Business Strategy for Google: Analysis, PESTLE, SWOT, and Porters Five Forces

This report analyzes the business strategy of Google, including PESTLE analysis, SWOT analysis, and Porters Five Forces. It explores the internal and external factors affecting Google's performance and decision-making. The report also discusses the opportunities and threats faced by Google in the market.

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
ANALYSIS......................................................................................................................................3
PESTLE.......................................................................................................................................3
SWOT..........................................................................................................................................6
Porters five forces........................................................................................................................7
PROPOSAL...................................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy helps in deciding long term plans for company to achieve their
objectives and goals for future. Business strategy is the management's game plan so that they can
strengthen performance in organization. It is very important for the company to maintain their
standards and performance in the market therefore using business strategy is important. This will
give a clarity of functioning for Google and the organization will be able to function better with a
competitive advantage for the organization. Google is chosen for this report because it has a
competitive advantage in market and this company will make the understanding of business
strategy easier for us to understand.
Google is an American multinational company which is specialized in internet related
services and products. This company is considered in the top four technology companies in the
world among Amazon, Facebook and Apple. There are more than 114,096 employees working in
the company and the company's net income is $14,444,000,000 (Google's parent company now
has more than 100,000 employees, 2020).
The report would cover the internal and external factors which can affect company so that
there is a better functioning of Google. There are a lot of factors which affect a company's
smooth and effective functioning of organization which has to be controlled only after analysing
factors so that appropriate decisions can be made. Models which would be used in the report are
porters five forces, SWOT analysis and PESTLE analysis which will make the company have a
better understanding for the organization and make decisions accordingly.
ANALYSIS
Organizational environment are the forces or institutions surroundings which are going to
affect performance, resources and operations. This will make the businesses understand their
organizational functioning better and the decisions for the future can be taken accordingly so that
there is a better market share (Schell and et.al., 2019).
PESTLE
PESTLE analysis is a tool or framework which is used to understand the macro
environment of an organization so that the performance of the company is not affected. Google
also analyses the external factors so that they can have a competitive advantage in the company

which will make the company have a great advantage for them by making decisions for the
smooth functioning for themselves.
Political factors
The political factors of external environment is an opportunity for Google since google is
an internet based company which does not let the political factors affect the company much. The
political practices of UAE are not promoting Google and therefore Amazon is doing better in
that country (Linton and Kask, 2017). Government of UAE is supporting Amazon to get a place
in the market share but Google is not being able to make a place for themselves which is making
the company have a negative market share in the world.
Economic Factors
The unemployment rates in United Arab Emirates is low and the GDP per capita in the
country is high therefore the growth of Google is high. There are a lot of company's in UAE who
advertise their companies on Google but the government of the country does not promote that
method therefore there are other methods which are being used. There are a lot of company's in
the market which using Google as a source for advertisements which would make Google have a
better business for themselves (Thieu and et.al., 2017). The purchasing power of people in
country is high because of income level which the people are having in UAE. There would be
loss of the company if the value of dollar falls in the market and in exchange of a powerful
currency with a weak dollar will make the company have a negative impact.
Social Factors
There is a rise of social media usage in the country which is a great threat for the
company. This is so because it will strengthen factors for the competitive companies like
Facebook which is also doing online advertisement services for other companies. Google has
started marketing for its brand value to increase in localized marketing techniques so that they
can create a good brand image for themselves. Number of users of internet are increasing on the
country which will have a great impact on the company. Since the number of uses is increasing
so their issue with using internet is privacy settings. The threat for the company is data privacy
which is there is data of customers which are being collected so that the advertisements can be
done for them which is not really appreciated by customers. There are internet browsers which
are providing the customers with services like remove advertisements which is making the
advertisement from Google platform reduce (Nosratabadi and et.al., 2019).

