How Does Technology Influence Google's Strategy

1965 Words 8 Pages
The internet has become a larger influence on our lives than many had ever imagined. The ability to communicate virtually has changed our lives as we know it. To human individuals, one thing seems to be of importance, is increasing efficiency, and there is one company that has been working on understanding the world of information that exists and is being created since 1995. (2.) Meeting at Stanford, Larry Page and Sergey Brin began collaborating on a search engine for their university. This led to Google.com being bought on September 15, which led to the creation one of the most dominant players in the enormous industry that is technology. Since 1997, the goal behind Google’s strategy was to organize what seems to be an endless amount of information; …show more content…
One of the most crucial influences on Google’s dominance and competitive edge is the learning curve, since they are the original innovators and one of the first search engines, users have already become familiar with the engine and do not wish to change because of overall satisfaction along with the switching cost. Another major component to their strategy is the company’s involvement in other industries that can create benefits for the company from economies of scope. If we take a look at the other industries and fields that Google is involved it, it quickly becomes evident how they are all related. Take Google Ventures as an example. This is a subsection of Alphabet that invests in and acquires other technologies that have to do with user information. One example of this a company called Waze that was acquired in 2013. Waze is a GPS navigation software that notifies the user with traffic updates to create the fastest route possible. Since Google has invested millions into Google Maps and Google earth, we can see how economies of scope comes into play. Waze is just one of countless companies that Google has acquired with this mindset. When analyzing Google’s strategy, it is important to consider the end user. In order for Google to hold their dominance in the …show more content…
Considering the cash holdings of the company, opportunity lies within expansion. The concepts of Big Data and The Internet of Things are where the greatest opportunity lies for Google. We can see examples of this through their acquisition of Nest, a home security system that is connected to the internet. Slowly but surely we will begin to see technology incorporated into our everyday lives, increasing human efficiency. Big Data is the future, this is essentially the idea of understanding information that is collected through technology and Google has been an innovator when it comes to Big Data and personalization. (6)
The threats that Google faces come from the other major players like Facebook and Amazon. After Google, Facebook has the largest amount of data and the amount of time users spend continues to increase, threatening Google’s bottom line. Amazon is another example of a threat since consumers can go straight to Amazon, avoiding Google and again taking away from their revenues. While search engines will continue to pop up and competitors will fight over this, Google remains dominant, but since they are so heavily invested in this losing a small portion of the market would be detrimental for share

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