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
Google Inc. is one of the leading computer search engines in the world and is continuing to grow as the
Wells Fargo & Company was incorporated on the 24th of January 1929 in San Francisco as a bank holding company that provides financial services on a retail and commercial level through the internet and banking offices etc. It operates in 3 segments being investment management, wholesale banking and community banking in the form of loans, insurance and just wealth management. It is an international bank that has different administrative facilities in locations that include Texas, Las Vegas, California, Portland, etc. In September 2016, the bank received bad publicity due to its fake accounts scandal. Things revealed themselves as the company fired 5,300 employees being 1% of their workforce (Kouchaki, 2016).
AdWords is Google's advertising product and main source of revenue. AdWords offers pay-per-click advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution. Advertisements are short, consisting of one title line and two content text lines and/or image. The "content network" shows AdWords ads on sites that are not search engines. These content network sites are those that use AdSense, the other side of the Google advertising model. AdSense is used by website owners who wish to make money by displaying ads on their websites. User’s click on ad displayed on a Web page means that advertiser pays Google and Google give percentage of that amount to the webpage. The third way in which they make money is through its Google Search Appliance, which they sell to their customers. This Google’s search technology can be integrated into a third party’s Web page or intranet. This appliance delivers accurate search results throughout a number of documents. Meaning your company would have its own search engine and it would work just as well as google.com. Licensing fees ranged from $30,000 to $600,000. There is also Google MiniSearch Appliance designed for small businesses. Some of the most important strengths of the Google’s business model are: Reliable pricing system, scalable architecture, disruptive business model, and efficient ad system and relevant ads.
Due to the increased competition from Yahoo and Microsoft, it has posed a great threat to Google Company. Entry of such like companies in the market has been relatively easy and even offering similar services to the consumers is no longer a problem as unlike a while back, technology has greatly improved. With an improvement in technology, creating sites that help people access information from the internet has been quite cheap and all it calls for is the creativity of a company. Google, however, has been able to remain at the top of the chart. They have been able to come up with a user-friendly search engine for their clients, one that is easy to understand as well as easy to use. Also, Google has been able to cut on cost as they are able to create web pages using UNIX web servers which are relatively cheap. This makes it possible for them to minimize the cost of input and hence maximizing their profit margins. This makes it possible for them to hire qualified personnel, offer quality services, advertise their products, and even offer promotions, helping them overcome the competition in the market structure.
“Rivalry in this industry is expressed by aggressive pricing policies, profound product innovation and design, online intensive marketing, direct selling, and afterscale services (Forbes, 2012) The Table below shows the current market cap Of Apple Inc. with its main competitor being Google Inc. Apple Inc. secures its market leadership by providing products and services with unique attributes using differentiation strategy. They also implement focus strategies such as instead of targeting business users, targeting consumer users with the IPhone.
As of 2015, Google had 75% market share in searches. People use Google to search nearly 13 billion times per month, which averages to 26 searches per person per year. There are very few products in the world with this ubiquity and dominance. Despite these impressive numbers, it is not fair to call Google a monopoly, because it is not suppressing competition. There are no significant barriers to entry, and customers have no significant transaction costs in switching
In 1998, Stanford University graduates Larry Page and Sergey Brin combined their ingenuity and built a search engine called “BackRub” that evolved into what is now known as Google. Google, with over 150 domains, now functions as a search engine that offers many different products and services including web applications, advertising, sports scores, stock quotes, headlines, addresses, videos, etc. Google’s focus is “to provide useful and relevant information to the millions of people around the world as they rely on us (Google) to provide the answers they are seeking.”
As more companies emerge Google will receive more people to advertise and contribute to their income.
The lab experiment was divided into parts and the synthesis of the aspirin occurred during the first week. Using 4.032g of salicylic acid 8.0mL of acetic anhydride on a hot bath the reaction was speeded up by the use of a catalyst phosphoric acid. Once the sample was then left to dry in the drawer for a week using the melting point apparatus we conducted the purity assessment of the dried sample.
This paper contains a brief annotated bibliography composed of five research articles selected on a specific research topic, which could be conducive towards a preliminary research proposal. The preliminary title of my research topic is “Institutionalized Ethical Leadership: A study of its effects on the sustainability and longevity of international organizations.”
Today, Google, Inc. is worth more than General Motors, McDonald's and Disney combined, and the company continues to model the way in the global technology industry in which it competes. In fact, the company's name has become a verb and it is common practice for consumers to "Google" what they want to find online. To determine how Google, Inc. reached this dazzling level of performance in a relatively short period of time, this paper provides an analysis of the three external environments in which Google competes, the general environment, the industry environment and the competitor environment. Next, a discussion of two specific strategic issues as well as opportunities and threats that are facing Google, Inc. is followed by a summary of the research and important findings in the conclusion.
Google is the most successful information technology and web search company in the world. It was founded in 1998 by two Stanford Ph.D. students, Larry Page and Sergey Brin. The company name, Google, is a play on the word “googol” which is a mathematical term for the number 1 followed by 100 zeros. Larry Page and Sergey Brin chose this name to reflect the large amount of information on the web. The two created this search engine so that people can find anything on the web all in one place. The company’s mission is “to organize the world’s information and make it universally accessible and useful.” Now, the company is far more than a search engine website, it has grown to be a substantial collection of products and services that are
Its search engine is used almost 70% worldwide. No other companies can compete for internet searches with Google. As it is the largest search engine, it also has the largest user traffic. Google is one of the most powerful brands in the world. It had more than 1.2 Billion searches. Since there are lot of user traffic due to the search engines, it is also the largest advertising company. Google gains profits through advertising and display through partnerships with third party sites. Google increased both top-line and bottom-line
This advantage has manifested with the Google 's businesses and is the reason why it continues to grow.
Technological Growth: The majority of the world knows that Google was not the first to come up with the search website, advertisements, or email. What makes Google a market leader is, its innovated and differentiation of all those things better than its predecessors and competitors. Google is years ahead of its competitors, because it found different ways to help the community. Google decided that web search was not enough, so it competed in the browser and operating system market with Chrome and Android. Due to technology growing at a fast pace, Google made its major priority to not be left behind while the world is evolving.