Technological Factors
Google has come up with Android products which has made Google have a huge market
share for themselves which is going to be a long term advantage for the company. Competition
in market is high and in United Arab Emirates it is going to be difficult for company to make a
base for themselves but due to technological advancement in Google company will be able to
make a market share (Faugère and Gergaud, 2017). There is high adaptation of technology which
is friendly and they can make company have a great advantage in market therefore it is very
important for the company to change and innovate in technology so that they can get a
competitive advantage for a longer run and success in market. There are a lot of new product
Google has come up with which are drive, photos, Alexa, etc. which can be used by Google as a
great competitive advantage in market.
Legal Factors
Legal factors for company can be a huge advantage because the company can work on
their privacy factors and make the customers get the best of services because of that. There
would be an increase of cost legally if the company moves into insurance and experiments when
it comes to delivery of services. Google will have to take strict measures because in United Arab
Emirates follows a law that is making the employees work for only 8 hours a day. Using that
method in the company will have to be applied if the company wants to capture the market share
in UAE (Saidali and et.al., 2019). Property rights in UAE is a huge deal which the company will
have to face and a lot of investment will be required for the organization to have an effective
functioning for themselves in the country.
Environmental Factors
Since the company is online based then it would be very easy for Google to capture the
market so that the company can have an advantage in market. Though there are a lot of
innovations and creativity which the company is using which is going to be very useful for the
organization. Environmental factors will not affect the company and environmental factors are
well under control of the organization. Carbon foot print of the company would have to be
reduced so that they can have a better brand image in the market. The focus of Google is on
having a sustainable business so that there is a better functioning of the company in market
(Pagani and Pardo, 2017). There are technological changes which are coming in the company so
that there is an ecological hazard's mitigation for an effective energy.

SWOT
SWOT is used as a framework in organizations so that there is a better functioning of the
organization and understand the internal factors which would help in decision making of the
organization. It is very important for the organization to have an effective framework so that
there is an effective working of the company in market and they can get a better competitive
advantage (Sanaei and Sobhani, 2018). Google has Facebook, Amazon and Apple which are its
competition and to get that factor there are a lot of changes which are taking place in the
company.
Strengths
Google is the leading search engine in market and has captured 65% of the market for
search engines and the company has a great advantage because of this factor (Forsey, 2018).
Competitors in the market do not even try to come near Google because the market share it has
made for itself from so many years. Google has a strong image for itself in market which is a
very good factor for the company. Google has captures more than 28% computers in the work as
the desktop searches worldwide. There are a lot of competitors in market for Google but no one
comes in the competition with Google because they are well aware of the capabilities of Google
and they will not be able to compete with it. There is an adaptation of Android and mobile in the
company which is giving the company a great potential to compete directly with the competitor
like Apple.
Weaknesses
There are a lot of companies which has boycotted Google and YouTube advertisements
because the customers have been provided with a setting of block advertisements and the
advertisements are not really reaching the customers. Google is dependent on the advertisements
by 86% which is making the company get affected by a large number which is not good for the
company for a long run in market (Peng and Lebedev, 2017). There is no provision for next
generation computing platform which includes mobile and tablet computers which is remaining
to be an area of concern for the company and can make the company get affected on a large scale
for the future. There is a lot of data which is given by Google to companies so that they can
advertise themselves on what the customer needs which will be a privacy concern for the

customers and can turn out to be very harmful for the company to have a large customer base for
themselves.
Opportunities
Google has collaborated with Android which can turn out to be very helpful for the
company to capture the market for themselves which is very important for the company to
expand themselves if they want to capture more market. This can make the company have a
direct competition with Apple and Samsung which will make the company get a competitive
advantage which is going to be very useful for company (Rana and et.al., 2017). Google has
come up with applications which are similar to Apple applications which is making the
customers have more satisfaction with products of Google and this will make company have a
better market share.
Threats
There is a decline in the market share of the company which is going to be a great threat
to the company. Since the company was dependent on the advertisement revenue the company
has been boycott in a lot of countries because it is not turning out to be any useful for the
company's. There is a gender bias in the company which is not giving the free speech in the
company which can limit a lot of ideas to come in the company and the company will not be able
to function in a group which will make the productivity level of the organization fall which is
going to affect the company in negative way. There are a lot of companies which are good with
coping products which Google has come up with which is going to be very harmful for company
and reduce competitive advantage. The brand image of the company will also reduce and market
share of company will also fall which is not good for company because competitors are high in
market. The privacy issues of the customers which the Google is not providing the customers
with is going to be very harmful for them (Lejeune and et.al., 2019).
Porters five forces
Porters five forces is a model which has five forces to determine the industry's strengths
and weaknesses so that they can have a competitive advantage in the industry. To have a strategy
and to identify an industry's structure this model is used. This is done so that the organization can
understand the power of the external factors in the company and then make decisions
accordingly so that the company can have a better functioning for themselves.

