The Criteria For Evaluating Strategic Alternative Marketing Essay

The Criteria For Evaluating strategic Alternative Marketing EssayThis strategicalal plan is prep ard by IM Smart Management Consulting Firm and get out start off examining Googles external milieual influences. Next, in-depth assessment on the industrys private-enterprise(a) five forces which affect Googles profitability go away be d hotshot. Lastly, Googles internal stance and weaknesses provide be analyzed to generate its matched implication. From these analyses, we discovered that Google lead face legal and slangance issues due to its offensive scheme in the long run. We switch start outed three strategic alternatives (Strategic Alliances, justificative Strategies and broadening Diversification Base) which Google spate adopt to enhance its belligerent position. The plan impart be concluded with a inspireed strategic alternative and its pitf whollys.EXTERNAL psychoanalysis curse AnalysisAfter conducting PEST and door guard Analysis for Google, we stick out deri ved at the followingPolitical The expansion of Google was obstructed by the organization such as US and Chinese authority. They viewed Google as a monopoly and invite authority to monitor its activities (Google, 2009). However, this barrier does not affect Googles operations as Google responded immediately to the customers by addressing its policies in regard to semipolitical/legal aspects. display case Google China announced that it is still providing filtered seem results on its website to fulfill the censor count results policy (China Daily, 2010).Economic Google focuses on luxuriouslyly targeted, measurable advertizing, therefrom reservation it to a greater extent than(prenominal) successful than other competitors. The crucial aim to confine up to date and continuously connected keeps its core services vivacious despite the parched surroundings due to economic recession (Google, 2010). societal-Cultural Individuals ar acquiring more(prenominal) educated and strugglent. therefore lifestyle and demand of individuals atomic turn 18 changing apace. Google has to take note of such changes in send to contend with its competitors by providing addition services such as email. Individual ar as well as increasingly becoming more connected due to the increase means of communication available through the internet such as MSN, face book and mobile phone with internet capability. Google has responded by mental synthesis their mobile devices and released its own Android Mobile Phone Platform and in operation(p) System. By tapping on these, Google shall comport broad advan smidgee with increased turn of events of essay queries and reform militant standing.Technological The widespread diffusion of instruction and communication applied science allows board geographic dispersion and integration of line of seam activists. Innovative web application programs set trends in front, internet direct advertising and portable applications thu s causing a more rapid and degraded change in technology. Google has to take detailed measures to stay a crack by keeping pace with technology advancement and maintains low terms (Refer to edge A for Overview of PEST analysis).Porter 5 Forces AnalysisBuyers The negociate subprogram staff is high. The lifestyle of exploiters on using the look for tool is becoming more sophisticated and demanding. Substitutes argon easily available at lower damage or even free. Example Google online photo storage priced at $5 per year for 20GB, but face book provided it for free. Google are required to live up to both client groups equally. Example organizations customers would prefer their advert broadcasting in big banner on the webpage however, individual customers allow feel precise disturbing as they just want the calculate results.Substitute The bargaining place is high as buyers switching salute is low. there are plenty of replacements such as advertisement on television, radi o, magazine, poster and search hotline.Suppliers The bargaining power is low. Google is regionally not globally dominant and computer hardware purchases are one-time off. Google search is heavily depending on its competitors Microsoft and orchard apple tree software. If there are either new software releases from them, Google search may not perform well if no timely update is done.Potential entrants The bargaining power is low. Yahoo and Microsoft engage improved their search engines and enkindle on detail word their search tool through their products. There is no specialised essential for search engine, thus a better search engine invented by another go away critically affect Google. Also, the monitoring of authority from its political environment could affect Googles current technology and philosophy. enemys The bargaining power is high. There is no patent on search engine so the environment underside be easily exploited or manipulated. The switching cost is low. Example Microsoft and Apple admit embedded their search tool into their adventurer browser. Also, rival search tools have their own unique(p) force-out (Such as Yahoo attracts audience by its nice appearance). (Refer to depict B for Overview of Porter 5 forces analysis)INTERNAL ANALYSIS (VIRO Analysis)We have observed that Googles net receipts keeps growing from 2001- 2008. Since the 2004 IPO, the stock price has soars from less than $100 to above $700. The number of earnings users keeps increasing around the world, oddly Asia. As the number one Internet search giant, Google attract majority of the new Internet users to be its customers. Google understands customer demand and monitor how individual lifestyle is changing chop-chop each day. This understanding allows Googles communication channel strategy to outshine among its competitors. Overall, we think that Googles business strategy works excellent at present but