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CASE STUDY: Google Takes on the World

1. Evaluate Google using the competitive forces and value chain models.

1.1 Value Chain Analysis

The value chain is a systematic approach to examining the development of competitive advantage. The Google's chain consists of a series of activities that create and build value, the mission is to organize the world's information and make it universally accessible and useful. Innovations in web search and advertising have made the web site a top internet destination and Google brand is one of the most recognized in the world.

1.2. Google Value Chain Model

I. Primary activities

Inbound Logistics

Search engine combined the PageRank system Brin's web crawler.

Servers which use inexpensive off-the-shelf hardware

Operations

The technology was innovated, upgraded and extended. (Mapreduce, Google work queue, Google files systems, Ad Words (an auction-based advertising program that enables advertisers to deliver relevant ads targeted to search results or web content.), CPC, Google map, Google images, Google Apps, Google desktop search, Froogle, Google talk, Gmail, Google check out, Google video etc.), Google Audio Ads (an automated online media platform that schedules and places advertising into radio programs). Google Print Ads (a web-based marketplace for placing ads in print media), Google Video Ads (user-initiated click-to-play video ads that run on sites that are part of the Google Network).

It simplifies the storage and processing of large amounts of data, eases the deployment and operation of large-scale global products and services, and automates much of the administration of large-scale clusters of computers.

Most operations are read-only. When an update is required, queries are redirected to other servers, so as to simplify consistency issues. Queries are divided into sub-queries, where those sub-queries may be sent to different ducts in parallel, thus reducing the latency time. To lessen the effects of unavoidable hardware failure, data stored in the servers may be mirrored using hardware RAID. Software is also designed to be fault tolerant. Thus when a system goes down, data is still available on other servers, which increases the reliability.

Marketing and Sales

Marketing is reached 8 billion some say 25 billion of people. Google is Linux based program which is free. Low cost compare to other search engines. Most of revenues come from ads and search service.

Service

Search service which meets the expectations of the customers. Google's technology can evaluate millions of variables about its users and advertisers, correlate them with millions of potential ads and deliver the message to which each user most likely to respond

Outbound Logistics

Providing customer satisfaction and meets the needs of the customers. Making new software programs.

II. Support Activities

Procurement

Purchasing new hardware tools, servers at a lower cost.

Information Technology

Information Technology is the most important source of competitive advantage in case of Google.

Human Resource Management (HRM).

It is very important to hire the highly educated employees in IT and MIS fields. A company's culture helps it attract the best talent available in the industry. Google was one of the few companies that successfully blended technological innovation with strong organizational culture.

Firm Infrastructure

Infrastructure of the Google is closely guarded in secret, because it is one f the competitive advantages. The Google business relies on software and hardware infrastructure, which provides substantial computing resources at low cost. Their considerable investment in developing this infrastructure has produced several key benefits.

III. Google's analysis using competitive forces.

1. Competitors.

There are many competitors in the industry, but main competitors are Microsoft, Yahoo. The competitors are trying to thwart the Google, but Google is becoming powerful day by day.

2. Customers.

In the case of Google the customers have reached 8 billion but some say 25 billion. In the industry the customers is very strong link to help the business prosper. The Google already have 50% of the market which says that they have very strong competitive advantage.

3. New entrants.

In this case the new entrants cannot make the serious harm to the Goggle.

4. Suppliers.

The suppliers can be Linux, hardware tools suppliers.

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