Google Strategy in 2012
Google Strategy in 2012
1. Use the “Five Force Model” to assess Google’s competitive environment. Rate each of the Five Forces as weak, moderate, or strong, and justify your ratings. I. Competitive Pressures Created by the Rivalry among Competitors sellers
Google’s competitive environment regarding rivalry is strong. Google has managed to stay ahead of its rivals. Google used its large cash reserves to make strategic acquisitions to be able to develop Internet applications which would offer new advertising opportunities. As a company, Google has diverse objectives and strategies. In 2005 they launched Good Earth. Google Earth along with its companion software, Google Maps, allowed users to search and view satellite images of any location worldwide. They then enhanced the program in 2010 by adding 3D images of locations from the ground level. They’ve since launched Gmail software, Picasa web photo albums, and a translation feature in 51 languages. Google is strong in the 5 Force Model regarding competitive pressures created by rivalry competitors because they have implemented applications that no other competitors can rival. II. Competitive Pressures Associated with the Threat of New Entrants
In regards to “Threat of New Entrants”, this is a strong force for Google. Google introduced its Android operating system in 2008 and began to be a rival for Apple’s smartphone technology. The Android system increased its share of mobile searches from about 60% to approximately 95% in 2012. Google entered late into the market, but by 2010 all major mobile phone providers had added smart phone models running Android software. Despite Google’s late entry into the market, Android’s market share had increased from 0 in 2008 to almost 51% in May 2012. Google posed a strong entry threat when they developed their Android system, and
1. Use the “Five Force Model” to assess Google’s competitive environment. Rate each of the Five Forces as weak, moderate, or strong, and justify your ratings. I. Competitive Pressures Created by the Rivalry among Competitors sellers
Google’s competitive environment regarding rivalry is strong. Google has managed to stay ahead of its rivals. Google used its large cash reserves to make strategic acquisitions to be able to develop Internet applications which would offer new advertising opportunities. As a company, Google has diverse objectives and strategies. In 2005 they launched Good Earth. Google Earth along with its companion software, Google Maps, allowed users to search and view satellite images of any location worldwide. They then enhanced the program in 2010 by adding 3D images of locations from the ground level. They’ve since launched Gmail software, Picasa web photo albums, and a translation feature in 51 languages. Google is strong in the 5 Force Model regarding competitive pressures created by rivalry competitors because they have implemented applications that no other competitors can rival. II. Competitive Pressures Associated with the Threat of New Entrants
In regards to “Threat of New Entrants”, this is a strong force for Google. Google introduced its Android operating system in 2008 and began to be a rival for Apple’s smartphone technology. The Android system increased its share of mobile searches from about 60% to approximately 95% in 2012. Google entered late into the market, but by 2010 all major mobile phone providers had added smart phone models running Android software. Despite Google’s late entry into the market, Android’s market share had increased from 0 in 2008 to almost 51% in May 2012. Google posed a strong entry threat when they developed their Android system, and
Cited: Thompson, Peteraf, Gamble, Strickland. Crafting and executing strategy the quest for competitive advantage concepts and cases. NINETEENTH ed. New York: McGraw-Hill/Irwin, 2014. Print.