Google Case

 Business-level strategy encompasses three related choices---competitive theme, segmenting the market and choosing segments to serve.

1. Competitive Theme: Differentiation or Low Cost?

(Q1: Here comes the first question. What is Google's competitive theme?)

Google currently pursues differentiation strategy. It is concerned with increasing the value of a product offering in the eyes of consumers.

Google offers many unique products and services to many different kinds of customers. By offering so many distinct products and services, Google is able to achieve a competitive advantage.

Google's web search engine, the company's most popular service, offers users a more reliable way to search. Google's web search engine has differentiated itself from others by using a patented system called PageRank. It is constantly being updated to ensure the best search results.

Another of Google's products that support its strategy is Google AdWords. It's unique because it is easy to create and manage online advertising accounts with no large upfront payment.

Through its successful differentiation, Google attracts more customers, which allows the firm to use its assets more efficiently and therefore realize lower costs from economies of scale.

2. Segmenting the Market & Choosing Segments to Serve

(Q2: Please think about it. What are the four common segmentation characteristics? They were mentioned in the lecture.)

There are four characteristics---geographic, demographic, psychographic and behavioristic. Google adopts the last one. In this approach buyers are classified into groups on the basis of their knowledge of, attitude toward, use of, or response to a product.

Since Google serves the entire market, it's pursuing a broad market strategy.

So taken together, Google adopts a broad differentiation strategy.

 In general, when a firm has a competitive advantage it derives from one or more distinctive competencies. A distinctive competency is a unique strength that rivals lack.

Then what are Google's distinctive competencies?

1. Large Global User Base

a. largely buys traffic from providers, accessing to massive audiences.

Here are some examples. Google cooperates with these companies to attract more customers.

b. provides an interface to 88 languages to make it convenient for users in different countries

2. Reputation and Familiarity

(Now I want to ask: How many of you use Google as the default search? Please raise up your hand...Even from you guys I can see it's widely accepted.)

Google enjoys highly level of market recognition.

Its search engine already established a brand name, in which users trust. It's dependable, reliable and fast.

Let's imagine if you want to switch search engines. You still have obstacles, such as:

* If you use one of the Google services, like Gmail, you always have Google top of mind;

* If you go to CNN.com, you have Google in the toolbar; so probably you won't switch to another one.

* If you use Firefox, Safari or Opera,