Chapter 7 Case Study Google

2.) What are Google's sources of competitive advantage? How does it provide value to its users?

Google's primary source of competitive advantage is its IT infrastructure. It is able to use a large number of servers spread accross the world at a low cost by using a customized version of the linux operating system. It uses other customized systems as well that allow it to simplify processing and handle larg amounts of information as well as protect the information in case a server should fail. Google's competitive advantage also includes the fact that it is spending a significantly smaller amount of money then its competitors to provide its users with far superior services. Google's advertising program also offers a competitive advantage because the technology is able to match users with the ads that they are most likely to respond to. This has allowed Google to get 70% of all search advertising. Google also may have a competitive advantage over Microsoft by offering free web-based and linux-based word processor and spreadsheet software as well as other packages that might make it possible to bypass Microsoft products all together. Google's competitive advantages provide a lot of value to the user in the form of a superior search engine that deliver the information the user is looking for quickly and easily without the user having to search through irrelevant search results. It also pairs users with ads that the user might actually find relevant to their interests rather then just being anoying. Also, Google is offering a free alternative to Microsoft based software which up to this point has has a monopoly over word processing software.

5.) How successful do you think Google will be in the future?

I think Google will continue its growth trend and success into the future. All of its competitors in the search engine arena are very far behind and would have to spend a lot of money to catch up. Google meanwhile continues to come up with new products and areas to move into. It also has a very favorable image with the consumer, everyone users Google for searching and knows its the best out there. As Google comes out with new ideas and services people will use them because they believe in Google's reputation. Google is also taking on Microsoft and offering free software equivilant to Microsoft's Microsoft works. I think as it becomes more well known and people and businesses begin to use it could really threaten the Microsoft monopoly.