Strategic Management: Analysis of Google's Competitive Strategies

This report analyzes the strategic management of Google, including its competitive strategies, SWOT and PESTLE analysis, Porter's Five Forces, and growth strategies. It also discusses the impact of political, economic, social, technological, legal, and environmental factors on Google's operations. The report provides valuable insights for students and professionals studying strategic management.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
1 Critically analysed Google strategy..........................................................................................3
2 PESTLE....................................................................................................................................5
Porter Five Force.........................................................................................................................7
3 a) Porter’s Generic Strategies framework, for analysing competitive strategies of Google....9
b. Ansoff matrix are assess the growth strategies adopted by Google and its recommendation
...................................................................................................................................................10
CONCLUSION..............................................................................................................................12

INTRODUCTION
Global strategy is related to the strategy which company can develop to expand into global
market. Present report is based on Google, Alphabet Inc., is an American multinational
technology conglomerate organisation headquartered in California, it was created on the basis of
restructuring of google in 2015 and became the parent company of Google and several former
Google subsidiaries. It has been analysed that Google has successfully sell 25.9 million shares
between $108 and $135 (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). Also, report will
discuss strategy of google with the help of SWOT and PESTLE analysis.
1 Critically analysed Google strategy
Alphabet Inc., is an American multinational technology conglomerate organisation
headquartered in California, it was created on the basis of restructuring of google in 2015 and
became the parent company of Google and several former Google subsidiaries. It has been
analysed that Google has successfully sell 25.9 million shares between $108 and $135 (Firoz
Suleman, Rashidirad and Firoz Suleman, 2019). IPO planning is take place in parallel with carve
out process in order to focus on separating the target entity from its corporate parent
operationally and financially. Also, like IPOs themselves it is carve out typically. It can be said
that the rate of Google IPO is related to the $85 per share in order to anticipated in 2004 also at
that time price $85 per share a valuation of $23 billion.
In 2004 Google became one of the best search engine in order to focus on cloud
computing, ad-based video and music, autonomous vehicles and healthcare provider and others.
Monopoly of company helps to increase the queries which are resulting from ongoing growth in
orders to use it (Islami, Mustafa and Topuzovska Latkovikj, 2020). Also, the gaining market
share in cloud computing is related to the cloud computing which help for driven by continued
strength in Google Cloud platform. On the other hand, it has been analysed there are many
challenges faced by google in order to focus on developing the knowledge as well as it can be
related to generic competitive strategy by making differentiation that are help for developing
certain unique capabilities in order to makes business competitive. The strategy sued by Google
is to improve the strategy on the basis of search engine as well as it helps to promote internet

advertisements which is improve search experience and commercialisation internet. Company’s
aims to increase the function and innovativeness of web mobile technologies for users.
It has been considering that it is necessary to use the strategy which is incremental in
order to increase the services which help to attract large number of customers (Kabeyi, 2018).
For example, Google has focussed on innovation in order to offer free services to public and in
return use their online presence to serve business and then advertises accordingly. Also,
company has provided the software and products in the market. this is the strength of company to
attract large number of customer and this is one of the best approach which can be used in order
to provide them several benefits.
In the segment of political it can be said that there is multiple country effect which can be
impacts by stability which has affected by Google’s performance. There are stable government
which enable at low risk in order to continue to advertise because this can be likely to cut
spending. Internet is one of the new concept which are restricted in some countries which can
become weakness for Google (Greckhamer and Gur, 2021). such as China not allow to use
outside internet or software that become barrier for organisation by having set restrictive laws
which are restricted by market entry. This is affect Google by negative or positive way that is
why company had face challenges by legal problems. There were most of crises are included by
cyber law that impacts on company’s strategic decision. Also, there were different types of low
which can be affect s google is competition law.
In context to legal issues this is one of the most concern which has faced by google in order
to focus on common negative issues such as increasing regulatory scrutiny especially from EU
by past couple of years. Also, there were some of the criticism which are regards by censorship
and other allegations which are related to Misuse and manipulates search results that are allow
other people to the intellectual property. In addition to this, this is considering as the weakness of
the company (Tennent, 2020).
There were some of environmental issue faced by company due to high consumption of
servers as well as the vast and global shift towards eco industries are consciousness on impact
environment by other companies that can be bring additional risk for legislation. On the other
hand, the positive ways are related to enjoy Google from political factors which are including
taxation, policy, employment policies and other laws. It has been recommended that there are
google should focus on technology development which are related to internet usage and

