Strategic Management: Analysing Google's Development and Competitive Strategies

This report analyses Google's development and competitive strategies through PESTEL analysis, Porter's Five Forces, and Porter's Generic Strategies. It discusses the strength and weakness of Google's approach, and provides recommendations on how Google can improve its strategies to meet future requirements. The report also includes an introduction to strategic management and a conclusion. The subject is Strategic Management, and the course code and college/university are not mentioned.

Strategic Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.1Analysing the development of google strategy over the years and justifying answer with
relevant examples.........................................................................................................................3
1.2Recommendation to Google how they can improve their strategies to meet the future
requirement:.................................................................................................................................5
2. PESTEL Analysis of Google ..................................................................................................5
(B) Critically evaluating porter five force to analyse effectiveness of the industry:...................7
3. (A) Using porter generic strategies to analyse option available with Google to gain
competitive advantage:................................................................................................................8
(B) Assessing ansoff matrix to examine growth strategies adopted by Google to expand in the
market:.......................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management is one of the most important process that outline planning,
monitoring and analyse all necessary activity to ensure continuous growth. Every business
organization craft strategic management strategies according to internal and external
environment condition, it is very clear that firm brings strategic decision to make business stable
(Ansoff and et.al., 2018). This study is based on Google, this company is one of the largest
information technology service provider including world's biggest and most powerful search
engine service to every individual on the planet. This report will discuss strength and weakness
of Google and will carry put PESTLE analysis to analyse global business environment. Later this
report will discuss porter five force to analyse competitive environment and will discuss porter
generic strategies to analyse competitive advantage option available to Google. At last ansoff
matrix will be discussed.
MAIN BODY
1.1Analysing the development of google strategy over the years and justifying answer with
relevant examples
As, the digital world is evolving, Google has started taking a multi-faceted approach after its IPO
in 2004 for maintaining its dominance in the search engines (ossain, and Azmi, 2020), which
makes up its vast revenue. The Generic competition strategy has evolved google in developing
unique characteristic that has been able to make google competitive in today's market (Kabeyi,
2018). Google has tried to improve its products on regular basis to address external factors that
may impact industry and to ensure that the business maintains the largest share in the online
market. Not only generic strategy but Google's intensive growth strategy has also leaded google
in capturing the largest market in today's digital world. Google uses deliberative approach for
gaining over the other approaches for getting advantage over the other competitive firms in the
market. Deliberative approach is the one approach where the strategy generates from the
organized actions. It typically includes all analysis of all the metrics such as:
 Market growth
 Customer needs
 Segment size
 Technological factors
 Competitor's strength and the weakness

A deliberate strategy is generally followed by the large business cooperation that are very well-
established in the market. There are many companies that have been using deliberate strategy in
the past for growing their business like the Amazon, Apple, Nike etc. Amazon deliberate strategy
is to earn money for the online retailing market. This can only be done by investing in the
technologies and improving logistics applicants(Monsreal-Barrera and et.al. 2020). Other
company that is using deliberate strategy is the footwear company Nike that has made deliberate
decision for increasing the appeal its brand among the younger generation by investing heavily in
marketing and promoting its products online.
Strength and the weakness of the Google's approach-
Every organization has certain strength and the weakness. Strength and weakness of Google are
given below-
Strength of Google's approach are as follows-
 It helps Google in maintaining the high value and strong brand image in the market.
 It also helps Google in considerable organization diversification.
 Google has capabilities for rapid and technological innovations. Google also has patented products which help them in earning more profits.
Weakness of Google's approach are as follows-
 Google has condemned for its privacy policies that the Google is hiding information
about its algorithms.
 Google has not been able to use good pricing strategy for the services that the Google
provides.
 It is highly dependent on the technologies and has low control on the consumer
electronics.
 Google business is over relied on the digital advertising for generating its revenue from
its consumer.
Senior management support in any organization is important to survive in the market and attain
success in the long term. Google senior management has definitely played vital role in adopting
strategic development for achieving different objectives of the Google. They are known as
backbone of the Google as without their support Google have not been able to attract such large
audience in the market and become the largest search engines worldwide today.

