This report provides a critical analysis of Google's strategy development, turbulent environment, and industry attractiveness using Porter's Five Forces Analysis. It also evaluates the opportunities and threats of the company based on PESTLE analysis.
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Table of Contents MAIN BODY...................................................................................................................................3 1) analysation of development of googles strategy with justification.........................................3 2a)criticalanalysationofGooglesturbulentgoogleenvironmentandevaluationof opportunity and threats of google company.................................................................................4 2 b)Using Porter’s Five Forces Analysis, critically evaluate the strength and attractiveness of the industry/sector that Google is currently operating in.............................................................7 3. a) Porter’s Generic Strategies framework, for analysing competitive strategies of Google....8 b) Ansoff Matrix, assess the growth strategies adopted byGoogle and recommendations make to Google’s growth strategy for the future......................................................................10 CONCLUSION..............................................................................................................................12 REFERENCES................................................................................................................................1
MAIN BODY 1) analysation of development of googles strategy with justification Strategy is refers to the company's plan for victory in competition with other competitors and the focus is on strategies in order to gain maximum profits. Along with this, strategic management is refers to the process that can be involved in formulating and implementing different types of strategies. Approaches of strategy formulation There are different types of strategy such as incremental, deliberate and emergent approach for strategy formulation. Deliberate strategy- this is related to top to down approach which focus more on vision and mission of company. There are three strategy are involved in it such as cost leadership, differentiation and focus strategy. Incremental approach- This approach is mainly used for link with group of decision which can be handled incrementally and in this approach alls the decisions are can be handled individually. Emergent approach- This is the process of identifying the foreseen outcomes by the execution of the strategy. In order to identify the difference it can be said that deliberate approach is use for strategic planning that emphasizes on achieving an intended business. Ons the other hand, emergent strategy can be incorporated unexpected outcome into future corporate plans. For google it has been suggested it is necessary to use the deliberate approach so that it help company tos achieve goals on the basis of visions and mission. Strength has been identified for the chosen company on the basis of the company already targeted the market and potential customer for increasing the value of the company. For the development and welfare of the business, organization keep changing the facility as per the comfortability of the individual person. It is the biggest advantages of the company as it attract the large numbers of the customer and improve the image of the brands. Basically it delivers the huge support in delivering the values in the different marketplace. It delivers assistance in satisfying the large numbers of the customers and provide better experiences to them. In order to improve the services the organization keep modifying the product and services that allow the customers to keep buying the productivity if the company.The company deliver
the opportunity to share their views for improving the product and services in thevarious marketplace Thegoogleisoneoftheleadingcompanyindomesticaswellasinternational marketplace.The company keep increasing the business all over the world and increasing the values of the company by satisfying the large numbers of the people in effective as well as efficient manner.The organization is keep increasing the value of the company in different marketplace.For the further development and dealing with the forthcoming challenges the organizationis utilizing the product development as the plans of action in the business enterprises(Ho-Dac,2020). Under the product development strategy the organization is launching the new variety of the product and services in the marketplace. For example,the company introduce google meet, googlable, chrome, google drive, google files, google mail that is also renowned as the gmail etc.for the expansion and development the organization is driving its focus toward the technology.In the current period the innovation and creativity is very important as the people keep looking for something different and unique in the marketplace. For the development of the product and services the organization is focusing on the numbers of the users that willing to invest their capital in the services of the company. In context to that the organization is appraising the potential customers and collecting their reviews and feedbacks in effective as well as efficient manner(Aikhuele, and Turan, 2018). Along with that the company is observing the behaviour, problems and taste as well as preferences of the individual person in ordertolaunchthenewproductandservicesinthedomesticaswellaninternational marketplace.With the assistance of that the organization is increasing the image of the brand. Along with that the organization is satisfying the large numbers of the customer in effective as well as efficient manner.Along with that he company is improving the performance of the company and delivering the competitive advantages in the market to lead the business. basically it motivates the organization to introduce more and more product and services to attract large numbers of the customer toward the brand.Basically it is increasing the productivity and profitability of the business.The goggle company keep delivering the values to the large numbers of the people(Biazzo, and Filippini, 2021).