Threat of new entrants (Moderate)
Threat to entrant for Google is moderate because there are a lot of investment which will
be required by the companies to come in direct competition with the company. It is only when
the bigger companies in the market come together will they be able to come in competition with
Google. Competitors can invest to come in competition but they will take a lot of time to come in
competition with Google but by the time they come in competition with Google then the
organization will come up with different ideas and make a place for themselves in the market
even stronger. There are strict licensing and legal requirements which have to be fulfilled in
order to come in competition with Google because they have built the company unique in nature.
Google can have a lot of competition for themselves but they have a lot of legal structure they
have planned for themselves which is why the competitors are not being able to have a better
stand for themselves in market even if they try to come in competition with the organization.
Brand images of Google is too high in market share which is going to be difficult for any new
company to come to that standards so quickly (Chakra, Harpur and Rice, 2018).
Bargaining power of suppliers (Low)
There are a lot of suppliers which Google has built for themselves therefore suppliers are
not being able to have a power on the company. Any supplier who costs their supplies high then
Google will choose the other supplier to give the raw material. There are a lot of companies
which are online through which the company can get their supplies from as well. Which is why
Google is having a supplier power with themselves which will make the company have a
competitive advantage for themselves and a long run in market. The switching power is not
present in the organization which is why the company has to make sure that they are doing the
best they can so that the organization is not affected and the functioning remains effective in
market. There are wide areas which Google has expanded themselves in which is making the
company have a better power on the suppliers of the company and there are a lot of technological
factors which whelp the company to have a competitive advantage of Google.
Competitive rivalry (Strong)
There is a high competition for Google in the market because the organization is in
competition with Amazon.com, Facebook, Apple, Microsoft, IBM, Yahoo, etc. There are a lot of
customers who have shifted to other companies because google had not come up with innovative
ideas which would make the company have a better vision for themselves. There are a lot of

technological changes which are being adopted by Google and the competitive companies which
has to be worked upon so that they all can have a competitive advantage for themselves. There
are low switching cost for the customers from one company to the other therefore there are going
to be barriers which the company will have to take so that they can come over that factor. One
major step which Google has taken to come over that factor is that they made Android products
so that they can compete with their competition like Apple (Lo, Huarng and Rey-Martí, 2019).
Google is having a lot of technological changes in the company so that the company can have a
competitive advantage and make a great market share for themselves so that they can over come
the competition which it is in.
Threat of substitute (Moderate)
There are a lot of methods which the other companies can use for advertisement which
google is providing to the company in market. Alternative methods are television, radio, print
media, etc. The organization is coming up with new and alternative methods so that they can
have a better capture on the market and since Google is more than majority is dependent on
advertisement for revenue then appropriate decisions will have to be taken by the company.
Substitute in market for the Google products are there but they are very expensive and the
customers do not purchase that but good is giving the best of quality in low price therefore the
company is being able to capture a larger market for themselves in market. This is why the
customers do not shift from Google to any other company because the services are provided to
them at a low cost. Google understand their customers and then make products according to them
so that the company can have a better functioning for themselves. There are a lot of products
which Google is providing to the customers and the company will have to differentiate their
products which is going to be helpful for the organization.
Bargaining power of buyers (Weak)
The competition for Google is high in market in which the organization is functioning in
so it is very important for the company to understand the market. The demand of buys is
increasing for the company every day which is very important for the company to focus on.
Technological products are increasing in market which is why the company is having a better
functioning for themselves. The income of buyers is also increasing therefore the company has a
competitive advantage on the buyers of the company (Kanda, Sakao and Hjelm, 2016). The
buyers of Google can not find an alternative method to work with therefore Google is having a

