Case study Youtube
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YouTube pg563
18-18 Define YouTube in terms of competitive advantage.
Youtube, as the main video gushing site, produces the most income for Google. It does as
such by having the option to convey more worth and fulfilment to target shoppers than
contenders, for example, Netflix and Amazon Prime do. Its greatest upper hand is its Original
substance, highlighting YouTubers, for example, PewDiePie, which make its recordings
enrapturing and special. Youtube likewise signs its big names to star in top-quality projects
which makes its recordings selective to Youtube crowd and Youtube Red supporters.
Moreover, Youtube has made the main move to dispatch a Music-Only portable application
to permit clients to stream recordings and music disconnected. This enormously catches
customer esteems in a developing computerized condition.
Youtube, as the leading video streaming site, generates the most revenue for Google. It does
so by being able to deliver more value and satisfaction to target consumers than competitors
such as Netflix and Amazon Prime do. Its biggest competitive advantage is its Original
content, featuringYoutubers such as PewDiePie that make its videos captivating and unique.
Youtube also signs its celebrities to star in top-quality programs which makes its videos
exclusive to Youtube audience and Youtube Red subscribers. In addition, Youtube has taken
a leading step to launch a Music-Only mobile app to allow users stream videos and music
offline. This greatly captures consumer values in a growing digital environment.
18-19 of all Google’s competitors, which ones should it attack? Which ones should it avoid?
Netflix has grown rapidly with 75 million subscribers paying monthly for its outsourced
videos. It also commands more than one-third of all internet traffic during weeknights. To
make competition more intense, it is now producing its original content and starring famous
comedians just like what Youtube does. In this case, Youtube should avoid Netflix and
discover a new “blue ocean” by analysing customer value. It should determine important
attributes and evaluate its performance compared to its competitors. In this way, Youtube can
better differentiate itself by producing exclusive values that consumers cannot seek from its
competitors to avoid the “red ocean” in which competitors compete head to head. YouTube can attack weaker or growing competitors such as Facebook to increase the
probability of “winning” under low cost. Since a mature company like Netflix is unrealistic,
or bloody, to attack, Youtube should focus on attacking small competitors to prevent them
from becoming another matured competitor.
18-20 which basic competitive strategy does Google follow?
Youtube, under Google, follows mainly the differentiation
and overall cost leadership
strategies
. Youtube has a unique status with its Original videos (starring celebrities) and ease
of access. In addition, Youtube also incurs relatively lower expenses than competitors do.
Most Youtube videos are free to watch and upload. Its uniqueness captures a large audience
base and film/music companies would want to launch their videos/music on Youtube to
increase popularity. With so much loyal audience, business would want to advertise on
Youtube helping Google generate more revenue. Youtube did not need to outsource videos.
Instead, it encourages people to produce their own videos and companies to upload their
videos. This beneficial cycle repeats, making Youtube cost-efficient.
This is referencing Michael Porter’s three winning strategies (overall cost leadership, differentiation, and focus), as well as Treacy
and Wiersema’s three value disciplines
This is referencing Michael Porter’s three winning strategies (overall cost leadership,
differentiation, and focus), as well as Treacy and Wiersema’s three value disciplines
(operational excellence, product leadership, and customer intimacy)
18-21
how would you classify Google in terms of competitive position? Why?
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