External analysis and internal analysis of Google Inc. Unit


Externalanalysis and internal analysis of Google Inc.



GoogleInc. started as a research project by Sergey Brin and Larry Page whoare PhD students at Stanford University. Their research project wasnicknamed “BackRub” which was use a program to follow the linksof a webpage and then analysed all of results produced by theprogram. In 1997, Sergey and Larry registered their research programunder the domain of google.com. In 1998, Google had become anofficial private enterprise. Nowadays, Google Inc. has become aglobal technology leader which are devoting itself to unifying andcollecting the information throughout the world and make ituniversally accessible and beneficial to people. With its widespreadinvestigation on automated search algorithms and using the latesttechnological innovations, Google quickly established itself as theleading search engine on the Internet and as one of the mostrecognized brand in the world. While other search engines kept addingmore popup advertisements on their homepages, Google focused solelyon consumer satisfaction, ensuring them security and allowing them toproduce relevant results on what they are looking for. In contrast,their competitors (Yahoo, Microsoft) flood their search engines withvarious elements that, at times, become an unwanted distraction.Google has a simple user interface that boasts of classic eleganceand instantly sends a message to their user stating they are here togive you exactly what you want. In this organization report, Google’sinternal and external business environments are analyzed and theirinfluence on the firm’s strategy and performance assessed in brief.



Yahoomade entered the search engine market earlier than Google in 1995.The company competes with Google on various submarkets as shown byits product range. Other than search engine services, Yahoo offersMail, Screen, Flickr, News Digest, Sports, Fantasy Sports, Finance,Weather, Tech, My Yahoo, Messenger, and Food. Web analytics firm,StatCounter, estimates Yahoo’s search market share in the globallyto be 10.4% as of January 2015 which is an increase from last year’s7.4% (Hof, 2015). This caused a drop in Google’s market share froma high of 79.3% last year to 75.2% as of January 2015 (ibid). Thisdrop is attributed to one of most common browsers, Firefox, changingits default search engine from Google to Yahoo. However, Google isnot solely dependent on Firefox and other third party browsers as ithas its own browser, Google Chrome. Yahoo’s search engine has alsogrown in popularity as a result of its partnership with anothercompetitor Microsoft which powers its search engine.


Microsoft,just like Yahoo and Google operates in the search engine industryamong other industries. Its flagship search engine is called Bing.However, the firm is best recognized for its PC and mobile operatingsystem Windows among other software programs. As a search enginefirm, Microsoft is second to Google in terms of market share. Thesearch engine has a market share of about 19% and offers Bing Ads tocompete with Google’s Adsense (McGee 2014). Microsoft offers searchengine services in six languages compared to Google’s over 40(ibid). Both Microsoft and Google have moved to developing hardwarenotably Microsoft’s Surface and Google’s Chromebook. Thesedevices are sold preinstalled with their respective browsers andother programs as a measure to increase their market share (ibid).



Thefirm has always focused on precision, accuracy and speed as keyaspects in KM that enables it to deliver its products. This isreplicated in its core processes that enable it to deliver. As a firmthat seeks to unify global information into manageable and usefulformats available to all, the firm has incorporated this desire inits mission statement (Google, 2015).


Googlehas some of the most has advanced technological resources to help itin shape in creating new products through innovation. It relies oncomplex algorithms to power its search engine and the same to poweradvertisements through adsense. To remain ahead of the competitionand increase its product offering, the firm has made huge investmentsin R&ampD and has developed unique recruitment and KM strategies toattract the best talents. Again, the firm has employed complex datamanagement processes to identify its niche markets and market thesame to different marketers. This is best portrayed by adsene whichrelies on key word searches in choosing adverts to display (Lazeret al., 2014)..For Google Inc therefore, KM processes are not only its core productsbut also processes with the firm employed in order to innovate anddeliver unique products. The firm has developed a unique approachwhereby it sells audiences to advertisers as opposed to sellingcontent to the audiences. For Google, the customers are the audience(Frost,2014).


Closelylinked to the management philosophy is the firm’s culture. One ofthe most notable cultural aspects of the firm relevant to KM is theability of the firm to position itself in the labor market as one ofthe best employers. As a company founded by young talents, the firmclearly states that it favors ability over experience. This makesGoogle an employer who attracts talents with the most drastic,innovative and untested ideas. The firm has managed to create arelaxed organization culture that allows social networking amongemployees. This kind of environment is best suited in promoting thesharing of implicit knowledge employees in the workplace which powerscreativity and innovation. Creating such an environment is a uniqueapproach in knowledge management at the firm. Google employs this tosource implicit knowledge from employees before making such knowledgeexplicit to benefit the entire firm.


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