Strategic Management (Distinction Criteria) - Analysis of Google's Management Strategies, PESTEL Analysis, and Porter's Five Forces Analysis

This report analyzes Google's management strategies, including its generic and intensive strategies, and evaluates the balance of opportunities and threats in its turbulent global environment through a PESTEL analysis. It also critically evaluates the strength and attractiveness of the industry/sector that Google is currently operating in using Porter's Five Forces analysis. The report provides recommendations for growth strategies and highlights the supportive role of senior management in strategic development.

Strategic Management

Table of Contents
INTRODUCTION................................................................................................................................3
TASK....................................................................................................................................................3
1 ) Management strategies of google.......................................................................................3
2 a) Carry out a critical PESTEL analysis of Google’s current turbulent global
environment. Evaluate the balance of opportunities and threats and Google’s responses to
the major issues.........................................................................................................................6
B)Using Porter’s Five Forces Analysis, critically evaluate the strength and attractiveness of
the industry/sector that Google is currently operating in. What is the strength of the five
forces and what underlying factors drive them......................................................................7
3. a) Using Porter’s Generic Strategies framework, critically analyse Google’s corporate
and competitive strategies. To what extent do you think the competitive strategies are
sustainable over time?...............................................................................................................9
3 b) With the aid of the Ansoff Matrix, assess the growth strategies adopted by Google?
What recommendations can you make to Google’s growth strategy for the future?.......11
CONCLUSION..................................................................................................................................13
REFRENCES.....................................................................................................................................14
Books and Journal.....................................................................................................................14

INTRODUCTION
Management in an institutions means making people work and getting work done through
other people to accomplish organisations objective.(Tonelli, M. and Cristoni, N., 2018)
Management in an organisation should be able to make decision and solve all the issue in order to
be both useful and helpful for the institution. A company's management should be dynamic in
nature means it should be able to change itself as per the situation. Google is founded by Larry Page
and Sergey Brin in the year 1998. Company's headquarter is California, US. Its current CEO is
Sunder Pichai and CFO is Ruth Porat. This report comprises of an analysis on strategic management
of Google company. In this report we are discussing strength and weakness of an organisation and
also how supportive the staff was towards these strategies. This information helps people to know
about the effect of external environment on the company and also understand its external strength
and attractiveness of the company . This report also gives information about the growth strategies
adopted by the company and the corporate and competitive strategies that are used by Google to
stay and fight competition in the market. This is all included in the report.
TASK
1 ) Management strategies of google
Organisation has to always make correct and best strategies to survive in the market as there
is a lot competition and also there is a constant change in the requirement of the consumer taste and
this leads to impact on institution's market (Alieinykov and et.al, 2019). This is why company
should always have good management strategies and dynamic nature so that the organization can
change as per the requirement of the customer.
There are different types of strategies which includes the following-
Deliberate strategy- It is the top down approach in the strategic planning which is focused and
emphasized on the intention. It is based on mission and vision of business and is also focused
towards the achievement of the business purpose. Porters generic strategies are included in this
category.
Emergent strategy- It is a process which involves identification of the unforeseen outcome from
strategy execution and then also learning in order to incorporate the unexpected outcome in future
plans by way of taking the bottom up approach to the management. It is also known as realised
strategy which is more flexible as compared to deliberate and is known for a method of learning
while in the operations.
 Google's generic strategy -
Google generic strategies is based on the porter's model. In this strategies there is broad
market scope. Google creates and offers its products globally to everyone. This means that google

