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  • Essay / Google's competitive advantages in the information field...

    “Google Inc. is an Internet giant with a record advertising revenue of $22.9 billion in 2009 and the undisputed leader in Internet search” (Unrealist, 2014). In the Internet information provider industry, Google, Inc. is ranked number one ahead of Yahoo!, MSN, and Facebook, Inc. The majority of Google's revenue comes from advertising sales. Google has many competitive advantages over other search engines in its sector. According to the handbook, the four building blocks of competitive advantage are efficiency, quality, innovation and customer responsiveness. Google's performance in all of these categories outperforms its competitors in the Internet information provider sector. When it comes to efficiency, with Google, it begins to excel among its industry competitors with its distinctive skills. They are defined as “firm-specific assets that enable a company to achieve superior efficiency, quality innovation, and responsiveness to customers” (Hill, Jones, Schilling, 2013). Name recognition is one of Google's most important distinctive skills. The word Google became synonymous with "search", which increased Google's status as one of the most well-known search engines on the Internet. Another distinctive competency of Google is its human resources department. This refers more to the internal workings of Google, Inc. than to its customer. Google's human resources department is responsible for hiring the best engineers and innovative employees who will contribute to the company's growth and continue to set it apart from other companies. Google also makes innovation one of its top public priorities, which sets it apart from other competitors that don't offer new services or improvements to customers. The fact that Google is so open about everything from its innovative employee policies and benefits to its ever-changing technology allows customers to feel confident that they will never fall behind using any of Google's products. Learning effects are a large part of efficiency improvement practices. Google constantly trains its employees on the latest technologies, which increases productivity and makes the employees themselves more efficient in the tasks they perform. This reduces productivity costs, which benefits the business as a whole. Another practice used by Google to improve its efficiency is research and development aimed at creating new innovative products. A good example would be Google Fiber, a new Internet and TV service. Google used intensive R&D before entering the Internet and TV provider market and offering its products in aggressive competition with top brands. Their Internet service is said to be 100 times faster than most companies and their TV service is more innovative and clearer. Additionally, their human resources department helps improve efficiency by constantly working on how to increase employee satisfaction, which increases productivity. Their human resources department always conducts research and studies on what makes their employees happier. As mentioned earlier, Google's infrastructure is constantly being upgraded to become more efficient, which can reduce its cost structure. When it comes to quality improvement practices, Google uses an approach similar to total quality management. Google prides itself on quality and always offers