Monday, May 13, 2013

About Google and its Sources of Competitive Advantage

Google’s success over the past one-and-a-half decade has the essence of fairytale: they literally went from a small, home-based project to an enterprise that it is today. And they achieved this by a number of factors: there was innovation, dedication, no fear of failure, customer-responsiveness, quality, efficiency and soliciting the trust of all the stakeholders. No doubt that it is so popular among its users. Below, we analyze some of the many factors that we have come through regarding Google. 
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The biggest competitive advantage that Google has accrued to its credit is that it is founded by Geeks – two Stanford University PhD students who wished to sort the plethora of information on the Web according to the needs of the users, and did that – and it is also run by Geeks. Google employs such people who are motivated to think and do something out of the box: the fear of failure is never a hesitation in achieving what they intend to. And to add cherry on top of the cake, their self-belief that they are doing something exceptional which will benefit the masses really gets them going

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Another advantage is the flattened hierarchy at Google. Previously, Google did employ managers to manage the engineers, but their attitude of overriding the ideas of engineers was really hampering Google’s path to innovation. So they were eliminated from the hierarchy and now, most of the engineers work in groups of three; leadership keeps rotating and they are aware that they will have to take initiative themselves as they are not going to be managed.

The company’s willingness to fail is yet another competitive advantage at its disposal. If engineers fail, that is considered fine. They move on to the next idea. Increasing the base of their business model is yet another advantage. The company previously associated with only searching relevant content on the Web achieved this by buying companies which analysts earlier termed as being inconsistent with their business, but with the passage of time, the move proved successful for Google and its business model base expanded in the course of action. Also, the high-performance and cost-effective technology that it possesses is the best among its peers as they can scale to extreme workloads. And its involvement into international markets has provided it an edge over its competitors.

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