Strategic Management Analysis of Google

This report provides a critical analysis of Google's strategic management using frameworks like marketing mix, Mc Kinsey 7s model, PESTEL analysis, Porter's Five Forces Analysis, Porter's Generic Strategies framework, and Ansoff matrix. It includes an analysis of Google's strategic development since its IPO in 2004, a PESTEL analysis of Google's current global environment, and a critical evaluation of the strength and attractiveness of the industry/sector that Google is currently operating in using Porter's Five Forces Analysis.

Strategic management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
Critically analyse the development of Google’s strategy over the years since its Initial Public
Offering (IPO) in 2004................................................................................................................4
Carry out a critical PESTEL analysis of Google’s current turbulent global environment..........7
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......................................................................................9
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....................................................................................................................................11
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?.........................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic management is a major approach which helps a company to develop planning
and policy frameworks. In the recent times, strategic management is playing a major role in
many international and national organisations by increasing chances of overall business
development (Barbosa, Castañeda-Ayarza, and Ferreira, 2020). All business entities takes help
from strategic management in order to deal with contemporary challenges and issues. In this
project a brief analysis of strategic frameworks used by Alphabet company to acquire Google
company are considered. The Alphabet is an American multinational technology conglomerate
holding company which is headquartered in Mountain View, California. The company was
created created through restructuring of Google on October 2, 2015. The Alphabet is known as
parent company of Google and various former subsidiaries of Google. Google was founded in
the year 1988 on 4th of September and its headquarters are situated in Mountain View, California.
This project will include focus on Google's strategic development over the years since its public
offerings in the year 2004. The report will include analysis of macro or external environment of
Google with the help of PESTEL analysis in order to evaluate key perspectives of business
strategies. This report will cover a brief description of Porter's five forces model in order to
evaluate key strengths and weaknesses. The project will also include assessment of Porter's
Generic strategies and Ansoff matrix which are adopted by Google.

TASK
Critically analyse the development of Google’s strategy over the years since its Initial Public
Offering (IPO) in 2004
The Google is today, one of the finest software and internet services providing company
all across the globe. It is major role of Google to take support of different measures and develop
a well defined strategy to lead the marketplace. The company has also provided initial public
offerings in the year 2004. In the initial public offerings company attracted many customers from
the marketplace in order to develop systematic approach. Google has taken help and support of
various strategies that are essential for its overall development and welfare. The employees of
company are also very satisfied with the strategies it adopted (Barney, and Mackey, 2018). The
customers of Google company are also very well satisfied with the Google and its functioning
since the beginning, Although, Google faced many obstacles and hurdles in its working. Main
role of Google company is to analyse its strategic framework from time to time in order to
develop precise approach. The main higher level authorities of Google have also played a
significant role in developing strategies. Key strategies which are adopted by Google are
mentioned below:
Marketing mix:
It was very essential for the Google company to promote its products and services with
main focus on its marketing functions . The application of marketing mix has helped Google to
promote its products and services in a vast manner. This approach has also helped the company
to develop systematic approach in managing key customers. The Google company implemented
the marketing mix in year 2004, which has its approach mentioned below:
 Price- The price of a product is considered as key approach which helps the company to
determine final value of outputs (Berisha, 2017). Price is essential to be formulated and
developed according to the demand of product in order to achieve the best results. The
price of products and services of Google were set to reasonable and affordable rates in
order to seek attention of customers.
 Promotion- Promotion is considered as advertisement and publicity of products and
services of the company. In order to effectively promote its products and services Google
took up digital marketing based approaches. The promotion was done by social media

websites like Facebook, Twitter and Instagram in order to reach customers all across the
globe. The social media platforms are chosen for promoting products by Google in order
to develop a precise approach in marketing functions.
 Place- Place is the geographical location selected by a business entity in order to perform
sales related functions. The place should be selected by a business in order to increase the
sales turnover and provide right place for handling the customers. Google selected online
platforms for selling its key services which was a major decision.
 Product- Product is considered as physical output produced by the company to satisfy
wants and needs of customers (Bhattacharyya, 2020). The product should be developed
according to the dynamic nature of marketplace. Google's main services and products are
based on software to provide information and technology based solutions to customers.
Mc Kinsey 7s model
The change management is an important part of a business in the long term as well as in
short term. In order to face the change in a well defined manner, it is essential for the Google
company to adopt change management models like Mc Kinsey 7s model to develop systematic
functioning. The application of McKinsey 7s model for Google company is mentioned below:
 Strategy- Strategy is the planning which is related to achieve future goals and objectives.
It is main role of a business to develop and take assistance of strategy to move ahead in
the era of stiff competition between company. Google has hired professional employees
in its strategic department to assist its planning.
 Structure- The structure of the business organisation must be suitable and effective in
nature to perform and develop key operations (Bolland, 2020). Structure should be
chosen by a business entity on the basis of its hierarchy to attain main targets.
 Systems- In the functioning of Google system plays an important role in making
employees more effective and their working also. The system of Google is well designed
by experts in order to gain effectiveness in different operations.
 Shared Values- It is main task or function of management to establish major values
between the employees to develop ethical approach. Application of human relationship
theory is the best suitable approach which is adopted by Google to maintain shared values
between employees.