loyal customer or buyer power. Customers are being provided with low pricing which is why the
customers are not having any power on the company and the products of the company. The only
issue which the buyers of the company are having is privacy which is very important for the
company to over come. Google has already taken few measures for it and the advertisement of
the company has stopped so that the customers remain loyal with the organization which is a
very important factor for Google.
PROPOSAL
Google has established a strong position worldwide among internet users when it comes
to delivering high quality information and access to large search operations. Company has been
offering large platforms in form of various search engines for people who use internet for surfing
vital reliable information. It has enabled users on global platform to connect with each other
through emails, social media networking and giving access through large arenas of information
(Khraisha and Mantegna, 2020). Google has established strong goodwill among viewers by
delivering highly reliable information regarding all corners of life, news and updates, videos and
knowledgable content regarding all sectors of environment. It has strengthened position for itself
by reaching large audience globally when it comes to providing vital information quickly in an
instant and it has developed the search engines rapidly with changing global scenario.
The various points which are analysed which showcase the strong position google has created in
people can be understood as-
 Google has built itself a technology friendly search engine where company has worked
dynamically to adopt with changing business scenario and high preferences of viewers
worldwide. It gives users large opportunities with music drives, photos ,Alexa which has
made life of people way more comfortable and technically savvy than before (Godin,
2019).
 Google has created a strong brand value among users by keeping their privacy secure and
enabling various options to update their information while networking on internet. People
can surf data on all topics and content related to all corners of life due to which it has
enhanced services on large levels globally.
 Google has enabled large audience to showcase their talents via social media platforms
and has enriched lives of millions globally. People can use google to share their content
regarding music, art, photography and enhance their learning capabilities.

 Google has reached all age groups of people by giving easy access to information
regarding various subjects and latest technological up-gradation in search engines has
given increased access on internet. Viewers on internet use google as most easy
accessible search engine when it comes to read vital information with trustable facts
behind it (Edsand,2019).
 Statistics has shown people preference for google has largely increased with time due to
high promotional activities and partnerships it has conducted lately globally. Users have a
comfortable experience to reach vital information worldwide and enhance their content
reach to large extent by technological advancement in all search engines.
 Google aims to enhance environmental sustainability for positioning itself firmly in
competitive business world, ecological hazards mitigation steps have been taken by
company for delivering high quality performance standards. This makes google inspire
millions worldwide to move towards environmental friendly ways in functioning their
operations.
Arguments-
 Google has been largely dependent on capital which comes through advertisements on
online platforms which has become an increasing weakness for company to reach log
term profitably goals. This has become an increasing hindrance for management to reach
financial goals effectively, and has become limitation when it comes to introduce new
technologies through large capital investment (Haider and Sundin,2019).
 Google has largely created a discomfort for users who have developed privacy concern
issues when it comes to sharing data by companies. It has turned to be negative factor for
companies as it becomes hard to retain customers for long term base growth. Users have
been lately become aware of hazards by getting their privacy leaked through
advertisements on google worldwide,it has reduced efficiency levels of company to late
extent.
 It has been found through analysis that management teams are facing gender bias
problems in company due to which company has not been able to enhance productivity
levels, as ideas are not been able to be shared properly within team members. This factor
reduces dynamics in company which is an imperatively important element for company
to reach success in highly competitive business environment (Rocco and Silvello, 2020).

 There is no provision for next generation computing platform which includes mobile and
tablet computers which has limited the access of google to large extent globally. It has
become large area of concern for company as it will impact on productive growth for
future.
Opinions-
 Google needs to build strong search engines where content of users do not face privacy
theft issues and companies who advertise their information via goggle do not face
hindrances. Company must towards enhancing performance levels to keep data secure,
privacy intact and develop software which detect thefts easily (Mehrotra and Sharan,
2020).This will enable company to deliver high reliable information and influence people
positively on global platforms.
 Google needs to build dynamic working culture by eliminating gender bias completely
and giving equal opportunities for all management employees. Company shall conduct
brainstorming sessions to enhance productivity levels, encourage implementation of new
ideas to foster innovative energies in company. This will enable company to position
itself firmly in highly businesses environment where new companies are coming up with
innovative search engines.
 Google must build strong financial strategies to construct strong capital and decrease
reliability on revenues through mere advertisements. This will enable company to build
long term growth efficiency with huge finance to invest in new technologies, innovate
and indulge in enhancing search engines functionality (Sajjan and Veer, 2019). It will
allow company to invest largely in delivering high advancement in various search
engines on global platforms and devices through which it can make lives of people a lot
easier.
 Google must build provisions for next generation people who look for highly
technological services in smartphones and internet search engines. People worldwide are
becoming increasingly tech savvy, google by building strong advanced devices for new
generation crowd establish a long term sustainability among viewers. It will enhance
company goodwill among users and cater high growth success in completion of financial
goals, users satisfaction and enhance it working criteria.

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