must maintain its competitive advantage by creating new uniqueness in the market. As it is very
important for a firm like this to be dynamic and innovative(Ansoff and et.al., 2018). The
organisation should always have new strategies should be creating new product and and
continuously improving the existing product.
 Google intensive strategies
Google’s intensive strategies relies on market penetration as it gives google a intensive
growth in the market especially outside of united states . As in the united states company is
already on the top or at the leadership position but in the other countries like china the
company directly compete with the other large search engines and advertising firm in such
scenario the market penetration is Henry, A.et.al, 2021 always the best way (Barbosa,
Castañeda-Ayarza, and Ferreira2020) . This intensive strategies determine how google uses
its marketing mix or 4p that helps it grow the business also with the help of generic strategy
of differentiation ensures that help the company to be in the top with market penetration and
giving new product. This strategies involves exploring and entering new markets and market
segments new geographical regions with time. Google market continue to expand globally.
But the product use rate was initially high in the western nation. It rates grew higher in other
nation with time. As the popularity of the internet and internet based services has been and
with the rising in the popularity of the internet the popularity of google also rise with it. This
product development means that a company should never stop innovating and introduction
new products in the market(Bhattacharyya,2020) . Google has maintained a culture to bring
innovation in its products and such as search engine, mobile phone, browser. Diversification
strategy where a company shift to new area of business so that company can acquire a more
market area and to grow markets share and sales. Now google has started creating android
phones watches and chrome books and this has created a extra income for the company so
that google do not have to reliance on the advertisement but it is still the main source of
earning for the google.
Strategy used by google is the one used by many theorist and practitioner prefer which is the
emergent strategy. This strategy says that a company should be flexible and should change with the
upcoming change like political change or technological advancement and many more same as the
google has the strategy to diversify and the strategy of product development that are used by google
so that it can be innovative(Chugumbaev and et.al 2020) . As given in the approach google has the
ability and it is change with time and also with the factor taste and also with the trends this is its
biggest strength and its weakness is the competition as now all the company are on the internet and
changing in strategies would be risk for google.The senior management in google is really
supportive in strategic development of the company by communicating company goals to all the

works and employees so that everyone can help in achieving the objective and also by encouraging
the employees to work and give quality output. And providing support for the assets and the
management that the way the management helps an organisation and also by leading with the
example this help the employees to look forward and get motivated. Google executives should work
forward on the ambient computing , creating devices that can hook the future generation and can
benefit google most with everything, also google should look forward towards buying someone big
in e-commerce space and google should donate or shift to hardware industry as well.

2 a) Carry out a critical PESTEL analysis of Google’s current turbulent global environment.
Evaluate the balance of opportunities and threats and Google’s responses to the major
issues.
PESTLE analysis
A PESTLE analysis is studies that help an organisation to understand its key external factors
that can influence an industry. This analysis can be used in different cases and guide different
organisation or an industry's manager in strategic decision making
Political factors: -There are many things that affect company which comes under political
factor like tax policies , trade restrictions , reforms , tariffs and political stability . These factors
determine that how government of a country can influence industry or a company (Ferlie and
Parrado, 2018). Opportunity for Google can be for instance, when government can bring new tax
reforms that can fully change the way of revenue generation model of a company, Google can get
opportunity to expand its business. Another opportunity can be Free trade agreement can increase
the chances for import and export Google can penetrates the market through its strategies if politics
is stable and haves good market condition. Some tariff trades can be hindrance for the growth or can
impact regular operations of the company. There is political scenario that can affect google are:-
Economic factors: -There are many factors that affects company which comes under
economic factors economic growth/decline, interest, exchange, inflation and wage rates, minimum
wage, working hours, unemployment (local and national), credit availability, and cost of living.
These factors determine company's growth by monitoring economy's performance. For instance, the
price of the product or service will be determined by the rise of the inflation rate. For the growth of
company this factor plays a vital role. Google pestle can show some factors that can impact its
growth like for instance, the opportunity for Google is that most developing countries offering
market to the companies who are interested to invest . The demand for technological related items
are growing which widens the scope of Google to expand its invest in new market. But threat is that
this pandemic has stopped the economies of many countries where google operates so there is hard
to import and export.
Social factor: -There are many factors that affects company which comes under social
factors cultural norms and expectations, health consciousness, population growth rates, age
distribution, career attitudes, health, and safety(Forouharfar, 2022) . These factors are helpful to the
company to know about the social condition of market and company can make strategies using
them . For instance, Google can take opportunity to enhance the living standard of the people by
launching such products which can bring solution to their issues and raise living standard. Social
factor can directly and indirectly hinder the progress of company and there are some social factors

