Today, the global arena is offering numerous opportunities in every industry. Entering the market, introducing new products, or deciding on the development strategy are the essential steps of every business’s success. The market followers gain the advantage of being in the so-called “free-rider position” because they do not carry the costs connected to pioneering works (Linde and Stock, 2011, p. 373). Various companies that are considered to be the market leaders in the contemporary world started their activities as market followers, based on the existing organizations or concepts, and Google is an example.
First, it is crucial to understand why Google can be referred to as a market follower. Before introducing Google, Yahoo search engine already existed in the market, which gave the company the second-mover advantage and the ability to provide higher product and service quality (Linde and Stock, 2011). One can say that although Google is a leading organization setting trends and introducing new products, such as cloud storage or calendar software, it originated taking an existing concept as a foundation for its operations. Still, the company managed to create new features, design higher customer value, and, although there was a competition at that time, could transform from the market follower to the leader.
The next significant step is understanding the process of value proposition and delivery to the end-users. Google is a global search engine provider that develops various Internet-based services. Its activities are based on providing value to customers from different segments, including Internet users or online marketers (Payne et al., 2017). Thus, the company operates in both business to business and business to customer markets, which implies the necessity of choosing the modifications in use delivery strategies. The vital steps involve building an understanding, formulating the tactic, designing customer value, communicating and delivering it, and managing the life cycle (Institute for the Study of Business Markets, n. d.). Thus, for every proposed product or service, Google first ensures that the target audience is elaborating on the offered usefulness and designs techniques that it will utilize to bring maximum worth for the customers. Further, the business works on the practical ways of delivering the value, sharing it with the end-users, and analyzing the effectiveness of the integrated strategies.
It is possible to say that Google is investing considerable resources in developing unique products like virtual robot assistants or computer glasses and making its services efficient and influential. For instance, the introduction of Google Maps, or Google Drive services adds value to the customers, because they receive additional possibilities for their activities on the Internet. At this point, it is curious to turn to the blockchain concept that is gradually integrating various industries and aims to solve the issues with data safety and control. Blockchain is “an open, distributed ledger that can record transactions efficiently and in a verifiable and permanent way” (Iansiti and Lakhani, 2017). Blockchain technology can become a revolutionary idea that will shape business operations around the globe and introduce new opportunities for companies.
It is critical to evaluate the potential influence that blockchain might have if Google implements it in its services and operations. According to the framework, suggested by Iantsiti and Lakhani (2017), the dimensions that affect how a particular technology is evolving are novelty and complexity. Thus, different blockchain applications’ adaptation and continuation of use will depend on how new the idea is and how multifaceted its features are. The framework includes four areas, which are single-use, localization, substitution, and transformation (Iansiti and Lakhabi, 2017). It is challenging to identify the quadrant, in which Google’s services are applied because it offers a wide range of different possibilities. The current integration of new ideas connected to Google’s application implies a relatively high level of novelty and a moderately high level of complexity. Hence, the adoption of blockchain technology for Google’s services can fall under the category of transformation, which, if prosperous, can bring substantial benefits and changes.
Although Google started as a market-follower at a particular stage, it is now one of the leading companies in Internet technologies, and the strategies it implements will have a robust impact on other parties. Recent news revealed that Google is planning to utilize blockchain, and one of the blockchain companies partnered with Google Cloud (Johnson, 2020). It is a crucial step for the company because it is essential to continue delivering value and facilitating the use of the offered products. Google strives to extend its value proposition to a separate segment of its customers’ base and bring new possibilities for the world of efficient use of Internet opportunities.
Curiously, Theta, the company that Google started the collaboration with, came up with a decentralized system that can store and transfer data and content in small chunks through “the extreme edges of the network” (Johnson, 2020). Therefore, Google aims to integrate the newest blockchain technology to bring its decentralization and value proposition to a new level. In conclusion, adopting new technology solutions requires precise attention and rigid strategies to achieve the best benefits and generate the most influential concepts.
Reference List
Iansiti, M. and Lakhani. K. R. (2017) The truth about blockchain. Harvard Business Review. Web.
Institute for the Study of Business Markets. (no date) Value delivery framework. Web.
Johnson, C. (2020) Google goes blockchain? New deal opens a door to crypto. Web.
Linde, F. and Stock, W.G. (2011) Information markets: a strategic guideline for the I-commerce. New York: Walter de Gruyter.
Payne, A., Frow, P. and Eggert, A. (2017) ‘The customer value proposition: evolution, development, and application in marketing.’ Journal of the Academy of Marketing Science, 45(4) pp. 467-489.