 Style- Management style is considered as key approach which helps the business
organisation to control employees. The management style should be selected on the basis
of nature of employees in order to perform key development based goals.
 Staff- Staff management is the major approach which can be adopted by Google to
increase the employee productivity (Camillus, Bidanda, and Mohan, 2017). The
employee productivity and output are two major pillars which can be achieved by a
business organisation to develop effective goals.
 Skills- The skills are the capabilities of employees which enables them to systematically
develop effective approach in managing key tasks of the organisation. Google has
develop major skills like decision making, leadership and time management in employees
for better development.

Carry out a critical PESTEL analysis of Google’s current turbulent global environment
PESTLE analysis can be understood as a strategic framework which is used by
organisational managers for ascertaining varied macro factors present in external environment
which impact business operations in a strategic manner (Hitt, Ireland and Hoskisson, 2019). It is
considered as beneficial for organisations as it aid them in formulating strategies which helps
them in securing a competitive edge. It assist organisational managers in assessing a macro
picture of external forces and their influence on business activities. All the forces of PESTLE
analysis in accordance with global environment of Google are as follows:
Political factors are concerned with regulations formulated by government in regards
with business operations of an establishment (Phillips and Moutinho, 2018). It comprises of
corporate taxation measures, stable political landscape as well as administrative system in
regards with a specified country. It is imperative for managers of Google to oversee varied
legislations while operating in differential countries. Managers of Google faced varied issues in
regards with financial, ethical and legal laws of different nations where it is operating. Managers
of Google should penetrate their operations in those countries where they can find a political
landscape as well as good marketing conditions (D’Cruz, 2018). Stable political landscape of
varied countries like USA, UK create opportunities to Google for expending their operations.
Domestic establishments can poses as a threat for Google as they are getting easy grants and
subsidies from regional government. Managers of Google has entered into free trade agreements
with specified countries in order to operate their activities in a strategic manner.
Economic forces comprises of increase in the rates of GDP, inflation and unemployment
in a significant manner of a particular country. Fluctuations in currency rates poses as a threat for
organisations whose business is based on this aspect. It is imperative for establishments to
critically analyse economic forces as they are important for ascertaining long-range forecasts in
relevance with expenses as well as revenues (Siegel and Leih, 2018). Google is a technological-
driven company which has increased its demand in developed countries which can be considered
as an opportunity for them to expand their operations in a strategic manner. Due to global
pandemic, when organisations get a setback in terms of viability. This is an opportunity for
Google to increase their customers through providing more features in regards with advertising
and search engine optimization. Managers of Google should access positive as well as negative

aspects of economic factors on a global scale. Closure of companies due to global pandemic has
impacted on the profit margins of Google operations which is considered as a threat for them.
Social factors encompasses of perception, taste as well as attitudes of a particular
population of a specified nation. These are essentially concerned with growth in population,
demographics as well as other related aspects in relevance with a certain country. Data privacy is
considered as crucial element which is a point of concern of massive users. Google earn most of
their profits from posting online advertisements (Denning, 2017). Privacy concern of people can
create threat for them them and hamper their viable operations in a significant manner. Social
media platforms are also posing as a threat for them as business houses are promoting their
products through them. Use of smartphones by massive number of people is an opportunity for
Google as they can reach to large number of users. It is imperative for Google to assess social
factors of countries where it is operating or planning to operate.
Technological factors involves new advancement and introduction of innovative
practices of an establishment in regards with a specified country. Technological advancements
are considered as appreciable in a globalised manner. New technological advancements by
managers of Google develop opportunities for them with the massive increase of internet users
on a worldwide basis. Investment in regards with advanced technological advancements and
their maintenance cost led managers of Google to incur their sum of money which can poses as
threat as it increase their expenses in a significant manner.
Legal factors essentially comprises of legislations which are framed by government in
order to protect the rights and interests of employees as well as customers of organisations in
regards with a specified country. It is desirable for managers of Google who are operating their
operations in a globalised manner to critically analyse the legal forces. Managers of Google
evaluate the legal laws in countries in which they are operating their activities. For example, in
relevance with General Data Protection Act which was framed by UK government for protecting
the confidential information of their people. Managers of Google have laid policies for protecting
the private information of their users in an effective manner (Fernandes, Ferreira, and Rueda-
Armengot, 2017). This act as an opportunity for Google to make their brand viable and ethical in
front of public. Compliance with lots of legislations formulated by differential governments can
act as a threat for Google.

