Choose the two segments of the general environment that would rank highest in their influence on the corporation you choose. Assess how these segments affect the corporation you chose and the industry in which it operates
In the twenty-first century, the Internet Information Providers is an Industry that has grown to be one of the most critical parts of technology. A few decades ago, the industry only provided specific types of services, for example, chat, email and some information about places to go for vacation. The industry did not provide a lot of services. The Industry has considerably evolved after fifteen years in the labour market. In recent times, clients can enjoy many forms of services that this commerce supplies, which is not only for business or state purposes.
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Google is a multinational technology enterprise dedicated to products and services on the internet. It is a search engine in addition to being a service for cloud storage for different software such as email. Also, it also facilitates online advertising with a service that enables social networking. The enterprise develops electronic products that have high quality and are less expensive such as the Nexus devices. The service involves roughly a hundred different languages as it possesses other sites like YouTube and Blogging platforms.
The two segments of the environment that mostly influences the operation of Google are Socio-Cultural and Global. Socio-Cultural factors involve trends in demographics, for example, the size of the population, ethnic mix and age as well as trends in culture such as attitudes directed towards consumer activism and obesity. The segment is concerned with society’s cultural values and beliefs. Google created the internet navigable for the people who love to search. The Internet provides individuals with the capacity to be in constant communication with others through various social platforms. A majority of the cell phones produced today contain the internet which makes it easier for persons of all ages and cultures to be connected. In the world today, most people own a cell phone and typically use it for downloading music and videos, watching videos online, taking pictures, locating stores or restaurants and getting driving directions. Google came up with the Mobile App, Android phone operating system as well as iPhone so that people can have access to the services provided by Google from their phones.
The global segment of the environment new global markets that are relevant, existing markets that are always changing, international political events that are critical, and paramount institutional and cultural characteristics of universal markets. A few years back, technology was not readily available to everyone due to its high cost, especially for those nations with economic difficulties. Currently, many individuals from both the middle and lower social classes can afford access to this new advanced technology. The internet search is available in most parts of the world except for a few places hence computers have become one of the most available machines in the domain of technology. The purpose of Google is to offer its services and products to those individuals that for the first time are employing the internet search. This will enable them to have access to Docs, Gmail and other Google sites. “In fact, the company now has 20 offices in the U.S and international locations in over thirty countries working in research, sales, and marketing. Google offers a personalised search engine for more than 115 countries, and as language support improves, the company is likely to gain market share (Sultan, 2015) .” This evidence shows that this enterprise is almost on every corner of our planet.
Google is one of the most competitive companies in this industry. Google took the risk of conquering the Chinese market in 2006 which was impossible because Baidu search was the number one in China. It aims at supplying services only for the users in China. When the American firm “Google” arrived in China, it was outstanding for its maps, music, AdWords, web design and AdSense. Many users recognise the efficiency and proficiency of Google for it is much better than their server. Nevertheless, the Chinese search offers everyday issues of the nation.
Considering the five sources of competition, choose the two that you estimate are the most significant for the corporation you chose. Evaluate how well the company has addressed these two forces in the recent past.
The first source of competition is rivalry among existing competitors. In the industry of search engines, the major competitors of Google are Microsoft “Bing” and Yahoo. So far, this year, Google has approximately 64.67% of demand on internet searches worldwide. Differentiation and innovation make the spectacular market of the business. Google is well known for their information quality on the search results and their targeted advertisements as compared to their competitors.
Both Microsoft and Yahoo are permanent and vigorous competitive rivals for Google due to the high numbers of advertising catches and the majority of searches which has led to significant amounts of money for both companies. However, the strategies of Google create a particular kind of charm to their clients because they are persistent in developing new staff.
The objective of Google enterprise is to “organise the world’s information.” Moreover, they designed products and services to complement the service of internet search. The operation produced roughly 115% on yearly revenue back in 2002. It also maintained the trend for the subsequent five years. In 2007, the revenues of the company were about $16.6 billion which came from the targeted advertisements which are their primary source of profit.
The pie chart below indicates the competitive market of the search engine industry, from January 2015 to date.
Google-Global: 64.67%
Yahoo-Global: 8.32%
Bing: 8.79%
Baidu-Chinese Market: 16.20%
AOL-Global: 0.43%
Ask-Global: 0.21%
Lycos-Global: 0.01%
Excite-Global: 0.01%
The second source of competition is the threat of new entrants. The market of internet search engines has a little threat of new entrants since the competitors have many years of experience in collecting various information from the users. The existing companies have gathered data about the culture of users, habits and their customs around the whole universe. The collection of data is led by several servers. Another matter that facilitates the limits to new competitions are the patents. This is because they increase the entry barriers to the market and make the name of the brand of the stronger. Clients are loyal to present brand names which are a new entrant to compete in this competitive industry. They will have to come up with better search results that have reliable information and at a very fast speed.
With the same two forces in mind, predict what the company might do to improve its ability to address these forces in the near future.
The strategy of Google was stated in its search engine, however, over the recent years we have all seen how the company has grown. Today, not only does Google provide internet search but also technology products and services which show that the future of the enterprise should focus more on technology devices than a search engine since its search engine is well established in the market. Many people in the world are used to using Google search engine. However, not many individuals are aware of the technological devices that Google provides. Therefore, the company should put a lot of resources into advertising their technological devices which will improve its ability to address its competitive forces.
