Google Porters 5 Forces Essay

804 Words4 Pages
Google’s Five Forces

Supplier Power * As long as Google continues its dominance as the number one internet search engine in the world, supplier bargaining power will remain low. * Thanks to programs like AdSense and AdWords, which forms the framework of the advertisement system that Google has in place, both the advertiser and the user of the search engine are Google customers. * Google has also formed a joint relationship with Android to increase their sales market and bottom-line profitability.
Buyer Power * The power of the customer in the IT field of Internet and Computer Software industries is particularly strong. * There are a lot of other search engines and companies that compete with Google in the many
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Threat of Substitution * With such a position of dominance within the internet search engine industry, Google has positioned itself well for long term success on the internet. * Technology wise, there may be some threat to the Android phone, that Google has developed as there are other brands of phones available that may be cheaper in price, but do not possess the same applications or operating systems that the Android phone does. * Software wise, none of the companies that Google has competed against could hope to compete against the software that Google has produced and allows its clients to utilize: Google Analytics, Google Maps, iGoogle, YouTube, Gmail etc. The threat of substitution would also be made hard by the fact that Google constantly is updating and improving their software.
Threat of New Entry * The threat of a new entry into the markets that Google has established itself in is very minimal. * A company looking to challenge Google in its market would need a massive amount of financial resources to build the start-up network infrastructure that would allow it to compete with Google and the services and products that Google has to offer. * The new entrant would also be facing the challenge of having to maintain and update/upgrade their services and products at a rate
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