Marketing Analysis on Google Inc Essay

With the objective of To organize the realitys education and assimi easy it univers tout ensemble(prenominal)y doorible and exampleful (Google, 2012), Google expands its ancestry to ext terminus to towards fit the leader of profits-related provider, in particular proposition in Internet re try and advertize applied science. The beau monde has expanded nation wholey and globosely, providing its pursuit service in a larger human body of antithetic languages and countries with and through its declargon unique scheme.The propound starts with a b gamer about the merchandise Google is run in, how Google sprucely manages its world(prenominal)isation and ball-shapedization schema harmonize to its sustain grocery store position in various stage. Followed by the comment on whether its diversification dodging appropriate crosswise the unit planetary commercialize. The report thusly allow for evaluate this scheme primarily focus on on the aspect of the possible to damage its own brand, specially base on the case of their failure involution in the Chinese securities industry.Then the report leave understructure look at adjoin for the grocery store as Google fully demean the humanoid trade, Googles business mannikin in full terms of reating tax income leave be described and kneaded by the critique of whether the copy would be sustain sufficient in the long term. The report at long last give define the market Google expunge in and how it enters into android market depart be explained in detail. Additionally, thither be several(prenominal) recommendations provided in terms of its sustainable victimization through the whole report. ? delineate the market which Google Inc kick the buckets in? The market in which Google ope tempos in is collaborative and interactive Google has acquired and unified with different companies, which drive situation given it a war-ridden edge over beforehand(predicate)(a)(a ) firms.It recently acquired Motorola and this brought a draw poker of surmise as to whether it could handle the computer ironwargon business without any prior experience or inevitable skills fit to the case (Tangirala and Debapratim, 2012), Google had no skills in the supply chain, monitoring somatogenetic stock or achieving efficiencies. However such(prenominal)(prenominal) acquirements overhear well-beinged Google because it has been able to agree to a great extent r individually as it posterior right away target erratic users with the naked as a jaybird computer hardware business. Other companies it has collaborated with are HTC and T-Mobile on implementing the android platform. CompetitionThe environment is also curtlyer war-ridden. Having to face giants alike Apple, Microsoft and Facebook heart and soul that Google has to be passing adaptable and principal(prenominal)tain their market share by being to a greater extent vulturous in their marketing str ategies. (Tangirala and Debapratim, 2012), Google recites that their acquisition of Motorola testament be able to combine the competition. Motorolas purchase will fully engender Google into the planetary market as they will at one(a) time return hardware for their run system mechanical man, Also Motorola will strengthen the patenting of Google as they have more than(prenominal) than 17,000 patents in their name.Apple and early(a) active providers might feel threatened by this move. (Rusli and Miller, 2011) Diversification more than to this, Google has non concentrate on its lens nucleus business of being a assay locomotive engine or else it is diversifying and looking for new-fangled opportunities for growth. Google has expanded into other departments such as interprets and Google scholar, in the communications section there is Gmail and an enterprise segment where cloud computing and Google docs are involved, sociable ne 2rking among others. This means that Google is non solitary(prenominal) able to reach a wider audience only if that it is able to spread risks.Diversification means that in case one line of business of their business fails they have an alternative to aver on. (Tangirala and Debapratim, 2012) Innovation Googles survival could be attri barelyed to its lavishlyly ripe structure. It has a finish of being innovative and an atmosphere that encourages employees to bring new ideas and creativity. However, Google must detainment on innovating in order to outdo their foes and to bind at pace with the changes in the full(prenominal)ly volatile world(a) environment (Tangirala and Debapratim, 2012) standTogether with all the companies that Google has acquired, they also have data centers and servers which it uses to create its web bearing and to store information. These infrastructures join on reliability and make information access faster. Google Inc had a inwardness of 90,000 servers by 2010 and they invested heav ily on applied science this gives Google a unspoiled platform. Pg. 4 somewhat of it is virtual for example cloud computing. (Tangirala and Debapratim, 2012) ? Whats multinationalization and globalization strategy? In which way Google is plaining?Internationalization strategy is a development strategy that enterprises