Google has emerged as being one of the most successful and valuable corporate companies globally. Sergey Brin and Larry Page founded Google in 1995 as a search engine.
Porter’s Five Forces Model Conditions Facing Google
An analysis of a business entity using Porter’s Five Forces involves giving an insight concerning the external environmental factors such as competitive business landscape that influence the business enterprise (Burke, Stel & Thurik 28).
Competition
In spite of being a leader in the search engine internet industry, google faces stiff competition from other companies in the same industry such as Amazon, Apple, Yahoo and Microsoft. However, the company has been able to ward off this market rivalry through its aggressiveness in terms of innovation and advertising.
Customers’ Bargaining Power
This factor affects Google’s operations due to low switching costs and availability of products or substitutes from its main competitors. The buyers of Google products therefore have the ability to bargain for a variety of products.
Threat of Substitutes
The availability of interchangeable products from competition companies is another factor that affects Google’s prospects in the search engine market.
Other conditions that face Google include the threat of new entry and suppliers’ bargaining power
Google’s SWOT Analysis
SWOT analysis of a company refers to the synthesis or investigation of its strength, weaknesses, opportunities and threats. This analysis is also meant to show the company’s internal capabilities and factors that influence the application of these capabilities externally.
Google’s Strengths
Google’s main internal strategic strength factors include its strong image of its brands, product diversity, strong intellectual property protection system, wide customer base, quality products, innovative culture, good customer experience and huge capital and financial investments (Jurevicius online). All these factors have enabled the company to gain entry in or explore new markets and also manage competition.
Weaknesses
Despite of Google’s dominance in the market, the company faces challenges such as overdependence on online business, litigations on patent and reliance on a single income source.
Google’s Opportunities
Threats that Face Google
These are factors that lead to a decline in a company’s performance and hence reduce its growth rate. Google’s main threats include unfavorable antitrust laws, cut throat competition from Microsoft and imitation of its products by competitors (Jurevicius online)
Works Cited
Burke, Andrew, Andre Van Stel and Roy Thurik. "Blue ocean vs five forces." Harvard Business Review Journal 88.5 (2010): 28-29. Web. < https://hbr.org/2010/05/blue-ocean-vs-five-forces > 3 Jan. 2016
Jurevicius, Ovidijus. “Google SWOT analysis 2015 ". (2015, October). Web. < http://www.strategicmanagementinsight.com/swot-analyses/google-swot-analysis.html > 3 Jan. 2016.
