Google Porter's Five Forces

Porter’s model aims to enable managers not only to understand their industry environment but also to shape their firm’s strategy. The five competitive forces are threat of entry, power of suppliers, power of buyers, threat of substitutes, and rivalry among existing competitors. “As a rule of thumb, the stronger the five forces, the lower the industry’s profit potential- making the industry less attractive to competitors. The weaker the five forces, the greater the industry’s profit potential – making the industry more attractive” (Rothaermel, 2013, p. 65). It is recommended that managers position their company in an industry in such a way that relaxes the constraints of strong forces and

Porter’s Five Forces was developed in 1979 by Michael Porter as a framework to assess and evaluate the competitive position of a company in an industry. It is based on the theory that there are five forces which identify the attractiveness and competitive strength of an industry. It is helpful to gain an understanding of a firm’s current positon and the position that the firm may look to capture in the future. Porter’s five forces are also used to

This analysis is conducted on the Porters Five Forces theory that is crucial for effective strategic decision-making, the five forces that shape industry competition are:

A key component of managing a business effectively is having an understanding of the competitive environment in which that company operates weather it’s a large or small business. A way to access the competitive environment is the use of Porter’s model also known as Five Forces Analysis. The Five Forces Analysis was developed by Michael Porter of Harvard business school back in the late 1970’s. Ideally this analysis should be done before starting up your business. It can show you the likelihood of success of the company before you start it up. Even if your company is established the Five Forces Analysis is still extremely valuable. Once you understand the forces that are acting on and affecting your business being a success you will be in a much better position to develop strategies to combat those forces that are working against you. Porter identifies

Although as wanted by our teachers, this essay will be focused on the evergreen five forces framework for industry analysis set up by Mr. Michael Porter to ascertain the desirability of an industry along with its usefulness and limitations in the formulation of various strategies but first and foremost I’d like to throw some light on this very enlightened being, Mr. Porter, whose name is taken at least twice every lecture we attend (Not forgetting that the first two were totally on him only!). Why all his theories ranging from ‘Competitive Advantage’ to the ‘Diamond Model’ (Management.net, 2014), ‘Value Chain’ (Business.com, 2011) and ‘Generic Strategies’ (Mindtools.com, 2014) amongst many more are regarded no less than holy texts in the field of management, especially strategic planning? Is it because he is considered management’s living doyen or because he is a highly revered professor at the very prestigious Harvard Business School (The Economist, 2008)? No, it is because the works of Michael Eugene Porter have time and again held fort in testing times and have benefitted governments, establishments, scholastic circles and nations on the whole globally!

Google Inc. is a popular American company most known for its robust search engine. Google was established in 1998 by Sergey Brin and Larry Page, headquarters located in Mountain View, California. More than 70 percent of worldwide online search requests are handled by Google, placing it at the heart of most Internet users’ experience (Britannica, Google Inc). This paper will cover the impact of Google’s mission, vision, and primary stakeholders on its overall success; analyze the five forces of competition to determine how they impact the company; create SWOT analysis to determine their strengths, weaknesses, opportunities, and threats, discuss the various types of strategies the firm may use to maximize its competiveness; and assess efforts by Google to be a responsible corporate citizen. Google Inc. started out as an online search company. Today, Google offers well over 50 products and internet services ranging from online document creation, e-mail, software for tablet computers and mobile phones, and online document creation. Their wide ranging product portfolio and size makes Google one of the top prominent companies in the technology market to include IBM, Microsoft, and Apple. In spite of their countless products, the core of its success is based on their original search tool. In 2011, Google earned 97 percent of its revenue through advertising based on users’ search requests (Britannica, Google, Inc.).

In his article “The five competitive forces that shape strategy“, Michael Porter (2008) updates and extends his “five forces” framework he first introduced in 1979 and which has influenced the academic and business research for decades. He reaffirms that “THREAT OF ENTRY”, “THE POWER OF SUPPLIERS”, “THE POWER OF BUYERS”, THE THREAT OF SUBSTITUTES”, and “RIVALRY AMONG EXISTING COMPETITORS” are the forces that shape every single industry, and a thorough understanding of such forces help analyze everything from the intensity of competition to the profitability and attractiveness of any industry. The framework has two dimensions; the vertical dimension that connects

PORTER’S 5 FORCES ANALYSIS: Overall, we found this to be an unattractive industry due to the following factors:

In a landmark article published in the March/April 1979 issue of the Harvard Business Review, Michael Porter identified five competitive forces that determine if you should enter a new market segment.

Google is a large technology firm based in America. It focuses on services and products related to internet search, online advertising, and cloud computing. The company’s founders, Larry Page and Sergey Brin, started the company on 4th September 1998 (Google, 2016). Google first listed on the public stock exchange on August 19, 2004, with an initial public offer of 19,605,052 shares of Class A common stock, at a price of $85 per share (Google, 2016). The world highly anticipated Google’s initial public offering and the initial market capitalization was $23 billion. The price earnings ratio then was $ 80 (Ritter, 2014). As of May 2016, Google’s market capitalization stood at $ 82.5 billion. This paper analyzes Google’s performance in the American stock exchange.

Michael Porter's Five Forces Analysis is a framework that used for industry analysis and understand the level of competition in an industry in order to develop business strategy (Tang, 2014). There are two key players in the local malt liquor market (MLM) industry of Malaysia, GAB Berhad and CBMB who have occupied 95% of the total beer and stout market shares in Malaysia (CMBB, 2015). Therefore, the competition among existing brewers are low as there are only two major brewers in the local MLM industry. The threat of new entrants is minimum as government policies and complicated tax on beers have restricted other investors in the market. The switching cost among competitors is low as the price difference between the products of competitors are minimised. This has been proved by a research, which has been done at a local shopping centre, Aeon Mahkota Cheras Store & Shopping Centre, which located in Cheras, Selangor, Malaysia. As figure11 shown, the minimum price difference between a competitor is only RM1.00 for mainstream product, and the maximum price difference is RM3.00 for Premium beer

Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its various marketing programs embedded in its search engine.

Porter's Five Forces can be applied to particular companies, market segments and industries with the step-by-step analysis of market structure and competitive situation. First of all, when implementing this module in organizations, it is necessary to determine the scope of the market to be analyzed. Following, all relevant forces for this market analyzed and key forces are identified (Gerry and Kevan, P.117). Actually some organizational strategy and the longer-term goals are mainly based on or consistent with the key forces. Hence, it is not necessary to analyze all elements of all competitive forces with the same depth. Moreover, the key forces in the competitive environment will vary in different industry. Different forces take on prominence in shaping competition in each industry (Porter,

Michael E. Porter, associate professor published the article titled “How Competitive Forces shape Strategy” in Harvard Business Review in 1979. This article is retitled as “The Five Competitive Forces That Shape Strategy” and published in Harvard Business Review in 2008. Michael E. Porter developed the model of Five Competitive Forces which is defined as “Competitive Strategy – Techniques for Analyzing Industries and Competitors”. It has become a main device for analyzing an organizations structure in strategic practices.

Google is one of the biggest company in the world. It was founded in 1998; it was developed to serve hundreds of users around the world. Now, it is working on an innovative business model of attracting an internet user and earning revenue from targeted advertising. The mission statement of Google is “to organize the world’s information and make it universally accessible and useful”. This Google’s mission has shown advantages for the organization and earned benefits and also made it top over its rivals. It went global and established branches all over the world and offered its services in all local languages, this helped the company gain an advantage over its competitors.