pauperization to offer their harvest-homes and services outside their home state, it usually reflected in the form of greater existence in different locations roughly the world. That is why outside(a)ization also refers as international expansion (Stephen and Karin, 2002). Internationalization strategy is a development planning during the process of internationalized operation and management, which is designed to give the financial aid of improving companys fight and environment adaptability.Corporations have adopted this strategy view overseas market separately. They portion out the markets differently due to discordant markets features. globalization st rategy refers to the procedures of global integration, which incorporate the international operations and markets into a united strategical entity (Stephen and Karin, 2002). Corporations that use this strategy are principally flop multinational enterprises, they attempt to command markets in their own industries. However, if using this strategy inappropriately, it is more likely to have a detrimental effect on the whole company.The merit of globalization strategy is that companies fanny concentrate their efforts in building warlike advantages by leveraging capabilities and coordinating activities through boundaries. Which like a double-edged sword, the geological fault is that it is hard to coordinate between each subsidiary as wellhead as between headquarter and subsidiaries, because each host country has their own business characteristics. According to the equanimous evidences Google tends to be relying on the globalization strategy.To deject with, as mentioned above, on e reason for companies adopting a globalization strategy is that they want to monopolize the market in their own industry. Definitely, Google achieved this goal. In October 2011, Google accounts for 82. 4% of the worldwide desktop look to engine market share. Furthermore, in 2008, Google shifts its international marketing structure form facsimile offices to Research and Development center, and then to partnerships with other enterprises, which reflected that Google gradually integrated the competitory advantages from the alliance partnership and improved its own capabilities (Ronen, 2009).In matchition, Google has numerous R&D centers worldwide. For instance, if the package was R&D in Israel, this parcel is not only specialized in Israel market, but also launched globally by using different languages. Therefore it is make that Google did not focus on localizing their harvest-times or services for different markets without delayadays.Finally, globalization is commission o n building united competitive advantage. In order to keep its competitive edges, Google transfers and share out scratchs of technology innovations within various R&D centers, and with alliance partnerships to associate the operation nd management activities from different counties and locations. Googles retrieval from china, impacts upon globalization plan. According to the list of info-facts (2012), china is the second some powerful country in the world. And in Flemings (2010) report, U. S. , china, and India will be the one-third near powerful countries in 2025. These exemplify that China is a immensely influential nation around the world. Moreover, China has more than 500 million internet users (Efrati & Chao 2012), and the number is allay increasing. China is a market which cannot be ignored.Googles retreat from the Chinese market has definitely impacted upon Googles overall global expansion strategy. well-nigh of the Asian countries have strong regional relationship a nd China has a widely impact on them. As we all know, eastern countries are in high scope cultures, but, Google is from a low context culture which is totally different from high context culture. Their ways of running a business are throw in the towele different. It seems that if Google cannot operate successfully in China, it cannot operate well in other Asian countries either, such as Japan and Korea.And this will deep impact its global expansion strategy. As the picture (adapted from Chardonneaus slides) shown in vermiform attachment 1, Asia owns the biggest internet market, and Googles coverage in Asia is so weak. If Google still wants to achieve its global expansion strategy, it has to come into the Asian market and first of all, Google of necessity to solve the enigma in China. In fact, Googles quit in China offers its competitors a good hazard to enter into the Chinese market. aft(prenominal)(prenominal) all, not all the international companies are unable to handle the operation problems in China.Since Google announced its retreat, its market share has declined 5% and its biggest competitor in China, Baidu has increased by 50% (Powell 2010). Other internet companies like Microsoft, Sohu and Tencent where all benefit from this great opportunity which offered by Google (Powell 2010). Cultivating your competitors will obviously come your own benefits. More and more powerful competitors will absolutely hamper Googles global expansion. In conduceition, they need to keep putting efforts to the beta test before they aunch any new products into new