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Strategy Implementation

SUBMITTED TO

Dr. Harsh Mishra

Management Development InstituteGurgaon 122001

By

Rohan Pai (10PGHR29)


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Acknowledgements

I would like to thank Prof. Harsh Mishra for being such a strategic guide

throughout the strategy formulation and strategy implementation courses.

Sir was a constant source of inspiration in doing our readings and projects.

His lectures and discussions helped us think strategically and would be

useful for us in the future as well.

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Contents

Acknowledgements .................................................................................................... 2

Contents ..................................................................................................................... 3

Introduction ................................................................................................................ 4

Key Points of Google Strategy Formulation ................................................................ 4

Strategic Recommendation ........................................................................................ 5

Application of Android based Internet of Things ........................................................ 5

7-S analysis for Google Strategy Implementation ....................................................... 7

Systems and Controls ............................................................................................... 10

Action Plan for Google .............................................................................................. 11

Conclusion ................................................................................................................ 12

Challenges & Suggestions ........................................................................................ 12

References ................................................................................................................ 13

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Introduction

Google Inc. is a public Internet search engine that is popularly used world

over.

In addition to its core search engine, Google has expanded its portfolio both

through internal development and external acquisitions and joint ventures

to include some of the most popular and widely used products and services

like Google Ads, Google Analytics, Gmail, Orkut, YouTube, Google Earth,

Maps, Google Chrome, Picasa, Google Talk, Google TV, Google Docs, Google

Translate, Google Apps, Google Books,

We will briefly discuss the suggested strategy formulation for Google and

then discuss the strategy implementation.

Key Points ofGoogle Strategy Formulation

In addition to its niche focus in web search engine, Google has created a

strategic fit over the long run by adding more and more upcoming and

differentiated web-based data and technology services. Google has made

the trade-off of revenue generation with cost leadership by providing free

and low cost services that are world class. Thus the Google strategy is hybrid

with Niche/Focus, Differentiation and Cost Leadership.

Google has been concentrating on developing Core Products that will give itthe strategic advantage. For example it has moved from a browser plug-in

for Google search to its own browser Chrome, since then, Internet Explorer

has been struggling to keep up its market share. It has entered the portable

device domain with introduction of the Android mobile OS. The OS being a

core product will give Google a lot of control in the mobile market. CEO Eric

Schmidt said in a statement. "Our vision is that the powerful platform we're

unveiling will power thousands of different phone models."

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http://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Internet_searchhttp://en.wikipedia.org/wiki/AdWordshttp://en.wikipedia.org/wiki/Google_Analyticshttp://en.wikipedia.org/wiki/Gmailhttp://en.wikipedia.org/wiki/Google_Talkhttp://en.wikipedia.org/wiki/Internet_searchhttp://en.wikipedia.org/wiki/AdWordshttp://en.wikipedia.org/wiki/Google_Analyticshttp://en.wikipedia.org/wiki/Gmailhttp://en.wikipedia.org/wiki/Google_Talkhttp://en.wikipedia.org/wiki/Public_company


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Strategic Recommendation

Googles strategy should be to provide data management and

communication based services for all kind of devices. By this we expand the

scope of devices that would be on a network from PCs, laptops and mobiles

to all kind of objects and devices like TVs, PDAs, vehicles, industrial anddomestic machinery, security systems, medical systems, transportation

systems, the power grid, help kiosks, etc.

The recommendation relates to smart objects that would be part of the

Internet of Things. The smart objects would be what those the world has

been using so far, but in addition they will be on the Internet of Things, have

storage and processing capacities and would be running on services and

software provided by Google.

Googles Android OS would play an important role. Android being opensource software, is setting portable device standards. Standardization is

required because when there are a variety of objects available, it would be

difficult for software applications to be developed for them unless they is

some sort of standardization in terms of the OS and the protocols which it

will run. It would be just like how Windows became a standard for personal

computers and all the applications were being developed for it, same should

be for Android as an OS for portable devices and smart objects. Also storing,

retrieving, searching, manipulating and sharing data and information which

is Googles specialty, would be an important part of this.

