STRATEGIC ANALYSIS OF A CHOSEN COMPANY

Strategic Analysis of a chosen company



First Assignment

Google Incorporation

Google Incorporation is a multinational organization based in American. It provides its customers with the services and products related to internet, which also includes cloud computing, Internet search, advertising technologies and software (Google, 2011). Most of the revenues of the company are generated from the AdWords. Sergey Brin and Larry Page were the people who had found the company when they both attended Stanford University. About 16 percent of Google's stakes were owned by Page and Brin together. Incorporated on September 4, 1998, Google was initially a privately held company and made its initial public offering on August 19, 2004 (Claburn, Thomas, 2008).

I have chosen this company because it is provides one of the largest internet search engines to the people around the world. Moreover, its external analysis would provide a broader view of the major elements involved in the research.

External Environment

All the factors that exist outside the organization and affect or influence it are known as the external environment. They may include the customers, suppliers, competitors, and other stakeholder on a smaller level. On the other hand, these factors may comprise of legal, political, economic and social elements on macro level. However, the function of all these micro and macro factors is to influence the activities and operations of the organization.

Porter's Five Forces Analysis of Google Incorporation

We analyze the external, environment of Google Inc. using the Porter's Five Forces Model. This model provides a structure for the business strategy development and industry analysis with respect to the firm's competitors.

Potential New Entrants

In Google, there are high barriers to entry in the market. Any new entrant will have to have the ability to facilitate its customers with speedy and better search results in order to compete in the highly competitive market of internet search.

Suppliers

The supplier power in the Google Incorporation is low because it has attained and maintained market leadership in terms of the provision of search products. Moreover, for the company, a reliable source of revenue generation is its ad system (Vise, David, 2005).

Current Competitors

The major competitors of Google include Microsoft and Yahoo which have generated profits of $51.1 billion and $7.0 billion respectively (Google, 2007). There is a dizzying amount of money made in this industry. Currently, Google has the largest market share, which paves its way through rigid competition and better quality of search results.

Customers

No single buyer has the bargaining or dominance power in the market. The company adopts the distributed approach to attract both small and large companies “mom-and-pop shops” in order to keep low buyer power.

Potential Substitutes

The internet market possesses no real substitute for search products and services. Thus, Google has the advantage of being a single provider of the fast and better quality search.

Google has positioned itself well to weather each of Porter's Five Forces of Competition as well as stay afloat in a turbulent external environment. Google's ability to please its stakeholders will continue to define the ...