Diversification Strategy in Internet Industry: Case of Google Inc.
Abstract
One of the growth strategies for business is to buy other businesses. Growth either may be related to main business area of firm or different fields from different sectors. This study examines the buying strategy of Google Inc. which is an important company in the internet industry with an oligopolistic structure created by a limited number of operators (Amazon, Google, Microsoft, Facebook, etc.). Between the years of 2001 and 2017, 177 acquisitions were examined. As a result of this review, it appears that Google Inc. has acquired businesses that manufacture in different technological areas. However, those acquisitions increased abilities of generating revenues from its core business. Consequently, among 177 acquisitions, constrained-related diversification model is most frequently observed strategy which is aimed to increase performance of main business.
Keywords
References
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