This report aims to provide feasible growth strategies to Google Inc. who is facing different courses of action to pursue. The objectives of this report are to compare different market opportunities available to Google on the basis of implementation feasibility and growth potential and to make the most feasible recommendation to Google.
From industrial and internal analysis conducted, it is found that search industry is still favorable for Google. In addition, Google is in a great position in the industry with its unique search solutions and advertising techniques. However, with its creativity-oriented culture and diversified products and services, Google can also venture into other market opportunities such as ecommerce, portal and PC application services. Factors to be considered are mission alignment, growth potential, potential competition and required expertise. Portal business and PC application services are less suitable for Google since they are not aligned with its mission while e-commerce business, being a high growth potential market, can be integrated with its search engine.
Therefore, key recommendations for Google are
1. to stay focused in search area, improving its search techniques as well as developing value-adding products and services
2. to venture into ecommerce area, using its search engine as an advantage over competitors such as eBay
Table of Contents
1.Porter’s Five Forces Model3
III.Analysis of Options5
1.Staying focused in Search area5
2.Becoming a full-fledged portal6
3.Venturing into desktop applications6
4.Providing e-commerce services7
IV.Summary of Analysis8
1.Improve in search area9
2.Venture into e-commerce business9
Google has been a dominant player in the search engine industry since it was established in 1999. Google’s mission, being to organize the world’s information and make it universally accessible and useful, Google has focused on improving search techniques. Google has also gained a position in online advertising industry as a result of its dominant market share in search industry. During these years, Google has grown rapidly by developing new products and services such as Gmail, Google Maps, Google Books and so on. These developments have given Google opportunities to venture into new areas such as portal services like Yahoo!, application services competing with Microsoft and e-commerce areas dominated by eBay and Amazon, leading to the question of whether the next move should be venturing into one of these areas or staying focused in the search engine industry.
In order to answer this question, this report will
1. Analyze the industry forces as well as internal strengths and weaknesses of Google
2. Compare the four options that Google is currently facing
3. Recommend Google the most feasible strategies based on the analyses conducted.
Porter’s Five Forces Model
Power of suppliers – there are content providers and application developers as suppliers of Google. Being a key player in its ecosystem, its suppliers do not have much power on Google.
Power of buyers – advertisers rely on Google for its unique search advertising and its market leader position in search engines. However, it is possible that users may switch to another search engine which can provide faster and better search results.
Threat of new entrants – it is unlikely to have new entrants because of high barriers to entry such as capital and infrastructure requirements. However, there are possible threats of new search technologies.
Threat of substitutes –...