better strategic alternatives need to be in place.After conductin g Google internal analysis, we have concluded the followingValue Google owns the Page-Rank technology, which allows them to provide the most accurate search results. The dominant grocery share and huge loyalty from customers gives Google competitive advantages. specialness The services provided by Google are not rare. some(prenominal) other companies also offer alternative services such as search, email, blog, depiction sharing, online office application and cloud computing.Imitability All Googles services can be imitated. For model the Microsoft Bing Search engine has incorporated several elements of the Google search The Simple UI, patron link, and page ranking.Organization Google has strong financial power, research and ramp uping capabilities. The gild is ready to delivery new products to stay competitive, or acquire capableness competitors to eliminate threats.PROBLEM STATEMENTWe have observed that the main line with Google is that the offensive strategies to improve its food market shares/performance entrust mavin to direful problems in the future. Google faces increasingly intensive competition from experienced incumbents like Microsoft, Social ne 2rks and Baidu which had been gaining popularity in spite of appearance the Asia region. They will always be active in making fresh moves to increase or solidify their market position. With Google trying to master the cloud computing and search engine markets, this long-term strategy is backfiring with incumbents development similar, if not, improved strategies to retain their market standing.In the long run, Googles plan to start out the dominant provider of cloud computing might also lead legal suits and screen concerns. With increasing use of virtual server hosting, more enterprise networks, servers and data storages run virtually. Even when good security protective cover methods were employed, distinguished data will still be vulnerable and can be monitored for unauthorized uses. This will lead to data security issues like information used for unintended purpose and data disruption/ dismission in the event of natural disasters.CRITERIA FOR EVALUATING STRATEGIC ALTERNATIVEStrategic alternatives mustiness be able to create growth opportunities with high return of investment. Hambrick Fredrickson (2001) have mentioned that strategies are an integrated overarching concept of how business will achieve its objectives. thusly we recommend that Google evaluate its strategic alternatives by looking at its vehicles (how Google wants to gets there, including alliances) re-create (Google speed and sequence of actions) and economic logic (how profits and returns will be generated).STRATEGIC ALTERNATIVES AND EVALUATIONStrategic Alliances with other enterprisesIt is futile for Google to fight head with head against equally skilled competitors as its offensive strategic approaches will causes disruption its dominance in innovation in the long run. indeed, we recommend that Google alter their strategy and join forces with its competitors to add-value to its resources and capabilities (Refer to endanger C). With strategic alliance, Google can function in a mutual formal relationship with two or more organizations and join forces strategically to achieve collaborative valuable strategic outcomes. It allows joint contribution of resources, capabilities, shared find, shared fit and mutual dependence. pack of strategic alliance is for Google to achieve synergy where benefits from the alliance will be greater than those from individual frets.Google will be able to improve market access via global marketing alliance to have more finds in international markets such as China. The new partnerships will also choose about faster and better development of new technologies/products to improve competitive position. With alliance, Google can overcome deficits in expertise and creates new competitive capabilities by bringing unitedly unique personnel of each partner. Lastly, it will sponsor Google to achieve economies of scale and achieve better efficiency (Gamble Thompson, 2011).Defensive Strategies to treasure Company Market PositionAnother alternative that we recommend will be for Google to adopt justificatory strategy (Refer to Exhibit D) to enrich its competitive position. The purpose of defensive strategies is to lower the risk of being ardoured, weaken the jolt of any attack that occurs and influence challengers to aim their efforts at other rivals. There are two forms Google can take if defensive strategies are used. The two forms are blocking the avenues open to challenges and signaling to authorisation challengers that retaliation is likely.For framework if Google were to choose to block the avenues open to challenges it has to be more innovative and be more receptive in learning culture differences while embarking on businesses with the Chinese in China. China is a country that contains massive benignant resources wi th fictive minds. Hence to block any new invention or products being produced, Google need to act fast by thinking differently and enhanced its research and development by being more unique and allowing creativity to flourish.If Google were to choose in practicing the latter, its leaders need to be more vocal by publically announcing managements commitment to maintain the profligates market share, publicly committing the firm to a policy of matching competitors terms or prices or maintaining a war chest of cash and marketable securities. However, Google must not be too vocal in a foreign land, especially China is highly unadvisable as Chinese do not enjoy firms that are too vocal and do not greet the meaning of modesty. As a result, Google can end up losing its market share totally (Gamble and Thompson, 2011).Broadening the Diversification BaseWe think that it is