The Business Strategies of Google Inc and Its Effects on the Business and the Industry

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This paper illustrates that a research study conducted by Morgan Stanley pegs the total number of internet users at about 1.8 billion as of the year 2009. The number is expected to grow by about 13 percent annually on a year on year basis. The report also states that approximately 18.8 thousand minutes was spent on internet browsing by ‘netizens’ across the world. Geographically China followed by USA and India have the largest number of active internet users with the numbers growing geometrically over the years. The analysis of the strategic framework of an organization can be done by using the framework of the Generic model proposed by Michael Porter. The model states that a firm can pursue four strategies that include overall cost leadership, focus, differentiation, and differentiation focus strategies. Depending on the business and the market environment a firm can either chose one strategy or a combination of these strategies. Overall cost leadership strategy involves a strategic framework in which a business organization lowers its cost of operations and uses the cost benefits to sell products at lower prices than their competitors. Business organizations using a differentiation strategy provide a unique product or service offering that is unmatched by the competitors in the industry segment. Firms using such a strategy normally charge a premium for their uniqueness in the product or service offering and generate their core competence based on their innovations. Focus strategy involves targeting a very core and niche consumer segment and providing services that tend to cater to the very specific needs of the customers.