STRATEGIC MANAGEMENT

Case Study

On

“Google Inc- What’s the Corporate Strategy”

POST GRADUATE DIPLOMA IN MANAGEMENT

(TERM - IV; Batch 2021-23)

Under the Supervision of

Dr. Tarun Dhingra

Associate Professor (Strategic Management)

Submitted by

Group 8

Akhil Batra (PGMA2108)

Anand Prakash (PGMA2109)

Arvind Kumar (PGMA2113)

Swati Gupta (PGMA2140)

Sayak Chakraborty (PGMA2143)

Shruti Paliwal (PGMA2147)

JAIPURIA INSTITUTE OF MANAGEMENT

A-32, Sector 62, Institutional Area, Noida - 201309 (U.P.)

Q1. What is Google’s corporate strategy? Does Google have a clear vision of
what it wants to become?
Ans- Google’s mission is to organize the worlds information and make it
universally accessible and useful, this makes Google a Web browser. The idea to
start such a company by Larry Page and Sergey Brin was also a stimulus of their
search for a dissertation topic which led them to examine the linkage structure of
world wide web. They developed a page ranking algorithm that used backlink data
(references by a web page to other web pages) to measure importance of any web
page. The corporate strategy for google at the beginning was to make information
available to individuals universally. But they were not limited to one goal. They
had displayed their ambitions of becoming an advertisement selling behemoth in
early 2000. The idea was never to limit themselves into few segments, their
expansionist urge reflected their raison d’etre: it had never seen itself just as an
internet search engine. Google’s IPO prospectus had elaborated this intent: “we
serve our users by developing products that enable people to find, create and
organize information more quickly and easily. We place a premium on products
that matter to many people and have the potential to improve their lives, especially
in areas in which our expertise enables us to excel”. Search is one such area.
People use search frequently and the results are often of great importance to them.
Google’s entrepreneurial and technological dynamism also resulted in initiatives
that extended beyond the accessing and organizing of information. Google took
following steps to diversify its products:
 Google introduced Gmail in 2004 as a service for communications
 Introduced Google Docs, which is a suite of office productivity software for
creating, storing and sharing text documents, spreadsheets and
presentations.
 Blogger is a software that allows individuals to create their own web logs
 Google acquired Android Inc. in 2005 and accelerated the development of
its linux-based operating system for mobile devices. In November 2007, it
launched the Android wireless communication software platform.
 Google introduced its Chrome web browser on September 2008. Google’s
strategic intention was not a simply a superior user experience but it also
saw a threat from the new version of Microsoft’s IE.
 In 2011, Google acquired Motorola to take control of its rich portfolio of
patents relating to wireless communication.
To comment on Google’s corporate strategy and its vision, we can say that it was
subjective to whether we are looking it from inside or outside of the Googleplex.
One looking from inside understands Google is building a Powerful presence on
internet from where they can control most of devices. While from outside it is
uncertain in which direction they are moving.
Q2) Evaluate Google’s diversification into new products and businesses, with
particular reference to (a) browsers (Chrome), (b) mobile phone operating
systems (Android), (c) mobile devices (Motorola)
 Search engine has always been the main service or product of the Google.
The company began developing search technology in the year 1996.
 Later on Google diversified to variety of internet related products and
services.
 Diversification is the effective business strategy of Google , it allowed the
firm to create a new market opportunities and retain the existing customers.
 Google’s diversification into Google Chrome
 Announcement of its chrome web browser was made on 2nd sep. 2008.
 Company believed that they wanted to emphasize the improved
improved functionality for users by launching a web browser.
 They also have the silent updates and it is opensource - these are the
some features that made Chrome as huge success.
 Also coming up with Google chrome was also a strategic move by
google to compete against Version 8 of IE by Microsoft.

 Google’s diversification into mobile phone operating systems

 Google announced a free open source application development
platform called Android.
 Their main intention was to eclipse existing operating systems from
Microsoft, Symbian, Palm and others.
 Presence of complete set of components including a Linux based
operating system, middleware stack and customizable UI and apps.

 Google’s diversification into mobile devices (Motorola)

 This move was in response of Microsoft and Apple purchasing more
than 6000 mobile device related patents.
  Acquiring Motorola placed considerable weight on Motorola’s rich
portfolio of patents relating to wireless communication.
 Provide opportunity for google to integrate more closely hardware
and software development in smartphone and tablet market.
 Acquisition of Motorola also supported Google efforts to build its
presence in Mobile internet use.

Q3) Does Google need to refocus? How should Google delineate its Corporate
Boundaries? And which business or products would you recommend
abandoning or selling?

Yes, Google need to refocus

Google mission is to organize the world’s information and make it universally
accessible and useful. The problem is that in expanding into many different areas-
productivity applications, mobile operating system, a web browser- that the
identity of google itself has become muddled. From the outside it’s getting harder
every day to articulate what Google is into. So according to me it should refocus
again to make its identity clear.
How should Google delineate its Corporate Boundaries?
Google should delineate its Corporate Boundaries in
Privacy- The US Federal Trade Commission’s privacy framework had tried to
ensure that Google could not link its tracking data to identifiable individuals.
And also according to the concern CEO Page in Google expansion echoed in its
annual report 2012
They should focus on: -
 Effectively managing Growth to prevent from the damage f quality
products.
 To effectively handle the challenges of supporting a rapidly growing
business in an international environment.
  To manage the growth, they should effectively focus on improving
operational, financial and management control.

And which business or products would you recommend abandoning or

selling?
Since the introduction of Gmail in 2004, Google provide a widening array of
software and services for communicating, creating and manipulating 2D and 3D
images, producing documents, creating web pages, managing time and social
networking. Google Docs providing suite of office productivity and Blogger
software helps individuals to create their own web logs. Google Groups allow
individual to establish communication and also Orkut and Google+ for social
networking sites and Picasa to edit and share pictures.
Hence most of these additional products and services offered no new revenue
opportunities for Google. This services can be sold.
Google acquisition of Motorola Mobility, the wireless handset maker for $12.5
billion- multi dollar acquisition. Whereas all Google’s prior acquisitions had been
of software companies, with Motorola Google had now become hardware
producers. This can be abandoned.