Google Search
1) Discuss competition in the search engine industry. Which of the five competitive forces seems strongest? Weakest? What is your assessment of overall industry attractiveness?
Google constantly has to maneuver to improve their services, and stay ahead of other competitors. Google also faces low switching cost which increases rivalry among competitors: o Name recognition, image o Services provided o Relationship with Internet users, web sites, & advertisers o Relevancy of a search results
the entry barriers for the industry are higher than normal which reduces competition. High customer loyalty as well as high capital requirements also make it unlikely for new market entrants. The threat of additional entry is weak:
• The pool of likely entry candidates is small lowering the threat • The biggest potential threat is for new entry comes from existing online firms (like ISP providers) that expand technology and merge horizontally
Customers are also demanding more complexity with their search tools. The low switching cost in the industry make switching between search engines easy.
• Competing with internet portals & web publisher for advertising dollars
a) Power of Suppliers
• Computer components suppliers
b) Power of Buyers
. The technology that Google currently has should enable it to adapt to software updates. Buyers Strong: • Advertisers • Web publishers licensing the search engine • Telephone companies
The expansion of the Chinese market for search-based advertising will also stem more rivalry between Google and Baidu in upcoming years. The search industry overall is an attractive industry for companies that can overcome the entry barrier. The amount of internet advertising is constantly growing and advances in technology allow forward thinking companies to thrive. It is easy for companies to attract people since customers can switch from
Google constantly has to maneuver to improve their services, and stay ahead of other competitors. Google also faces low switching cost which increases rivalry among competitors: o Name recognition, image o Services provided o Relationship with Internet users, web sites, & advertisers o Relevancy of a search results
the entry barriers for the industry are higher than normal which reduces competition. High customer loyalty as well as high capital requirements also make it unlikely for new market entrants. The threat of additional entry is weak:
• The pool of likely entry candidates is small lowering the threat • The biggest potential threat is for new entry comes from existing online firms (like ISP providers) that expand technology and merge horizontally
Customers are also demanding more complexity with their search tools. The low switching cost in the industry make switching between search engines easy.
• Competing with internet portals & web publisher for advertising dollars
a) Power of Suppliers
• Computer components suppliers
b) Power of Buyers
. The technology that Google currently has should enable it to adapt to software updates. Buyers Strong: • Advertisers • Web publishers licensing the search engine • Telephone companies
The expansion of the Chinese market for search-based advertising will also stem more rivalry between Google and Baidu in upcoming years. The search industry overall is an attractive industry for companies that can overcome the entry barrier. The amount of internet advertising is constantly growing and advances in technology allow forward thinking companies to thrive. It is easy for companies to attract people since customers can switch from