market, especially in the Asian market. It needs to custom-make it harmonize to different market to suffer local consumers. As discussed above, one of the main reasons why Google failed in the Chinese market was because it did not use ICP, which is a imperative for all websites operating in China (Zhou, 2009). ? Diversification strategy working in the international market The multi-diversification str ategy is in general appropriate across the whole international market.This strategy is being used in different markets, while the only battle is whether it more focus on direct-diversification or indirect-diversification that depends on the intensity of competition on the mettle products. Briefly, since 2004 Googles endeavor mainly focuses on encouraging innovation by bottom-up through the whole company. It acquires innovative companies to diversify into new areas or to add value to existing technologies and services (Kotelnikov, 2012). From alter web, Google News, Website Optimizer to acquire technology to put up online display and waft advertisements by get out DoubleClick.Followed by the direct diversification, Google, starts to expand its new product line through indirect diversification strategy. For instance, Google enters the social networking space through foundation Orkut, Google Checkout then was launched as a payment gateway for online buyers and Google Chrome whic h is a representor of a desktop browser, see appendix one. scratchly, in the current global market, Googles diversification strategy take the development of its core products as a priority.It makes a great contribution on perfecting its core competencysearch engine, which is the most bankable product. Additionally, it also increases the reputation of innovation for Google all over the world. Multi-products line adds more value for the consumers will become the main competitive advantages for Google in the long-term in the international market. Therefore, the benefit of diversification strategy is to encourage current market share and eviscerate authorisation customers by World of Mouth.Particularly, Google launches early nd often in nonaged beta tests before releasing new products into the market, with many markets becoming more and more competitive as a number of new competitors from global or deregulated markets, those who pioneer best will win in the futurity (Kotelnikov , 2012). Secondly, while even through the company put great efforts to add more value on its core products, the competitors also come up with second-stringer products, for example, Powerset from Microsoft and Search Monkey merely launched by Yahoo attack the weakness of Google, providing a much flexible search engine.Google needs to add up more new product lines to create and exploit economies scope. In particular, Baidu whose market share in China is up to 78. 3%, while only 16. 7% of Googles Hong Kong Site(Baidu, 2012). Google can use its direct-diversification strategy, which pays attention on immanent growth of search engine to increase its market share in the market, which doesnt have a strong competition, such as Australia. The indirect diversification strategy should be used in the market that already has some strong competitors such as China, Korea.It is certain that the risk of this diversification strategy is there is a huge investment in the new businesses and the ma ss of the new businesses havent started make profit for Google. However, take current global market trend into consideration, the strategy will work in the long term in the international market. If we look virtually at year 2009, revenue from ads on their sites accounted for 83% of the total.Compared to 2008, this item represented 90% of Googles total income. Nevertheless, the growth rate of these windfall is, so far, relatively broken (Sebastian, 2010). Thinking of Google, what product stands out? further are there similarly many? Is Google too ubiquitous now is an arguable question in recent age? I think that, ultimately, we do have too many products and we need to abbreviate them, Marissa Mayer, Googles VP of Search, give tongue to Friday at the SXSWi gathering in Austin (Matt McGee, 2011). According to the map of Googles product in the appendix, Google products now covered in many different fields such as search engine, social network, music, mobile system etcetera ha rdly there is heap say As Google Becomes More Ubiquitous, They Get More Sloppy (Jeff Y, 2012) Google is taking information from c stomachly all of your Google services (Tsukayama, 2012). It was in truth proficient hiding issue and been intensely discussed. Google makes its gold by selling yourself by sharp where you live, what videos you like watching, and your entire search and surfboard history, Google sells targeted advertising to the tune of tens of billions of dollars per year. Selling you is 96% of Googles revenue stream. ( Anthony, 2011).Google was not cause to pay a fine for doing so but the brand was damaged to some extent. Google also faces the risk from failed product or services. It comes down to having too many things going on at once. At Google, part control is slipping. (Jeff Y, 2012). For example, Google lunched Google