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Before launching the product and services in the marketplace the company collect the reviews and conduct the questionnaire and servery with the assistance of the online platform that increase and improve the experiences of the consumers.It also helps in providing effective solution to the people.Apart from that the company motivate its employees or the workers for increasing their skills and knowledge for the further advantages from the market.Due to the effectiveness of this the company is able to accomplish the organizations goal in short period.Basically the google search engine provide the data of each and every individual person in order to leader and deliver the right product The right potential customersand develop the effective relationship with the variety of the people. With the support of this strategy the organization is managing the position of the company in the various large composition. Furthermore, it keeps defeating the competition in the various marketplace (Hansen and Ahmed-Kristensen, 2011). Apart from that the organization is able to improve the quality and standard of the organization for surviving in the long period and earn huge profit from the marketplace. Along with that it responsible to develop the productive culture in the organization. On the basis of revert of the customer on the new product and services the organization form the strategies and take effective decision. The google company considered this as the dynamic process as it bring he changes in the organization.Moreover, it enhances the market shares of the company in an adequate manner. It also delivers the huge support in increasing the ability and efficiency of the company as well as it diversify the risk of the company due to which the organization is able to survive in the marketplace.(Huth, 2018) 2a) critical analysation of Googles turbulent google environment and evaluation of opportunity and threats of google company The pestle analysis is one of the effective analysation of the external factors of the associationthat deliver assistance in increasing the efficiency and bring the development in the organization.As the google is one of the effective association so the external factor influences the growth of the company in effective as well as efficient manner. In order to get all the advantages the organization has the opportunity to plan some action for the forthcoming progress.The pestle analysis is consisted of six different elements which the organization considered forincreasing the competitive advantages in the domestic as well as international marketplace.The elements of the pestle analysation in context of the company is mentioned as follows:
political factor: it is one of the major factor that is affecting the progress of the company in variety of the marketplace.The stability of the region allow the organization to gain all the successive advantages and able to survive in various marketplace. Due to the political factor the organization face some issues in the marketplace.With the stability of the political parties the organization develop various plans of action fordealing with the forthcoming challenges in effective as well as efficient manner(Marzi, 2022) . For example, good political relation with the other boundaries the organization is able to increase the network and supply product as well as services of the organization in international marketplace.Apart from that the organization is employing the subsidiaries which is offered by the higher authority and the government of the nation.With the help of that the organization is able to improve the values of the company and bring competition in the various markets. Economic factor:for increasing the advantages and values of the company the economic factor is essential element to considers. It includes the sales and purchase of the companythat affect the growth of the company in positive as well as negative ways. The developing countries are having the stability in the market which is the opportunity for the company because the up and down in the taxes rate and inflation rate change the buying preferences of the people. It has been justified thatAs google is leading and higher revenue generating company so it isbringingthe values of the company in the foreign marketplace.The inflation rate in the other countries are increasing due to which the organization is generating more revenues and increasingtheefficiencyofinvestingmorecapital;forthegrowthandwelfareofthe organization. The google company has the opportunity to introduce more product and services in market in order to satisfy the large numbers of the customers in an appropriate marketplace. But the increasing competition in the marketplace is the biggest threats for the company. Social factor:The utilization of the technological factoris affecting the value of the company in various marketplace. In the current period the market trends are continuously changingdue to which the perception of buying by the buyersand obtaining the product and services are changing (Matović, 2020). The social trends include the increment in the utilization of the mobile devices on the place of traditional laptops and computers.The increment in the utilization of the social media sides such as Facebook, whatsapp and Instagram affecting the growth of the company.
