12. 4. COMPETITIVE ENVIRONMENT
SUBSTITUTES (MODERATE)
Traditional search options extremely weak compared to
on-line search.
THREAT OF NEW
ENTRANTS SUPPLIER POWER
(HIGH) (LOW)
RIVALRY (HIGH)
The creation Direct and indirect
of new With Internet
competitors content and
technologies
may possibly bandwidth readily
give advantage to available, supplier
new, aspiring power is
entrants extremely weak
BUYER POWER (HIGH)
Internet users, advertisers and licensees are
all buyers of online search products. Buyer
power remains high as there are many
available
13. 5. COMPETITIVE ADVANTAGE
The PageRank system and hardware innovations facilitated
Google’s initial growth and established Google as a
dominant search engine technology.
Google technology provides for low marginal costs, which
could be used to dissuade competitors.
Google’s dedication to providing users with the preeminent
search product facilitated. Google’s work environment
attracts some of the most talented people in the industry.
Over 60 of Google’s 800 employees have a doctorate.
The company reportedly receives over 1,000 resumes per
day and employee turnover is close to zero percent.
14. 5. COMPETITIVE ADVANTAGE
G
oogle has become one of the most recognized
Internet brand names; more impressive is that this
brand equity has come simply through word of
mouth advertising (Google brand synonymous with
search ).
Google Ventures is Google's venture capital arm, and
is the primary source of Google's venture
investments.
Commitment to innovation depends on every one
being comfortable sharing ideas and opinions.
16. 7. ORGANIZATIONAL DEVELOPMENT
FORMULA: Smart people + creative environment +
outlet for ideas = innovation
Smart people:
Smart people:
Hire the best
Hire the best
Including 50 PhD.s, originated with strong ties to universities (especially
Including 50 PhD.s, originated with strong ties to universities (especially
Stanford).
Stanford).
Also hire range of people with broad experience and non-traditional talents
Also hire range of people with broad experience and non-traditional talents
such as expert in Italian travel, machine learning, etc.
such as expert in Italian travel, machine learning, etc.
Mostly looking for .enthusiasm and creativity.
Mostly looking for .enthusiasm and creativity.
Very flat organizational structure, not very much hierarchy
Very flat organizational structure, not very much hierarchy
Creative Environment:
Creative Environment:
Creative office design. Looks like mix between college campus and
Creative office design. Looks like mix between college campus and
playground with toys.
playground with toys.
Called the “GooglePlex”.
Called the “GooglePlex”.