Application of Android based Internet of Things

It would provide possibilities for many day to day domestic, industrial and

personal activities to be automated or simplified.

Consider scenario where the vehicles supporting Google android and

associated applications would be able to provide real time information

on locations, maps, landmarks, restaurants, malls, traffic information,

accident zones/accidents and slow down vehicle automatically,

alternate routes, distance and time estimates, etc.

Consider portable devices that would be able to schedule/reschedule

meetings/travel bookings by communicating with other devices based

on your personal schedule, with or without your intervention.

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Such market popularity would make it possible for Google to guide

standardization efforts in the portable device industry towards the long term

goal we have suggested for Google.

Fig Android version share

Nokias recent struggle to retain its market has been because it hasnt

adopted the ever growing Android OS. Nokia CEO Stephen Elop said that

Android was an option but they ultimately chose Microsoft because they felt

that if all the device providers provided Android Ecosystem then how would

they differentiate? So in order to be able to differentiate, both the hardware

and software level differentiation will be required which might potentially

mean that the devices supporting Android wont be able to support Windows

OS and Nokia wont be able to support Android.

7-S analysis for Google Strategy Implementation

Let us study the implications of our strategy on the other 6-S

Fig. McKinsey 7-S Framework

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The most important S would be Staff and Skills. In order to implement the

strategy, it would require a sound team of technical and management

professionals. An isolated effort might not be enough because it wouldrequire all the functions from marketing to IT to HR to R&D to make it

happen. Neither would the technical aspects for such innovative applications

be simple nor the product management or marketing. Hence it would be

extremely important to have the right mix of Skills and Staff both from

outside as well as developed within the organization. Support from outside

would be from the open-source community and the application developers

interested in the project.

Shared values, Structure and Systems would clearly have to go beyond

organizational boundaries. It would be a co-operative effort of Google, theLinux community, the Open-source community, the hardware community

and the device manufacturers.

Below are the alliances made and in blue are those we suggest should be

made

Google Alliance

with

Status Purpose Products

T-Mobile, Sprint

Nextel, NTTDocomo, China

Mobile, Telefonica,

Telecom Italia,

Motorola,

Samsung, HTC,

Open

HandsetAlliance

Android OS, middleware

and application support forhandsets

Smart

phones

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Qualcomm, Intel

Intel, Sony,

Logitech

Launched in

US

Internet based interactive

entertainment and

networking solution

Smart TV

Dell Launched in

UK

Device sized between the

Smart phone and Netbook

Tablet

IBM Active Platform for development

of Android applications

Eclipse

Android

SDK

Linux community In state of

friction,

resolution

scheduled atAndroid

Builders

Summit this

month

Bring together OEMs,

device manufacturers,

integrators, custom

builders, and the Androidand Linux kernel developer

communities

Android

Kernel and

Middleware

to supporta host of

smart

devices

ITU No alliance

yet

ITU is undertaking

standardization efforts for

Internet of things.

All types of

Smart

Objects

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Systems and Controls

Unlike the traditional Google search engine and services, this strategy

requires that a lot of alliances and JVs be undertaken because the Linux

kernel developers, system software developers, the application developers,

integrators, designers, device manufacturers, chip manufacturers and otherhardware manufacturers are also involved. Hence, it would be vital to have

appropriate Human and Information Resourcing systems in place as to how

much human capital is required within Google, both technical, managerial

and project coordinators and how the information is shared between them to

create desirable products and services. Moreover, earlier Google hasnt had

expertise with system software like OS, so it is necessary that Google

chooses the right kind of personnel for further developing its capabilities.

Also with thousands of applications being developed by hundreds of

developers and hundreds devices using Android, it is necessary to have

proper systems in place both for the organizational development as well asfor the information sharing.

Similarly, how much capital needs to be employed and by which of the

partners is critical to the success of the joint ventures.

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Appropriate controls need to be employed such that optimum utilization of

resources take place but these should not restrict the innovation taking

place. Rather the controls should be used to ensure that resources remain

focused.

