Hi-Tech Giants Getting into Transportation? (Link)

Yes and no. Hi-tech giants, such as Google and Yahoo, have been shuttling their employees to and from work. These firms realize that given the wealth and income of many of their employees, monetary returns are less effective than factors that would increase quality of life, such as day-care centers and commuting convenience. A little bit of understanding can go a long way in attracting talents for long-term competitiveness -- all for a price that can well be far lower than stock options and bonuses. Really, more does not necessarily mean better!

In fact, Google's case is a clear example of coherently orchestrated analysis, formulation, and implementation of its strategy. A key source of its competitive advantage comes from the creativity of its people. These people allows them to effectively differentiate from its competitors. To sustain its competitive advantage over its rivals, Google must do better in terms of retaining and attracting talents, and nurturing the creativity and productivity. Both its culture and its various popular employee benefits are signs that the firm is executing effectively its intended strategy -- culture and reward systems are both levers of strategic implementation.

Note, however, that this form of differentiation can be very costly. Many firms are generous during good times. It is when hard times hit that they start to cut back on perks -- and even salaries. For the current and potential rivals, these would be the times when poaching talents become relatively easy. In other words, all may looks great during good times, but hard times present a real test of the stability and soundness of a firm's strategy.