1.2Recommendation to Google how they can improve their strategies to meet the future
requirement:
Multi pronged approach: This is one of the most common type of approach in which firm try
to perform multi approach at once allowing them to gain instant stability in the market, this
approach is highly risky because firm do not have any other strategies left to make themselves
stable in the time of impact. Google should adopt this approach which will help them to become
stable in the future, this company is focusing on AI tech advancement but ignoring Meta
technology which is good enough to make business successful (Dolata, 2017).
Alphabet approach: This is another common but effective approach which need to adopted by
the firm to gain competitive advantage, this approach allow firm to reduce chance of failure by
implementing strategies according to the market condition. Adopting this approach will allow
Google to buy same sector companies and reduce competition, this approach may be consider as
costly but Google will get chance to become unbeatable competitor in the future. Google's brand
image will allow them to buy new companies with same sector, they have sufficient budget to
make this approach applicable in the market.
2. PESTEL Analysis of Google
A PESTLE analysis is a framework that is used by several organizations in order to
assess their external environments and factors that affects the external environment of a specific
organization. The PESTLE analysis with respect the Google has been explained below:
Political factors
The political or governmental activities within the market globally affects the business
operations of different organizations across the world. It has been identified that the currently,
the Google has quiet good relations with different countries in different parts of the world. This
helps the Google in freely trading between the different countries across the world and creates a
number of opportunities for the company to expand its market reach (Sukardi, Rusdiawan, and
Wardana, 2019). The free trade agreements with different countries has helped the Google in
availing its products such as Pixel smartphones in various countries at the actual prices because
of the free trade.
Economic factors
The economy of the United States of America is one of the leading economies across the
world. The Google has the opportunity to extend its market reach by introducing its products

within the markets of America. Introducing their products within the new markets will help the
company in increasing their revenue and develop an extraordinary brand image within the minds
f the customers. Since, the economy of America is stable, the residents of the country also have
certain good income which is a positive factor for the company. This is because, if the residents
of a country are well-established, it helps the organization in increasing their profitability by
increasing their customer base.
Social factors
It has been determined that the major portion of the revenue of the google is associated
with the advertisements on the various kinds of digital platforms across the globe. For the same,
the Google collects the data from the customers in order to provide them with ads that are related
to the needs and wants of the customers within the market. This creates a fear within the minds
of the customers that too much access to the information of a customer with the company might
affect the privacy of the customers and lead to the development of data privacy and protection
issues within the company. This could hamper the growth and development of the Google within
the market (Thompson, 2019). Also, the culture of ad blocking while browsing something on the
internet has also affected the growth and development of the Google within the market.
Technological factors
Day by day, the usage of technology within the routine lives of people as well as the
organizations has been increasing rapidly. Similarly, in accordance with the use of technology by
the individuals and organizations, the technological advancement is also increasing within the
market. After Amazon, Google is one of the most prominent and leading organization in the
world in terms of using artificial intelligence and Cloud storage. The rising demand of
technology has allowed the organization to integrate their features on the provided platforms. It
has been identified that in the coming years, the AI and the cloud storage will be one the most
profitable industry all over the world. Therefore, the AI and the cloud storage can be counted as
a relevant opportunity for the Google that will help the company in enhancing its position within
the market.
Legal factors
It has been determined that currently the government of various countries in different
parts of the world are formulating laws with respect to the data privacy within the organizations.
This has been affecting the operations of the Google across the globe (Costa, 2018). As stated

