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(solution) 1 Running head: Innovation and Competitive Advantage: Changing

Resources: Page 109 of Managing Innovation and Entrepreneurship, Ch. 6 and the organization you selected in the Week 2 Individual Assignment (see attachment).

Write a 1,200- to 1,400-word paper using the same organization you selected in Week 2, and include the following:

Apply the five key elements of design thinking to analyze the organization's effectiveness in design thinking and innovation.

Evaluate where the organization excels in design thinking.

Detail where the organization needs improvement. 

Make specific recommendations that the organization can undertake to improve design thinking and innovation.

1 Running head: Innovation and Competitive Advantage: Changing Environments Innovation and Competitive Advantage: Changing Environments


Chris Norton


University of Phoenix


Innovative and Creative Business Thinking




Professor Shufeng Huang


October 3, 2016 Google Inc. is a unique company, considering that they have all the three elements


needed to maintain a competitive advantage in the industry. It has appropriate economies of


scale; it enjoys customer captivity as well as cost advantages. Moreover, Google expedites


multiple manifestations of all the categories of competitive advantage. For instance, it achieves


the economies of scale by the network effects, the relative size as well as the fixed cost. Looking


at the customer captivity, Google has gained the customer loyalty of the consumers as well as the 2 Running head: Innovation and Competitive Advantage: Changing Environments


advertisers because of its switching costs habit. It equivalently secures numerous cost advantages


by having a learning culture as well as proprietary technology. (Google Apps, 2016)


The Organizational Leadership Philosophy on Innovation


Google?s leadership is based on a culture that values innovation. In fact, to them,


innovation is the most paramount organizational objective. It has an open innovation style


whereby all the employees are involved in the innovation culture. The innovation is not just a


managers? affair. At Google, the innovation is not a responsibility given to one department or a


particular group of elite cadre personalities. Instead, innovation is deemed as everyone?s


responsibility. The employees are always encouraged to be innovative and find innovative


solutions to any problems they encounter in their duties. Google stands on the culture that


innovation is not about perfection; rather it is about improvement. Both the new as well as the


improved products reach the consumers as soon as they are produced. Hence they use the user


feedback to improve on what was not right and I the progress they keep improving the quality of


their products.


Activities to Sustain Competitive Advantage within its Industry.


Google has managed to maintain a sustainable competitive edge throughout the years


because it scores highly in the production of unique products, high-value products, low


imitability as well as low probability of substitutability. Google manages to gain consumer


loyalty because they provide their users with prompt and relevant websites when they search for


information. They have since obtained the largest market share in the search industry. Their


product is a rare commodity.


Also, the technologies that base the performance advantages of Google Inc. have made it


impossible for their competitors in the industry to replicate. For example, they have crawler


programs which search and download pages to Google center automatically. Thus it allows


Google to have continuous improvement and maintain a competitive advantage over their 3 Running head: Innovation and Competitive Advantage: Changing Environments


competitors. Also, their high R&D resources also play a critical role in ensuring that Google


stays forefront in innovation as well as in maintaining the economies of scale (,




Google also has indexer programs that organize all the downloaded material into their


databases .they highly technological data centres. Hence the resources they own give them an


upper hand when compared to other companies in the search industry. Also, Google has managed


to maintain a high level of customer loyalty through the years. Their quality and unique product


have gained the consumers? receptiveness such that most users would prefer Google to other


alternative search engines. Its large customer base thus attracts more revenues and reduces the


unit costs used in infrastructure, promotion, and management.


Also, the organization has a ubiquitous search engine; it gains from some network effects.


For instance, new users tend to learn from Google before they get to be aware of the


other search engines. Another factor is its rapid advertising. Their advertising is determined by


the responses of the users. Hence they keep improving the algorithms such that they have


steadily increasing click rates.


Initiatives for Long-Term Competitive Advantage


Google Inc. invests highly in research. They research and try to develop everything that


affects their consumers ranging from robots, to clean energy. They take their time to establish


what the world is using now and where it may move to in future. Their R&D initiatives are


focused on making life easier for their consumers. For instance, as at now, Google reportedly has


a secret division which they have named Google X. the division has an enclosed lab that has


robots operating. They are trying to build robots that can perform any tasks in the home and


workplace environments. For instance, a robot that would be able to make coffee or office tasks


like making photocopies.


Also, Google has done extensive research on improving transport for humans. To them, a


car is not just a means of transportation, no wonder they have developed street level data to aid 4 Running head: Innovation and Competitive Advantage: Changing Environments


in giving directions. According to New York Times Magazine, Google is currently working on


developing location-based Ads that would help businesses. They are also working on developing


clean energy. This shows how much they care for the interests of their consumers. The company


has goals and is on a research path to develop renewable energy sources. The project is focused


on developing solar-engines that would be less costly as well as environmentally friendly.




Over the years Google has managed to sustain a competitive advantage over its rivals in


the industry. The company has been well able to maintain customer loyalty through continuous


improvement of their products as well as high-quality products. They enjoy economies of scale


and have relatively decreased fixed unit costs. The uniqueness of their search results and


technologies makes it difficult for their competitors to replicate their products. Also, they have a


steady innovation culture that ensures they keep improving their products. References


Google Apps. (2016). Creating a Culture of Innovation Eight Ideas that work at Google.


Retrieved from Google Apps: 5 Running head: Innovation and Competitive Advantage: Changing Environments


Hisrich, R. D., & Kearney, C. (2014). Managing Innovation and Entrepreneurship. SAGE


Publications. ( 2016, April 29). What are Google's Competitive Advantages? Retrieved from


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Sep 13, 2020





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