...of the overall industry attractiveness? Why so? Industry attractiveness could be defined as how manageable it is for the different companies in the industry to achieve profits. The industry attractiveness could be determined through thorough evaluation of the external environment. The group would be answering the seven questions in assessing the company's industry and competitive environment. The first question is do the dominant economic characteristics of the industry offer sellers opportunities for growth and attractive profits? The search industry has a large market size. The case states that there are beyond 103 million Americans and an estimated 2 billion people worldwide who surfs the internet from smart phones. And almost all companies and people use computers and the internet. With these, advertisers are more willing to invest on the search industry. Most of the time, companies in the search industry competes globally but there are also search companies that caters to the local company like Baidu in China. With the numerous internet users, it creates opportunity for the search industry to broaden the scope of their products Usually in this type of industry, the market is not segmented, broadening its reach to the people and favoring the advertisers. The industry is in the rapid growth and takeoff position in the life cycle. With the increasing technological capabilities, it seems that potentials in the next years are limitless and the industry would continue...
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...you enjoy. The search engine industry exists to provide a service to consumers and businesses. The search engine model has been built around the idea of providing valued content to both consumers of information and consumers of products and services. The model also exists as a way to provide marketing and advertising opportunities for businesses of all sizes. This is an extremely profitable business, with U.S. ad spending topping the 17 Billion dollar mark in 2012 (as seen in this chart here). As of July 2011, the top five rankings for U.S. search engine market share were: 1. Google 2. Yahoo Sites 3. Microsoft Sites 4. Ask.com 5. AOL As seen in the percentages here, Google is the clear leader in market share of the U.S. search engine market at 65.1%, but that does not mean they do not face significant competitive forces. The first competitive force we will talk about will be “rivalry among competitors”. This is strong competitive force, because of the quality of competitors in the market. While Google currently has a sizeable lead in the industry, they are not able to rest on their laurels, especially because Microsoft’s Bing, which powers yahoo’s search engine as well, is a formidable rival. Even though they have not been able to gain any significant ground as of yet in the marketplace, they are a strong and well known company who has the capabilities to innovate and gain market share. A second competitive force is “the threat of...
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...Brian Haggard, Win Qin Google strives to “organize the world’s information … and make it universally accessible and useful”. The most effective and profitable way to accomplish this mission is to put the needs of Google’s users first. How will Google accomplish this immense goal in an ever-changing market? Google’s Strategy in 2011 Zhengzheng Bao, Brian Haggard, Win Qin Google strives to “organize the world’s information … and make it universally accessible and useful”. The most effective and profitable way to accomplish this mission is to put the needs of Google’s users first. How will Google accomplish this immense goal in an ever-changing market? 08 Fall 08 Fall BA5080-Business Strategy BA5080-Business Strategy Table of Contents 1 Executive Summary 3 2 Analysis 6 3 Appendix 14 4 Specific Strategic Statement 17 5 Functional Strategies 17 6 Critical Assumptions 17 7 Works Cited 19 Executive Summary In January of 1996 an Internet search engine company initially named BackRub soon grew into what is now Google Incorporated. Partners Larry Page and Sergey Brin, along with a few investors lived on a shoestring budget. By year-end 1998 Google Inc. was handling 10,000 search queries each day. Google was also voted one of the top 100 Web Sites and Search Engines in 1998. Google was recording successes at a lighting speed pace and embarked on their Initial Public Offering on April 29, 2004. Google has found itself amidst...
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...GOOGLE CASE STUDY 2010 1. Discuss competition in the search industry. Which of the five competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness? The search industry is based on the ability of providing higher technology to users, lower prices for advertising and the capacity to engage suppliers to subscribe to the search engine. Some of the big players, besides google, are; * Yahoo, which has a challenger’s and loser’s position * Bing, this is new brand name for MSN Live search * Baidu, China search engine * Ask * AOL, where search engine is powered by google The bargaining power of buyers in 2008 was almost 97% of Google revenue made by advertising The bargaining power of suppliers consist in the trust of Google’s as system as a reliable source of income. The threat of substitute products and services is not really relevant. There is no substitute for a search engine and the number of internet user is increasing every day. As far as the threat of new entrants, the barriers are really high. Current big players exhibit a high technology and a lot of knowledge on the industry. In order to compete as a new entrant you must provide a better technology and a higher speed search engine. Competitive rivalry is one of the strongest forces, and the weakest is bargaining power of the buyers. Rivalry among competitors is constant. They invent new application every day in order to have a strong competitive advantage...
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... | |Google is one of the leading internet technology and | |1994-2009 |USA, Worldwide |Larry Page and Sergey Brin – founders|advertising companies in the world. The company generates 97% | | | |David Filo – Yahoo Co-founder |of its revenues in both 2008 and 2009 from its search-based | | | |Erick Schmidt - CEO |advertisers. Besides, it maintains a large index of web sites | | | | |and other online content, which are freely available through | | | | |its search engine. | 2. BRIEF SUMMARY OF CASE SITUATION |Business or Industry Description |Particular Company Situation | |The industry includes enterprises that operate search engines, internet portals and| | |other types of websites that display advertisements. Websites attract users by |The case describes the successful story of the company development,| |offering a range of mostly free services such as internet search, e-mail, news, |its features and possibilities...
