AM ifterñative Solutions 9:39 Google\'s unsteady organizational structure has th

Question

AM ifterñative Solutions 9:39 Google's unsteady organizational structure has them in the driver seat with their competitors in the back. Their competitors Microsoft and Yahoo are not far behind in the market and may be able to leverage enough assets and capabilities to gain ground over Google. In order to remain in the driver seat Google can focus on its organizational structure by developing competitive advantages and a different approaches to their business strategies. In other words developing competitive advantages like localization helps Google focus on increasing their profits by customizing their goods and services, so they match consumers taste in different national markets. These customizations to local demands increases the value of the product or service in the local market. Any value associated with the local demand offers higher pricing, which enables Google to regain their higher cost. Going through a localization strategy for Google will have localized product and services, while even capturing some scale economies Also, to continue gaining advantage over their competitors, @ 98% y need to improve on their innovations by better positioning their products and services. Using a positioning strategy helps Google adopt to products and services based on four main dimensions of marketing: price, distribution promotion, advertising, and product features. Many failed innovations are the result from poor positioning strategies These innovations fail because innovation is inherently uncertain. A positioning strategy would help Google approach their innovation on the four main dimensions of marketing and this allows for greater success. If google effectively focus on its organization structure, they carn remain at the driver seat. Evaluate each alternative above. Critically assess the alternatives defined. Describe the implications and key steps for implementation of each alternative. Consider external and internal factors and other relevant trends. Once again, utilize course texts and other resources to enhance your assessment.

Explanation / Answer

LOCALISATION AND TARGET MARKETING OF GOOGLE

It is found that Google has adopted localization as a key positioning strategy. Google has developed a technology for tracking the customers wherever they go. They track the customers’ location even if the location feature is turned off in the phone. This form of tracking system is done in order to promote target marketing based on geography. This kind of localization strategy has invited both positive and negative criticism from people and competitors. Even though localization could become a competitive advantage for Google, Google was also blamed for invading into the privacy of android users and it was used as a weapon by competitors like Oracle, Yahoo to use against Google.

But the Google Translate is a noteworthy feature of Google where the users could know the information in the local language. But it is found that there are trivial defects in the translation where the translated text is not quite differing from the original text. Google is working on this defects in Google translate. If Google could improve the translation defects in Google Translate, it could improve the potential revenue generation for Google.

In fact, localization can be regarded as a winning strategy for gaining a competitive advantage as the competitors doesn’t such a strategy for revenue generation. The economic aspect is that when the demand for local goods and services increase, their price will also increase. This helps Google to gain returns.

POSITIONING AND MARKETING MIX OF GOOGLE

Product

Google was having a highly competent approach to innovation. The company has a diversified line of products in different categories, which mainly include web-based products, desktop and mobile applications, hardware products and services, operating systems.

This shows that Google has a definitive focus on producing innovative and diversified products. Google has focused on its products for its expansion.

Price

Google has different strategies for pricing its products. It’s pricing structures are mainly value based, penetration based, market based etc. An important positioning strategy adopted by Google in positioning the products is penetration pricing, where the products are offered a very low price, in order to attract customers. This will help the company to acquire substantial market share among a number of competitors.

Place

Google mainly uses online in order to acquire the customers. To say, Google applications could be downloaded from the internet. For selling devices like Nexus, it mainly depends on distribution channels and retailers. This will help the company to have a wider reach for their products.

Promotion

Google mainly use advertisements for promoting their products. Its main source of revenue is from advertising. Therefore, the company focuses on acquiring platforms where the maximum ads are displaced. These strategies pushed Google to acquire avenues such as You tube, Double click and Blogger.

Among the four Es, of Google’s strategy, Earn, Entice and defend, Expand and Experiment; the first two Es mainly imply to promotions and advertisements.

Earn

Google earns a large share of its revenue from advertising, approximately 90-95 percent.

Entice

The second part involves enticing and convincing people to use the services through the advertising

Secondly, the company was privileged to win the trust of customers and capture their attention. Advertisers use Google as a platform to display their ads, and they could capture the attention of people searching for products and services or anything else. Thus Google could command for premium prices from its advertisers.

Thus through their acquisition strategy, Google has an edge on its competitors by increasing its revenue through advertisements.

If the internal and external factors are analyzed, Google should utilize the opportunities available for them. Innovation of products is the main advantage of Google, and the company should continue to focus on innovation of its products. Google has received high response rate for its products, that shows the success of products like Nexus. Also, economic situation of most of the markets are favorable for the growth of Google. Most of its markets have a stable economy and another market comprises of developing countries where they have a huge customer base. Google could keep their pace by utilizing this opportunity.

The increased use of social media and various other platforms pose a great threat to Google. Media like Facebook is a great threat which can also be used for promotional activities of products.

With regard to technology, increased use of internet is an advantage for Google. This helps Google to gain better reach for its products and revenue generation through advertisements. Also, the legal environment of most of the countries are also favorable for Google for its growth.

By utilizing these external factors effectively Google could maintain its leadership and continue to grow. Internal factors like funding, research and development are the competitive advantages for Google in order to expand its business.

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