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Google Group Case Study: Google Takes On The World.

3176 words - 13 pages

Information Management SystemsFebruary 3, 2009IntroductionGoogle has become one of the biggest corporate conglomerates in the Internet and business world. How could a simple idea proposed in a dorm room by Larry Page and Sergey Brin grow into this huge giant of the business world? The purpose of this case study is to examine the reasons as well as possible scenarios that will help Google lead the charge throughout the new millennium.1) Evaluate Google using the competitive forces and value chain models.There are several information systems that companies may apply their business strategy to, in hopes, of achieving a competitive advantage. Two of these models that will be examined are Porter's Competitive Forces Model and the Business Value Chain Model. The first of these systems - Porter's competitive forces model refers to the five factors that affect competitive advantage. Although one may believe competitive advantage is about making better business maneuvers then a competitor/rival, four other factors that have an effect on competitive advantage or supplier power, barriers to entry/new market entrants, threat of substitutes and buying power.In regards to Google, the article mentions many of the factors that lead to competitive advantage, but the most significant competitive advantage it has over its competitors is its closely guarded highly secretive IT infrastructure. This infrastructure is estimated to be around 450,000 servers from around the world localized in 25 sites (Louis, 2004). The company that was well known for its search engines quickly branched out into other avenues of computer operatives, which included using the Linux system, MapReduce, WorkQueue, and Google File System. Each entry into different market structures seemed to be done with relative ease which leads to a much more extensive competitive advantage. Google's worries of potential substitutes to their services are unwarranted as vendors seek advertising space on their abundant web servers with the use of AdWords. This easy new expansion allows vendors the ability to place ads designed to match search queries. Concerns about Google's competitor Yahoo!'s partnership with academic economists as well as researchers will impinge on Google's competitive advantage."The value chain model highlights specific activities in the business where competitive strategies can best be applied and where information systems are most likely to have a strategic impact" (Laudon & Laudon, 2007). This model is more focused towards improving the processes for business excellence. The competitive advantage revolves more around improving business than beating the competitors. Google is affected by suppliers and their suppliers. The business operations of Google then impact distributors and to a larger extent customers. Google goes about affecting the downstream of the value chain by engaging in both primary (inbound logistics, operations, sales and marketing, service and outbound logistics)...

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