Their profits increase tremendously due to the hike of mobile internet users. Threats: 1 . Competition from other search engines like Yahoo, Microsoft and Binge 2. There is a growing number of mobile users 3. Lesser people are making searches on their computer which will result in a decline in profits. 3) 3. 1 political Previous organization have not prominently disrupted Google’s management despite Google facing tensions from the Justice sector to renounce documented search terms and from the Chinese officials to remove search results.
Google’s slogan of “don’t be evil” has been tested as operators question if working with the officials compromises their confidentiality and bibber. In 2008, Google replied to consumer apprehensions due to the addition of a privacy link to their homepage. The link divert consumers to a privacy centre in which they can be educated in regards to Google’s course of action towards political problems. (B. Morrow, 2008) 3. 2 Economic United States is presently in a downturn with stock trading at a low of 52 week.
However, Google is unaffected because Internet-based advertisements have become a fundamental to the world economy. An online magazine article stated that Google is well positioned to withstand the downturn. The season why Google is more recession proof than other search engines is because it’s central point is highly targeted and considerable advertising. The decisive need to stay briefed and continually connected ensures that such services are still active despite the economy downturn. (B. Morrow, 2008) 3. Socio-Cultural Since the advent of the world wide web, people are more connected than ever. Search engines such as Google help us sieve out relevant information from the wealth of data online. Even as the use of Internet continues to gain popularity across the globe, dependence on such online search engines loud only increases. Furthermore, many people now use mobile phones with data plan that allows them to surf Internet wherever they are. Most people would make use of the Internet to find eating places, get driving directions, get news update etcetera.
Online search engines would thus stand to gain from the escalation of search enquires. (B. Morrow, 2008) 3. 4 Technological Technology is improving and Google is taking a particular measure to ensure that it does not fall behind. Google uses cheap computer parts that can be bought and sold, making sure that every component will always have a plicate. Google attach the components with Velour instead of screws because it allows quicker swapping and upgrading of the components. (B. Morrow, 2008) 3. 5 Legal Google is currently facing a legal case filed by the European Union.
Being the leader of the Internet search engines, it is believed that Google has been using its powerful position in its own favor. If proven guilty, there will be a considerable drop in Google’s profit as it will face fines. (J. Doyle, 2013) 4) 4. 1 The threat of new entrants To enter the search engine market, the barriers are considered high due to he current dominance of internet giants such as Google and Yahoo. Competitors have well-established infrastructures; having thousands of servers all around the world and many years worth of knowledge; accumulated data of Internet users’ preferences and habits.
Therefore, in order to compete in this highly competitive market, a new entrant would need to be able to provide users with faster and more accurate data searches compared to existing search engines. Google has overshadowed other search engines. Currently, the market has grown to be more mature and the adhering of data on both weeping contents and users’ search history is necessary. Therefore, the threat Of new entrants into the search engine market is low considering the amount of resistance for new entrants present. 4. The threat of substitutes As of 2008, the Internet has become the primary mode chosen by people all over the world for obtaining information and knowledge. Taking this in mind, there is no current substitute for search engines, other than using a different search engines available on the Internet. Information and knowledge can be organized and sorted into many different ways, such as the type of data/ information they belong to or by the dates they are published; Google is able to complete these tasks and conduct accurate and relevant-to-users’ searches as well, through its well designed algorithms and programs.
Applying Porter’s Five Forces to Google, Google has positioned itself as an organization that is able to cope with challenges that may arise internally while staying firm with a turbulent external environment. Google’s ability to continuously impress and please both its stakeholders’ and shareholders’ is key to its continued success in the future as an organization. B. Morrow, 2008) 4. 4 Suppliers Google’s advertisement system is a trustworthy source of income because people that are advertising and receiving the advertisement are customers Of Google.
Google can just continue to uphold its market dominance and the supplier bargaining power will stay low. Google’s cost of revenue for sales was 40% in 2007, which is the same for Yahoo. It shows that both companies are effective at maintaining the collaboration between supplier and seller. (B. Marrow, 2008) 4. 5 Customers Google is well known worldwide. Google not only has great technology unction’s that help people get quick information, but also tries to improve and update themselves in order to not let their customers get bored of the application.
Now Google has created a new application, similar to Google which is called the Google Chrome which helps customers get information much faster then before and even has more function like having the New Incognito Window which helps customers to hide their privacy when they are doing their research. More people will start using the Google chrome that really win the hearts of customers all thanks to hiding the privacy on Internet. ) Internal environment analysis 5. 1 Tangible – Tangible falls under 2 categories which are financial and the workers of the company.
The finance of Google is strong and stable because many people still continue advertising on Google despite the competitors like Yahoo, Binge and Microsoft. Google is not a one man job, it takes hard work and also needs different opinions from experts. Google has been successful since the 1 9905, and it is still successful up till date. Therefore, the workers of the company really tried to put in hard work into creating Google. 5. Intangible ? Intangible falls under 3 categories which are reputation Of the company, technology and human capital. ) Firms Capabilities Functional – Google is able to gather information all around the world so that people can share it on the Internet. It creates play store and allows Android users to download application from there. Value chain – Value chain is something in the business that both parties are able to earn money. However, Google does not have any value chain in the start but Google didn’t gave up. Because Google does not have much of a value chain to earn revenue, they found a way to have a value chain whereby o create an application to bring more business partners to come together. ) Conclusion In conclusion, I personally feel that Google has been maintaining their reputation so far so good, not only they manage to win many hearts of the customers to use Google, but also continue spread to others to use Google as it has massive excellent information, Google is not only one of the most trusted application, but also the most funded and interesting application among worldwide. 7) Recommendations think Google should continue monitoring competition and expanding their product offerings.