important for Google to diversify into a new business with its subsisting products as it offers the potential to st rengthen and build a better competitive advantage. Google is facing risk due to the increasing power of incumbent like social networks, which of necessity affect the search industry (For example Facebook has search function in their website). Thus through diversification, Google can tap into the mobile world and shift itself in the market by improving features offered by Android. We also recommend utilizing and incorporating Googles existing services such as Google Images and Google Maps to broaden the companys diversification fundament with new technologies in the market.In our daily course of work as consultants, we came across a new technology known as the Bokodes. This in style(p) technology provides users with a more interactive approach to information at anywhere and anytime. It opens up a new range of applications in the areas of tagging, user interaction and near field communication. Google can also create an application using Bokode technology that reference to its curre nt services such as Google Images or Google Maps (Refer to Exhibit E.) These can typically result in coarse co-marketing by giving Google many an(prenominal) opportunities to widen its share of banner/video ads which in return builds more revenues as well as to be the pioneer in offering an innovative approach to consumers (Gamble Thompson, 2011).RECOMMENDED ALTERNATIVES/ EVALUATION AND limitAmong the three suggested alternatives, we recommend that Google implements the defensive strategy. It is futile for Google to fight head with head against its competitors so defensive strategy will minimize the impact of rivals attack moves. This alternative will not cause much disruption and tradeoff to Googles operation. As Google has already a large market base for its existing innovative products, it should focus its existing product categories in a specific market segment/geographic area. In addition, Google has innovative people and they have dynamic capabilities and core competencies to strive for continuous improvement and develop breakthrough defensive strategies. We will undertake a SWOT analysis (Refer to Exhibit F) to evaluate strength, opportunities and limitation (Weaknesses and Threats) for this alternative.CONCLUSIONIn conclude, Google is a firm that has great potential to expand its market position. However, expansion is not an easy lying-in and it takes great strategy and meticulous planning for Google to achieve its objectives. Hence Google need to adopt an open mind in conducting its businesses and practice a strategy that will benefit them in the long run.Exhibit A (Overview of PEST Analysis)Political / LegalRegulation by US and China disposalSensitive data to be leak to terrorism, such as go wrong making / mapLegal suit against Google for 3rd parties content and privacy such as Google mapPest AnalysisGoogle strategy applied scienceMaintains competitive prices with advance technologySuit the social lifestyle such as photo sharing, search trendA llow more business from all over the world to using internetEnsure technology do not overstep to unnecessary legal issuesHardware getting speciouserEconomicSurvival during 2009 financial crisisHigh focus on advertisementSeen threat as opportunity, such as crisis. Individual are more keen on job search and financial new. Google will be their priority searchSocialNo age limit deportment style changingIndividual are more educated film increasing such as addition service, photo sharing, email, storage more individual to own computer / mobile phone.Entrant miserable technology easy to replicate.No specific standard for search engine life-size customer base, Low switching costCapital requirement is tokenishNo geographic restrictionAuthority is monitoring Google activitiesSupplier LowSupplier is limitedSupplier is also competitor, such as Microsoft, AppleGoogle is heavily dependable on Microsoft and Apple OSSupplier has more control than GoogleCompetitor HighEasy to replicate shifting c ost is low or freeSupplier is also their competitor which are well informed of their productCompetitor has their own unique strengthBuyer/Customer HighCustomer lifestyle is changing rapidlySwitching cost is low or freeCustomer with all different demandsCustomer are well inform of the priceMany competitors to choose.Substitutes HighAdvertisement on traditional methodNewspapers, media, radio, search hotlineSwitching cost is lowExhibit B (Overview of Porter 5 Forces Analysis)Exhibit C (Suggested Plans for Strategic Alliances and Benefits)Alliance surrounded by Google and Microsoft Microsoft has improvise their Live search, semantic Search capability and own approach to cloud computing to compete with Googles offensive strategy in substitute products. Semantic search engines will be the biggest threat to Google as it outshines its search engine by attaining more relevant search results thus threatening its core business by building a new search engine empire.Microsoft acquired a firm i n the semantic field but the present technology has many limitations. Therefore, we recommend that Google reach a development alliance to in full develop this search engine. Google has highly capable people who are innovative, the joint effort will bury the hatch and make Semantic search a more powerful tool. With the alliance, both can incorporate this fully authentic technology into their products, creating a win-win situation.The two companies can also collaborate together in cloud clouting whereby Google can use web based Microsoft magnate (instead of Google web based software applications). Apart from having a great search engine and endless innovations, Google is still relatively new to applications that require high measuring of user interactions. Tapping onto Microsofts cosmic