As far as product development is concerned, there is a lot happening.However the challenge to integrate the myriad of electronic and electro-

mechanical devices over the internet of things needs standardization and

collective effort (what has been suggested in blue in the list of alliance

tables), only then can enough value can be brought to the consumers.

The demand management and service fulfillment will also need to be kept in

mind as the Android OS becomes a part of myriad of widely used devices.

The systems and devices that could be supported by Android in the future

would be vehicle controls and navigation dev ices, industry sensors and

actuators used for controlling machines, traffic signals, neon displays,climate and environment sensors, security and supports systems, power

equipment, robots, household equipment like TVs, washing machines,

geysers, ACs, all inter-connected and smart, to give you a unique living

experience.

Action Plan for Google

Year Span Action Caution to Observe

2 yrs Establish joint effortswith Linux and open-

source community to

develop the Android

Ecosystem

Do not lose competency tocome up with innovative

products and services while

collaborating

2 yrs Broaden the range

products supporting

Android beyond mobile

phones

Over-emphasis on the profitable

mobile sector may lead to

neglect of a variety of other

potential products

5 yrs Collaborate with ITU to

develop standards and

protocols for telephony

and IP based devices

In process of supporting a

variety of devices, Google may

neglect the standardization

effort that would be critical for

variety of devices to be able to

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communicate to each other

10 yrs Target to make atleast

4 out of 5 of our

suggested applications

( and the Internet ofthings ) a reality

Not only implementation but

also marketing of these

applications is important to

create a demand by addingvalue to the customers

Conclusion

The Google strategy in the future would be to broaden the scope of products

and services to a variety of smart objects that would make the Internet of

Things possible. Google will have to enter into a variety of alliances in order

to make this possible. There are certain challenges that need to be overcome

in the process.

Challenges & Suggestions

The Android market is a place where third party applications are made

available for users. There have been many reported viruses and malware in

the Android market. So security remains an issue to be handled. The Android

market should be closely monitored for security of applications uploaded andonly then it should be made public.

The variety of manufacturers and hardware make standardization efforts

necessary if the Internet of Things has to be made a reality. Google should

start the standardization effort early so that the devices of the future are

compliant and able to communicate with each other to provide more

automation and enhanced functionalities that are not possible today.

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References

http://edigitales.org/now-android-the-worlds-largest-platform-and-then-symbian/

http://en.wikipedia.org/wiki/Android_(operating_system)

http://en.wikipedia.org/wiki/Comparison_of_Android_devices

Hammersmith group, NY. The Internet of Things: Networked objects and smart devices.

http://www.businessworld.in/bw/2011_02_18_The_Next_Spurt.html

http://www.itu.int/itunews/manager/display.asp?

lang=en&year=2005&issue=09&ipage=things&ext=html

http://www.google.com/intl/en/press/pressrel/20071105_mobile_open.html

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http://edigitales.org/now-android-the-worlds-largest-platform-and-then-symbian/http://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Comparison_of_Android_deviceshttp://www.businessworld.in/bw/2011_02_18_The_Next_Spurt.htmlhttp://www.itu.int/itunews/manager/display.asp?lang=en&year=2005&issue=09&ipage=things&ext=htmlhttp://www.itu.int/itunews/manager/display.asp?lang=en&year=2005&issue=09&ipage=things&ext=htmlhttp://www.google.com/intl/en/press/pressrel/20071105_mobile_open.htmlhttp://edigitales.org/now-android-the-worlds-largest-platform-and-then-symbian/http://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Comparison_of_Android_deviceshttp://www.businessworld.in/bw/2011_02_18_The_Next_Spurt.htmlhttp://www.itu.int/itunews/manager/display.asp?lang=en&year=2005&issue=09&ipage=things&ext=htmlhttp://www.itu.int/itunews/manager/display.asp?lang=en&year=2005&issue=09&ipage=things&ext=htmlhttp://www.google.com/intl/en/press/pressrel/20071105_mobile_open.html

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