Nadler Tushman Inputs Google Case Study

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Nadler Tushman Inputs

Google has a young organizational history, but that is part of what shapes its culture. The Google website was launched in 1999, just 15 years ago. Since that point, the company has done nothing but grow rapidly, and the result has been impressive. Google has come to dominant Internet traffic, and advertising, to the point where traditional advertising media often struggle. Further, Google has become a leading innovator. It has large market shares with Chrome and Android, and many of its websites as well.

Google's youth is actually a strategic asset, a key input in the Nadler Tushman Congruence Model. First, its industry is one characterized by a rapid pace of innovation. To lead that Google has adopted a different culture and organizational structure that most other companies have done. It draws on its brief history of innovation to inspire the people working at the company, and its success serves to attract the best talent in the world So this aspect of inputs is a strength for Google, even though it is a very young company.

Another category of inputs under the Nadler Tushman congruence model is the organizational strategy. Google's strategy is heavily focused on data. The company gathers an incredible amount of information about its users, and through this information it is able to produce the most refined advertising targets that exist anywhere. So Google has a differentiated product, and this differentiation means that advertising via Google has greater value to companies that advertising elsewhere, because the returns are higher.

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Essentially, Google is offering to split the difference with its customers, such that Google makes money by being the best advertiser in the world, and the customer makes money by getting the best value in advertising -- it costs a lot but the company gets a lot.

In order that these inputs are congruence with the desired outputs, Google relies on innovation for a couple of key things. The first is that innovation is a driver to new products, many of which gather more information for Google. All of the different sites that Google owns, plus Android and Chrome, gather data for Google that can then be used to sell more advertising.

In the congruence model, there are two other inputs types. First is the environment. Google actually faces a challenging environment, where is competes in an intensely competitive industry against companies that have very high levels of competency. Google has a high skill level internally, but so do its competitors. The pace of innovation is rapid, and that means that Google has little chance to compete if it cannot maintain a high pace of innovation. Companies that fall off -- Blackberry, Yahoo, etc., end up becoming uncompetitive very quickly. So the ability to keep pace with a rapid rate of innovation is a key success factor for Google.

As resources go, Google draws upon….....

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