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Sources Of Googles Competitive Advantages Marketing Essay

Unlike other se's, Google distinguishes between useful and trivial websites. Like other search engines, it examines the words on webpages and then indexes them, but unlike them, it also talks about how and where these words were being used with the amount of other websites associated with a page. It shows a set of webpages with most useful link appearing at the top.

Google internet search engine is easy and user-friendly as compared to other se's. The advertisements are text-based and hence the web page remains uncluttered, i. e. free from almost any obstructions to the users, and the page loading acceleration remains at its maximum.

Google has competitive edge in terms of its swiftness of search. It takes only 0. 2 mere seconds, which is quite low as compared to other search engines.

Google also provides value for money, both to the users as well as to the advertisers. For the users, it provides the results timely in order that they need not wait. It did not mix the adverts with the serp's keeping the website simple and clean for the users. Moreover, it advertises only text-based advertising or pop-up advertisements, but not banner advertisements although this practice has been noticed with other internet search engine companies.

Charges for advertising campaign in other search engines are either on a fixed rate basis or an expense per thousand viewers, but in case of Yahoo, the keywords or search items are bid based on price per click. In the event the users do not click on the ad, the sponsors do not need to pay; the position of the ad declines and lastly it is taken off the list by Google. If it is of no use, it is not kept hanging on the web page till the expiry of the decided time period, as in case of other se's. Like this, Google increases attention and trust of both users and marketers, thereby supplying it a competitive advantage over its rivals.

Q. 2 What value does indeed Yahoo create for customers and marketers?

For the clients, Google internet search engine was held simple and user-friendly. Advertising didn't clutter the page with banner advertisings on the site, alternatively text-only sponsor links were provided next to the serp's. Because of this, neither achieved it merge with the serp's as in case there is other search engines, nor do the page launching speed decrease. Thus, the target of Google was on getting attention and maintaining trust of the users. It recognized that if delivering of the results needed long or when there is an additional phrase on the homepage, it would distract the users therefore, resulting in loss of users and their trust. Later, Yahoo planned to market pop-up advertising, but was purely against banner adverts and yes it could generate more income as a result of fact that it could disturb the users in their search.

For the promoters' convenience, Yahoo sold adverts associated with search keywords, not at a set rate or an expense per thousand audiences, as in case there is other se's. The marketer, who bid the most for a particular search term, got its website link or its advertising campaign positioned near the top of the Google-generated list. The bet was based on a price per click, with bidding starting at $0. 05 per click. Yahoo distinguished between unbiased and paid-up serp's. It shown the paid-up search results under "sponsored links" on its website, in so doing providing a value for his or her money. Moreover, the money spent by the marketers had not been a waste because the sponsors weren't necessary to pay Yahoo until and unless the link from the Google-generated list was clicked by the user. In case the advertisement is not at all clicked, its ranking will decline as time passes, inspite of the actual fact that it was of the highest bidder; and if an advertisement is found to be irrelevant, Google will take it off from the list because nor is it and only advertiser, nor customer and in addition it is eating up the server capacity. This provided value to both users as well as promoters.

Q. 3 Apply the four building blocks of competitive gain to Yahoo. Analyze each factor by giving detailed instances from the case.

The four major blocks of competitive edge includes: Quality, Customer Responsiveness, Innovation, and Efficiency; all working by Yahoo to conquer its competition and reach the existing position.

Quality can be an essential and distinguishing feature of something, which includes quality design, resilience, trustworthiness and image. Yahoo helps users by differentiating between useful and trivial websites. It not only examines what on the webpage and indexes them, but also shows how and where in fact the keywords are used and volume of other websites associated with a full page, with most relevant page appearing on the top. Moreover, Google uses developers who are 50-100% more effective when compared with programmers working for the competition by making an investment 87 people time in each one of the 300 people in 2002. Thus it helps to keep a normal check by total quality control.

Customer Responsiveness identifies positively or proactively responding to the client needs or problems by keeping oneself in their shoes. Yahoo keeps finding out what their customers want every once in awhile and enhances the existing products in line with the needs of the users. In case of new features, the Google engineers experiment by adding them to their website for market trials and await users to behave and offer them with reviews and new ideas. As a result, their last product is customer-centric.

Innovation refers to presenting something new. In 2003, Yahoo obtained Pyra Labs, the owner of Blogger, a leading web log hosting website. Analysts thought that this acquisition will not easily fit into the Google's business model. But Google's impressive idea was to use the info from blogs in order to enhance the rate and relevance of articles contained in the search engine, Yahoo News. Other examples of invention are entry in Chinese markets, mixture of internet and radio to promote, etc.

Efficiency refers to the skillfulness of reducing the price of the type, i. e. in conditions of materials, creation, logistics, and over head. Google runs on the technology which is different from that of Microsoft, eBay, Amazon and Yahoo, in so doing presenting it a technological advantage. It uses custom high-performance systems that are cost-effective and are designed for extreme workloads. The hardware gives Google an enormous cost gain over its competition, thereby offering it a competitive benefits through efficiency.

Q. 4 What business-level strategy is Yahoo pursuing?

Michael Porter developed the three business-level strategies which include: Differentiation, Cost Authority and Market Marketing or Concentrate Strategy. Google happens to be pursuing the common business-level strategy of differentiation. Differentiation identifies the discrimination between things which makes it different and specific. It offers many products and services which are different from those in the market. For example, Google purchased the air advertising company dMarc to get an usage of its automated system and have the advertisement of the firms associated with Yahoo on radio. This strategy blended two effective advertising advertising - internet and radio. Another example of differentiation strategy was to use the unused advertisements space in the offline newspapers and periodicals by selling it to the promoters, with selected advertising campaign in the "Chicago sun-Times. " By offering unique products and services, Google is able to achieve a competitive benefit.

Q. 5 What corporate-level strategy and international strategy has Google implemented?

The corporate-level strategy put in place by Google includes: maintaining strong romantic relationships with users, promoters and websites. In case the major opponents - Yahoo! and Microsoft - developed a much better and developed internet search engine than Google, revenue of Yahoo may fall significantly. As a result, the company proceeded to go general public in 2004 and brought up $1. 5 billion. Now the business had plenty of cash and no debt to aid its strategies. In 2003, Google received Pyra Labs, who owns Blogger, a leading blog hosting website. Experts thought that this acquisition does not easily fit into the Google's business model. But Google's progressive idea was to use the info from blogs in order to improve the quickness and relevance of articles within the search engine, Google News. Google also purchased YouTube, JotSpot, Gapminder's Trendanalyzer software, Adscape Media and ParkStream Technology. The strategy behind this is to expand its businesses and features on its webpages. For example, by purchasing Gapminder's Trendanalyzer software, Yahoo introduced the feature of free reports on its webpages to be able to know the liking of the user towards the web page and therefore know the page rank.

The international strategies of Yahoo included the strategy of Merger and Acquisition, where the business gets a ready market for its product and it is easy for Google to understand the economic, politics, social and cultural environment overseas. It attained 2. 6% stake in Baidu, the top most search engine in Chinese market, in order to develop a local existence in China and understand Chinese culture and dialect. Further, to build up a sense of belongingness one of the Chinese people, Google recruited Chinese language employees because of its office positioned in China, started with a separate brand name and launched a Chinese '. cn' site. With an try to provide better sales and service to Latin American advertisers, Google opened an operation centre in Brazil and Mexico in 2005.

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