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...1. Discuss competition in the search industry. Which of the five competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness? Ever since Google was created there really haven’t been any competitors that have come close to giving them a scare as far as competing with what they offer. Of the five competitive forces the threat of substitute products or services and the power of buyers are the highest. The weakest of the five for Google is the threat of new entrants because the entry barriers for the industry are high, and high customer loyalty to Google would make it much more difficult for a new entrant. 2. How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years? Throughout the case, it mentions many times that the next big thing in the search industry is cloud computing. However, there are many other new areas that Google is entering such as Google TV, and they are continuing to develop their Google Maps and other areas such as their Android market (phones, tablets, and Google TV will be powered by android). After reading the case and thinking about what will bring in a major change, I think it will be cloud computing. Although most companies are still in the early stages of this, Google is projecting this to grow up to $95 billion by 2013. 3. What are the key factors that define success in the industry? What are the key competencies...
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...“I wish developing great products was as easy as writing a check. If that was the case, Microsoft would have great products.” Steve Jobs, Cnet News. May 10, 2007 1. Patterns in Microsoft’s response to competitive threats and opportunities Standardization and simplification, complementary products, aggressive market penetration strategies (tenacity, deep investments and bundling), aggressive deal making. If I were to quote Microsoft’s best and most genius strategy that allowed them to gain impressive market share and become virtually impregnable in OS and application software market, it would be standardization (=compatibility) and simplification. They made their products easy to use, switch between and upgrade, which saved their clients a good amount of money in training and re-training employees, equipping new sites, etc. They looked past minor competitive losses in favor of bigger gains that would allow them to ultimately win market share, as in the example when they made their Office package available on Mac OS while Lotus and WordPerfect were hesitant to do so, even though Apple had many products competitive to Microsoft offerings. Another winning strategy was to produce complementary products: OS and applications that were perfectly compatible, as well as making these products available for different PCs and operating systems (=Apple) thus making Microsoft products ubiquitous and omnipresent. Impressive profits and large cash account further allowed Microsoft to...
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...shift in how advertisers communicated with consumers and had allowed Internet advertising to become the second most common form of advertising used in the United States in 2007. Only newspaper, with 2007 advertising revenues of $48.6 billion, controlled a larger share of United States advertising dollars. Cable television, radio, and network television each accounted for about $20 billion each in advertising revenues during 2007. The prospects for Internet advertisers looked strong in 2008 with Internet advertising expected to grow from $21 billion in 2007 to $36.5 billion in 2011. Search-based ads accounted for the largest portion of Internet advertisements in the United States during 2007—amounting to nearly $9 billion in industry revenues. Video ads shown on YouTube and other web sites accounted for only $505 million in 2007, but were expected to grow to a $5.8 billion market by 2013. Mobile search was another rapidly growing...
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...1) In 2013 Google was the leading Internet search firm. Google owned 67 percent market share in search from home and work computers and a 97 percent share of searches performed by mobile devices. The two main competitors for Google in the search engine industry for market share is Microsoft Corporation’s Bing and Yahoo Inc.’s search. (Blystone, 2015). Google is well known and a leader in the search engine industry that the company became a verb. When people search for something on the Internet such as for a recipe they say, “ I goggled the recipe” (Blystone, 2015). The competition in the search engine industry for Google does come from the two related search engines yahoo search and Bing. However, the major competition in the search engine industry stems from searches with in websites and apps that offer more than just searches, such as Amazon, Inc. and Facebook, Inc. For example, Facebook Inc.’s CEO Mark Zuckerberg articulated that the company’s assets could be used to compete with search engines. Facebook Inc. can compete with search engines by the website uniquely being positioned to answer questions people may have such as, what sushi restaurants my friends have been to recently and liked? These query-based searches that can be done on Facebook potentially offer consumer something they could not do anywhere else (Blystone, 2015). Apple Inc. also created feature and operating system on their iPhone, iWatches, and Apple TV Siri that acts as a virtual personal assistant. With...
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...Google The search industry is one of the largest industries in the world with Google Inc. bringing in $15.7 million in advertising revenue alone. Google was the leading Internet search firm in 2010 with over 60 percent market shares in both searches performed on computers and mobile devices. The search industry is impacted by numerous forces that have strong, moderate and weak impacts on the industry. Rival firms, new entrants, buyer power, supplier power and substitutes are the five largest forces that impact the search industry. A rival firm is a strong force in the search industry. Google Inc, Microsoft Corporation and Yahoo! Are all competing for market share in the search industry in the United States and across the world? The fact that these three companies search engines are relatively the same to most users, it is hard to consumers to see the difference between them and it forces the companies to find various ways to distinguish themselves from each other. Microsoft’s Bing has tried to distinguish itself from Google by using an algorithm that looks at the context of the words in a search instead of just the words themselves. Microsoft Corporation has also launched a very strong advertising campaign to demonstrate the difference between Bing and Google search. Yahoo! Has recently adapted Bing as its default search engine but is competing with Microsoft’s MSN and Google for number of viewers and advertising income. The competitive force of new entrants...
