Introduction
Over the years, Google, Inc. has been known as the most powerful company in line with the services and products it provides to its potential customers. The company provides a wide variety of tools which aid business of all kinds and categories to succeed on an off the web. These are the programs that have formed the backbone of Google right from the time Larry Page, the founder CEO, established the company (Nehls, 2011). However, with time, the company has extended its operations beyond provision of the web services. The major reason behind this is the strong financial position that it gained from the highly valued operations and the stable competitive power against rival companies. The recent move by the company to produce material equipment such as vehicles and televisions is one of these expansion strategies. However, the company faces strong opposition and regulatory measures that are likely to impact negatively on its business value. Some of these implications and possible solutions are discussed below.
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Potential Impacts due to the anti-trust Regulations on Google
Google has gained substantial goodwill from its customers in all the years that it has been in operation. With up to 70% market share among its competitors like Bing and Yahoo, these regulations are likely to cause loss of goodwill among the customers (Nehls, 2011). The legal issues that the company is now faced with are more likely to make potential customers withdraw from the company in preference to strong competitors. This loss of ‘value’ among customers may eventually lead to operational losses in all the transactions that the company takes part in.
Success of the cases that have been issued against Google may have long-term financial implications. This is due to misuse of time in solving the cases. The company may end up using large sums of money in compensating the other organizations that claim unfair competition from Google. These increased costs of operations will make it necessary for the company to operate on more losses.
The long-term vision of Google Company is to ensure that the entire world’s information is effectively organized and available on demand. This implies that the main business operations of Google are in line with organization of data and information over the internet as well as on other platforms. The company is likely to tread beyond its operations in the event that it embarks on the production of other equipment such as televisions and cars. This will lead to complete reorganization of the company in line with its vision, mission and to some extent, the core values.
There are legal implications that may be recommended against the company. The cases that Google has had with other companies such as FTC over unfair competition have led to numerous legal implications. In the case of FTC, for example, Google had to make it public that it would no longer take part in unfair competition against FTC (Kaplan, 2013). This negative image that the company portrays to the world large makes it necessary for all the operations of Google to be closely monitored by international legal agencies to ensure that the operations do not disobey any of the stated requirements.
Monopoly in itself is not an illegal practice. However, in the case of Google Company, it is a major platform for promotional programs over the internet. Google cars and televisions will no doubt gain stronger popularity to the customers. The competitors filing cases against monopoly and unfair competition are more likely to win these cases. This puts the company at a risky position as far as competition is concerned. In the long run, it will lose its market shares.
Recommendations
The company needs to participate in activities that are directly related to its long-term mission. In order to successfully do this, there is an opportunity for the company to fully withdraw from the production of other equipment such as cars and televisions. If it has to expand its operations, the products should not be advertised on Google platforms. By doing this, it will escape the implications that it is likely to encounter.
In addition, the company needs to clear its name from blame, especially among the potential customers. This can be done through organization of promotional programs and development of innovative relevant services that will keep customers stuck to its services. If Google has to expand its operations, it can encourage innovation and creativity among its employees so as to create new products that are still in line with its core business.
The risk of operational losses that are likely to come due to the legal issues can be avoided through proper budgeting and acquisition of competent lawyers. The company will have to defend its initiatives as a result of the consequences that may follow the contrary. Finally, Google requires a stable and workable organizational structure and strategic plan in order to effectively monitor its internal operations. This will prevent it from getting involved in other operations that are not related to its core business.
Conclusion
The company, despite being faced with numerous challenges, still has the capacity to maintain its competitive position. Google can use, but not limit itself, to the recommendations that are illustrated in the previous section to clear its name of all the legal and marketing challenges it faces. This will help it remain competitive and retain its goodwill among the customers. The financial position is also expected to improve out of these recommendations.
- Kaplan, P. (2013). Google Agrees to Change its Business Practices to Resolve FTC Competition Concerns in Markets for Devices like Smart Phones, Games and Tablts, and in Online Search. New York: Federal Trade Commission. Retrieved from http://www.ftc.gov/news-events/press-releases/2013/01/google-agrees-change-its-business-practices-resolve-ftc
- Nehls, E. F. (2011). A business analysis project on Google Inc: A market leader runing into mischief?. München: GRIN Verlag GmbH.