accessibility to technological devices such as IPad, PC, smartphone etc. this strategy is related to
declining the growth which is correlated by such devices (Boshuis, Braam and Jansen, 2018).
Also, this is help for increasing the number of internet users by providing them innovation in
order to access the internet. Further, it is help to influence people by focusing on large number of
internet user which help to attract them accordingly.
2 PESTLE
It is known as strategic tool that help organization in finding external and internal factor that may
affect the overall growth of the company in both positive and negative way.
Political: It is consisting of rules and regulation that has been made up by government. The
biggest political factor which is affecting Google is war between china and USA both countries
has become hostile and due to that there has been huge trade restriction on imports. This has
negatively affected technology based organization like Google as it mainly depended on imports
to Chinese markets for earning revenue. The company has also partnership with Huawei brand
of china and due to political issue its position has been created negative. Although making use of
wider trade free agreements is an opportunity for google as it will allow in increasing the exports
of the company products like Pixel Smartphone (Christodoulou and Cullinane, 2019). However,
major threat is state owned online organization and in some countries political and external
factor will poses a competitive threat for the company. Thus, it is to be suggested to company
that it can make use of both offline and online operation for increasing their political stability.
Economic:
The UK economy is growing day by day and have highest GDP growth rate as well as it provides
immense level of opportunity to Google to increase their new market area and to enhance their
revenue. The good GDP rate allow company to have growth of purchasing power for
organization that lead in making used of technology more. Although Google have an opportunity
to come up with luxury technological products in the market area as it will contribute in success
of company. In addition to this, there is another factor globalization which is helping Google to
increase its awareness in developing countries (Achinas and et.al., 2019). Although the
purchasing power of customer in various countries has been increasing and that is allowing
Google to identify new market area and allowing them to become good leader. Thus, company
is trying to launch product which is best suited according to income rate of the customer that will
help in maintaining customer base.

Social:
This factor is consisting of current market trends and customer taste and preferences. Along with
this, in current global market data privacy is playing huge role in technology company as well a
large part of revenue earn by company is advertisement on various channels (Ofosu-Boateng and
Jiping, 2020). Although Google has been facing challenges like lesser brand seeking to advertise
on various social sites as internet browser have provided Ad blocking facilities. The another
challenge is high competition in the market area such as Facebook, Twitter and it also have
various features for the customer in order to improve their experience. Google on other hand has
been multiplatform brand and it has to provide all type of features into single platform. Although
the price of the products is also kept according to the customer income level so to enhance the
sales.
Technological
This factor is available for both the company and Individual so google has to integrate more
features in the platform. Along with this, the recent increment which has benefited brand is AI as
it based on innovation. The company has been known as biggest name in AI and Cloud
Integrated services market that has been growing with the faster growth rates in the current time.
Google has currently collaborated with Android for expanding their market area as making use
of smartphone is very common and this type of partnership has been very profitable for the
organization (Walsh, Bhagavatheeswaran and Roma, 2019). Although the brand is trying to
introduce smart device and make use of current technology trend. The company in order to
increase their awareness make use of SMM and digital marketing as well as it promotes their
new services on such sites.
Legal:
The organization has been facing law suits regarding data privacy against google mode of
operations. Along with this, the company revenue mainly generates through advertisement. And
for generating advertisement it is important for the organization to collect private data of the
customer. However, various country has laws related to not collect personal data and it is
considering as crime (Walsh, Bhagavatheeswaran and Roma, 2019). Thus, it is threat for the
company as google is having hard time running their advertisement. Another factor is various
laws has restricted for uploading information regarding copyright on YouTube as it may affect
content which is available on various platform and it will reduce tariffs. Thus, it lower downs

