Google and It's Innovation Strategy

1890 words 8 pages

- and how they innovate
Magdalena Krön
MSIN7013: Innovation Management
(Word count: 1321)

This essay is a discussion around Google’s innovative strategies looking at the innovation process, business model and the infrastructure they have built in order to test and deliver innovative products to their users.

Table of Contents Introduction 3 1. Brief background of Google 3 2. Why are Google Innovators? 4 2.1 Google’s Strategy of Innovation 4 2.2 Optimising Use of Technologies and Merging Services Into One Platform 5 2.3 The Google Platform 6 Conclusion 7 Bibliography 8

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2.3 The Google Platform * When releasing Google Chrome in 2008, the development of this user-friendly web browser was based on open source projects to encourage innovation. This open strategy to innovation is today widely used within technological developments and Google has through its business model managed to optimise this opportunity. Google’s products and services are free for their users and their profit comes from businesses using Google AdWords and AdSense, tools that Google integrated to give their customers the opportunity to maximise their search hits online. This enables Google to use open innovation without worrying of how to capitalise from it as the company’s revenue model is built on advertising. The reason on why Google’s business model is so successful is because they have managed to create an efficient infrastructure and a platform that users rely on and actively use, thus establishing Google as the ultimate intermediate for businesses to reach out to their target audience online. Google’s services are also flexible and can be embedded and developed by third parties e.g. Google maps are used by real estate agencies; merging of this sort is called mashups. There is an obvious value exchange in mashups as Google will reach out to a broader audience and third parties can innovate on the use of Google’s products and


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