Environmental factors essentially comprises of ethical practices, corporate social
responsibilities and community service which needs to be considered by organisations in context
to a specific country. Managers of Google have indulged themselves in maintaining the ethical
sourcing and issues in relation to privacy concerns in a significant manner which creates a viable
position of their brand (Gileva, Galimova, and Gorshenina, 2021). It is imperative for managers
of Google to indulge in sustainable practices and make compliance with environmental laws of
differential countries in which they are operating.
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 five forces can be described as a framework which is used by establishments in
evaluating competitive environment in relation to a specified industry (Witcher, 2019). It is
considered as beneficial for organisations as it aid in estimating competitiveness as well as
attractiveness of industry in an effective manner. It is also used by organisations for
understanding the corporate risk as well as their strengths for mitigating them. Managers of
Google use this framework for analysing their competitors and their unique features in industry
which can influence their operations in a strategic manner. Through this, managers of Google
can access valuable insights regarding market conditions which help them to develop varied
strategies in an effective manner.
 Bargaining power of buyers- The bargaining power of buyers is considered as major
element in the Porter's five forces. It is very much essential for the business entity to
understand bargaining power of buyers in order to formulate major corporate strategies.
The bargaining power of buyers of buyers for the Google company was low when it
initially started to operate at the marketplace (Gavel'O, 2017). There were only less
competitors in software industry when Google was performing specific operations. It is
major role of a company to deliver best practices related to business development by
understanding bargaining power of buyers and their level.
 Bargaining power of suppliers- The bargaining power of suppliers is essential to be
understood and analysed by a company. In the case of Google, there was a major
advantage of bargaining power of suppliers as it was also low. This is major role of a
business to understand bargaining power in order to formulate best business and

corporate world based practices. There were only a few competitors who were supplying
essential and software based services. In order to analyse the bargaining power of
suppliers, it is essential to understand key perspectives which are necessary for growth
and development.
 Threat from new entry- The analysis of threats from new entries is essential to be
known by Google in order to evaluate best business practices. Google was initially
developed as a small scale company so the threat from new entry was more. In order to
lead the marketplace, it is essential for Google to develop effective practices which are
essential for its welfare and development (Hitt, Ireland, and Hoskisson, 2019). It is main
role of a company to determine threats from new entry in order to lead the competition.
The strategies are majorly considered as key approaches which are helpful in providing
crucial support to companies. New entries can cause major harm to business
organisations which are already established in the marketplace like Google.
 Threat of substitutes- The threat of substitutes is a major factor which can impact on the
functioning of Google. The threat of substitutes should be determined by business entity
in order to analyse and ensure working of business. Major companies in the national and
international marketplace focus on determining threats from substitutes in order to
analyse the key function of a business. Most of the companies at the marketplace also
develops a research and development department (Kolesnikov, Kokodey, and Mikhailov,
2018). The main task of a business is to analyse the growth opportunities by analysing
key strengths and capabilities.
 Competitive rivalry- The major companies in the marketplace like Yahoo and Bing
were major SEO websites which gave tough competition to Google. The management of
Google was focused on increasing their approach according to contemporary business
environment (Westney, 2021). Contemporary business environment should be majorly
considered by different companies with brief analysis of strategies which are
implemented by competitors. The competitors rivalry is one of the major factors that has
impacted upon functioning of Google in order to develop advanced strategies.

