Case Study on Google
Executive Summary
Introduction
[pic]
Goggle is classified under information communication technology which specialise in search engine with online advertising. It falls under the strategic group category of focused differentiator.
External Analysis
1 Porter’s five forces
1 Bargaining Power of Suppliers
The buying power of the suppliers is weak as Google can easily find alternative suppliers for their equipment like servers & data centres.
2 Bargaining Power of Buyers
The buying power of the buyers is strong as they have low switching cost to other rivals or to other forms of advertising like newspaper or television.
3 Threat of substitutes
The threats of substitutes of Google’s online advertising are newspaper advertising which is controlled the larger share of United States advertising dollars and the cable television, radio and network television which also controlled certain amount of shares in the market.
4 Rivalry within industry
The rivalries within industry are high as there are major competition between Google, Yahoo and Microsoft to gain the market share of the growing internet advertising market which is expected to growth to 36.5Billion in 2012.
5 Threat of New Entry
Even though the cost of new entry is low however The threat of new entry is weak as due the incumbency advantages of the three major rivals and the high demand benefits of scale which Google and other rivals would retaliated against new entry to maintain their market share of internet advertising.
2 PEST analysis
The effectiveness for business and strategic planning, marketing planning, business and product development and research reports can be seen through the usage of PEST analysis (e.g. Political, Economic, Sociological and Technological factors). PEST is useful when a company decides to enter its business operations into new markets and new countries. (Refer to appendix A).
Internal Analysis
1 Company’s strategy
The company’s
Introduction
[pic]
Goggle is classified under information communication technology which specialise in search engine with online advertising. It falls under the strategic group category of focused differentiator.
External Analysis
1 Porter’s five forces
1 Bargaining Power of Suppliers
The buying power of the suppliers is weak as Google can easily find alternative suppliers for their equipment like servers & data centres.
2 Bargaining Power of Buyers
The buying power of the buyers is strong as they have low switching cost to other rivals or to other forms of advertising like newspaper or television.
3 Threat of substitutes
The threats of substitutes of Google’s online advertising are newspaper advertising which is controlled the larger share of United States advertising dollars and the cable television, radio and network television which also controlled certain amount of shares in the market.
4 Rivalry within industry
The rivalries within industry are high as there are major competition between Google, Yahoo and Microsoft to gain the market share of the growing internet advertising market which is expected to growth to 36.5Billion in 2012.
5 Threat of New Entry
Even though the cost of new entry is low however The threat of new entry is weak as due the incumbency advantages of the three major rivals and the high demand benefits of scale which Google and other rivals would retaliated against new entry to maintain their market share of internet advertising.
2 PEST analysis
The effectiveness for business and strategic planning, marketing planning, business and product development and research reports can be seen through the usage of PEST analysis (e.g. Political, Economic, Sociological and Technological factors). PEST is useful when a company decides to enter its business operations into new markets and new countries. (Refer to appendix A).
Internal Analysis
1 Company’s strategy
The company’s
References: Figure 1- Source: Hambrick D.C. and Fredrickson J. W.. (2001). Are you sure you have a strategy?. Academy of Management Executive. 15 (4), 48-58.