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Google Takes On World Essay

699 words - 3 pages

Question 2: What are Google's sources of competitive advantage? How does it provide value to its users?Google's IT infrastructure is a part of its competitive advantage. Google handles nearly 50 percent of Web searches. Google only needs to spend $1 for every $3 its competitors spend to deliver a comparable amount of computing power. The inexpensive, flexible infrastructure explains the speed of Google Web searches and its ability to provide its users with such a vast array of Web-based services and software tools.Their IT infrastructure provides value to its users because their technology makes ads more relevant, users click on ads 50 to 100 percent more often on Google than on Yahoo!, creating a better return for advertisers. According to eMarketer, Google grabbed about 70 percent of all paid search advertising.Question 3: What problems and challenges does Google face in this case? What management, organization, and technology factors are responsible for these problems and challenges?Google has been criticized for its vague response to the problem of click fraud. Google credits customers for invalid clicks. Google must also be concerned with legitimate offensives from its rivals. One competitor is Microsoft, which has a history of diminishing or destroying its competitors by exploiting the fact that its Microsoft Windows operating system can be found on 95 percent of the world's personal computers. Two other areas where Microsoft can vault ahead of Google are context-aware searches and "deep Web" searches. By personalizing search technology, a search engine can return results that accurately match the context of the user's query, producing more relevant search outcomes.The technical problem Google was having is that they were considered a search technology company. However they are now a lot more competitive with Microsoft because they have become a software company and can now infringing on the markets that Microsoft dominated.Question 4: Does Google's business strategy effectively address these challenges? Explain your answer.Yes their business strategy effectively addresses these challenges. In 2006 Google introduced Google Spreadsheets, a web based spreadsheet application, and also acquired the companyWritely, which offers a...

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