Corporate Entrepreneurship and Innovation at Google Inc Harvard Case Solution & Analysis


Network effect played an integral role in making Google a success story. Google initially started as a search engine and the sole competitor of Google was Yahoo. Driving audience towards Google was a challenging task, and that is where network effects played their role. Network effects play an important role in creating value for a product by persuading people to use it, and the more people who use the product, the more value the product can gain.

Network effect played an important role in making the internet a global phenomenon similar network effects helped Google become a global product. As a search engine, it was difficult for Google to become popular among the people, especially when people were aware of Yahoo. Google, due to its simplicity and easy to use, attracted many people, and that is how people became aware of this new methodology.

Network effect helps products to become market leaders, even if the product or a company is a new entrant. Therefore, in the success of Google, the role of network effects is essential and has a significant value. Due to network effects, the value of the company is created. In addition, Google is the most renowned word.

Since Google started as a search engine and was mostly dependent on advertising to generate revenues, therefore attracting a large audience and gaining value from them was essential and critical for the company. The relevance of the network effect in the success of the company is there because without network effects Google would not be able to create value for itself.

Establishing itself in the mind of the consumers was essential. As the company generated revenue from ads on the basis of clicks and due to that, it was dependent on people and in this scenario, the value the company has today is because of the network effects. Search engines played an important role in making the internet easy to use and to create easier for the people. Searching solely is not a winner-take-all business, but plays an important role in the overall success of the company.

Google gained acceptance as a search engine, but the major advantage was its simplicity and easy to use that differentiated Google from the other search engines. In this scenario, search became the winner-take-all business as Google did; however, Google moved ahead with its innovation and created an immense gap that is very difficult for its competitors to cover. Google’s governance structure helped the company generate money for investment, but also kept the governance with the trio that originally established the company.

The dual share policy of the company is significant as it helps the company to develop with funds available and also keep the decision making within. This is a different policy as practiced by other companies as it keeps the originator in charge and does not allow others to influence the company. On the other hand, the corporate culture of the company is also different as the company is free in establishing its rules and is aware of the new technologies and has the potential of adapting them and most importantly is ethically sound.

Google has its methods as compared to other companies that are also very important as the practices followed by Google are entirely different and give the company a different image. Talking about the organizational process the flexibility, which it provides to its employees, is very important and also a major contributor towards the success of the company.

These attributes are the major strengths of the company and give the company a competitive advantage over its competitors. Google usually follows those practices that are not common in the business fraternity or have never been practiced before. This allows the company to innovate and manage success with the passage of time.Corporate Entrepreneurship and Innovation at Google Inc Case Solution

Next Steps for Innovation

Currently, the company is initiating two very ambitious projects, which include Project Loon and Google Fiber. Both of these projects are quite innovative and attractive to attain great attribution and support from the investors however, they will be facing certain challenges as well. Project loon aims at delivering high speed internet to the remote areas around the world in order to facilitate everyone with the internet and allow them to access the world easily leveraging internet...............................

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