Google uses the Resource-Based View in its strategy. In the RBV strategy, an organization can be able to have a sustained form of competitive advantage if the resources it has can fulfill particular criteria. The criteria involve having value, being rare, without substitutes and are imperfectly imitable. The acronym that is used for the features is VRIN.
Of its valuable resources, Google boasts of its employees and search engine. The search engine is the most valuable resource. It drives the advertisements through which the company makes close to $37.9 billion in total revenue. The posters account for about 96% of the total revenue that Google gets. Employees are valuable resources that the company has under its watch. They create a lively and creative environment with a culture that is important to the company and which increases the efficiency of operations. The result of this is the creation of innovative services and the tools that facilitate these services.
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Google has various rare resources through its vast pool of technology that it has patented. The patents have increased ever since Motorola Mobility as acquired in 2013. The acquisition is also responsible for the 24000 patents that the company can now boast about.
Moreover, Google has a full scale of infrastructure that is hard to imitate. Google is careful about disclosing the infrastructure it owns, but the estimates indicate that it has a data center and numerous servers. It is also tough to attempt making duplicates of Google’s success after it was founded in the 1990s when the market had fewer players with low competition.
Apart from imitating, substituting Google tends to be hard because of the clean and minimalist interface that computer users have. Through Google search, a user can retrieve information more quickly than through other means.
The RBV strategy predicts that Google has its competitive advantage because of the resources it has which are difficult to imitate or substitute. The resources put Google ahead of its competitors on the global market.
