Describe Google's Customer Value Proposition And Profit Formula Linked To Its Business Model Case Study
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Describe Google’s customer value proposition and profit formula linked to its business model. What strategies has Google relied upon to build competitive advantage in the industry?
Google value proposition
Google business model produce revenue by its websites and advertising. In year 2014, 91.5% of revenue was generate by total advertising. The following are the main service that Google creating value. Google Adwords, it is a advertising system based in part on keywords and main source of revenue. Google Adwords offer pay-per-click advertising which is advertisers bid on certain keywords in order for their clickable ads to appear in Google search result. The AdWords program include local, national and international distribution (Davis, 2006). There was another side of the Google advertising model call Adsense. Normally
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In year 2013, Google have acquisition another 24,000 patents through Motorola Mobility.
Inimitability- Google has a large architecture of its infrastructure. It is hard to duplicate the success of Google due to the the huge advance technology, number of data central and servers worldwide.
Non-substitutability - With an integrated service of Google and its advantage of search engine, it was difficult to find a substitute to replace.
By using VRIN, it can determine that Google was sustain competitive advantage by resource that it own. These resource are difficult to substitute.
Strategies that Google to build competitive advantage
Google company pursues competitive advantage for its search engine users through differentiation with its search engine and results. In addition, we can see that Google services are well connected enabling consumers to have easy accessibility to them whenever they need to search on an information they want to know. This shows that Google has good strategic methods to advertise their products and services so consumers are always being surrounded by
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