External Analysis
Google has been managing the responsibility of performing for the benefit of the stakeholders. The stakeholders are including the shareholders, customers, employees, activist groups, government, and media. Each stakeholder has his agenda, owing to it; there is a peculiar relationship with the Google. So external analysis is done to identify the benefits and needs of the stakeholders. The external analysis of the Google is given in the form of Pestle analysis and Porter's five forces analysis (Teece, 2010).
Porter's Five Forces Analysis
It is the framework for the business strategy and industry analysis to develop the relative competitors for the firm.
Potential New Entrants: There is severe competition in the internet search market that restricts the new entrants to the field. The current server providers have developed more than thousands of servers that are deployed all over the world. It is an extremely competitive market, and there are numerous barriers for new entrants.
Bargaining Power of Suppliers: The ad system of Google is a very reliable source for the generation of income. The ad-receiving individuals and ad-making partners are the customers of Google; it is because of it that the supplier's bargaining power is very low.
Bargaining Power of Customer: The 99 percent of the revenue of the Google is derived from the advertising. The single customer account contributes 3 percent to the revenue of the company. So the bargaining power of buyer is also low.
Potential Substitutes: The internet is the new mode of communication among the individuals all around the world. There is no substitute to the Google as the information can be provided in different ways but Google is providing with some essential tools without which search cannot be done (Vise, 2007).
PESTLE Analysis
Technology: Google has positioned itself very well among the demographics. It is less affected by the baby boomers. The technology of the Google is ultimate. It is not falling behind any of the other companies regarding technology. The technology is in the continuous process of improving.
Economic: The United States have been crippling with the problem of economic recession. But the technology based companies such as Google is providing the staple to the world and the revenues to the United States.
Political & Legal: The formal institutions of the legal nature have not been affected the operations of Google significantly. However is taking care of the privacy concerns of the customer with the help of its Privacy Center. The Google has to face copyrights issues, but there are well developed legal and political policies of Google.
Socio-cultural: The socio-cultural impacts of Google are significant. The world is more connected due to the instant means of communication. Google is providing the services of navigation that is an actual search giant. The internet has been used by the people of all the ages and all around the cultures of the world. The smartphone technology has made Google inevitable. The individuals are more dependent on the internet than any other mean of information and Google for retaining any information (Teece, 2010).
Add - On Strategy
In the light of above discussion it can be recommended that Google should promote the culture of diverse workforce within the organization to gather the talented and creative minds all around the world. The productivity and efficiency of Google is dependent on the creativity for which the diverse workforce can play an important role. In addition to it, Google can collaborate with various agencies to promote the availability at grassroots level.
Internal Analysis
Google is a multinational organization that is offering the internet related ultimate products to the users. The services include the Internet search services, software, advertising, cloud computing, etc. the company is highly competitive and is a challenge for competitors. The internal analysis is given in the form of SWOT analysis.
SWOT Analysis
Strengths: It is offering the open source services and products. It has high financial credits and is providing quality to customers. It has an adamant and extensive product portfolio.
Weaknesses: it is relying on more than one source of income. It has many unprofitable products that are a liability. It has much patent litigation.
Threats: The internet users are growing, and it has to come up with growing customer satisfaction.
Opportunities: the number of users has been increasing. It has introduced electronic cables as a product that is beneficial (Jarvis, 2011).
References
Jarvis, J. (2011). What would Google do?: Reverse-engineering the fastest growing company in the history of the world. Harper Business.
Teece, D. J. (2010). Business models, business strategy and innovation.Long range planning, 43(2), 172-194.
Vise, D. (2007). The google story. Strategic Direction, 23(10).