that can impact revenue generation of Google like Data privacy is a big concern to many customers
and Similar platforms like google are also getting popular
Technological factor: -There are many factors that affects company which comes under
technological factors new trends of technology and future change in technology or adaption of new
technology . Several new development like A I, machine learning are some of the changes which
happened in market and if company fails to match up these changes it may lose its position from
market . technological factors can favour Google's growth(Henry,2021). The internet users are
getting increased day by day AI and cloud-based technologies are gaining high popularity among
individuals which gives opportunity to Google to constantly grow their products and keep them up
to date.
Legal factors: -There are many factors that affects company which comes under legal
factors changes to legislation impacting employment, access to materials, quotas, resources,
imports/exports, and taxation . There are some certain laws that impacts business internally or
externally . Other than these laws company have some rules and regulations that employee has to
follow . These laws help company in planning (Köseoglu and et. al., 2019). Legal issues can
servilely affect any company . The laws made by country can affect the performance of a company
many countries are making laws on internet privacy which can hinder their progress while Google
earn a significant part from advertisement as well which provides opportunity to them to gain
business revenue.
Environmental factors:-There are many factors that affects company which comes under
environmental factors and these factors are concerned with the surrounding environment and
concern regarding ecological aspects. Including environmental protection laws , energy
consumption regulation , waste disposal laws (Köseoglu,Yick and Parnell,2021) . This can
indirectly impacts the growth of the company . The users are getting more and more concerned
regarding environment with time to time The company can support go green projects as an
opportunity to enhance their goodwill and contribute towards society. Google has already made a
sustainable relationship with its clients and suppliers
B)Using Porter’s Five Forces Analysis, critically evaluate the strength and attractiveness of
the industry/sector that Google is currently operating in. What is the strength of the five
forces and what underlying factors drive them
Porter's five model is a tool which created for analysis of industry's potential profitability
and created by a professor of Harvard business school called Michael porter in 1979. Porter's five
forces are the framework that help an organisation to identify and understand the five competitive

forces that forms or shape every industry and also help recognize any industries strength and
weakness. These factor also help in understanding about competitive intensity and attractiveness of
the market(Kumar, Pandey and Mukherjee,2021) . It also help the industry to understand where the
power lies in a business situation. These are also used to identify that the new product or service
that a company is launching is going to be profitable or not. in context to Google, this analysis has
been discussed below: -
 Competition : strong force
google faces strong competition as there are large number of IT firms and online service
industry , technological firm has high diversity rate and customers don't have to pay high cost to
switch another brand.
Google's competitors span among various industries are yahoo, Microsoft, IBM , apple, Comcast,
snap chat , twitter , Facebook
 Bargaining power of buyers ; weak force
bargaining power weakly impacts google as size of Google's individual customer , demand
is high and continuously increasing from buyer
with the help of the small contribution to Google's revenue each buyer exerts only a weak force of
the company because of the high demand for products and services from google and its competitors
customers can only put little pressure
 Bargaining power of suppliers ; weak force
For google there are many suppliers to choose from that's why company has weak force of
this factor high availability of the supply , large number of suppliers and small size of individual
suppliers . With the higher number of availability of supply and large number of suppliers against
google that gives them low bargaining power
 Threats of substitution ; moderate force
threats of substitutes for google is moderate because other advertising channels such as print
media , television are its alternative moderate shifting cost between google and its competitors ,
moderate availability of substitutes . Moderate switch cost allow customers to switch easily .
 Threats for new entry; moderate force
Threats for new entry is moderate because it needs big investments for technologies level of
google but some start-ups are providing services like google already , cost of doing business is
moderate , high cost of brand development(Kumar, Pandey and Mukherjee,2021). Moderate force
means that number of startups and firms that can directly compete with google .
Porter's five model is a tool which created for analysis of industry's potential profitability
and created by a professor of Harvard business school called Michael porter in 1979. Porter's five

