Google - PESTEL & Porter's Five Forces Analysis

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GOOGLE: PESTEL & Porter’s Five Forces Analysis

Table of Contents

1. Introduction

2. PESTEL Analysis

2.1 Political

2.2 Economic

2.3 Social

2.4 Technological

2.5 Environmental

2.6 Legal

3. Porter’s Five Forces Analysis

3.1 Threat of New Entrants

3.2 Threat of Substitution

3.3 Supplier Power

3.4 Buyer Power

3.5 Industry Rivalry

4. Conclusion & Recommendations

5. References

1.0 Introduction

Google Inc, a global technology company, founded in 1998 by Larry Page and Sergey Brin, is the most popular search engine in the world. Google provides numerous free services and products such as Google search, YouTube, Google Maps, and has transformed how people use and share information.

Google’s business spans from advertising, data analytics, operating systems to technologically advanced devices such as Google Glass, Driverless cars, Solar-powered drones, and was recently named “The World’s Most Valuable Brand” due to consumers perception of Google being a forward-looking company focused on innovation (Bloomberg, 2014).

As of 2013, Google has 43,862 employees working in more than 70 offices in over 40 countries around the world with their headquarters located in Mountain View, California, USA. (2014). For the purpose of this study, I will be basing my analysis of Google in Singapore, its Southeast Asia headquarters which opened in 2007.

The following sections will analyse the various factors that will influence Google’s operations in Singapore, and conclude with recommendations of how Google should further improve to boost its competitive edge.

2.0 PESTEL Analysis

2.1 Political

Though little political restrictions affect Google’s operations due to the nature of its business, government stability is a major aspect in Google’s strategic planning. Singapore had been rated Asia’s most politically stable country (Berdzenadze, 2013), and Asia’s most competitive economy in the Global Competitiveness Report by the World Economic Forum (2013).

When



References: Bloomberg. (2014, May 21). Google Overtakes Apple as Most Valuable Brand [Video file]. Retrieved 13 June 2014, from http://www.bloomberg.com/video/google-overtakes-apple-as-most-valuable-brand-PgHrIgIsQMuzLZA4CxRJSg.html Bratby, R comScore. (2014). comScore Device Essentials - Singapore & Hong Kong 2013. Retrieved June 13, 2014, from https://www.comscore.com/content/download/23711/1282705/version/1/file/ singapore-vs-hongkong-mobile-usage.pdf Berdzenadze, I. (2013) Singapore: Asia’s Leading Business Hub. CNN. Retrieved June 24, 2014, from http://ireport.cnn.com/docs/DOC-953461 Economic Development Board Farzad, R. (2014). Google at $400 Billion: A New No. 2 in Market Cap. Business Week. Retrieved June 22, 2014, from http://www.businessweek.com/articles/2014-02-12/google-at-400-billion-a-new-no-dot-2-in-market-cap Glanz, J Google Inc. (2014) Google Annual Report 2013. (pp. 26). Retrieved June 13, 2014, from http://investor.google.com/proxy.html Google Inc Google Inc. (2014) Investor Relations – 2014 Financial Tables. Retrieved June 22, 2014, from https://investor.google.com/financial/tables.html Info-communications Development Authority of Singapore Info-communications Development Authority of Singapore. (2014). Infocomm Landscape - Facts and Figures. Retrieved June 22, 2014, from http://www.ida.gov.sg/Infocomm-Landscape/Facts-and-Figures Quittner Statisticbrain. (2014). Google Annual Search Statistics | Statistic Brain. Retrieved June 16, 2014, from http://www.statisticbrain.com/google-searches/ Tan, H Thomas, O. (2012). Rubicon Project Crushes Google On A Key Ad Metric. Business Insider. Retrieved June 16, 2014, from http://www.businessinsider.com/a-startup-youve-never-heard-of-just-beat-google-on-one-key-number-2012-8 World Economic Forum

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