above, the major income, the organization gets is from running the targeted ads on the available
platforms. This helps the company in generating a major portion of their revenue, however, in
order to provide the customers with advertisements that are related to their needs and wants, it is
essential for the Google to extract the information and data related to the customers that is
important for the purpose of providing the customers with the targeted ads. Since, the countries
are implementing laws in relation to the concept of data privacy, it has become difficult for the
Google to satisfy the needs of their customers within the market.
Environmental factors
In today’s world, it has become important for all the business organizations to take
certain measures that helps them in reducing their carbon footprints and contribute their share in
enhancing the environment. Google is one of the leading companies running across the world
and it is expected from them that they take certain steps which could help them in contributing to
the environment and encourage other organizations to follow the same. It has been noticed that
recently Google has collaborated with the United Nations in order to take steps that are
environment friendly and also inculcate the use of technology.
(B) Critically evaluating porter five force to analyse effectiveness of the industry:
Every business organization face competition in the market, due to intense market
competition, some firm might fail. Competition is one of the most common factor that have great
influence on the business, it is very clear that competitor's strategies impact position (Bruijl and
Gerard, 2018). Focusing on porter five force, Google can analyse industry and identify
competition, there are five force that impact Google position, these are:
Rivalry: This is one of the most powerful force which impact firm, rivals not only have
strategies, but they have sufficient budget to gain position in the market. Google is one those
firm who have rivals who provide neck to neck competition, apart from search engine, Google
have certain other service where rivals already have great market influence. For example; Bing is
rival of Google search engine and PayPal is rival of Google Pay (Omsa, Abdullah and Jamali,
2017). Due to heavy competition, firm might need strategic decision based on focusing
competition in the industry, rival with strategic decision may impact position of the firm for
longer period.
New entry: Competition not only arrive from already establish firm but competition arrive from
new entry as well, these new entry have enough budget to capture industry and position them

even in highly competitive market. Google is one of those firm who have great position in the
market, this company do not feel threat from new entry. However, Google recently faced
competition from Meta by Facebook where they provide Meta technology to user. Google do not
have Meta technology which keep most of the user out of the Google service, this company have
their own technology area, so they do not consider Meta technology for Google in the process.
Bargaining power of suppliers
It has been identified that the supplier’s power is weak with respect to the Google across
the world. This is because the Google has a number of suppliers available to them from which
the company has the option to choose (Buye, 2021). The availability of huge number of suppliers
available to the company weakens the power of suppliers within the market. Since, the Google
provides its customers with multiple range of products, the organization has various options in
terms of suppliers where the organization gets the opportunity to compare and contrast them in
order to choose the best option.
Bargaining power of customers
Similar to the power of suppliers, the power of customers is also weak in terms of
influencing the organization to deteriorate their prices. It has been identified that day by day the
demand for the products which are related to the technology within the market, the buyers of the
company do not have any kind of power to influence the organization into lowering their prices
for the purpose increasing their revenue.
Threat of substitute: This is one of the most common type of force which impact business and
its stability, coping of product and service is not new term in the business world, even already
establish business firm have this habit of coping concept of the product and service. Google's
may service is been copied by competitor's for example search engine itself is copied by the Bing
and many other service is copied by other firm. It is very clear that Google have its own service
range but most of the service are copied which make it more difficult for the firm.
3. (A) Using porter generic strategies to analyse option available with Google to gain
competitive advantage:
Every business organization need strategies to gain competitive advantage, it is very
important for firm to ensure their strategic decision meet the requirement according to market
condition. Google is one of those companies who have title to industry ruler, this organization
have competitive advantage in the market providing neck to neck competition to each and every

competitor (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). Focusing on porter generic
strategies, Google can provide tough competition to their rival in different segment of service.
Google is still lacking behind in some IT solution where their rivals have competitive advantage.
There are certain strategies of porter, these are:
The cost leadership strategy: This is one of the most common and effective type of strategy
which allow company to gain instant leadership in the market, here firm need to reduce cost of
product and service as low as possible and need to bring major drop in pricing. Keeping price
low provide competitive advantage to company and reduce chance of failure, however,
company's brand image is impacted due to this strategy. Google's need to reduce price of certain
service to gain competition advantage, there are many services of Google which is costly enough
and provide rival an opportunity to become competitive. For example; PayPal is still industry
ruler of online payment platform and Google Pay lack behind. To gain competitive advantage in
this industry, it is important for Google to reduce cost of Google Pay.
The differentiation strategy: Every business organization desire to become competitive in the
market, it is very clear that keeping product different from each segment allow firm to become
competitive. For example; if company involve innovation in their product line to keep product
different from competitors, different or innovative product have tendency to sold faster (Islami,
Mustafa and Topuzovska Latkovikj, 2020). Consumer demand continuous improvement in the
product and service, if rival is capable enough to provide improvement in product then consumer
will shift and reduce revenue turnover. Google can adopt this strategy to gain competitive
advantage in the market, company need to either introduce new service or add new feature to
existing product to get away from competitors. For example; if Google add extra features in
Google Drive then they can provide tough competition to Amazon Cloud Drive or other rival
like Dropbox.
The focus strategy: Company who have understanding on marketing know the term niche
market, it is a place where unique needs are considered by organization, this is completely
different segment of market limited to its need. Niche market target small segment and company
need to adjust their product to meet requirement of niche market, this market is large if segment
is done correctly. Google have service range where they target almost every individual but still
some service of Google need to target niche market. For example; Google for education is used

