GOOGLE CORPORATE STRATEGY

1. INTRODUCTION

Google, a subsidiary of the parent company Alphabet Inc, is an American multinational

technology company, providing Internet-related services and products, which comprises a

search engine, software, online advertising technologies, cloud computing and hardware.

Since 1998 when Google became a company in a garage in Menlo Park, California, it has

developed into a torchbearer of corporate innovation in the post-.com era. Google’s preference

for long-term innovation is reflected in many aspects-from its well-known "20% personal time"

policy that employees can use for personal projects (this policy led to the birth of Gmail and

AdSense), to its establishment in 2009. The quasi-independent venture capital part Google

Ventures, and then to its future-oriented innovation "moon plan" Google X Innovation Lab

(renamed X).

However, in recent years, the company has begun to transform its experimental methods, risky

R&D, and decentralized company structure. After taking charge of Google in 2011, CEO Larry

Page (now the leader of Alphabet) announced that Google would put more wood after “less

arrows” and put more resources in a more important direction: from democratizing. The

bottom-up innovation method has become a more top-down focused strategy.

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 At the same time, Google has expanded from its core search and advertising business to a wider

range of business areas, covering many fields from consumer hardware to automobiles to

telecommunications to medical care to venture capital. The reorganization of Alphabet's

organizational structure is to introduce greater structure, transparency and financial

responsibility to this huge planning network.

2. GOOGLE’S CORPORATE STRATEGY

Corporate strategy is considered as the most essential and broad ranging strategy level within

organizational strategy. The corporate strategy level concerns itself with the entire enterprise

on a more or less abstract level, where decisions are made by corporate headquarters with

regard to the overall growth and direction of a company

Google’s corporate strategy extensively focuses on advertising as its business function. About

96 percent of its revenues come from online advertising, which means that creating new

advertising space is critical to the company’s growth. Google sells advertising space on its

search pages through a program called AdWords, which is linked to specific keywords.

Hundreds of thousands of companies use AdWords.

Google also runs an advertising program called AdSense, which allows any Web site to

display targeted Google ads relevant to the content of its site. Web site publishers earn money

every time their visitors click on these ads.

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 Google has tried to learn a lot of information about its customers so that it can customize its

advertisements to meet the needs of its customers. Indeed, if the company acquires a lot of

information regarding its customers, it is able to fine-tune its adverts to reach the right

customers. Through this strategy, it may equally be easy for the company to charge more

money for its adverts.

Part of the evidence of Google’s commitment to this strategy manifests in its commitment to

give its users free accounts, thereby giving it an opportunity to scan these accounts and identify

keywords that it can use to customize its advertisement messages to reach its customers.

Therefore, while it is important to acknowledge the complexity of Google’s company strategy,

it is also important to understand that Google’s strategy stands out in a larger strategic

framework of selling highly targeted advertisements.

Some of these recurring or mentioned strategies

● Promote cloud hardware

● Artificial intelligence first (AI-first) strategy

● Focus on augmented reality/virtual reality, autonomous driving, and digital healthcare

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 3. GOOGLE’S VALUE CHAIN

Google’s value chain can be segregated in to two activities

PRIMARY ACTIVITIES

1. Google inbound logistics

It can be said that compared with other activities, Google has created the greatest value in

inbound logistics activities. Google’s core business is search. Internet users use Google’s

search to find the information they need. Therefore, the content list generated as a search result

can be designated as "products" provided by Google. The content generated by Google as a

search result is created by private and organized Internet users, and it is provided to Google for

free. Therefore, due to the unique aspects of Google's business model, its core search business

has no inbound logistics costs.

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 2. Google operations

The main source of value for Google’s operations can be designated as the company’s technical

capabilities, especially its advanced search algorithms. All of Google’s business areas are

guided by its organizational culture, based on challenging the status quo, and using

unconventional methods to complete work.

3. Google Outbound Logistics

Online search and the integration of advertising into search results represent Google’s core

business. Google also sells physical technology products through its website

www.store.google.com

Google has only a few physical stores around the world, and the company relies on online sales

channels to generate revenue. Therefore, the source of value of Google's outbound logistics

refers to the avoidance of bills related to the fixed and variable costs of physical stores because

there is no physical outbound logistics, thereby saving costs.

4. Google Marketing and Sales

Google’s marketing strategy relies on the integration of online and offline communication

channels to convey marketing messages. Google's sales are mainly conducted through online

sales channels.

Google’s source of value in marketing and sales is obvious and is related to having the most

popular online marketing platform. There are many other methods, Google uses its own

advertising tools to promote its products and services.

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 5. Google services

Google forums have played an important role in assisting customers with various technical and

other issues. There are also customer service phone numbers for various Google services.

SUPPORT ACTIVITIES:

1. Firm Infrastructure

Google has managed a huge infrastructure globally. It is led by its founders with Sunder Pichai

as Google’s CEO. The various businesses of Google operate independently as separate

businesses.

2. HRM

HRM is a strategic focus at Google and the brand pays some of the most enormous salaries in

the entire industry. Google has established one of the most attractive corporate cultures focused

at employee empowerment and welfare. Not just fat salaries, the brand has made major perks

available to its employees.

3. Technology

Google is one of the technology giants and at the core of its business model is Information

technology. Its business is centered on the most efficient search engine. Google also invests a

very large sum in innovation every year. It also offers cloud-based services.

4. Procurement

Alphabet has entered many long-term contracts with its suppliers for procurement. Timely

availability of raw material is important for continuous delivery of its products and services.

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 4. GOOGLE’S MISSION

Google’s mission is to organize the world’s information and make it universally accessible

and useful.

Google first and foremost focuses on creating the perfect search engine. Google search works

because it uses the millions of links on other Websites to help determine which sites offer the

most valuable content. The company has become the worldwide market leader for search

engines through its strategic business focus and constant product innovation.

Google creates and distributes its products for free. Google’s ultimate goal is to reach as many

people as possible on the Web—whether by PC or by mobile devices. The more users on the

Web, the more advertising Google can sell. Google’s new products not only accomplish this

goal but so make the Web a more personalized experience.

In October 2015, Google’s corporate restructured its corporate code of conduct from “Don’t

be evil” to “Do the right thing”

As noted, the firm fulfills the world’s information component by crawling webpages. The

company organizes the information through its proprietary algorithms or programs. Google

also fulfills the universal accessibility component of its mission statement by offering its

services worldwide. Such processing and organizing of information also make search results

useful. Therefore, Google effectively follows its mission statement

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 References

Kotler, P., & Keller, K. L. (2015). Marketing Management, Global Edition. Pearson

Education Limited.

Analysis of Google’s Corporate Strategy - 2422 Words | Research Paper Example. (2020,

May 8). Retrieved from. https://ivypanda.com/essays/analysis-of-googles-corporate-

strategy/

Cuofano, G. (2019, March 14). Inside Google Business Strategy And Corporate Structure.

Retrieved from. https://fourweekmba.com/google-business-strategy/

Google - About Google, Our Culture & Company News. (2020). Retrieved from.

https://about.google/

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