a) Cost Command Strategy-Any firm achieves competitive advantages by in a position to produce goods or services at an inexpensive. It decreases the operating costs in order to achieve this strategy. Cost gain is the primary objective of the strategy. Costs are tried out to be marginalised atlanta divorce attorneys step of the production of goods or services. But low cost of production of goods or services will not mean that pricing would be low as there can be a high promotional cost for the goods or services. Products can cost competitively to be able to achieve bigger margin than the competition.
b) Differentiation Strategy-Organization implementing this strategy attains competitive gain through gratifying customer needs. This results in competitive costing of the differentiated product or services and higher margins for the business.
The firm adapting to the differentiated strategy will incur more cost than before for creating the competitive benefit of the product or service. This cost can be paid out by increase in sales of this particular product or services.
c) Focus Differentiation/ Cost Authority Strategy- Concentration strategy is focusing differential or cost management strategy on a specific segment of the marketplace.
The way to obtain Google's competitive benefit originates from the infrastructure of data source Google has created over the years, relevance of search results, cost of performing the search velocity of the search, product offering from Advertisement words to social networking site to mobile software platform.
Distinctive competency of a business can be defined as how the company differentiate its product and services from the competitors, how to section the market, price their products and what's the number of the merchandise available with the company.
Google results over its competition over relevance of serp's, cost of executing the search and the rate of the search. This is actually the differentiation advantage Google is having over their competition. Google's competitive edge originates from the infrastructure they may have built over the years. Continuous innovations, ease of use, relevancy in email address details are some Google's distinctive competencies. Google's ability to connect with the internet surfers, advertisers, website owners differentiates it from the competitors. Google has technical edge over its rivals as they use powerful system which can take workload more than the overall systems. Because of this capability they have a cost benefits over their competitors.
Google's customers are marketers ranging from a SME to large scale enterprises to the end users like the common man. The sites are ranked in line with the key words and the key words have got some price tags. The advertisers put their adverts of products and services in Yahoo and they pay to the business when someone clicks the advertisements. Google's Ad phrase is the latest addition to this foray. Yahoo also pay the others to display Google's advertisements. Google is continually reinventing itself to be miles ahead of others. So by adding millions of internet users yearly worldwide internet has became the latest buzzword. Whichever company desires to be ahead of the competition they have to be present in the cyber space and who else than the search engine giant "Google" to show the way. The relevance of serp's cost of executing the search and the rate of the search and constant innovations makes Google the ultimate vacation spot for marketers as well as the finish users. Why don't we take an example of Google Ad words. The huge benefits marketers can get are
- The customer can easily set up the Google Ad word within 30 minutes. Advertisements will be exhibited at the right palm side of the website.
- Customer does not need a website. They can be an online marketer to market their products.
- Customer can market any kind of product using Ad words.
- Customer can sell their own products like eBooks, music etc.
- Customer can test market their product prior to the original introduction.
- They can identify the budget they would like to spend on every day.
- Advertisements can be country specific, city or town specific.
- Customer can split test their Advertising to see which is working and then can put their best Advertisements.
Google cannot manage to reduce the customer's attention and trust. Some years ago average search time was 3 secs and they have bought it right down to. 2 seconds and now they are working towards reducing enough time further. Also the relevancy of search effect should be maintained to retain the customers if this means losing in revenue for the business. So we can have a good idea about the worthiness Google wants to produce for the marketers and the clients. These are the intangible values Yahoo is creating towards their customers.
3) Apply the four building blocks of competitive advantages to Yahoo. Analyse each factor by giving detailed examples from the case.
Ans- For just about any firm efficiency, quality, invention and customer responsiveness will be the four building blocks of competitive advantages of their products and services.
a) Efficiency- In order to achieve efficiency an organization needs to have economics of level, learning, experience, good marketing, Research and development, optimum use of Human resources and infrastructure. (Jones, 2007)
From only 10000 search per day to 75% of search made utilizing it has came quite a distance. The revolution in hardware technology in conjunction with innovation it includes significantly reduced its unit cost. Google's optimal use of Recruiting is seen as only 650 employees are there in Yahoo worldwide. They declare that their employees are 50 to completely more effective than their rivals.
b) Quality-Quality of goods or services can identify one company from the other. Retaining quality will lower the defects and working cost increasing the success of any company. (Jones, 2007) Yahoo has looked after the relevancy of search lead to retain the customers if it means losing income for the business.
c) Innovation-Google thinks in continuously reinventing itself by innovative products. At the start Google found ways to generate earnings from the organization by keywords bidding and advertisements. Some years back average search time was 3 secs and they have bought it right down to. 2 seconds and now they are working towards reducing enough time further. So Google is continuously seeking to innovate and update its technology as well as technique to be prior to the competition.
d) Customer Responsiveness-Customer responsiveness can be defined as giving products to customer at their price what, when, where they need. Google has worked just as. They have given its advertisers and customers the simple search, speed, consistency and deliverability at a cheaper price. As their business is customer centric they do not hesitate to test market a product or services before the actual start and seeks feedback from an individual to boost it. The R&D section of Google invites its users to their lab and includes them in the development procedure for the new products as well as improvement of the existing one so by seeking their opinions.
4) What business-level strategy is Google going after? (Identify the strategy and justify your answer)
Ans -Corresponding to the Yahoo CEO they never made any strategy but what they have got made is what the customer desires. In my thoughts and opinions they are chasing cost authority strategy as well as differentiation strategy. Yahoo has technological edge over its rivals as they use powerful system which can take workload more than the general systems. Because of this capabilities they have a cost edge over their competition. Google scores over other rivals on the technology improvement. It results over its competition over relevance of search results, cost of executing the search and the rate of the search. The value it has already created in your brain of consumer if the product or service is differentiated customer will not be price hypersensitive.
5) What corporate-level strategy and international strategy has Yahoo executed? (Identify the relevant strategies and justify your answer).
Ans-Corporate level strategy decides which business and which market the business should turn to enter. An organization needs corporate-level technique to a) penetrate the existing market, b) Really wants to enter new market with existing product, c) advances new product for existing market, d)develops new product for the new market. The business options are wether to work in the same business or diversify, wether to serve the home or national market or even to go international. Google saw China as a fast growing competitive market. They entered directly into an agreement in 2006 and Google is known as google. cn. This is market development strategy accompanied by Google. From the entire year 1999 Google has existence in China but scheduled to censorship issues Yahoo was sacrificing its market to Chinese origin internet search engine Baidu. From the year 2002 to 2007 Baidu's market talk about proceeded to go up from 3% to 58%. This marketed the internet search engine giant to type in to an agreement with China and to operate its office from China abiding the laws and regulations of censorships. In 2006 there were over 105 an incredible number of online users only in china and this was only 8% of the Chinese language populations. So Google sensed the opportunity in that market and inserted directly into an arrangement with them.
In the year 2003 Google had taken over Pyra Labs, a blog company to fortify the rate and relevance of articles looking in its internet search engine. Inside the years Yahoo has purchased YouTube (Training video Loading Company), JotSpot, Distance minder's Trendalyzer, Adscape Mass media, Peak Stream Technology. Yahoo has enter new market with the existing product, new market with new product as well as tried out to penetrate the prevailing market with new product. It has also diversified form their main business of internet advertisements and has gone to get a radio advertising company dMarc.