experiences in technologies which drive the famous Windows and blot suites, Google will undoubtedly benefit from Microsofts vast resources and gradeing. As Cloud clouting will also lead to higher risk of privacy lawsuits, the collaboration will allow development of a better security program with encoding keys which provides reliable capacity in the cloud can be injected to go on intrusions, resulting in reduced risks for both in authenticity issues.Alliance between Google and China Companies China has tight internet regulatory controls which put Chinese companies like Baidu at advantage. In addition, Chinese companies will understand local anaesthetic culture better and can create products which will appeal to the Chinese more. Hence, it will be beneficial for Google to enter into alliance with Chinese partners to have exploit knowledge on product market in order to tap on more mainland China market shares and enhance competitive standing.To start the process, we recommend that they collaborate with partners (example search engine and social media) on marketing as it will entail finding out what the china market wants and also build on knowledge with its resource market. From there, Google can customize and through their sales partners, market to whole of China in a cost effective manner. For example free download videos from the Internet are very popular in China. Perhaps, Google together with partners can make available free western Hollywood movies to China. This will attend to dramatize its video offering/advertising revenues for ads display during the video.Other than that, they can switch Google phones or other smart phones bundled with Google/Android operating system. This will help them improve their mobile search market shares, banner ads and video ads within the China market.Exhibit D (Illustration of Putting Defensive Strategies in Its post for Google)Google could revisit its strategy plan on an ongoing basis so as to improve its return on investment and position in the technology industry. Projected is the recommended strategy plan in adopting defensive strategy.Strategic AnalysisIndustry analysisTrends in the users preference, espe cially in search engine usage, advertising and China marketEnvironment forecast (internal/external)Analyzing competitors development esp. from BaiduAssessment of Google SWOT diagramMissionGoogle purposeGoogle valuesObjectives specialised targets (for example to be more innovative and creative in the search engine specialty internationally).Supporting Organizational ArrangementsStructureProcessPolicies and profilesGoogles creative/innovative personnelRewards/benefitsActivitiesStrategy (Defensive)Concept on how Google will arrange the defensive strategy to improve market positionExhibit E Bokode Imperceptible Visual Tags for Camera Based Interaction from a exceed(Data adopted from MIT Media Lab, 2009)It is a photographic camera-based interaction technology which an ordinary bicycle camera can detect small optical tags from a comparatively far distance. Consisting of a low-cost optical design whereby the tags reduces up to 3mm visible diameter, unmodified ordinary camera several me ters away can be set up to decode the identity plus relative distance and angle. Bokode use brainy binary coding to estimate the relative distance and angle to the camera and show potential for application in augmented reality and effort capture.A user who is standing right in front of a shop wants to find out information about the shop and its surroundings. Hence, he did a search by using his camera phone to tag onto an image of the shop that has a visual Bokode tag embedded on its signboard. His mobile phone that has a built-in Bokode reader enables the user to touch information in a form of indifferent directions such as providing information about restaurants nearby, hotels information, transportation guide or it says the other brand of cereal are selling at a dollar cheap at the other supermarket store This technology can works in a wide variety of ways including classrooms, public places, print advertisement, outdoorsy billboards, product packaging and labels.Exhibit F SW OT Analysis of Googles adopting Defensive StrategyStrengthInnovative and creative workforce. Workforce has strong heat in what they do and monetary value is not really an issue. Hence Google will be able to defend fast.Strong brand character so trusted by consumers. So it better for Google to build self-renunciation using existing products/services.Google leaders are young entrepreneurs hence performing fast/defensive may not be an issue to them.WeaknessesCompetitor (Baidu) has superior access to distribution channels.Innovations are relatively easy to be imitated so good defensive tools might be duplicated.Google has a news report of having offensive strategies which can cause the company to lose large amount of revenues.Google has too many services in order to dominate search marketing and be ahead of others to gain competitive advantage but some of these services are not widely used. Hence, being defensive they have to be more focus in developing the overcompensate defensive tool.OpportunitiesMassive human resource in China to fully develop good defensive strategy (ability to tap on Chinese creative minds to enhance Google research base).Strategic alliances to join forces (Defensive) instead of fleck against competitors.New product incorporation (example Bokodes) thus creating good alternative to develop its defensive strategy.ThreatsImitation is a norm in China so competitors will still be fast enough to match any defensive strategy.Uncertainty in the external environment that is beyond control therefore comprehensive defensive strategy will still backfire.Chinese users are more loyal to local company resulting in littler market share for Google (Defensive strategy in China backfires).