Increase Local Responsiveness Profit Is maximized by the company’s cultural awareness and social competence to aileron products to the regional needs of Its users: Customizing the search engine as per local culture.
Translation Is part of this, but customization also Involves local defaults and custom features. This is important to Google’s continued growth, since the majority of new Internet users are not native-English speakers Employing specialized and local sales and support teams across vertical markets in over 50 countries.Because the local agents know quite well about local business market and local culture, many local companies tend to choose Google as their Advertising partner. Google Locals (part of Google Maps) allows businesses to target customers In the vicinity of their location Deceased Google’s advertising technology is available in 31 locales. Payment methods are available in 49 currencies serving 233 countries 2.Aligning Value Chain Activities Google has 36 data centers across global locations which collectively house more than million servers, storage systems and routers connected with a network of fiber optic switches.
This helps Google process search queries from various parts of the world In fraction of second. By shifting satellites geographically, Google also takes advantage of diversity from a human resources perspective and lower salaries in countries other than the united States.Google has even benefited from outsourcing some of its copycatting to firms in India Growth through Product Diversification Even though Google earns more than 90% of Its revenues from Advertising, Google’s strategy Is built on a strong foundation of complementary products which augment its Advertising business.
Google either develops these products in-house or acquire them through mergers/acquisitions. Advantages of Product Diversification New products are crucial in gaining leverage in the constantly changing market.The more uses a person has for Google services, the more opportunity there will be to show them ads. Google reinforces its brand Image (keeping Its name In nearly all Its products) and creates more brand awareness. Cost Advantage : Product Diversification Strategies Google regularly explores all three manners of diversification with new start-ups, with calculation, and with strategic alliances.
Google encourages its staff to exercise their creativity and innovation, that can contribute to the formation of new products and ideas.This focus on innovation of Google helps it diversify into previously untapped businesses yet making use of their core competencies and capabilities. Products like Google Chrome, Android SO and Gamma have been a result of Google’s con Acquisitions Several of Google’s products are derived from acquisitions including Docs, Earth, and Youth. These products have expanded Google’s brand and brought many more users to Google. Doublethink , as mentioned earlier, added the banner component of Google’s advertising business and brought along significant revenue to Google’s income statement.
AlliancesGoogle’s growth strategy involve: Pensacola which allows developers to create applications that will work on all the member companies’ websites. By giving developers a common API, the alliance hopes to draw some of the attention away from Faceable, which is the largest social networking site. Open Handset Alliance to promote the use of its open source Android operating system. This alliance leverages the capabilities of both phone manufacturers and independent developers to compete with Microsoft’s Windows Mobile platform, RIM’s Blackberry, and Apple’s phone. Open Automotive Alliance