Innovation Strategy at google

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Innovation Strategy at google
Innovation Strategy at Google Inc
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According to Rothaermel (2015), Innovation has been defined as the process of implementing new ideas that help an organization to grow. The main aim of many businesses it to make profits by exploiting an idea that is beneficial to its clients. However clients grow tired of the same idea or service being delivered the same way. In a fast growing world, change is constant. Businesses have to continually develop their offerings to maintain and attract new customers.
History of the Organization
Founded in 1998, google tops the companies that have evolved over time to become one of the biggest companies in the world. Its products serve millions of individuals and corporations around the world. It has grown from a simple search engine developed by students to become a technology company with a specialization in internet services and devices (Steiber & Alange, 2013)
The organization has grown from a simple search engine and has acquired other companies and developed partnerships with strategic partners. Most of this innovation was in response to emerging trends and a growth in internet demand. This innovation has enabled google to set the trend for emerging technologies thereby anticipating the needs of the clients and preparing to serve them. The growth of the internet giant has rooted from developments to the initial products and services it had thereby adding value to the company, and by extension, its shareholders.
Innovation has also enabled the company to offer a unique selling point. The organization needed to place itself at a vantage point, offering a unique and unparalleled product offering. By development of its core product, the search engine, and adding other value services, like google mail and android technology to its product list, the company has made itself enviable. These added services have reduced the reliance of the organization to the search engine and most importantly have generated revenues.
Core elements for innovation strategy
Strategic analysis
Innovation space
Is there need for innovation at google? Does the organization have the required capacities to handle innovation? These are the questions that try to explain how the organization has created a space that allows for innovation to flourish. First, the organization has become a market leader. This means that is it able to shape and guide discussions around the technology advancements. With its broad infrastructure and systems already set up, it finds little difficulty in management of innovative ideas.
Being a large organization, it has the resources that enables it to invest in research and development of new ideas such as driverless cars. These continue to brand the organization and cement its position at the top.
Strengths weaknesses opportunities and threats
The primary markets for the internet giant are search engine optimization and online advertising. The company does however have many other products and services that it does offer. All these products culminate in asserting the organizations dominance as a leader in internet searches, content sharing and device operating systems.
The products of the company are patented. This is a strength that ensures the organization remains relevant for a long time. This will also enable the organization to stay above the competition and be a market leader. The presence of the organization in over 40 countries emphasizes its market presence.
The dependence of the organization on the internet is a weakness. The core business of the organization as indicated is online advertising and web searches. Should there be no need for such, the business will take a huge hit. This also means that the organization has to rely on third parties for infrastructure development especially in developing countries before it can roll out its products and services in those markets. The organizations lack of a physical presence also makes it susceptible to other organizations that have physical addresses such as apple (David & David, 2016).
Competitive advantage
Given the size of the organization, one might wonder what makes it so special. The company prides itself with innovative products. Some of the world’s leading brands run on google software, including the flagship Samsung Ace devices. The other myriad of google services like google documents, maps, and finance among others also give the company a position of envy.
According to comScore (2012), the organization holds over 60% of the market share. Microsoft comes a distant second with less than 20%. The final advantage that the organization has is its technology infrastructure. To be a market leader, the organization maintains undisclosed number of servers in undisclosed locations. These are highly advanced and expensive equipment and infrastructure that anchor the position of the organization at the top.
Strategic Choice
The core competencies are a combination of skills and resources that uniquely define the organization. The organizations patents on its products is the best example of this. It fulfills all the requirements of core competency by being difficult to emulate, makes a significant contribution to the performance of the end product and opens opportunities for the organization.
Strategic implementation
To implement these strategies google relies on a dedicated team of young individuals who drive the organization. The organization employs creative minds and encourages a free spirited culture, one that is needed to enhance both creativity and innovation. This team continues to develop existing and new products for the organization and continues to ensure that the organization is relevant even in changing times.
Although the organization has had great success, it is faced with constant ethical concerns. The issue of pricing of the products and a broad indifference to clients ethical apprehensions.
Different levels of strategy
Lin, Wong & Ho, (2014) state that a strategic plan can be implemented at three different levels; corporate business or functional.
At the corporate level, the strategy involves changes on organizational objectives and coordination of business units including acquisitions and mergers. Google has bought several organizations and continues to advance its objectives by periodically updating and revising where necessary.
At the business level, which includes the strategic business units, the organization continues to develop its product offerings. These includes phasing out older technologies and developing new ones. For instance, a product known as market was phased out and is now called google play.
Functional level strategy implementation is quite restricted and only applies to specific fields. These includes allocation of the organizations resources to ensure that each business unit contributes to the achievement of organizational objectives
Importance of dynamic capability and the role of innovation
The dynamic capability of an organization is the ability of the organization to adapt to its resources and harness the benefits of the opportunities before it. Google has positioned itself as a leader in the market with the ability to dictate and influence the direction of innovation. Google has also developed a good organizational culture that nurtures leaders from its own staff. The culture also provides an ambient working environment that enables the employees to be creative and innovative.
The organization is also known for its 80-20 model that allows the developers to work on existing projects 80% of the time and allows 20% of the time for original product and personal development (David & David, 2016).
For a growing organization, innovation is key. Google is growing, despite being a market leader and an internet giant. Innovation also plays different roles at different stages. For starters it creates awareness of the organization and demonstrates the ability of the organization. For middle level organization it asserts the position and quest for growth. For large organization it makes the foundation that holds it in place as a leader.

Company – Google. (n.d.). Retrieved June 23, 2016, from
David, F., & David, F. R. (2016). Strategic Management: A Competitive Advantage Approach, Concepts and Cases.
Lin, Y. H., Wong, P. K., & Ho, Y. P. (2014, January). Technology-Sourcing Portfolio, Product Innovation Strategy, and New Venture Performance. InAcademy of Management Proceedings (Vol. 2014, No. 1, p. 13143). Academy of Management.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill.
Steiber, A., & Alänge, S. (2013). A corporate system for continuous innovation: the case of Google Inc. European Journal of Innovation Management, 16(2), 243-264.
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