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Google: a Strategic Move

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Google Inc.
A Strategic Move

History

Sergey Brin and Larry Page met in spring 1995 at a gathering in Stanford University. Between January 1996 and December 1997, they created "BackRub", the precursor of Google search engine. The objective was to better organize and huge amount of data on the Internet. Eventually the name was changed to "Google" to signify the immense amount of information that resided on the Internet. Google is transformed from the word googol, referring to 1 followed by 100 zeros.
Brin and Page incorporated Google in 1998, just nine years ago, with $1 million dollars from family and investors. The quality of Google's search technology attracted a growing amount of users. Many companies had Google as its main web …show more content…

To fully understand Google, it's helpful to understand all the ways in which the company has helped to redefine how individuals, businesses and technologists view the Internet."

(Source: Google.com Company Information)

Internal and External Assessment

Here we will analyze the company through the SWOT process in order to understand the strategies formulated in the next step. This step is actually not in the comprehensive model of strategic management but it is something every analysis takes into consideration.

The Internal Environment Strengths
• Strong brand name.
• Broad website appeal.
• Innovative and advanced search technology
• The advertisers as a return on investment.
Weaknesses
• Finding new key employees.
• Dependence on advertising as source of revenue.
• Google Member Network's lack of popularity.
• Weak position in China due to government filters.
• Nearly all revenue in one product line (search).
• Lack of experience.
The External Environment
Opportunities
• Unmapped countries for expanding services.
• New advertisement format and tracking mechanisms.
• Size of current customer base and market share
Threats
• Competition from Microsoft and Yahoo. o Greater resources, bundled services, and ability to attract users through portals.
• Increasing intellectual property claims.
• Increasing competition.
• Shrinking advertising budgets by companies.
• New domestic and international laws and regulations.

Establish

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