Google is an indisputable leader in the Internet search industry. The company’s mission is to organize the world’s information and provide its customers with top quality assistance and services.

According to the company’s financial reports, it demonstrates strong financial performance. Google reported a revenue of US$ 66,001 million in 2014 with an annual growth of 18,9% comparing to 2013 (Google Inc. n.p.). The financial analysis data of Google shows the trend to good solvency and liquidity position, which will help the company to face the challenges in the future. Because of strong liquidity position, financial institutions will be interested in giving a loan to the company. Also, net income shows the increase of 11,8% from 2013 to 2014 (Google Inc. n.p.). Such performance helps the company to gain and sustain the shareholders confidence and trust. However, a huge debt remains the main problem of Google Inc., thus, a need to generate sufficient cash flow for debt service.

It should be noted that the competitive advantage of Google Company is its fixed costs. Fixed costs are costs that do not change when the production or sales are changing. In the case of Google Inc., it is the amount of advertising sold. For any other company, it is difficult to challenge Google without matching its expenditures. Inability of the company’s competitors to find a way to be more transformative and productive than Google adds to the company’s competitive edge. The quality of the services, infrastructure and the size of the market share also give Google a competitive advantage.

The four factors that help the company to build and hold a strong position under the conditions of strong market rivalry are quality, efficiency, innovation and customer responsiveness. Google is dedicated to the quality of the services being provided to its customers. Thus, the company hires the world’s greatest engineers that help to develop the best products. At the same time, investing in the labour force is the right approach to remain strong and competitive. Therefore, Google offers a friendly and fun work atmosphere where the employees feel comfortable and inspired. It helps them to work more efficiently. Google Inc. revolutionized technology all around the world. The company has made search easier and provides information in the real-time mode to improve people’s daily lives. Customer responsiveness helps Google to create brand loyalty. In conclusion, it can be stated that Google operates in a highly competitive market; nevertheless, it is hard for other companies to attain the success that Google enjoys. 

This article was written by Jon Jones  more my works you can see here  https://papermasters.org/