The company, however, is very close to achieving its original objective. The chart above is proof that Google is the primary server in the earth and it will not take too long for it to become the only internet search in the world. Their first concern will be direct with the changing technology, and they will be one of the instructors and facilitators of artificial intelligence.
Assess the external threats affecting this corporation and the opportunities available to the organization. Give your opinions on how the corporation should deal with the most serious threat and the greatest opportunity. Justify your answer.
The threats that Google faces is the high level of competition from Apple, Microsoft, Yahoo and advertisement agencies that are traditional like radio, TV and newspapers. Moreover, the company could face the threat of being out cast by nations due to the problems of privacy. The threats of new entrants are also affecting the profits of the industry. It also faces the threat of imitation of some products. Other business can imitate the products of the company, for example, its nexus electronics for consumers. The risks can decrease the performance of Google which prevents the growth of the business.
The opportunities available to Google is that the company practices forward and backwards integration of various enterprises. It means that Google purchases out and adds different companies to their portfolio. In 2011, the businesses that were added stood at around 25. Besides, Google has a huge chance of taking over the market of mobile advertisement, and they have already embarked by buying out Motorola Mobility. The company also has the opportunities for expanding Google Fibre, attract more people using mobiles and entering markets that deal with consumer electronics.
Google can take advantage of the current trend of the rise in the use of mobile devices by offering products that are mobile-friendly. The enterprise can also increase its Fibre coverage to create more revenues for the company. Moreover, the firm can increase its aggressiveness in producing consumer electronics like the Google Nexus device. The most serious threat that Google faces is competition from other search engine companies. To deal with this threat, the company should come up with products that are appealing to the customers and provide relevant and detailed search information so as to give them an upper hand in the market (Gates, 2016) . It should also lower their prices and increase investment with the aim of hindering new competitors in the market.
Give your opinion on the corporation’s greatest strengths and most significant weaknesses. Choose the strategy or tactic the corporation should select to take maximum advantage of its strengths, and the strategy or tactic the corporation should select to fix its most significant weakness.
The success of Google is based on its capacity to wield its strengths. The greatest strengths of the business are: it has a brand image that is adamant, products that are patented proprietary, large organisational size and diversified business. The strengths show that Google is growing as a company and has improved over the years. The company can deal with new entrants and competition because of its high brand image, large organisational size and patents. The powerful Brand image has helped the company as it has attracted many customers.
In spite of its dominance in the market, the weaknesses of Google present difficulties to its business. Its main weaknesses are that it depends on a lot of the internet and minimal physical presence. Depending on the web means that Google waits for coverage of the Internet to improve in second world countries before it could increase most of its operations, for example, online advertising in those nations. The firm is also mostly an online business hence it is weak in competing against companies with a significant physical presence such as Apple.
The best engineers in the globe are working for Google, so the business has become the most famous place where everyone wants to work, not only because of the good salary but also for the benefits and opportunities accrued to incredible loyal workers. Also, Google has roughly 70% of the total market share, and Android has 80% of worldwide market share.
Recently, Mozilla replaced their primary browser Google search to Yahoo. The company paid a lot of money for this substitute. Regardless of this fact, the cost of the cost has not decreased. The profits of the company come from the search engine which shows that Google highly depends on its search engine. Google has the best engineering team with value expertise, so it is the highest time it comes up with new strategies with the aim of demanding the attention of the users. Therefore, people will use the search engine willingly and not because someone is forcing them.
Determine the Company’s resources, capabilities and core competencies
The industry of internet search engines has been dominated by Google market which has core competencies in software engineering and maintaining hardware infrastructure. Also, innovative free varieties of products and services, which is the largest source of revenue comes from doing various advertising as Google map and Google Ads. The core products have developed into a large variety. Outstanding the company culture is the core competence of the enterprise.
The most valuable resource that Google possesses is its employees since the company would not have a business without its workforce which is very significant in their operations. That is why Google is constantly motivated and highly committed to retaining its workers. The management team must be skilled and experienced to deal with any situation in the industry. The organisation is growing at a high rate due to the advances in technology. Intellectually able employees are vital to the company hence the company rewards its employees to maintain them.
Analyse the company’s value chain to determine where they can create value using the resources, capabilities and core competencies discussed above.
Google does not develop physical products. Its worth is minimised to collect all the web users it can by encouraging them to use its search engine in which high-quality information is delivered. The value of Google is reflected on the quality of the web using keywords associated with the search. Google ensures that its users can correct the page they are looking for so that they may purchase a product with Google (Rothaermel, 2015) . The company also contains internal software that enables various operations, services and sales. Every action that increases the company’s profits is a concern as the value chain. The company is based all over the world hence it obtains benefits from marketing and the services it provides.
References
Gates, J. (2016, october 6). MInsight/google-swot-analysis-2016-free. Retrieved from https://www.slideshare.net: https://www.slideshare.net/SMInsight/google-swot-analysis-2016-free
Rothaermel, F. T. (2015). Strategic management. New York: New York, NY: McGraw-Hill.
Sultan, F. (2015, September). 5356952/A_Case_Study_of_Google_Inc. Retrieved from https://www.academia.edu: https://www.academia.edu/5356952/A_Case_Study_of_Google_Inc