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
The Porter's generic strategies are widely accepted frameworks which helps a company to
develop future planning. This is a supportive tool used by different companies in order to
increase chances of development. The Porter's Generic growth strategies are also helpful in
increasing the chances of organisational success. The application of Porter's generic strategies
has made various companies in the global and domestic marketplace accomplish marketing and
strategic targets (Makadok, Burton, and Barney, 2018). The Porter's generic growth strategies are
also a good example of planning and policies in order to gain competitive advantage. In order to
gain competency edge, it is necessary for Google company to implement the Porters generic
growth strategies with main supervision and control. The development of Porter's generic growth
strategies are mentioned below in context of Google's corporate strategies:
 Cost Leadership- The cost leadership is a major factor which helps a business to develop
unique selling prepositions. In order to gain effectiveness in key operations, it is essential
for the company to develop cost benefit analysis. Cost leadership is a main approach
which can be adopted by the business organisation to provide products on effective
prices. The cost leadership based approach could be helpful for the business organisation
in order to maintain goodwill and reputation. To attract major customers from the
marketplace, it is necessary for Google to implement Cost leadership based practices. The
cost of products should be formulated on the basis of value and demand of product.
Minimum prices for products and services of Google products was set by its management
to increase the sales (Mavi, Gheibdoust, and Mavi, 2019). This approach helped Google
to achieve its set business targets in a specified period of time. The cost leadership
strategy of a business is sustainable for a longer period of time as it includes major focus
on cost effectiveness.
 Focus- The focus is one of the finest approaches which can be developed by the business
entity in order to develop best business practices. Focus on products and services makes a
company more accurate in performing its business operations. Focusing on all business
operations and functions with monitoring was done by top level management of Google.
The focus of a business should be on all business operations makes a business more

competitive at the marketplace. Google has also ensured that each employee is focused
on performing duties with ethical approach. This provided solutions to key problems of
Google and the company moved in right direction.
 Differentiation- The main differentiation of all business functions should be analysed
and performed by Google company. It will support the management of company to
systematically lead the competition with major approach. Differentiation of products and
services was also essential to be performed by Google in order to increase chances of self
development (Michael, Storey, and Thomas, 2017). The differentiation based factors and
approaches should be selected by business entity with the recommendations of higher
level authorities. In order to proceed with the development, it is necessary for business
organisations to seek attention of major strategies and approaches. The differentiation of
a business must also consider key steps related to developing.
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?
The Ansoff Matrix is one of the major techniques which helps in business growth and
expansion. The Ansoff matrix and its application for Google company has helped it to overcome
key challenges and issues at the marketplace. The Ansoff matrix also provide an overview of
organisational growth based indicators which are helpful in resolving key conflicts. It is major
role of a business organisation to implement Ansoff matrix in order to enhance the values. The
growth strategies with the support of Ansoff matrix are facilitated in a well defined manner.
Ansoff matrix is one of the finest approaches which are adopted by Google to overcome major
issues. The application of Ansoff matrix for Google is mentioned below:
 Market penetration- The penetration of market includes increasing the sales figures of
the company of existing products in existing markets. Ansoff matrix and its application
put more focus on market penetration by Google in order to deliver best and significant
practices (Mwakisaghu, 2019). In order to increase sales of existing products in the
existing marketplace, it is essential for the company to develop market penetration.
 Product development- The development of product and services is essential for the
company to deliver best practices. Development of products in the new marketplace is
essential for the company to take essential steps related to marketing. The products of

company should be develop in the new marketplace with the help of marketing strategies
and approaches.
 Market development- Development of new products in existing marketplace is the main
factor behind marketing development (Siegfried, 2021). The development of marketplace
which is existing in nature will also help the company to deliver best value development
based approaches. It is major tasks of marketing department of Google to put emphasis
on market development.
 Diversification- This is a completely transformational approach which is adopted by
Google to sell its new products in the new marketplace. The diversification based
approach requires huge efforts from the management side as well as includes main focus
over key frameworks that are adopted by business entities (Tonelli, and Cristoni, 2018).
The strategic planning is main part of diversification which helps a company to adopt
effective approach in the competition.

CONCLUSION
From the above analysis it can be concluded that business strategy and its development is
most essential way to deliver effectiveness in business operations. This project concludes that in
order to survive the competition, it is important for business entity to take assistance of
professional strategic management. In order to lead the marketplace, it is essential for the
business entity to analyse different universally adopted models and theories. This report
concludes that in order to lead the competition, it is very much necessary for a company to
analyse key parameters of growth and expansion. This analysis concludes that in the functioning
of a business, it is important responsibility of strategic management to take essential steps and
measures according to contemporary business environment. The project also concludes that
Ansoff matrix and Porter's generic growth strategies are major solutions for a company to move
ahead of its competitors.

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