Google is one of the biggest companies in America, other three are Facebook, Apple, and Amazon. It is multinational technological company which specializes in the Internet and online related services. the company is involved in the operations of online advertising and marketing agency, software, search engines, cloud computing, hardware and many others. The company’s vision is to provide the best and relevant information with easy accessibility (Google, 2020).
VRIO framework is the four -component business analysis which is used for determining the business competitive potential. It is the acronym of Value, rarity, imitability and organization. the analysis deals in identifying the capabilities and resources of the company. If they are competitive and unique, they will be difficult to duplicate by rivals and company will be successful in possessing the true value of the company. Here is the detailed VRIO analysis of Google.
Value
The first component of the VRIO analysis is identifying how valuable the company is. The search engine of Google is no doubt the most valuable and best resource the company has. This has clearly developed the prestige image and increased the customer value to great extent. Google is not only the famous and widely used search engine, but it is also a good and profitable platform for the marketing of businesses. Google allows to generate revenues through advertisements. Google has witnessed immense rise in the profits every year due to advertisements. Google’s revenue generation techniques are highly valuable (Vivian, 2019).
Rarity
This component of the VRIO analysis deals with determining the rare elements of the company which other businesses or competitors are unable to provide. Google is one of the biggest company that has maintained a large product portfolio with patented technology and copyrights including hardware, software, advertising, designs, email, games, search engines, and many others. Google works hard and increase the number of patent annually. Moreover, its data-based employee management system is rare, which is not followed by any other company efficiently. Google always make sure to provide best results and more information through its search engines to consumers as compare to its rivals. Its search engine is famous for sleek and minimalistic design and most robust system (Google sites, 2020).
Imitability
This component deals with the imitability of the business strategies which are difficult to copy by the rivals. Google has vast resources and competitive advantages, which makes it difficult for the competitors to copy it. Google has the biggest processing capacity which helps the company to fulfil the business operations due to several servers and data centres across the globe. The company run on the fastest operating machines which helps it in serving the relevant pages to consumers according to their preferences. Google has innovative and unique management style which motivates employees to work with the company and witnessed the growth in staff (Vivian, 2019).
Organization
Google is one of the most organized and managed company according to its capability. The company’s IT department has amazing skills for maintaining and collecting the data. The company trained its staff and hr teams in hiring the skilled employees, promotion, and performance management. Google make sure to provide the best and motivational environment to its employees. The company works in line with its vision of making its search engines to be the best among the industry. Its latest product “Google Home” is powered by AI is a real-life example of the search engine (Smith, 2020).
Conclusion
Google is one of the biggest companies of America across the globe. The company has successfully achieved competitive advantages and enough resources which provide it an edge over all the rivals. The company has achieved all the VRIO components and work hard towards maintaining its position in the industry.
| Resources/Capabilities | V | R | I | O | |
| Technology infrastructure | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Innovative Service | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Brand Equity | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Marketing | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Google campus | ✓ | ✓ | ✓ | Temporary advantage | |
| Talented HR | ✓ | ✓ | ✓ | ✓ | Competitive parity |
References
Google, 2020. About the company. [Online], Available at: https://about.google/, [Accessed on 9th March 2020].
Google Sites, 2020. VRIO: Google. [Online], Available at: https://sites.google.com/site/admn703fbgoog/vrio-google, [Accessed on: 9th March, 2020].
Smith, R. 2020. Explaining the VRIO Framework (With A Real-Life Example). [Online], Available at: https://www.clearpointstrategy.com/vrio-framework/, [Accessed on: 9th March, 2020].
Vivian, N. 2019. Analysis of Google’s Internal & External environment. [Online], Available at: https://www.academia.edu/38679045/Analysis_of_Googles_Internal_and_External_environment, [Accessed on: 9th March, 2020].