact, PageRank system operates through search inquiries, which are used to determine recursive score assigned to web pages in terms of weighted sum. Therefore, this system connects web pages in order to form an interrelationship by which they are accessed. Moreover, this provides a special way of accessing web pages, whereby this accessibility is based on users’ interest rather than number of times a page has been accessed.

Furthermore, this way of searching web pages provides a basis of competition among them. On the other hand, the PageRank system integrates an algorithm, which is reorganized time after time in order to ensure that search results are excellent. Google Company is very secretive on issues regarding this algorithm; thus, this has led to difficulties for competitors to imitate their intangible products. Through their secrecy, Google has managed to maintain their competitive advantage. Differentiation strategy through internet searches has also propelled their advertising business.

In this case, Google introduced AdWords, which had a significant impact on their advertising business, whereby they provided a way through which clients are able to reach target customers or audience (Google, 2013, 1). In addition, Adwords offers a way through which users create text advertisements and they are able to manage them through accounts without hefty payments. Therefore, their pricing strategy offers a differentiation from their competitors and Google’s partners (Guzak, 2013, 133).

Implementation of Current Strategies The differentiation strategies are implemented by Google in entering the existing market, and this has led to significant changes in patterns because of increased number of internet users. Moreover, the differentiation strategy focuses on satisfying diversified needs for their customers (Guzak, 2013, 133). In fact, implementation of this strategy is undertaken through their search engine strategic direction, which is applied in the processes of penetrating into a market, in product and market development.

On the other hand, this company uses Adwords to implement diversification strategy, especially in the process of introducing products in new market. For instance, in 2000, Google laid strategies that involved targeting customers, who were seeking advertisement services through internet-based searches. Therefore, implementation of diversification strategy through Adwords has generated significant revenue for this company, thereby becoming one of