Case Study on Google Inc.

...

Threats of Substitutes. The threat would be low due to financial power and stability of Google. However, Google is loyal to the demands and wants of its customers making it free.

Buyers Power. The buying power is medium to high on search engines and due to user relying and making search engines as part of daily activities. Faster and more accurate capabilities will prevent users to shift.

Rivals. Diversified firms not as accurate as Google in producing outputs and information

SWOT Matrix

Strengths

-Standing on $55 million brand value means large market share

-Free services, accessibility

-Significantly strong financial position

-High generating power of users

Weakness

-Frequently faces lawsuits

-Keeping of personal user information

-Hacking tendency

-Ad-focused source of profit

Opportunities

-Rising and development of Android OS

-Broad possible diversification

-Google Play (as to introduction of creating branded games like Valve Corp)

-Cloud storage and computing

Threats

-Substitutional sites (social media, like Facebook

-Advertising agencies

Strategic Implications

With the given details from the tools, it is essential that the strategy of choice must be consistent in the position of an offensive player. The primary strategy must be in-line with continuous improvement, innovations in applications, tools software and etc. Focusing on differentiation taking advantage on the technological advantage in software algorithms that is precisely in accordance to the user want. Another implication is that, Google must utilize the financial strength into broad diversifications, expansion and growth. Since the threat of new entrants is high, the strategic choice must be aligned to quick adoption and effective application of newer technologies. Having the financial superiority, this must be utilized effectively to overcome the possible threats incoming.

Strategy Selection

Strategy that coheres in the strategic implication would be Broad Differentiation Strategies. This opens up potentials the moment Google continues to diversify in broad manner. Currently, the conglomerate is called Alphabet Inc., Google is just now a subsidiary of Alphabet. In the industry of Search engines, Google must differentiate strengthening the world-wide data centers. Secondly, is the acquisition strategy in more related segments involving devices, smartphones, software, program etc. Supplementary strategies include sustaining of customer loyalty and customer experience.

Recommendations

We further recommend to look on the ethical aspect as the industry has a nature to risk the privacy of users, data disclosure, and other unethical tendencies within the service. This is a weakness that must be addressed and must implement a directive systematic approach on how the company handles customer complaints regarding the matter. Another issue is the recording of the search words that is being copied among servers. Another privacy issue to be recommended to be addressed is the Google Maps online feature to see actual photos in the Street View of the application.

We moreover recommend the necessity of the company to invest on the Research and Development collaborating among Government Agencies, pioneering in projects that is beneficial not only in the economical/profit gain, but on the progress or people and environmental development contribution.

References

StudyMode (2009). Business Analysis of Google Co.

Available at:http://www.studymode.com/essays/Business-Analysis-Of-Google-Co-191594.htm

UK Essays. 2010.

A SWOT and PESTEL analysis of Google. [ONLINE] Available at: http://www.ukessays.com/essays/marketing/a-swot-and-pestel-analysis-of-google-inc-marketing-essay.php.

BBC News. 2006.

Google censors itself for China. [ONLINE] Available at:http://news.bbc.co.uk/2/hi/technology/4645596.stm.