Google's Growth Strategies and the Need for Better Internet Rules

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Aug 09, 20233 min read

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Google's Growth Strategies and the Need for Better Internet Rules

Introduction:

In an era dominated by technology and the internet, companies like Google LLC have revolutionized the way we access information and connect with others. Google, in particular, has adopted a differentiation generic strategy (Porter's model) and implemented various intensive growth strategies to maintain its competitive edge. However, as the internet landscape evolves, it is crucial to address the underlying issues related to the power dynamics and business models that shape online platforms. This article explores Google's growth strategies and the need for better internet rules to create a healthier online environment.

Google's Differentiation Strategy:

Google's generic strategy revolves around differentiation, as outlined by Michael Porter's model. By offering a wide range of products, such as Search, operating systems, applications, and hardware, Google aims to cater to diverse market segments. This innovative approach allows the company to stand out from competitors and maintain a broad market scope. However, to stay ahead, Google must continue to prioritize innovation and product development.

Intensive Growth Strategies:

Google implements several intensive growth strategies to expand its market presence and increase revenues. Market penetration is a primary strategy, particularly outside the United States. By acquiring more customers in current markets, Google ensures steady growth despite intense competition. Additionally, product development serves as a secondary strategy, enabling the company to introduce new offerings and generate higher revenues. Market development is another supporting strategy, involving the attraction of customers from new market segments through innovative uses of existing products. Lastly, diversification, although a supporting strategy, provides opportunities for growth by venturing into new markets or industries where Google has limited presence.

The Need for Better Internet Rules:

While Google's growth strategies have proven successful, the broader issue lies in the foundation of the internet itself. The current business model, which focuses on selling people's attention to advertisers, incentivizes companies to prioritize content that manipulates emotions effectively. This results in a lack of thoughtful, civil, and intellectually diverse discourse. To address this, a shift in power dynamics is necessary – giving people the control to choose what they pay attention to rather than being dictated by algorithms.

Fostering Business Models That Serve People:

Instead of relying solely on advertising revenue, social media platforms should explore business models that allow users to pay with money rather than attention. By offering subscription-based models or other alternatives, users can have greater agency over the content they consume, leading to a more informed and engaged online community. This shift towards serving people rather than advertisers can incentivize platforms to prioritize meaningful and valuable content.

Actionable Advice:

  • 1. Emphasize Profitability of Current Products: Google should focus on maximizing the profitability of its existing products before diversifying into new industries. This approach ensures strategic alignment and strengthens the company's overall growth strategy.
  • 2. Prioritize Innovation: To maintain its differentiation strategy, Google must continue to prioritize innovation and product development. By constantly improving their offerings and introducing new features, Google can stay ahead of the competition and meet evolving customer needs.
  • 3. Foster Discourse through User Control: Online platforms should empower users to have more control over their feeds and the content they consume. By allowing individuals to choose what they pay attention to, platforms can foster more thoughtful, civil, and intellectually diverse discussions.

Conclusion:

Google's differentiation strategy and intensive growth strategies have propelled the company to a dominant position in the technology industry. However, the internet as a whole needs better rules to ensure a healthier online environment. By flipping the power dynamic and focusing on business models that prioritize user experience over advertising revenue, we can foster meaningful and valuable discourse. Google, in particular, should concentrate on profitability and innovation while empowering users to have more control over their online experiences. By taking these steps, we can create a more informed, engaged, and inclusive internet community.

Resource:

  1. "Google’s Generic Strategy (Porter’s) & Intensive Growth Strategies - Panmore Institute", http://panmore.com/google-generic-strategy-intensive-growth-strategies (Glasp)
  2. "The internet needs better rules, not stricter referees", https://on.substack.com/p/new-rules (Glasp)

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