Critically Analyze the Business Model of Silicon Valley-Marketing Assignment Sample



Critically Analyze the Business Model of Silicon Valley and Dimension Called Marketing Strategy in Relation to the Dynamics of Marketing Management

Student from USA, APA format 15 references with intext, Need Model Figures and Diagram

1500 Words







A business model defines as a plan which will focus on successful operation of business by identifying source of profit, product development, and target customer base. The success behind new generation entrepreneurs and decade old business firm has been by following strategic business models. Each business has different characteristics providing various new products or service in the market. Silicon Valley is a lucrative place for many startups who wants to grow and sustain a business. The existing companies in Silicon Valley such as Apple and Google have developed managerial competency by integrating business models to attain company’s growth prospect. This assignment will provide a brief understanding of business models followed by companies in Silicon Valley. It will also highlight the dynamics of marketing strategy of Silicon Valley in relating to marketing management.

Business model of Silicon Valley

Companies existing in Silicon Valley are technologically driven and innovative in terms of following a business model. Over the years these companies such as Apple and Google have transformed their approach in terms of different aspects of management. Successful CEOs of Silicon Valley companies have changed their traditional management style to adapt with new trend in the market. According to Morgan (2018), Silicon valley firms have developed to built qualities to attain dynamic capabilities. These capabilities consist of sensing opportunities, grasping them and transforming companies according to the opportunity. Marwick (2017) have stated that adaptability and innovation are the two key factors of business model of Silicon Valley. The company’s existing in Silicon Valley have analysed new opportunities in the market and have transformed its business approach by adapting new methodology. The business model of Silicon Valley emphasis on new technological changes.

The business model of Apple is based on disruptive value innovation. Whole business process revolves around providing innovative products in the market. The synergy between creating and capturing value has enabled them to attain success (Foss, 2017). Apple invests a huge amount in their research and development to develop successful innovative products.

Business model of Google focuses on their key partners, key resources, customer relationship, and value proposition. Google’s key partner includes their distributors, suppliers, and equipment manufacturers. They have successfully maintained professional relationship in order to support their business model. Value proposition of the company aims at creating value for its customers by providing services such as internet search, operating systems, and advertising. This value proposition of the company is based upon its mission statement which is to provide world’s information in more useful and accessible way. Customer relationship aspect of Google, business model includes facilitating dedicated teams to sales and support services. The key resources of Google includes its data servers and it infrastructure. They also focus on their human resource by providing them to take participation in making strategies and plans.

Marketing strategy of silicon valley

Marketing strategy defines as one aspect of business plan which outlines all the necessary steps to be taken to attract customers for purchasing products or services. Silicon valley is known for its technology and innovation. According to Wonglimpiyarat (2016) with shift in technological aspect of a business the companies in silicon valley have changed their approach to formulate marketing strategies. The following will discuss about the marketing strategies used by silicon valley companies.

  • Multi channel marketing:

Multi channel marketing is needed to reach out to more customer to provide information about the new product or service. Silicon valley companies uses multi channel marketing strategy to build relationship with customers (Cacciolatti, L., & Lee, S. H., 2016) . They have taken the advantage of technology to build company brand and to increase the market position. The companies such as apple and google have gone with the approach of doing multi channel inbound marketing. They find this approach more efficient to engage customers by conducting marketing activities such as search ads, industry content, blogging, and sponsored posts.

  • Strategic marketing Campaign:

Marketing department of silicon valley companies are using strategic marketing campaign by keeping the content very simple. For many people technology is a unknown language and they want the product feature to be communicated in a very simple and direct way. Due to this marketing campaign of many big companies are only focusing on the key feature of a product. As for example Apple has kept their marketing campaign of iPod simple by focusing on the key feature of it that is connecting music to music lovers. Even though iPod have many other unique features the marketing campaign did not emphasis on them.

  • Digital Marketing:

Digital marketing has changed the dynamic of marketing department of an organisation. It has become a key element to influence prospective customers sales activity. Baltes (2015) mentioned that with the help of digital marketing, manager of marketing department can gauge customers purchasing behaviour. This strategy has helped the silicon valley’s marketing group to gain more power and influence within the companies. Another significance of integrating digital marketing as a key marketing strategy of a business is that it offers insights about marketing activities (Kanagal, 2015). This has enabled marketing managers of Apple and google to analyse and measure results of ongoing activities. They can also test new ideas and find solutions to increase the profitability of marketing department.

  • Hiring experienced marketing team:

Marketing strategy of silicon valley involves hiring efficient experienced team to manage, plan, and operate marketing activities. The teams are highly adaptive with changes in technological trend in order to provide best customer centric experiences (Weller, 2015). As for example marketing managers of Google develops a team of highly educated experienced professionals to manage all the marketing campaigns.