forces are the framework that help an organisation to identify and understand the five competitive
forces that forms or shape every industry and also help recognize any industries strength and
weakness. These factor also help in understanding about competitive intensity and attractiveness of
the market (Makadok, Burton and Barney, 2018) . It also help the industry to understand where the
power lies in a business situation. These are also used to identify that the new product or service
that a company is launching is is going to be profitable or not.
3. a) Using Porter’s Generic Strategies framework, critically analyse Google’s corporate and
competitive strategies. To what extent do you think the competitive strategies are
sustainable over time?
Googles analysis based on Porters Generic Strategies
Porters generic strategies this was wrote by porter in the year 1980. It targets either cost
leadership , differentiation, or focus. These generic strategies can be enforced on any type of firm
or size of firm. Porters strategies basically focused on cost minimization strategies , product
differentiation strategy, market focus strategy of a company. Porter claimed the an industry should
only choose one out of three strategy or else there is a risk that an organisation would lose its
precious.
The cost leadership strategy-
This strategy help an organisation to get profit and increase in the market share. Porters
strategy let you gain competitive advantage against there competitors (Sukhobokov, Galimov and
Zolotov,2018). This also let you get an “edge” over your rival in the market. There are two ways to
achieve the cost leadership strategy-
 Reduce cost with increasing profit while changing average price in an industry
 By changing the prices to lower level and increasing the market share while still making a
good amount of profit on each of there sale because an industry has reduced cost
This simply means that if Google uses this strategy then just being a lowest cost producers in the
market is not good enough because in that way a firm leave itself wide open to be attacked by other
low-cost producers in the market. They might undercut your precise and block the way of an
industry towards the goal of increasing market share (Leih, 2018). Google needs to be confident
before choose the strategy of cost leadership, some of the firm that are successful in achieving cost
leadership usually have-
 Access to the capital that would be required to invest in technology bring the the cost down
 Very efficient logistics \
 A low cost foundation a way to sustainability bring down the costs below those
competitors

pursuing this cost leadership strategy has great risk as not only the business know the strategy to
lower the cost but compositor can copy your cost reduction strategy. Google can use this strategy to
boost there profit and reduce the competitor that they have in the market and by reducing the cost to
minimum or zero can be a bold step that google can take to increase its market share and profit.
Like some of the facility that google provide for free like google photos.
The differentiation strategy-
Differentiation involves making the product different and attractive than there competitor.
How can anyone achieve this is based on the exact nature of there industry service themselves but
will the company also targets a broad market. But the the services and the products that the
organisation provide has uniqueness that makes the product or the services of the business
exclusive as possible that makes the products more attractive and non comparable offered by the
competitor. typically include a lot many features functionality durability support and the brand
Image of customer value to be successful with this strategy an organisation will require:
 Best research development and innovation
 Ability of an industry to provide high quality product or service
 Effective sales and marketing so that markets gets an idea of benefits offered by
differentiated offerings
Google mostly use this strategy to create its products googles main earning is from ads. But
google has created many different products like and Google has already made a sustainable
relationship with its clients and suppliers id mobile phone , google lens , smart glass and google
also provide different service like chrome , browser , google photos and many more and google has
differentiated its services so that can survive in the market for a longer term and expand there
market share. It is very important to be flexible and get an ability to adapt quick in the changing
market or there is the risk of competition leave the industry behind In the race and reach at the first
rank (.Siegel, D.S. Petrova, E. and Varbanova, B., 2021)..
The Focus strategy-
Cost focus :-In this strategy industry focus on the niche market and try to offer lower
prices as possible. In such strategy company target a clear niche markets and also try to understand
the dynamic of these market segments. They also concentrate on the requirement and wishes of the
consumer and you can ensure that the cost remain low. Some of the example are like low cost
budget airline that has the ability to achieve market share growth by choose the way of cost
focused strategy offering cheap and basic services at lower price than the big air line that charges
much higher prices for the same services in the industry(Brunetti, F., 2021)
Differentiation focus :- choosing this type of market strategy a company try to focus only

