External and Internal Analysis of Google

Running head: STRATEGIC MANAGEMENT 1
External and Internal Analysis of Google

STRATEGIC MANAGEMENT 2
Google
Location of the Organization
The corporate headquarter of Google is Googleplex which is located at 1600
Amphitheatre Parkway in Mountain View, California, United States, near San Jose (Google,
2019).
History of Google
Google’s history began in the year 1995 when Larry Page met Sergey Brin. Both of them
were students at Stanford University, California. By the year 1996, both of them started their
initial work on a search engine called BackRub which was successfully managed by the duo. As
the search engine worked on the Stanford servers for more than a year, which gave rise to
Google.com. The Google.com was registered on September 15th, 1997. The company finally
settled at Mountain View in 2003 from where they started making rapid growth to become of the
world’s largest media company. After its initial public offer in 2004, the company successfully
launched Google News, Gmail, Google Maps, Google Chrome and Google+ by the year 2011
(McFadden, 2018).
Different Businesses of Google
Google has remained profitable and competitive by the virtue of its 4 most important
businesses. They are:
 Google Maps - This application allows to look up to any location of the world. Apart
from providing an aerial overview of the locations, Google Maps also provide accurate
street-level views of many cities.
 Google AdSense- AdSense provides an opportunity for advertising online on its partner
sites.
 YouTube- It is one of the most popular video platform on the internet which generates
revenue for Google from sponsored content and video advertising.
 DoubleClick- It is an advertising service that allows website owners to place ads on their
websites.
Rationale to select

STRATEGIC MANAGEMENT 3
The rationale for selecting Google is that it organizes the information from all over the
world and makes it universally accessible and useful to masses. The company has been a
dominant player in the market from a very long time but the company has also been humble
about it stating the fact that there are many players in the market and consumers could relatively
switch to any new enhanced search engine.
External Analysis of Google
For analyzing the external environment of Google, Porter’s Five Forces Model will be
used which can be summarized as followed:
Competitive Rivalry
Google experiences strong competitive rivalry from its competitors such as Apple,
Comcast, and Bing. Due to availability of diverse set of competitors, Google has been
experiencing a strong force on his business. Google has developed its offerings such as Google
Glass, and Chromecast (Heizman, 2019). Along with that, switching costs of customers is very
low as they can switch to any other company. Therefore it is a strong force exerted on the
Google.
Bargaining power of Suppliers
Since there are many suppliers to choose from, there is a weaker power of suppliers in
case of Google. In addition to that, a combination of both availability of suppliers and their larger
population has reduced the effect of bargaining power of suppliers on Google. This means that
Google will face no difficulty in switching their suppliers due to diversity in its products such as
Google search and Google glass.
Bargaining power of buyers
The bargaining power of buyers is relatively weak in case of Google. This means that
Google considers bargaining power of buyers as a minimal strategic decision. Since the
contribution to Google's revenue of each buyer is comparatively low, therefore it is weaker force
for the company. The rising demand for Google products also exerts a weaker force on Google
(Porter, 2019). The availability of moderate quality of information exerts a moderate force on the
company.