Dynamics of marketing strategies in relation to marketing management

Marketing management refers to the process of formulating planning and strategies to offer products or services to the desired customer with the help of marketing tactics which are advertising and promotion. As opined by Manser (2017) top level managers engage themselves in evaluating marketing strategy in relation to the dynamics of marketing trend taking place in the industry. The dynamic of marketing strategy improves the efficiency of marketing department. Silicon Valley companies such as Apple and Google distinguish themselves by providing best customer service experience in the industry. Dynamics of marketing strategies has helped the companies such as Google and Apple to provide distinctive service to the customers. Google has been providing customer centric service from its inception. With the change in technology and preference of customer Google has changed their marketing approach to adapt to new situations. For instance, they have transformed online advertisement service in order to track customers buying behaviour. As opined by McDONALD (2016) changing customer preferences has made companies to evolve their products and services. Companies are now analysing the market to gather information about taste and preference of consumers and changing its marketing strategy accordingly.

Marketing strategy also assist in keeping focus on prospective customers. An organization’s profitability depends on the revenue generated from prospective customers. Dynamics of marketing strategy will help to increase number of prospective customers by analysing their need and demand. As opined by Saebi (2015) with proper strategies formulated by marketing department companies are now making it easy to access products and services for the customers. Product accessibility to potential customers will enhance the sales number of a product. Along with product accessibility, making buying process easier has also been a part of dynamic marketing strategy. Buying process can be made easy by well designing of selling procedure. This will make the customers to take decisions quickly without any interruption. Dynamic of marketing strategies provides a dominating platform to companies. Stephen (2016) stated that dominating platform can be attained by mixing technology and innovation with the customer needs. As for example Google’s search engine is the dominant search engine in the market. They are able to maintain this position due to establishment of distinctive capabilities by aligning the market needs with companies methods. As opined by Ryan (2016) marketing management is one of the important functional area of a business. It provides the business to gain market share. Dynamics of marketing management has made the companies to make strategic decisions to meet increasing competition and to improve ways of distribution in order to reduce cost by enhancing profit.


Thus it can be concluded that business model of silicon valley is one of the effective business model to increase the growth rate of a business. Technological driven companies trying to integrate silicon valley business model in order to gain competitive edge in the market. The business model of silicon valley emphasises on adaptability and innovation to increase customer penetration. Marketing strategies of silicon valley has adopted new methods to provide new customer centric experiences. Silicon valley market groups utilising multi channel marketing strategy to accustom customers with their products and services. They are also focusing on digital marketing as key marketing strategy tool to enhance customer base. With the help of digital marketing technique marketing managers of Apple and Google are identifying customer purchase behaviour to solve issue relating to product availability. The dynamic of marketing strategy is changing the approach of marketing management. The changes in strategy will bring new customers thus enhancing in sales and revenue.

Reference list

Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2018). Research in marketing strategy. Journal of the Academy of Marketing Science, 1-26.

Cacciolatti, L., & Lee, S. H. (2016). Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power. Journal of Business Research69(12), 5597-5610.

Marwick, A. (2017). Silicon Valley and the social media industry. Sage Handbook of Social Media. London: Sage.

Wonglimpiyarat, J. (2016). Exploring strategic venture capital financing with Silicon Valley style. Technological Forecasting and Social Change102, 80-89.

Chernev, A. (2018). Strategic marketing management. Cerebellum Press.

Kanagal, N. B. (2015). Innovation and product innovation in marketing strategy. Journal of Management and marketing research18, 1-25.

Weller, M. (2015). MOOCs and the Silicon Valley narrative. Journal of Interactive Media in Education2015(1), 1-7.

Srnicek, N. (2017). The challenges of platform capitalism: Understanding the logic of a new business model. Juncture23(4), 254-257.

Manser Payne, E., Peltier, J. W., & Barger, V. A. (2017). Omni-channel marketing, integrated marketing communications and consumer engagement: a research agenda. Journal of Research in Interactive Marketing11(2), 185-197.

Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers.

Stephen, A. T. (2016). The role of digital and social media marketing in consumer behavior. Current Opinion in Psychology10, 17-21.

Baltes, L. P. (2015). Content marketing-the fundamental tool of digital marketing. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V8(2), 111.

Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: how far have we come, and where should we go?. Journal of Management43(1), 200-227.

Saebi, T., & Foss, N. J. (2015). Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions. European Management Journal33(3), 201-213.

McDONALD, M. A. L. C. O. L. M. (2016). Strategic marketing planning: theory and practice. In The marketing book (pp. 108-142). Routledge.

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