The sources of competitive advantage are that PowerPoint, Microsoft office, PDF, lotus and shockwave files can be searched using google. Closely guarded IT is also competitive advantage. It provide value for users in that linux the customized version is run by use of inexpensive off the shelf, The amount of computing power used by the google is very less as compared by power spent by competitors. The ability to serve users with huge array web based services and google's speed is explained by cheap and flexible infrastructure.
Organization claims to use google for online searching and advertisement which is possible through licencing and they are allowed to use search engines. Google has developed a profitable program for advertisement which is profitable and effective and deliver precise marketing. Google is becoming very innovative by coming up with new services and products.
Problems and challenges and what management, organization, and technology factors are responsible for these problems and challenges
Google get its revenue fro two main sources which are; online advertisement and online search services. The search engines can be duplicated by the competitors; large portion is accounted by online advertisement and causes high competition. Adwords advertising program has come due to malicious forms of manipulation. Illegal business can use click fraud to increase the cost of competitors and putting them at competitive disadvantage. Google is aware of the problem and has been vague in response hence they are been criticized of the same. As the google has to be sensitive concerning the fraud attack they have to be vigilant with their rival legitimate offences.
The major threat is Microsoft and the strategy is to destroy the competitors which have “deep pockets” which is the capital to purchase copyrighted materials. Microsoft still own powerful digital management software. The major concern for google is the vista operating system for the Microsoft and which will be integrated in new operating system in version of future office.
The major threats to google are contributed by Deep web and Microsoft’s context aware searchers. Microsoft is viewing google as large provider of search technology and is software that can infringe the markets dominated by Microsoft. Starting online electronic payments is hard to be started by google since it requires strategies to be employed to deal with free information. Since Google is aware of the problem it is facing, it is looking forward to solve the problems and offer very attractive services to the customers than the services offered by their competitors.
Does Google’s business strategy effectively address these challenges?
The Google is addressing the challenges since it is giving its linux-based programs for free over the internet while the manufactures rely only with Microsoft (Hammel, 1994). It has also launched some products which are not enhanced by search engines, for example, have a tool which enhances previous results when giving feed back and the cumulative is very relevant (Ghemawat, 1991).
Google is looking for new ways to grow and have come up with new products such as adsence scans web pages which enables operators to come up with revenues from site. Google toolbar help surfers to search google index and not first visit google home page and also provides defence against pop-up ads which provokes web surfers. Google image has many archieved images, Google labs helps to test company’s newest initiatives
The Google is organizing strategic management to enable it to perform long term goals and objective by identifying the mission, developing policies, plans and objectives. It also performs strategic formulation by performing situation analysis, evaluation and also analyzing the competitors internally and externally and in macro and micro environment (David, 1989). When the assessment is done the objectives are set which are long-term and short terms which are in light of situation analysis.
How successful Google will be in the future
Currently, Google has dominated in the world, but Microsoft and other entrant will be major threat. Since Microsoft has ‘deep pockets’ it will overturn google competitive advantage. The major issue will be legal and regulatory compliance as it expands. In order for google to be in favorable negotiations it has to employ experts.
The research at vividence shows that 2,000 individuals interacting with search engine sites such as Google, lycos, yahoo, Ask jevees and Microsoft’s MSN only Google is widely used and is a consumer favorite. Several mobile devices will run Google Android operating system which it is available only on G1 for T-mobile which will change soon. Many manufactures will use Android which include Samsung and Motorola, it still launch more units that will run operating system. In the enterprise Google will gain momentum as the economy grows worse and people begin to lose hope with Microsoft exchange and in-house office hence the Google grow at the expense of Microsoft.
Google deals with OEM’s which snags significant chunk in the market of browser. The deal with OEM’s will have Google chrome when installed which will be set as a default in the computers. Google will regain all what it lost as the investors invest on Google as the become more comfortable with it.
Google might start new operating system in future since there so many Google employees using secret operating system. It might also launch GDrive in future. It can also cu the cost so as to attract more investors.