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
The use of PEST analysis can be seen effective for business such as their strategic planning, marketing, and product development. Furthermore, PEST ensures that company`s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST have four factors which are Political, Economic, Social, and Technological. However, we use these factors to check how they interplay to the business or the activity of an organization.Using PEST analysis is important when a company decided to enter its business operation into new markets and new countries. In this case, using PEST will help to adapt effectively to the realities of the new environment and to make contingency plans for threats by preparing business and strategic plans (Byars, 1991; Cooper, 2000).
A PEST analysis is a business measurement tool. PEST analysis is simple and widely used tool in order to help you analyse and understanding market growth or decline in business environment. PEST analyse refer to Political, Economic, Social and Technological factors. These four factors can affect the organisation and the prevailing factors in the present scenario. The political arena has a powerful influence upon the regulations of business and the ability of expenses of consumer and other businesses. The economic environment factor is a direct influence on all businesses. As we know from our lesson in the marketing environment there is microenvironment, and internal environment is a microenvironment. The sociocultural environment shows that everything which in related with social and cultural within a nation or society. For example like the attitudes and opinions of consumer or the media views. Moreover, technological factor is refers to competing technology development. Nowadays, the advance and maturity of technology has a huge effect in business world either positively or negatively impact. PEST analysis identifying and analysing the external factors gives an overview of the universal conditions and
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 Inc. is one of the leading computer search engines in the world and is continuing to grow as the
search engine, cloud computing). What I have learned from doing research on the company Google would be that they focus on diversity, data, and non-typical corporate practices. Data is at the central for a lot decisions Google makes. Besides data examined for typical corporate business, Google’s also considers employee operations. An example of this would be lunch lines (Google offers free meals and snacks to employees), to make the most optimal lunch line (to meet new people and to prevent waste of time), Google has taken data to find and state that the most optimal lunch line is 3 to 4 minutes.
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.
Google Search is the most popular search engine in the world, and just by that has an enormous advantage in information markets. Google has unprecedented access to what people are thinking about at any given moment, information which is extremely valuable to advertisers and marketers. Google also is also an extremely well established company, with its massive revenue allowing it to support its extremely robust infrastructure. Google has massive and modern data centers all over the world, and continues to invest into more infrastructure, including data centers and the new Google Fiber in the United States. Googles massive revenue also allows it to branch off into more innovative pursuits without having to worry too much about funding. Google can pursue expensive and difficult projects that generate little to no revenue for a very long time, if the company believes that the investment will be worth it in the end. Examples of this include Google's Self driving cars, and the aforementioned mentioned Google
Google’s total assets have steadily increased dating back from 2008 to 2012. Some key figures to point out in their assets are the slow growth between the second half of 2008
No business is isolated from its environment. It is necessary for all businesses to consider the impact of environment on their business operations. PEST analysis is a useful mode to analyze the changing business environment, (PESTLE analysis, CIPD). It bifurcates the external environment in to various dimensions such pas Political, Economical, Social and Technological.
Opening The quick advancement and progress of the internet across the world has led to many great opportunities for American business. However, this advancement has pushed the bounds for some countries on their stance for the free flow of information. This has been the problem for Google and its relationship with China. The restrictions set up by the Chinese government go against the ideas and ethics of Google. However, the presence of Google will likely help push political change by opening some doors for accessing information. This will also have the added opportunity of maximizing Google’s corporate interests.
External factors are affecting on company that are mentioned for shareholders, customers, employees and system. Macro-economic factors for business are uncontrollable for developing business practices and determine a model named as PEST analysis. PEST analysis identifies success of various factors; develop opportunities, and threats (Murphey & Gause, 1974). Due to global market, business organizations must study external factors are
Google’s primary focus is search; display advertising, enterprise, and the Android operating system platform to name a few of its products. As more information becomes
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
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.”
Interests: If Google also provide services such as Gmail, chat rooms or blogging that involve users’ personal information, The Chinese government could abuse the information that Google provides as it did with Yahoo. This will critically damage its principle of “Don’t be evil”