Googles Strategy 2008

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  • Topic: Web search engine, Google, Bing
  • Pages : 10 (2961 words )
  • Download(s) : 150
  • Published : November 2, 2010
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Case #14: Google’s Strategy in 2008
Table of Contents
Executive Summary3
Competitive Forces3
Force 1: Rival Sellers3
Force 2: New Entrants4
Force3: Substitute Products4
Force 4: Suppliers4
Force 5: Internet Users5
Driving Forces5
Key Success Factors6
Google’s Business Model7
Financial Analysis8
SWOT Analysis9
Executive Summary
Google went from a startup company operating on a shoestring budget in 1998 to the world leading Internet search provider with revenues of $16.5 billion in 2007. The search engine industry is dominated by the organization that can provide users with the fastest and most accurate search results. Google has been able to surge ahead of their competitors by focusing on the needs of their users and their advertisers with continual refinements to their search computations and targeted ad matching techniques. Google’s major competition is coming from Microsoft’s semantic search technology. The future of the industry will likely be defined by advancements in cloud computing and semantic searches, increases in the use of mobile phone operating systems, and the expansion of international markets. Competitive Forces

The major competitors in the search engine industry include Google, Microsoft, and Yahoo. They primarily compete for search engine users, but they have begun to expand their offerings to include e-mail, maps, news, calendars, etc. in order to gain more users and hopefully surpass Google and obtain market dominance. Cloud computing and semantic search technology are believed to be the wave of the future. Force 1: Rival Sellers

Competitive pressures in this category are fierce as the three main competitors are constantly working to dominate the market. Rivalry in this category is strong because competitors are very active in improving their business offerings (word processing software, e-mail, news, maps, calendars, etc.) and are constantly trying to surpass Google as the industry leader. Analysts believe cloud computing will become a common software platform and could grow to a $95 billion market by 2013 so the organization that masters this technology would be able to increase their competitive advantage. Force 2: New Entrants

Competitive pressures in this category are moderate to normal as there are already three well established competitors and it would require a large initial financial investment to cover start-up costs. Pressures in this category are moderate due to the fact that while the search industry does offer attractive profits, it is difficult and costly to enter the market (especially if a new entrant wants to truly be competitive with Google). A new entrant would have to offer a product that was far superior to the existing search engines to draw users away from competitors whom have already earned the user’s loyalty. Force 3: Substitute Products

Competitive pressures in this category are weak. While there are some outside companies that compete to take away market share in terms of e-mail or cloud computing, for the most part the pressures that exists are minimal and don’t pose a major threat to any of the major competitors. Pressures in this category are weak because good search engine substitutes don’t exist. The only comparable substitute for finding articles and information is through a traditional library which is much more time consuming, especially since many articles and excerpts from reading materials can quickly be located online. Force 4: Suppliers

Competitive pressures in this category are weak because the competitors, for the most part, do not use suppliers in order to create the goods that they offer to their customers. Google, for example, has purchased many of the suppliers of advertising, marketing, word processing, etc. services in order to remove the need to use suppliers. Force 5: Internet Users

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