the ability of Google to run advertisement and revenue standards. In addition to this, company
also follow corporate rules and regulation, employment law and consumer protection act in order
to keep their employees and customer safe for illegal activities. Although following law is also
very crucial as it will allow to sustain in the competitive market area.
Environmental
Google have to address environmental issues that has been arising in the current market area.
Moreover, many organization has been trying to reduce their carbon footprint so google need to
conduct such activities in order to increase their growth area (Gupta, Gupta and Gupta, 2019).
Moreover, many organization has collaborated with UN to take certain environmental friendly
step towards enhancing the society. In addition to this, Google do contribute in NGO and
promote education facilities for poor children. In addition to this, organization also follow CSR
policy as a step towards development of the society and to build up rural areas.
Porter Five Force
This is also known as strategic tool that allow company to known about their market position.
Along with this, it includes factors like new entrants, threat of substitute, buying power of
customer, bargaining power of suppliers and rivalry.
Supplier power:
Google has been dominating in the market area so its supplier power is low. The company has
been one of the largest technology organization in the global market area so it dominates various
software industry. Most of the products have been satisfy with the needs of customer but there is
no growth due to integration (Wang and et.al., 2019). The companies like Apple, Microsoft has
been introducing their new product in the market areas which have been challenging for the firm.
In addition to this, such IT organization are continuously making use of various tactics for
eliminating the competition such as Microsoft has change their search engine into browser. The
suppliers of the Google generally depended on their advertisement and company try to make
good relation with them.
Buyer power:
Google have good dominance power and due to that it has strong buyer power. Along with this,
rival organization promotes goods and services in software industries so customer have option
for opting products from them. That has lead in decreasing the profit and reduction in customer
base. Although google has expanded its market areas by opening a developing operating source.

In addition to this, companies like Apple and Microsoft have fewer customers rate and Google
product are available at affordable price and in high demand as compared to product of other
companies.
Competitive Rivalry:
There is moderate competition faced by Google as it controls the largest share of internet
searches. Along with this, the major competitors are Yahoo and MSN which are most common
search engine. Moreover, Google has been dominating internet from so many years due to its
innovative and creative idea (Wang and et.al., 2019). It comes up with various features in their
application such as Google maps and Street view in order to attract customer and allow them to
make use of their search engine. In addition to this, theses unique features have helped Google in
decreasing their competition and also after collaborating with Android there has been increase in
their brand name.
Although the competition is moderate level because majority of the Apple phone make use of
IOS software and it is not commonly used by computers and mobile device. However, majority
of the market area has been making use of Android system.
Threat of substitution:
There is low threat of substitution for Google as the internet is one of major source of
information in current age. The user is depended on the internet for collecting the data through
search engines. Thus, there are no major substituents of this company as it has been dominating
the market area and it also comes up with innovative idea for increasing their customer base and
enhancing their growth rate.
Threat of new entrant:
There is moderate threat of entry in the market area and Google is in dominance. The
technology industry has various barriers in market area. Some example is stiff competition and it
requires huge amount of capital (Kar and Navin, 2021). Google in order to deal with competition
has come up with innovative ideas so to maintain its dominance and to increase their customer
base. The another threat is other technology can make use of resources for developing their
search engine so to meet up with the google. Thus, organization do not have threat of new
entrance.

3 a) Porter’s Generic Strategies framework, for analysing competitive strategies of Google
Porter’s generic strategic framework
The strategic choice decision of company is related to the nature of business on the basis
of different industry as well as it help to different strategy used by organisations by focusing on
overreaching influence in order to focus on competitive advantages as well as against forms.
Google has large number of competitors such as Yahoo, snapchat, Facebook etc. So that with the
help of porter generic strategy it can be said that company can use by making position in market
which help for building valuable brand (Burugu, 2021). Also, Google currently focus on
differentiation strategy which help to focus on providing variety of product and services
according to the nature of customer. This strategy helps Google to focus on getting competitive
advantages in order to focus on other intensive growth by focusing on keeping position in
market.
google has the competitive advantages for developing unique capabilities in order to
make business more competitive as well as it helps to set the competitors by provide unique
products. For example, Uniqueness is related to innovation which add strength in order to
identified in above strength of company. Also, this is increasing variety of products by inclusive
search and operating system that can be used by mobile application and other devices (Martins,
2020). In context to competitive strategy company focus on manifestation on the basis of
differentiation strategy used by Google which can be evolves over times to ensure competitive
advantages against Yahoo and others.
Further, porter generic strategy is related to the Google must maintain competitive
advantages which is based on uniqueness as well as this is critically importance for the company
by innovating product and services. a corresponding strategic objectives are related to the
developing new products and services which are help for improving the existing services by
promoting new product and services. Also, google will be followed by competitive advantages in
order to focus on generic strategy which is related to the strong and aggressive competition from
other technology firms (Telang and Deshpande, 2021).
On the basis of this tactic it has been identified that product differentiation is used by
Google in order to expand their market share as well as to increase their customer rate. Along
with this, if company understand the competitive strategy then it need to focus on developing the
capabilities that will help in attracting audience so to make the business look more competitive in