It has been suggested that it social factor help company to grow effectively as well as it is necessary for the increment in the utilization of the social media is the treat as well as opportunity for the organization becausefor the utilization the people willing to use the social media platforms.With the innovation and creativity the organization has the opportunity to attract more customers and deliver values to them for the better experiences. Technological: in the current period the large numbers of the people are totally depended on the technology due to which the organization has the opportunity to increase the efficiency of the company andincrease the sales of the company.The google association is affected by the perception of using the technology and attitude of customers in effective as well as efficient manner. In context to that the organization is keep interesting the capital in research and development preprogramme on the regular basis in order to expend the business and network. According to the technological factor the organization facing high composition as the apple company keep bringing innovative technology in the marketplace. Due to that the organizations is shifting toward the different brands.In order to survive in the marketplace the organization has the best alternative to get succeeded in the marketplace and sustain the business(Santalova, Soklakova, and Balabanova, 2020). Environmental factor:in the modern era the people are highly conscious about the nature and health of the natural resourceswhich is also affecting the growth of the company. For increasing the value of the company the organization has the opportunity to sup[port the environment with the reduction in consumption of the plastic and carbon footprints.In context to that the organization already develop the strategies for dealing with these challenges and show concern for the tormentor in the effective manner.In order to create the great impression the organization develop the better relationship with the suppliers.Along with that for increasing the value the organization deliver special attention to the environment and natural resources. Legal: it is one of the effective factor for the company as it includes all the rules and regulation which is imposed by the authority in order to control the certain activity for the welfare of the people and company. As per the rules and regulation of different countries the organization is able to exchange the product and services in the limits due to which the organization is not able to enhance the productivity and profitability of the company(Yoshikuni and Albertin, 2018)..
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2 b)Using Porter’s Five Forces Analysis, critically evaluate the strength and attractiveness of the industry/sector that Google is currently operating in. Porter five forces are help organization in order to work by understandingthe factors which are affecting profitability on specific industry. Then this is help for inform decision which is related to enter in specific industry for increasing the capacity for developing competitive strategies.Thisis also related analysing the competitive environment as well as it is help for potentialnewmarketentrants,suppliers,customersandsubstituteproductwhich canbe influence by profitability of company. Competitive rivalry or competition (strong)- This is one of the strong force which is related to competitive rivalry limits the growth of firms in technology or online services industry. Also, it can be said that google has larger of competition including number of firms or IT and online service industry which is related to Yahoo, Twitter, Facebook etc. There are also high technology of firms. Also, there are low switching cost for customers.It has been critically analysed that there are large number of customers who are experience the low cost because it is easy to move them from Google to other companies. Bargaining power of buyers(Weak)-This is the weak force of sin order to influence the Google's business which can be considered for such external force that has limited effect on the strategic management decisions in technology business.There are very small size of Google's individual customers so that it can not impact directly on the company as well as high and increasing demand from buyers are help company to build strength of minimal influence of individual. Also, there are the moderates quality of information for customer are provided in order to focus on data analytics as well as it help to manage the bargaining power of customers in order to evaluated by this part of five forces. Bargaining power of suppliers (Weak)-This is one of the weak against Google in which supplier are analysis by weakness exist especially there are many by choosing from other external factors. Also, there is high availability of supply which is related to large population of suppliers as well as there is small to moderate size of Google's individual suppliers in order to diverse array of product or services. Threat of substitutes or substitution (Moderate)-in the current period the internet is having low barrier in the marketplace as The company keep upbringing in the innovation in the marketplace. Due to the innovation introduced by other brands the organization the potential of
