Google is a company that offers its customers both free and commercial products. The company's core competencies include the technical and software engineering expertise as well as the ability to create tailor-made products for its users. Other competencies include the innovation culture that the company has strived to establish over the years. The company can develop breakthrough technologies by understanding their employees and what kind of environment they work best. For example, the company encourages its employees to focus on doing one thing and doing it really well. The company has also managed to create an organization structure that encourages a free flow of information from the managers to the employees and vice versa (Groysberg, Thomas and Wagnofeld 4). The organization has also hired enough managers to ensure that reports are not burdened on few managers; this enhances efficiency.
The advertising segment of the business is the largest of the company's business. The advertising services include the AdWords and AdSense, which generates 99% of the company's revenues. It's quite evident that this segment of the organization is the single most important in the organization. As a result, the company allocated 70% of its resources to the advertising division. Google's financial resources enable it to sponsor innovation by allocating adequate resources to the employees as well as treating them well. Google employees are treated to the highest standards and offered some of the best perks in the industry. The workers are provided free meals, health services and swimming pool and workout facilities (Groysberg, Thomas and Wagnofeld 6). As a result, the company can retain competent employees who are the key to driving innovation at the enterprise. This firmly establishes the company as the market leader and relatively competitive to the other companies in the business.
Groysberg, Boris, Thomas, David & Wagnofeld, Alison. Keeping Google “Googley”. HBS No. 409-039. Boston, MA: Harvard Business School Publishing, 2008. Print.