VRIO Analysis of Google

VRIO Analysis of Google:

Brand Image:

In the technology industry, brand image is a significant source of sustainable competitive advantage. While product quality is a leading factor that affects the consumers’ perception of a brand, more factors can affect brand image. However, brand image is a decisive factor that affects consumers’ choice of products. This is also something that makes the entry of new players in the industry difficult. Apart from everything, it is the brand image that differentiates one firm from another. Google has set itself apart from the crowd of technology brands as a highly customer-oriented and innovative tech company. As a tech organization, its focus has remained on bringing products and services that make life easier for people and offer a superior customer experience level. While the role of tech in people’s daily lives has kept growing, there are several products made by Google that people use daily free of cost. Its user-friendly products and services have helped it acquire a customer-friendly image. Google remains dedicated to improving its brand image by investing in key areas, including the efficiency of its products and services, pricing, and other areas like CSR and sustainability.

R&D:

The tech industry is experiencing an intense level of competition. The big four or five players invest a large sum each year in research and development to maintain their market dominance. The technology industry is growing rapidly, with new technologies being released and digitalization continuing to gain pace worldwide. In an extremely competitive environment, growth is not possible without a continuous focus on innovation. It is a crucial factor that, apart from product differentiation, drives faster growth for technology brands. However, while investing in research and development is critical for the technology brands, it is not a sustainable source of competitive advantage, the primary reason being the aggressive focus of rivals brands on R&D. Like Google, the rival players such as Facebook, Amazon, and Microsoft also invest aggressively in research and development, Amazon has the largest R&D budget of all the brands in the industry. So, while R&D offers a temporary competitive advantage, it also requires continuous dedication and investment. Apart from continuously updating their products and services, Google's rivals are also bringing innovations to the market to grow their overall influence. As a result, Google cannot reduce its focus on innovation or risk losing market share to its competitors.

Customer Experience:

Customer experience is one of the key focus areas for technology businesses. It is a major source of popularity for them. It is why all the leading technology brands, including Google, Amazon, Facebook, and Apple, focus on delivering a superior customer experience. Several factors affect the user experience in the case of Google products. Apart from speed and accessibility, pricing and the efficiency of products and services also affect customer experience. From its browser to Gmail, advertising, and other services, including cloud services, Google has focused on delivering a superior customer experience. Since Google's apps and services deliver a superior customer experience, they are popular worldwide and enjoy a larger market share than the rivals. In the case of Google, its focus on customer experience has resulted in a sustainable competitive advantage. It is because Google’s products, including browser, advertising, search, and Android, are all leaders in their segments because of the differentiated, innovative, and overall superior customer experience that they offer. Its products are not just innovative but also faster as well as easier to access worldwide.

Product range & Market Position:

The large product range of Google is also a critical source of competitive advantage for the brand. It has brought a large range of interrelated tools and services for users worldwide, strengthening its core competitive advantage. From browser to email, search, maps, and other online services, the company offers a large range of products that can be used by individuals as well as corporate users. Google also extended its product offerings by including cloud computing products. Overall, Google offers a fuller range of services compared to other internet companies like Facebook, Amazon, or Microsoft. In this regard, Google is considered unbeatable. From search to advertising and browsing, the internet is dominated by Google products. Together, these products and services have differentiated Google from other brands, making it the largest internet industry player. The result is that Google is far ahead of all competitors in this area. Overall, by introducing a full range of internet-based services, the company has been able to gain a sustainable competitive advantage, which is bolstered by its mobile OS — Android. Its presence in mobile applications is also challenged by none else but only Apple to some extent.

Customer loyalty:

Customer loyalty depends on various factors in the technology industry, but most of all, it depends on the quality, accessibility, and pricing of products and services. To an extent, customer loyalty also depends on brand image and its reputation in the market. However, when it comes to the quality of products and services and accessibility or innovativeness, Google is ahead of its rivals in the industry. It has brought a large range of products that individual users worldwide can use without paying. Its browser, email, and maps, and more products are accessible to consumers around the world. Chrome is the fastest browser and used by the largest number of consumers worldwide. Google search is also the fastest and the most efficient search engine and therefore enjoys the largest market share. Smartphone buyers make use of the Android OS and Google Play for free.

HRM:

The human capital of a tech brand is one of its core sources of competitive advantage. The tech businesses compete aggressively for acquiring the most talented employees. Apart from paying them fat salary packages, these firms also reward them with extraordinary benefits. Since the tech industry experiences a higher employee turnover rate, the businesses employ various methods to attract and retain talent apart from paying the highest salaries in the entire industry. Google had been termed an HR leader in its initial days, and the company continued to remain the most attractive employer in the tech industry for several years. In recent years, the company's number of HR issues suddenly crept up, and Google was forced to respond to the law and other stakeholders on various points related to HRM. Apart from the allegations of sexually predatory behavior by executives, claims related to harassment also grew. While the company remains one of the most attractive employers in the tech industry, its reputation in HR has been a little diminished. Google is still facing these issues, but it is among the richest and the salaries and benefits it offers. It continues to draw applicants from ivy league colleges in large numbers.

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