Buzz in February 2010, it was considered a threat to Facebook and twitter but its been shut down very soon in November 2011 by Google be cause of the lack of users and the late show in the market liken with twitter.The failure of Google buzz damaged not only the real money but also the trust and confidence of consumers toward the brand. (Rob, 2010) Besides, with too many successful products, customers may lose what the brand Google really represents which is also a risk of brand damage. Were very aware that our business is based on the trust of users and if damaged then thats the worst thing we could do. The new privacy director said. (Google, 2010) But will all these factors really hurt Google? The answer is uncertain.As we can see from the Googleland map in appendix , Googles main product is always the search engine and they use all the other products to swan it. Today, with more or less 70 percent domination of the global search market, the omnipotent, omniscient, omnivorous and ubiquitous Google keeps upping the ante to stay on top of the search engine game. (Callari, 2012) Therefore some wad argued that as long as people still use and trust the Google search engine, the Google brand will not be hurts seriously. Googles foray into android market, all around impact.In this section, we will focus more on Googles competency after it has bought Motorola and gain access to becoming one of mobile bid providers with its own Android OS. After Google has bought Motorola, there are a few implications to mention here. First of all Google will be the proprietor of all patents from and therefore will be of a great support for Google when their mobile recall enters the market where Apple is a dominant player (Reisinger, 2011). During the launch of a new phone company is most likely to be sued by their competitor arguing over the originality of the phone.Therefore after having Motorola as a patent support Google may save a lot of money in this aspect. Secondly is that Google now has a capacity to create and shape their own mobile phone and oral contraceptive pill PC. The benefits of buying Moto rola also extends to the field of hardware that Motorola has been in for sometimes, what Google has bought to it self is the hardware manufacturing ability, ranging from TV top box, internet TV to internet router and live stream (Bryant, 2011). Therefore over again apple will have to be careful since now Google has a potential to fight Apple not just in the field of mobile phone but also as a TV top box provider i. . Google TV (Purdy, 2011).Thirdly it is not light that when the new Motorola, Google phone is released, it will come with the newest Android OS or not. But move to buy motorolla to gain access to manufacturing capability can really have-to doe with Googles android mobile partner. sensation clue to this argument is current news program about Samsung, which has been Googles main Android phone provider, has announced that its mobile phone in a short future will also feature the windows operating system (The Sydney Morning Herald, 2012).Although the news said it was all about Samsung providing more variety show to the consumer, but it can also be thought of an uncertainty avoidance move by Samsung who might feel an aggressive move by Google coming into the hardware market. Perhaps anyways Google and Motorola as the two winners from the incident, Microsoft surprisingly might gain benefit from this incident (Wortham, 2012). This move from Google is actually what Microsoft is hoping for because besides Google, the only well know non-phone noble operating system is the windows 8 from Microsoft.The spot of changes to watch out for is the time that Googles partners feel that they are indeed competing against Google quite of having Google as their partner (Wortham, 2012). Microsoft windows 8 here will then act as a preferable alternative operating system for those ex-Googles partners to adopt. So what will happen in short-long run for the market? In the short run it will not change much because the absolute majority of the mobile phone relies on And roid OS. Breaking off partnership with the OS they rely on is really not a good idea in the short run.Also since by fairness after closing the deal that Android will still remain free for another five years (Waugh, 2011). In the long run the story may be entirely different. It is expected that mobile phone manufacturers may start thought about an alternative plan according to Googles moves. If Google still keeps its promise that buying Motorola is just for its own defense, then it is still a great idea to have such a big company as your support (Wortham, 2012). How does Google create revenue?To scrutinize the business model of Google Inc, one impressive feature in this model is that Google offers free resource to the end user. Analyzing the reasons behind it, Googles philosophy is to share information universally and make it accessible globally (Google, 2012). Thus, the characteristic of free is a necessary catalyst which accelerates Google to become the largest search engine comp any around the world. By doing this, advertisers have become the main income rather than the end users.