by student only which make this service niche. To gain competitive advantage, google need to
focus on two elements, these are: The cost focus: When targeting niche market segment, it is important to reduce cost to
gain competitive advantage. Google can reduce cost of their service to enter niche market
and become competitive, rivalry in this market segment is high because many companies
have only one product which make it easy to target niche market.
 The focused differentiation: When entering niche market, it is important for the
company differentiate their product in terms of feature. Google is one of those companies
who focus on differentiating their service from competitor by adding new feature after
reviewing demand of niche market. Google add feature according to market demand
providing them more competitive advantage.
(B) Assessing ansoff matrix to examine growth strategies adopted by Google to expand in the
market:
Expansion is one of the most important process for almost every business organization,
growth is factor which is considered by firm to ensure they stay in the market (Dawes, 2018). It
is very clear that firm growth occur when business plan to enter either new market or plan to
become industry ruler of same market. Google is one of those companies who have expanded in
almost every nation providing them opportunity, this company is available in every nation.
However, there are certain service of Google which is not available and Google still need growth
to become industry ruler, focusing on ansoff matrix, company can ensure one option for growth,
these are:
Market penetration: Market penetration is process in which company try to increase sales of
existing product and service in existing market, here company's marketing efforts are tested to
the limit. Market penetration is one of the simplest process in which firm try to introduce new
marketing strategies to increase sales of product and service, remaining competitive in same
market with same product is challenging for almost every business organization. Google is one
of those companies improve their existing product in existing market to expand their business
and become industry ruler. For example; Google can add new feature in Google Pay to ensure
they become industry ruler.
Market development: Market development is process in which company try to enter new
market with existing product and service, it is very clear that firm who introduce existing product

in new market and chance to become competitive. Market development is expansion process but
consider as risky because existing product might fail in new market (Schawel and Billing, 2018).
Google's need to develop market which simply means they need to introduce their existing
service to new market. For example; Google location is not available in many countries which
means Google have opportunity to enter these market and become competitive. Market
development is not challenging for those business organization who have brand image and
reputation in the market.
Product development: This is one of the most common type of growth strategy or option
available with the company, here firm try to develop product and introduce this product in
existing market. Product development is not challenging process but still firm need to bear high
risk because introducing completely new product may fail in the market (Loredana, 2016).
Google can consider this growth option, they have brand image and reputation which allow them
to create new service which will survive the market because Google have brand image and
reputation. Google heavily invest in R&D which allow them to develop and improve new
service.
Diversification: This is one of the most effective but highly risky growth option available only
for multinational organization, diversification simply means firm will introduce new product in
new market. Firm who have no experience of new market introduce new product is most risky
because company might not even fail, but they lose brand image as well. Google can adopt this
option, this company have brand image and reputation which allow them to introduce new
service in new market (Bashir and Verma, 2017). This option might be most risky but still firm
have power to survive market condition and even have power to make their new service
successful in the market.
CONCLUSION
This report has discussed strategic management and its importance in the business
organization. Later this report has discussed strength and weakness of Google and strategy used
of the firm in the process. Later this report has discussed PESTLE analysis to understand global
environment and its factor that impact firm position in the market. Porter five force is been
analysed in this report to understand how competition in the industry have great influence on the
firm's performance. Later this report has discussed porter generic strategies to analyse growth
option available with the firm and at last ansoff matrix is been discussed.

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