International Business Strategy Of Google

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International strategy – Google:

Google LLC (limited liability corporation) is an American multinational company that offers various internet-related services to the public. Alphabet Inc acts as the parent company for Google and many of its subsidiaries after Google LLC decided to create a multinational conglomerate in 2015 (Investopedia, 2019). Youtube, Android, Pixel are some of the companies under Alphabet Inc. In the year 2018 the company made a total revenue of 136.22 billion dollars worldwide (Statista, 2018). Currently, Google headquartered in California, has more than 70 offices in 50 countries and it collectively employs over 100,000 people across globe (Google, 2019). Most of the subsidiaries under Alphabet Inc are independent units, but all the decisions of Google search, advertisements, R & D labs etc are made only in the head quarters. ‘Google’ the search engine was the first step in creating this empire for the company. The search engine was launched in the year 1998 by the company’s co-founders Larry page and Sergey Brin. Though other search engines existed before the launch of Google, the company created a unique method to filter the search results of the users. This allowed the users to find faster, more accurate information which gave a competitive advantage to the company. After a couple of years the company launched its first search engine that provided results in foreign languages (Mckenzie, 2019). From then Google has significantly played a major role in the digital era, for a while now Google has been the number one search engine in the world (Pratap, 2018). Even with existing competition, new competition the tech giant has been able to stay in its leading position and has been constantly improving its products, services.

Apart from technological success, having millions of users, Google also makes billions of dollars even if they do not directly charge the consumers. Google uses a hidden revenue model where it generates its main revenue from its digital ad servicing business. ‘To unlock such financial a business model has to have an appealing value proposition to several stakeholders’ (Cuofano, 2019). One of the main reasons for company’s financial success is the proper application of international business concepts and strategies. To create such a stable business model the structure and strategies of the company need to be efficient.

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By using Porter’s five forces, we could identify the strategies used in creating this stable business model that keeps evolving. The company uses SWOT analysis to constantly innovate and add to its competitive strengths. For instance the Google search algorithm also evolves constantly to ensure competitive advantage against Yahoo, Bing etc. (Thompson, 2019). Google uses a cross-functional or team-based organizational structure, this structure allows the team members to also take part in the decision-making process. Due to the usage of this structure Google maintains a small company image and promotes the notion all employees are equal. As an effect the employees are more happy and have a sense of belonging towards the company (Skyler, 2018). For any business to thrive away from home country, it has to have the right generic strategy which offers them a competitive advantage over the companies in host country. Google adopts the differentiation generic strategy (Pratap, 2018) with this strategy the company constantly innovates technology to provide a unique, extra valued experience for the customers, which makes the consumers loyal and gives a very big competitive advantage. In this case Google does not differentiate itself from its competitors just by its technology. When Google is targeting a new foreign country to expand the market, it usually is available in the local language. This attracted more users than any of Google’s competitors providing a unique advantage. The strategy has given amazing results for the company even in foreign countries.

Google’s intensive growth strategies play a vital role in their market expansion. As their primary goal, Google relies completely on the market penetration (Thompson, 2019). The company continues to increase their market share in different regions by focusing on this strategy. Product development is the second priority for Google, it constantly innovates and develops new products under all its subsidiaries. This helps with maintaining Google’s competitive advantage over competitors. (Cbinsights, 2019)

Google is constantly investing in something new and in many different fields. From Auto driving cars to Google glass the company has been constantly expanding its branches into new horizons. Mostly Google is always searching the web for new start-up companies which has real potential or poses as a threat. Then Google acquires that company and then develops the idea under its own team. (Mckenzie, 2019).


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