The Business Strategy of Google - Profolus

The Business Strategy of Google - Profolus

Diversification has always been a core business strategy for Google. By venturing into new markets and retaining existing customers, the company has been able to create a pool of Google-dependent Internet users. This strategy has not only allowed Google to expand its reach but has also positioned the company as a one-stop venue for all Internet-related needs.

One notable example of Google's diversification strategy is its acquisition of SkyBox Imaging in 2014 for a whopping $500 million. This move allowed Google to obtain satellite technology and enhance the accuracy and clarity of Google Maps. By investing in cutting-edge technology, Google was able to improve its mapping services and provide users with a more immersive experience.

Another significant diversification strategy employed by Google was the acquisition of the Android mobile operating system in 2005 for $20 million. This move played a crucial role in popularizing the smartphone and tablet markets. It also helped Google establish itself in the consumer electronics market and compete with Apple's iOS operating system.

These acquisitions have enabled Google to dominate the technology-dependent consumer market. Through Google Search, the company monetizes online search queries by allowing advertisers to buy ad spots on search result pages. Additionally, Google partners with online publishers through the AdSense for Content program, enabling them to display ads from the AdWords and DoubleClick networks. This partnership has made the AdSense program one of the best online advertising programs, attracting established online publishers and media organizations.

Furthermore, Google has created interdependence across different industries and sectors through vertical integration and alignment. By promoting the importance of the Internet and digital communication, Google has encouraged diverse businesses to embrace these technologies. This interdependence has allowed Google to expand its reach and influence across various sectors.

Android is a testament to Google's successful interdependence strategy. By providing a mobile operating system, Google revitalized the mobile businesses of established consumer electronics companies like Samsung and Sony. This move not only benefited Google but also propelled the growth of the entire mobile industry.

However, maintaining leadership in the tech industry requires continuous innovation and adaptation to technological breakthroughs. Google, being both a technology and media company, understands the importance of staying ahead of the curve. The strategies of diversification, acquisition, and vertical industry integration are all aimed at supplementing Google's core advertising business and ensuring its sustained growth.

In conclusion, Google's business strategy of diversification has allowed the company to create new markets, retain customers, and position itself as a one-stop venue for all Internet-related needs. Through acquisitions like SkyBox Imaging and Android, Google has cornered the technology-dependent consumer market. Additionally, the company has created interdependence across industries and sectors through partnerships with online publishers and the promotion of digital communication. To maintain its leadership position, Google continuously innovates and adapts to technological advancements. This combination of strategies has contributed to Google's success and will likely drive its future growth.

Actionable Advice:

1. Embrace diversification: Just like Google, businesses should explore new markets and diversify their offerings to attract more customers and create a loyal user base.
2. Foster interdependence: By forming partnerships and aligning with other industries, businesses can expand their reach and influence, creating a mutually beneficial ecosystem.
3. Prioritize innovation: To stay ahead in a competitive market, businesses must prioritize innovation and adapt to technological advancements. Embracing new technologies can open up new opportunities and drive growth.