the customer shift towardthe substitute of the services provided by the google. With the different features of yahoo and bing the customer are changing their perception and google company is facing high competition in the various marketplaces. Organization is generating the profit from the advertisement for various brands. But right-wing the clients are using he social media for the advertisement for the product and services of the company in effective as well as efficient manner. The organization is leading the marketplace so there are fewer changes of shifting toward the other brands and obtain all the advantages from the marketplace. Threat of new entrants or new entry (Moderate)-for the google company the threats of new entrant is moderate as the google is one of the largest company which is leading the domestic as well as international marketplace. For entering the new marketplace the new entrant required huge capital for the investment.Apart from that it is hard to give direct and indirect competition in the marketplace because the company is having high network all over the world and having more competitive advantages in the different marketplace. With the support of regulation requirementit is easy for the new entrant to enter the market of internet for accomplishing the goal in an appropriate manner. For the new entrant it is hard for the company toincreasethebrandvalueortheimagerapidlyinthemarketplaceastheGoogleis accomplishing the goal and satisfying the large numbers of the customer. 3. a) Porter’s Generic Strategies framework, for analysing competitive strategies of Google Porter’s Generic Strategies' framework It is defines that generic strategy is related to general way of positioning a firm within an industry. This is necessary to focus more on generic strategy that are help for allowing executives in order to concentrate on the core elements of firm business level strategies that are help for avoid competing as well as it help to make better market.Google's strategic choice are directly related to the nature of its businessand the characteristics of industry. Organization's generic strategy is related to the overreaching influence in order to focus on competitive advantages which are against firms which are related to online advertisement such as Yahoo, Facebook Inc., Snap-chat, Then google strategies are help for supporting the company in order to make the position in market to build valuable brand (Firoz Suleman, Rashidiradand Firoz Suleman, 2019).In addition to this, Google'scurrently focus on generic business level strategy of differentiation in order to Google offer different types of product or services which in
various kind of customers as well as it is related to distinct product or services in order to focus on competitive able to achieve a competitive advantage. It has been concluded that there are Google's intensive growth strategies which are help for support the organization by keeping its position in market. The vision and mission of the company is to offers innovative product which help to attract large numbers of customer as well as it help to develop ideas by focusing on strength of entity, need and want of customer and competitor strength. For instance, There is continuous improvementof product and services are related to theensure about the business by maintaining the share in online market. With the help of generic strategy it can be said that company played important role in regard to focus on competitive landscape and development of online advertisement industry. As well as this is also depended on the internet (Islami,Mustafa and Topuzovska Latkovikj, 2020). There is the positive relation between generic competitive strategy and google intensive strategies which is effective in satisfying the need of firm that can be help for continuing the growth of business and leadership of global industry. To focus on the external factors it has been analysed that Google use this strategy for influence the environment of industry as well as it is help for determining the business goals of company. With the help of Porter fives force it has been analysed that organization shows the competitive landscape which is help for imposing a strong force on business. On the other hand other company using intensive growth strategies in order to focus on despite competitive forces and other strategies which can be sued by companies are related to market development, product development and diversification which support Googles growth. According to generic strategic strategy it has been analysed product differentiation is used by company in order to focus on generic competitive strategy which is involved in markets scope at broads level. Then by understanding the competitive strategy it is necessary to focus on developing unique capabilities which help to attract large number of customer in order to make business competitiveness.On the other hand, it was typical fort company to make its position in competitive market with the help of uniqueness of product (Greckhamer and Gur,2021). In addition to this company try to provide innovative product to audience which help top make it competitive as well as it help to develop the opportunity of stand in market.By increasing the variety of competitive strength it has been analysed that there are wide variety of product or
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services offered that are related to mobile application,. Software, manifestation of innovation under differentiation generic strategy. Then with the help of search algorithm it is help by evolving over time to ensure competitive advantages against yahoo and Bing. It has been justified that there are competitive strategies are sustainable over timein order set the product or services in order to focus on improving capabilities which allow organization by meeting its customer needs to better than its competition. Then it can be said that Google can sustain the competitive advantages in order to focus on expand business by using product differentiation strategy. That is why I have thought that there are competitive strategies of company will be sustainable for overtime in order to focus on better customer services. To different traits of sustainable competitive advantages Google work on unique