Discussion: Google’s Web Pages
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How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?
2. Which of the generic strategies does Lego appear to be using based on this case? Provide support for your choice.
3. Are the changes implemented by Knudstorp an indication of hypercompetition? Defend your position.
4. What advice would you give Knudstorp to keep Lego competitive, growing, and relevant?
Sources: Adapted from http://www.nytimes.com/2009/09/06/business/global/06lego.html (accessed August 21, 2015) ; Brad Wieners , “ Lego Is for Girls ” (December 19, 2011 ), 68 – 73 ; information from Lego ’ s 2012 annual report, http://www.lego.com/en‐us/aboutus/news‐ room/2013/february/annual‐result‐2012 (accessed March 29, 2015); and “Lego Case Study,” http://thelegocasestudy.com (accessed March 29, 2015).
Started in the late 1990s, Google grew rapidly to become one of the leading companies in the world. Its mission is “to organize the world ’ s information and make it universally accessible and useful.” It is operating on a simple but innovative business model of attracting Internet users to its free search services and earning revenue from targeted advertising. In the winner‐takes‐all business of Internet search, Google has captured considerably more market share than its next highest rival, Yahoo . This has turned Google ’ s Web pages into the Web ’ s most valuable real (virtual) estate. Through its two fl agship pro- grams, AdWords and AdSense, Google has capitalized on this leadership position in searching to capture the lion ’ s share in advertisement spending. AdWords enables businesses to place ads on Google and its network of publishing partners using an auction‐engine algorithm to decide which ad will appear on a given page. On the other hand, Google uses AdSense to push advertisements on publishing partners ’ Web sites targeting a specifi c audience and share ad revenue with the publishing partner. This creates a win–win situation for both advertisers and publishers; Google makes more than 90% of its revenue from ads.
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