Google currently pursues the generic business level strategy of differentiation. Google offers many unique products and services to many different kinds of customers. By offering so many distinct products and services, Google is able to achieve a competitive advantage.
The Google web search engine, the company’s most popular service, offers users a more reliable way to search. Google’s web search engine has differentiated itself from competing search engines by utilizing a patented system called PageRank. PageRank delivers search inquiries by computing a recursive score of web pages based on the weighted sum of the PageRanks of the pages linking to them. This means that relevant web pages can be …show more content…
Google also drives innovation by employing highly motivated young talent. They facilitate an environment with a lot of smart people that grow by learning from one another. Company policy has engineers spend 20 percent of their workload on projects of their choosing. Employee’s own projects delivered fifty percent of the new products and features at Google in the second half of 2005. (http://consultaglobal.wordpress.com/2007/03/31/innovation-at-google/, 2007)
Google’s design processes are also linked to the company’s rapid growth. Google uses an innovative technique that involves rapid prototyping and usability testing involving actual users. Google also launches beta versions of their upcoming products which allow users to test the products before they are released and offer feedback. Google lets users tell them what is most important to them and then Google strives to deliver it.
Pursuing a Differentiation Strategy
A company pursuing a business strategy based on differentiation frequently strives to differentiate itself along as many dimensions as possible and Google is no different.