process for company as well as it is help for developing competitive advantages by setting apart from organization with distinctly valuable in market (Şekerli and Akçetin, 2018). Also, with the help of competitive market this is help for work on being valuable to client in order to focus on essential identification and becomes strength of company to improve competition. b) Ansoff Matrix, assess the growth strategies adopted byGoogle and recommendationsmake to Google’s growth strategy for the future Ansoff matrix is strategy that use in the marketing planning in order to focus more on identifying overreaching strategy that use by business which informs by following tactics.It has been determined that there are Ansoff Matrix which are help for access growth strategies which are necessary for adopt or adjust the market. Also, this is one of the important framework which help to identify the business growth opportunities for marketing strategies in the challenging market. Also, with the help of this strategy company can overcome by current or future challenge in order to realize the goals of expansion. This is also depending on four elements such as follows: Market penetration- Google was primarily depended on this strategy for the intensive growth outside the US and strategic objective is related to the acquiring large number of customers from currents market. The leadership position of company is depend on US on the other hand, company fight against the search engine of China because China not allowed Google's search engine or online advertising form which are related to market penetration in the basis of strategies for growth by providing bigger share to other countries. That kind of strategy
is help company to follow the strategy in adverse manner by improving the customer base as well as it help to get the good position in market which is necessary to improve market position. Product development- This is the secondary strategy which help other secondary strategy approach on the basis of innovation of Google (Knezović and Hamur, 2022). Then With the help of product development strategy company focusing large number of product that help to attract customer which promote innovation as well as it is help for introducing the new mobile app.This new strategy help company to focus on grow revenues when introduction new products such as laptops, tablets, Pixel smartphone etc. On the basis of differentiation generic competitive strategy can bes integrated into product design or development process which are helps to support competitive advantage of company. Market development- It can be said that this strategy isrelated tosupporting strategy ion refers to Google using market development intensive strategy for growth in context tos focus on attract large numbers of customer in the new segments with current products. Then company expanded its services such as current online services which are related to cloud services that can be uses tool for applications programmers which are used as addition to current service.Thus, there are market development strategy can not use by company for long term process in expansion of product and services. Then, on the basis of generics strategy it is necessary to work on stand in market byproviding them competitive strategy which can be provided on the basis of competitive strategy that can be provided for product competitiveness that need to support the effective implementation of market development. Diversification- This strategy is also support for diversified the market in order to focus on growth strategy of new market or industries where there were fewer operations. According to case study it has been analysed that there are in the year 2006 acquisition YouTube are help for establishing presence in the video hosting services market. Which can be expanded on the basis of online advertising presence (Popadynets and Skrypko, 2020). There is diversified the business impact on organizational structure of company as well as it help for newly acquisition that are help for change in the corporate structure of company which are ensured seamless integration as well as it is necessary for supporting through differentiation generic strategy as well as it help to ensure about the competitiveness by establishing or entering new business. Recommendation
It has been recommended that Google should use market penetration strategies in order to develop for any business joining the market for first time. This strategy will be work for company for target other market in which there is no presence of market. As well as it is refers toincreasing market share that is related to percentage of units of company sells which is compared to competitors.In order to implement that kind of strategies it can be said that this is help for reducing the selling price of product or services offered by company. Also, this is help for always be able to attract consumers with lower prices which are not going at loss (Kariofyllas, Kriemadis and Sakas, 2019). In China Google can not enter because they have use own software or application in order to expand the business. With the help of increasing promotion or offer bys pulling strategy in order to attract the customer by providing them additional requirement. In order to expand the distribution channel it is help for attracting large number of customer by claim bigger market share in order to consider other distribution channel which are looking for more dealers, retailers, distributors etc. Then company can thought regarding different type of direction in order to enter into strategic partnership with the help of different channel. This is one of the best strategy which help to expand business in order to more focus on targeting different market.
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