the market. Moreover, in the early stage of production it was difficult for google to maintain their
market position with help of new product. However, for grabbing the opportunity in the market
Google try to come up with innovative idea like google maps, google drive, google files and give
variety of options to the customer (Birru, Sudarmiatin and Hermawan, 2022). Thus, it can be
justified that competitive strategies are best in order to improve the brand name and to meet the
customer needs better than the competition as well as increase market share. So Google can
expand its business by making use of product differentiation strategy and to sustain in high
competition area. Although it can make use of training and development programme for their
employees so that it keeps the consumer satisfied and enhance their rate level.
b. Ansoff matrix are assess the growth strategies adopted by Google and its recommendation
It can be said that there some strategy which are necessary to use by company in order to
access growth strategies that are necessary for adopt and adjust ins market. this is ones of the
important framework which are used by company ins order to analyse the growth and market
strategy to sustain in challenging market. Also, this strategy helps to focus on strategy which
can overcome by current or future challenge as well as it helps to realise the goals of expansion.
Also, it is necessary to follow the growth strategy which can be adopted by company.
Market penetration- This strategy was primarily used by google in order to focus on s
intensive growth outside US and strategic objectives that are help for acquiring large number of
customers. this strategy helps Google ins order to focus on increasing production capacity that
are help to allow company in order to reach the more customer within same market. Also, this is
help for increasing the capacity of production that are help for leading more efficiency and
effectiveness which are especially for controlling overhead costs of products and services
(Prananda, Yin-Fah and Chuen, 2020). then this is also help company to focus on leading
competitive advantages which are help for appeal to customers in same market which are
increase the sale of product as well as it helps to focus on attracting and competitive pricing
within market that are help for leading sales and consumption in the higher market penetration.
Market development- This is the strategy for Google in order to sale its existing product
at new market with the help of enhance business growth in order to focus on introducing existing
product in new market. There is different type of strategy which can be used by company
company such as research and development is important part of identify the possible new
markets and consumer segments. This is help for identify the culture, trends and consumer

behaviour, then it is necessary to focus on regional expansion on the basis of Google Inc. expand
regionally that is include different culture as well as geographic region (Jintana, Sopadang and
Ramingwong, 2021)
Product development- This is also necessary to focus on existing market which helped
for driving in different parts as well as it help to work by modification to existing products that
will help to increase the consumption of product. Also, this is help for launching new products in
order to focus on identify new points of consumer demand. Then strategic partnership is related
to engage with strategic partnership to explore options that’s has the limited risk. In this strategy
it is necessary to focus on the objectives by developing product to increase revenues (Naim,
2021). Also, innovations are core of company which can be consider by its technological nature.
Further, there are some of the product which are help for developing new products such as cloud
services, new pixel devices, mobile applications. This is help for creating more channel which
help to increase in income also this is related to the generic competitive strategy.
Diversification- This is help for business growth that occur when company engage in
new product development in new market. Diversification are help for allow business like Google
Inc. to remain competent, competitive and innovative. Also, in this strategy there are some of the
vertical diversification which help for growth and business in order to introduce new product
under existing product lines. There are two types of diversifications such as horizontal
diversification and vertical diversification. Also, there are merger and acquisition are help for
conglomeratic growth of entering new business with the help of merger and acquisition
(Curuksu, 2018). For example, in the year 2006, YouTube establish significant presence in the
video hosting service market in order to expand the company online advertising presence which
help for diversifying the business that can affect the require change in business by corporate
structure by ensure about seamless integration. then diversifications help for using generic
strategy by competitiveness advantages that help for establishing new business.
Recommendation
It has been recommended that company should follow diversification strategy in order to use
leadership in the market as well as this is effective service which ensure by leading share in
digital advertising market. This strategy helps to complete vision and mission of organisation in
order to focus on all the combination of growth strategy such as market penetration, market
development and product development that are related to intensive growth as well as it help to

contribute in Google by maintain its leadership position that turn empowers the company in
order maintain financial visibility.
In this strategy company has the opportunity of merger and acquisition with other company
also google can partner with other company also acquire the business with the interest and effort
in order to diversify into new markets and also gets the chance by offering new products. For
example, company can acquire Yahoo in order to attract large number of customer who are
using Yahoo also this is one of the best strategy which help for exploring the ideas and option in
order to launch or acquire the purposes of growth and development.
CONCLUSION
From the above report it has been concluded that Google make use of product development in
which it keeps making new product in the existing market in order to increase their market share.
Along with this, the above report has also summarized about Porter Five force in which threat
of new entrant and substitute of the product has been identified.

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