Strategic Groups Essay Example | Topics and Well Written Essays - 1500 words

Strategic Groups - Essay Example This paper aims at discussing the rivalry that strategic groups face and how they aim at neutralizing the competition. The paper discusses the rivalry between Google Incorporation and other rivalry groups that offer similar services and products. Google and Microsoft have been on market command wars while Samsung and Apple have also been battling it on the mobile phone productions. Google in particular has several strategic advantages that have enabled it to emerge the strongest internet provider in the world. Google has been able to employ strategies such as product and service diversity that has provides the company with greater sales. Google also possess one of the largest geographic coverage in the world. In addition to this, Google has several numbers of market segments that it is serving. Apart from internet production, the company also provides image and graphic production software. The company also provides mobile phone applications in addition to mobile phone production. The company also enjoys good distribution channels that provide it with the best strategic advantages. The extent at which Google brands its product cannot be compared to other rival companies. This is because the company is bale to brand and market its products cheaply and efficiently through the internet that the company owns. The degree of vertical market integration in Google Company is also very efficient. Product and pricing policies for the company has also been superb enabling the company to enjoy wider markets and retain most of their loyal companies (Porter, 1980). On the other hand, Microsoft Incorporation enjoys the best PC software producer in the World. It is estimated that almost 90% of the PC’s in the world uses Microsoft Software. Analysts argue that without Microsoft, Google would find no base for their supplies since the internet utilizes Microsoft applications in computers. Yahoo Incorporation is also another strategic group of company that offers similar ser vices like Google. The rivalry has led to the attempt of Google trying to purchase Yahoo. Background Information and Strategic Benefits Larry Page and Sergey Brin studied at Stanford University and own 16% of the total company’s shares formed Google Inc. they are the founders of Google Inc. The company came into existence in 1998 as a private company but later went public in 2004 when the company invited other shareholders into the company. The two friends invited their fellow student Craig Silverstein who also studied computer science as their first employee. The company runs on a vision of organizing all the information in the world and making it readily available for all the users in the world. The company also runs on a slogan â€Å"don’t be evil† which has helped it in its growth (Why is Google so great 2007). The Company’s history dates back in 1998 when Larry and Sergey decided to upgrade Backrub a search engine that was operating on Stanford sever s for almost more than one year. The two friends decided to change the name from Backrub to Google which is a mathematical term that is used in referring 1 then the digit is followed by 100 zero digits. Their decision to land on the term was later used in forming the vision. The number of zeros signifies infinity, which means looking for all the world information, which is almost impossible. The same year the company received a donation of $100,000 from Andy Bechtolsheim who is now the co-founder of the company. In December, the same year the company was recognized as one of the best 100 websites in the world and it had an efficient way of providing feedback to its users. In 1999, the company improved its employees to eight and therefore had to shift into a larger working place. The following year