on the niche market and the product and service that an industry prove should have a unique
feature. This strategy mostly often involves the brand loyalty among the customer. An organisation
that is involved in this type of market should be very focused on there products as there products
should be unique an d different then any product in the market to be ahead in the markets
competition. Google can use this focus differentiation strategy to get the market share in the small
and cheap countries as there are not much big brands just small local niche markets and by giving
different products and on the cheap price it is seasy for google to completely take over these
markets. And also defeat all the small business in these market(Abdulmuslimov,and A.Boyd, B.,
2020).
Through the analysis it conclude that the Google can use a lot of strategy but what is the
best for google is the differentiation strategy as which is used by the google as. Google has already
diversify its products and services and this leadNew times roman a great diversification and that
helps google to survive and keep its customer happy and satisfied from the services of google and
that result in the growth of the company. But google should also take care that they just do not
concentrate on innovating and also try to alter or create changes in the old products and services so
that they should always have a loyal customer base.
3 b) With the aid of the Ansoff Matrix, assess the growth strategies adopted by Google? What
recommendations can you make to Google’s growth strategy for the future?
Ansoff matrix analysis
This analysis helps company to identify its potential growth area within its market segment.
It is often called as market and product expansion grid. This analysis tool usually used by
management team to find out the risk associated with different growth strategies. This framework is
divided into two by two grid, one axis includes market parameter like existing and new markets,
another axis features product like new or existing.
Market penetration
Market penetration is a grid which includes existing market and existing product and for
google products in this grid are – search and advertising. Google has entered US market as search
engine and with the help of penetration strategy it already have captured huge market share . Then
company launched AdWords , a new product in new market , this is platform to put advertisement
on google search . By introducing different products in market to become of strong brand, with aim
of attracting more customers.
New product development
New product development is a grid which includes existing market and new product and for
google products in this grid are – alert, calender, news, image, cheakout, map, google, gmail,

picasa, docs. over the year google has improved the sepotential growth area within its market
segment.find out the risk associated with different growth strategies.arch engine , they are
continuously increasing features to make their platform user friendly(Barney, J.B., 2020) .. Google
has developed manypotential growth area within its market segment.find out the risk associated
with different growth strategies. products like maps, picasa, earth, docs etc. at a very cheap rate and
through this they have fulfils the wide range of customer wants. This will make them dominate
world's markets.
Market development
Market development is a grid which includes new market and existing product and for
google products in this grid are – google has made number of products that are easily available to
customers. To capture more market share google has opened offices in different places. Google
continues to open its office in different parts of the world by using this strategy. Google knows the
more users of internet will increase its customers potential growth area within its market
segment.find out the risk associated with different growth strategies.as it is a search engine. Thus,
company has encouraged free internet excess withpotential growth area within its market
segment.find out the risk associated with different growth strategies. citiwide Wi-Fi. Google has
launched many products for free as they bring advertisements on their platform thus, their revenue
can increase(Alfonso-Robaina and et.al, 2020) . Their potential growth area within its market
segment. find out the risk associated with different growth strategies. products are gathering
information from their customers and providing them with advertisement personalised according to
their hobbies and interest. This will give google a competitive edge and increase the market share.
Diversification
It is a grid which includes new market and new product and for google products in this grid
are- google has diversified through alliance and acquisition. google has diversified itself through
alliance and acquisition. Through the acquisition google has diversified its business by launching
docs, earth, you tube. These products has expanded the business and bring new users to the
google(Zhang, J., 2019). By allowing all developer to use common API to compete with social
media sides like Facebook. Google has understood the benefits of diversification and it allows to
explore the new opportunities and has invested in research.

CONCLUSION
In this report, it can be analysed that about the different strategy of google that are created
after the ipo 2004. Also we discuss about the strategy that google use is differentiation to sustain in
the market. The analysis is also about the external factor that effect an organisation working and
factor of an organisation that helps in working of an industry. It also includes strength and weakness
of the organization and how senior management think about the recent policy of google company.
It also contains a brief suggestion on which policy should google use or work. It includes potential
growth area within its market segment and find out the risk associated with different growth
strategies. There is a reference about the five competitive forces that can affect the business and
about the policy used by google and new products and services that google provide its customer

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