Google

Case 13: Google

Issue/Problem Identification

The major overriding issues of this case can be divided into two parts: the first is the fact that there are no switching costs between Google and its competition and the second is Google’s constant need to be innovative and creative in an intensely competitive and rapidly changing industry. Google’s rise to power almost seemed like it happened overnight, but just as fast as it raised means just as fast can it fall. With solid competition from AOL, MSN, Yahoo, and the newly formed Bing from Microsoft, Google always has to invent new ways of attracting new customers and keeping loyal ones. If it ever fails to do so, people will use other search engines or other companies products to get what they need and it costs them nothing to type in another website in the their web browser. Google has excelled in creating various products from ranging from Gmail, images, groups, new, toolbar, instant messaging, maps, expanding to almost every possible platform the internet has to offer. This is good, but at the same time there are a lot of unforeseen risks associated with rapid expansionary measures, especially in this kind of industry.

The sub-issues in this case further involve the intense competition between Google and the rest of the companies involved with Internet search technology. The competition intensity is due to two main reasons. The first reason is due to Google’s ability to generate a huge amount of revenue from merely selling ads placed next to search results has opened up the potential for internet search as a worthy investment. This massive revenue has made Google’s stock price sky-rocket in its early years of becoming a part of the New York Stock Exchange. They have surpassed companies like Yahoo who have been in the business for nine years prior. These companies also trail Google in user loyalty, brand identity, and easy name recognition making it by far the most popular. Google is a household name....