Google

13

CASE

Google’s Strategy in 2012

ASSIGNMENT QUESTIONS

1. Discuss competition in the search industry. Which of the five competitive forces seem strongest? weakest?

What is your assessment of overall industry attractiveness?

2. How is the search industry changing? What forces seem most likely to bring about major change to the

industry within the next three to five years?

3. What are the key factors that define success in the industry? What are the key resources and capabilities

required of successful search engine companies? How do these compare to the key success factors of the

smartphone industry?

4. Describe Google’s customer value proposition and profit formula linked to its business model. What

strategies has Google relied upon to build competitive advantage in the industry?

5. Have Google’s business model and strategy proven to be successful? Should investors be impressed with

the company’s financial performance? How does the company’s financial performance compare to that of

Microsoft, Apple, and Yahoo? Please conduct a financial analysis to support your position—you may wish

to use the financial ratios presented in Table 4.1 of the text as a guide in doing your financial analysis of the

company.

6. What are the company’s key resources and competitive capabilities? What competitive liabilities and resource

weaknesses does it have? What opportunities exist? What threats to its continued success are present?

7. What recommendations would you make to Google’s top-management team to sustain its competitive

advantage in the search industry? How should it best capitalize on its strategic initiatives in smartphones

and other ventures?