External Factors Evaluation (EFE)
Developing Competition of Various Search Engines
There are external environmental factors that include political, macroeconomic, international, technological, and legal that can threaten Google’s business. In this executive summary, the technology and political threats will be the focus of concern that bring challenges for Google. In today’s market, the technology field is the most volatile and disruptive. Therefore, sustainable competitive advantages are not assured (MarketLine, 2013). The three key threats that can affect Google today are: 1. Developing competition of various search engines, 2. Intense competition of competitors’ mobile operating system, 3. Increasing allegations of Google’s involvement in the PRISM project.
The external technological threats to Google are competitors such as Amazon, Apple, Bing, Facebook, and Yahoo who all have a search engine capability Yahoo and Bing are the closest competitors to Google in the original search engine market. Still, Google remains the leader followed by Facebook as the dominate company in the search engine market both domestically and globally as ranked by alexa.com (Competitive Intelligence, 2014). However, being in the dominate position does not exempt Google from external factors that can bring threats to the company. According to Google’s 2013 fourth quarter results, 67% came from search engine revenue and represents a 22% increase over fourth quarter 2012 (Google Inc., 2014). As of January 2014, Google leads the U.S. search market with 67.6% market share (up 0.3 percentage points), Microsoft is at 18.2% while Yahoo reported at 10.8% (comScore, 2014). To continue to be the leading internet search engine provider, Google needs to guard i...
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...evy, A. (2014, January 2). Can Google Unite a Fragmented Smart-TV Market?. Can Google Unite a Fragmented Smart-TV Market?. Retrieved May 10, 2014, from http://www.fool.com/investing/general/2014/01/02/can-google-unite-a-fragmented-smart-tv-market.aspx
Rothaermel, F. T. (2013). Corporate Strategy: Vertical Integration and Diversification. Strategic management: concepts and cases (p. 211). Upper Saddle River, N.J.: Pearson Prentice Hall.
Rothaermel, F. T. (2013). Corporate Strategy: Vertical Integration and Diversification. Strategic management: concepts and cases (p. 220). Upper Saddle River, N.J.: Pearson Prentice Hall.
Singer, H. (2012, September 18). Who Competes With Google Search? Just Amazon, Apple and Facebook. Forbes. Retrieved May 1, 2014, from http://www.forbes.com/sites/halsinger/2012/09/18/who-competes-with-google-in-search-just-amazon-apple-and-facebook/
Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2012). Strategic Management: Text & Cases (6th Ed.). New York, NY: McGraw-Hill.
Pearce, J.A., & Robinson, R.B. (2013) Strategic Management: Planning for Domestic and Global Competition. (13th Ed.). Boston, MA: McGraw-Hill/Irwin. ISBN-13: 9780078029295
...ative aspects of diversification, for example through better corporate planning, human recourse management and reaching further synergies between its various business lines.
Furrer, O 2010, Corporate level strategy: theory and applications, Taylor & Francis, New York, NY.
The Google company has engaged the controlling location and position in its industry since the launching due to its unique product which is a result of its unparalleled working location. Google has moved out on to achieve the largest share of online searching engine as it affords its users with a product that is difficulty exchanged even though there are a lot of challengers. By analyzing and examining the internal and external environment of the company, it is obvious that Google company is running un efficient machine, giving attention to the most of customers and it ensure that it offers a quick and reliable product to its customers.
• Hitt, Michael A; Hokisson, Robert E.; Ireland, RD. Strategic Management. 6th Ed., Masson, Ohio: Souht. Wester 2005.
Political, economic, and technological are three factors of the external environment that Google must identify with doing an external analysis. Political factor can profit Googles growth through different markets. Chinese’s and US government placed an obstacle for any growth that Google had in these markets. According to Google 2009, “They viewed Google as a monopoly and request authority to monitor its activities. The pressure of the government provides additional problems with copyright and privacy issues. As the technology expands, it offers more problems for Google. “New...
This report will describe the history of government regulations and FTC. How that applied to Google search and personal privacy. The changes made from the settlement between Google and the FTC, the difference Google's practices and policies from before the settlement and after the settlement, and the current demands and expectations from current and vocal Google users. The report will also draw a conclusion from the findings and will determine if additional regulations are needed or if the regulations currently in place are sufficient.
Olsen, E. (n.d.). Strategic planning: Diversification. Strategic planning kit for dummies, 2nd edition. Retrieved from http://www.dummies.com/how-to/content/strategic-planning-diversification.html
Google continues to grow and innovate. Google focuses on the user and all else will follow. Since the beginning, they have focused on providing the best user experience possible, and take great care to ensure that they will ultimately serve their customers(Google.com n.d.). In relation to market development and product development the core values “Its best to do one thing really, really well (Google.com n.d.),” fits in with these strategies. “You don’t need to be at your desk to need an answer (Google.com n.d.),” describes Goggle’s innovation to mobile platforms. “The need for information crosses all borders (Google.com n.d.).” Google company has grown and has offices in more then 60 countries, maintaining more then 180 internet domains, and serve more then half of their results to people outside of the United States, and this relates to concentrated growth strategy. “Great just isn’t good enough(Google.com n.d.).” Google continues to strive to reach for better ways of doing things, through innovation and integration, continue to improve things in unexpected ways (Google.com n.d.).
Google Inc. is a company that started in 2002 and has gradually grown to become an international technology company. Google’s business is mainly focused around vital areas, like advertising, search, operating platforms and systems and platforms, hardware products and enterprise. The company produces its revenue mainly by distributing online advertising. Google also produces revenues from Motorola through selling products. The company offers its services and products in over 100 languages and in over 50 regions, territories and countries. The company assimilates various features in its search service and gives dedicated search services to aid users modify their search. Google also gives product-listing advertisements, which comprise of product information, like price, merchant information and product image without needing ad text or extra keywords.
This video provides an overview of product diversification. It explains that there are two types of diversification, which are related diversification and unrelated diversification. In addition, the video informs that diversification often involves merger and acquisition activities. Furthermore, it stresses the importance of keeping diversifications balanced, as in some instances, companies that do not take advantage of diversification, can miss out on some benefits, and/or could experience negative effects. However, on the other hand, the opposite could also occur, because some companies that over-diversify, extend themselves too far and can experience detrimental and disadvantageous effects as well. The key is staying
Levy, Steven, Brad Stone, and Peter Suciu. "All Eyes On Google. (Cover Story)." Newsweek 143.13 (2004):
In the horizontal integration, the company product range is from a wide clientele. That is they sell product either clothing or luxurious foods from different manufacturers. These give them the edge since the products they offer a variety for the customers to choose from, and hence they can shop less than one roof (Cole, 1997). In the vertical integration strategy, the firm will deal substantial with products from a single supplier and M&S gets the exclusive rights to deal with the product and its supply to the market. This is necessary when the company aim is to serve an identified target market which is exclusive and has the potential to sustain and grow the company substantively. These employ a tar...
Interests: The image of Google in the media and among investors will be seriously damaged if it act antithetically to its philosophy of “Don’t’ be evil” It might affect negatively to the future prosperity of the company.