Saturday, July 27, 2019
Examine the development and implementation of corporate strategy in a Essay
Examine the development and implementation of corporate strategy in a regulated and competitive environment - Essay Example Its YouTube services were completely blocked in China besides other services such as Picasa, blogger etc were altered to suit the regulatory environment of the country. (LaFRANIERE, 2010) Though China has emerged as one of the leading economies with the world due to its openness of trade however, it still is a central economy. The resources are virtually under the control of government and due to ideological foundations of the country, Chinese government maintains strong control over internet, media and other channels of communication. The regulatory environment of the country therefore, sometimes, compels even firms like Google to comply with its regulations in order to operate in the region. Google has also been subject to the anti-trust laws because of its monopoly over the search engine market. EU and US governments are vigorously perusing this issue to decide the fate of Google in its primary segment of the market i.e. search engine services. This paper will discuss the developm ent and implementation of corporate strategy which Google has adapted in regulated environment of China. It will also detailed out the linkages between the competition as well as regulation while at the same time discussing the same within the perspective of Porter analysis (five forces), Sun Tzu principles, organizational structure, industry segmentation structure, competition and value chain analysis. Competitive and Regulatory Environment of Google in China Google initially started as a search engine service offering internet searching services to the users without charging them anything. Initially, it competed against the search engine services of Yahoo Inc however, due to its superior design and technology; it soon surpassed all other search engine services and became the leading service provider in the world. Over the period of time, Google has diversified itself and started to offer other services like Google Maps, online video sharing service with the name of YouTube, social networking services with the name of Orkut besides offering other paid and free services. Googleââ¬â¢s competitive strategy has remained focused on the growth achieved through constant acquisition of new and promising businesses. Over the period of time, Google has not only grew organically but it has also been able to make some strategic acquisitions which added variety to its services besides offering it an opportunity to compete on many fronts. Google is now also planning to launch its own operating system for PCs whereas its operating system for touch screen mobile phones and tablet PCs has already hit the market. In this segment of the market, Google is facing competition from Apple as well as Microsoft with both the companies having their own operating system for mobile platforms. Despite such diversification, Google still remains the most dominating player in the search engine services and has developed a virtual monopoly over this market. Googleââ¬â¢s primary market w as US at the start of its services however, due to expansion of its services across the globe and very nature of internet services, Google has been subjected to different regulatory environments. In a competitive environment where competition is multi-faceted, it is critical for Google to comply with the regulatory requirements while at the same time, ensuring that it remains competitive against its major competitors. (Crofts, 2009) Since external environment affects an
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