Google's Macro Pest Analysis Of Google Inc

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PEST Analysis of Google Inc.
PEST analysis is used to determine the political, economical, social and technological factors in an external environment of an organization. These factors affect an organizations activities and performances. After researching Google’s macro economical factors using the PEST analysis model, the following was concluded:
1. Political Factors:
Government stability is one of the major aspects in Google's strategy. If the market is stable, governments help businesses and so these businesses advertise more on Google, hence, benefitting Google. In addition, most of the governments do not have identified laws for online information sharing, thus, giving Google the opportunity to manipulate laws. However, China has created a barrier for Google by adding regulations that forbid Google from operating on their terms. For example, according to UKessays (2013), "Chinese Government launched a surveillance system called Golden Shield for monitoring civilian use of Internet."
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Technological Factors:
In analyzing the technological factors affecting Google, the key aspects to consider are the level of basic infrastructure, rate of technological change, new discoveries and development, government spending on research, access to newest technology, technology incentives and technology legislations.
Google is described as a technological company that helps innovate and improve the world with its new development. Technological factors play a major role in a company like Google and it is part of the company’s competitive strategy. Google is not only a search engine; it also provides many services, tools and products free of charge through www.google.com. Google's IT infrastructure is a closely guarded secret because it is one of the company’s competitive advantages. Google has up to 450,000 servers spreads over at least 25 locations and it uses a customized version of Linux operating systems to give them control and flexibility in finding new

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