Google, Inc.: Searching for New Avenues for Growth

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Case Details:

Case Code : ITSY068
Case Length : 20 Pages
Period : 2010-2011
Organization: Google Inc.
Pub Date : 2012
Teaching Note : Not Available
Industry : Information Technology
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Strategic Management Formulation, Implementation, & Control, 12e

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Excerpts

Organizational DNA

Investment in Hardware Technology
A distinct facet of Google's overall strategy was its heavy investment in hardware technology that would enable its search engine process queries faster. Google felt that the faster the results showed up, the greater would be the users' tendency to stick to its search engine. This in turn, would enable Google to push more of its paid listings. It was estimated that in 2010, Google had a total of 900,000 servers.

Nurturing Innovation
During the US recession in 2008, Google's share price plummeted 35% between early 2008 and April 17, 2008 – when Google was to declare its first quarter results. Google's business was expected to contract, in sync with the economy.

IT and Systems Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

But Google came up with strong numbers, resulting in its share price rocketing up 20% on April 18. This was attributed to Google's endeavor to encourage innovation in the company, resulting in its coming out with disruptive technologies from time to time. Google's employees had to spend 20% of their time on new ventures that interested them and where they could explore new horizons. Some of Google's bellwether products evolved from this initiative...

Lines of Busines

Search
Google kept its focus on coming out with new search tools that significantly improved the search process. In early 2004, Google introduced personalized web search that let browsers filter search results according to their interests. A user could create a repository of his/her interests and use a "glider" slab that cropped up above the search results to have the results tuned to his/her pursuits. In September 2002, Google launched Google News. Google News collected headlines from 4500 online news publishers globally, clustered similar topics, and gave links to articles on these content providers...

Hosting Services

In 2004, Google launched the Google Books project, wherein it collaborated with universities globally to scan the entire stocks of their library books, and create an online data mine of these digital copies for text search. By March 2011, 12 million books had been scanned. Google deployed its paid ads adjacent to the search results depending upon the keywords. In 2005, the Authors Guild in USA and the Association of American Publishers sued Google alleging that it was profiting from the illicit sale of copyrighted books...

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