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...Recommendations 6 Appendix 11 SWOT Analysis 12 Key Success Factors 13 Driving Forces 14 Increasing Globalization 14 Marketing Innovation 14 Diffusion of technical know-how across more companies and more countries 14 Dominant Economic Features 15 Market size and growth: 15 Number of rivals: 15 Number of buyers: 15 5 Competitive Forces 16 Competitive Landscape 17 Financial Analysis 18 Identification of Rivals 19 Percent of Searches 19 Financial Summary from 2007 19 Financial Summary from 2009 19 Yahoo 20 Microsoft Online Services 21 Analysis of Company Strategy 22 Executive Summary To: Eric Schmidt, CEO From: Tyler Echevarria, Amanda Osburne, & Samantha Smith Re: Strategic Analysis of Google Inc. Date: April 7, 2010 This report will make recommendations for improvement of Google Inc. based on the analysis of the company’s financial resources and industry evaluations. Several analytical tools will be used in determining the direction the company should pursue. These analytical tools and techniques include the following: * Evaluation based on SWOT analysis * Evaluation based on Key Success Factors * Evaluation of Google’s business model and strategy * Analysis of financial data * Evaluation of current industry conditions These tools will be used to recommend new opportunities for Google to pursue as they continue to seek growth. Google has performed quite well recently, but must continue to push the technology frontier...
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...Strategic Management Professor: February 6, 2014 Executive Summary The origin of the name Google might explain the excess in capture of vast business verticals by Google’s internet and technology services. ‘Founders Larry Page and Sergey Brin named the search engine they built "Google," a play on the word "googol," the mathematical term for a 1 followed by 100 zeros’ (Bhatia, 2012). Through our strategic analysis of Google Inc. we provide for a discussion on profitability of Google. Based on competitive advantage, strategic management and the Five-force model of competitive forces, we better understand the nature and strength of competitive pressures within the internet and technology industry. Google must remain a differentiator among competitors to retain market share. The evolution of “search” capabilities on the internet has been the driving force from the beginning. In 2012 Google is the leading search firm with nearly ‘67% market share in search from home and work and 95% market share performed from mobile devices’ (Thompson, et al, 2013). For Google to remain profitable is to focus on the key business model that is still driving hard revenue and to reach into those verticals that are working, while leaving the losers behind. In the year of 2012 Google captured 67% of search in the U.S., with 29% of the balance going to Yahoo and Microsoft. Advertising revenues from search drove over $36 billion of $37 billion total net revenues in 2011. SWOT (strengths, weaknesses...
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... | |1998-2008 until |USA |Global internet search solutions, |Big size, American public corporation earning revenue from | |now | |advertising solution |advertising related to its internet search, e-mail, online | | | | |mapping, social networking, and video sharing services as well | | | | |as selling advertising-free versions of the same technologies. | 2. BRIEF SUMMARY OF CASE SITUATION |Business or Industry Description |Particular Company Situation | | | | |Providing advertising solutions, global internet search |Google’s innovative search technologies connect millions of people around the world | |solution through its internet site and internet solutions via |with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and | |and enterprise search appliance. It maintains online index of |Sergey Brin, Google today is a top web property in all major global markets. Google’s | |websites and other content...
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...Strategy 1. [pic] INTRODUCTION The name “Baidu”, was inspired by a poem written more than 800 years ago during Song Dynasty whose literal meaning is “hundreds of times”, signifies a persistent search for the ideal[i]. In January 2000, Baidu was founded by Chinese entrepreneur Robin Li (Li) and Eric Xu (Xu) where it conducts its operations in China providing a Chinese Internet search platform through Baidu Online and Baidu Netcom. These companies hold the required licensing and approvals to operate the Company’s websites and advertising services.[ii] Within a few years, Baidu expanded its operations and established three PRC subsidiaries and two other PRC consolidated entities. By January 2008, Baidu launched a Japanese search service with three subsidiaries. To date, Baidu has been the most popular search engine in China and has succeeded in areas where Microsoft and Yahoo have failed: Beating Google at its own game by dominating the search engine market in 2007 with 60.4% market share.[iii] The paper aims to (1) perform an internal analysis on Baidu, to identify the competencies of Baidu; (2) perform an external analysis of Baidu to identify opportunities and threats; and (3) identify business strategies by Baidu and (4) recommend strategic actions to Baidu to compete better in future. INTERNAL BUSINESS FUNDAMENTAL ANALYSIS Organisation Structure and Human Resource Management. Baidu organisation structure works on a functional departmentalisation where...
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...Google’s Purchase of Zagat Google is an American multinational public corporation started in 1998 as a research project by Larry Page and Sergey Brin. Google has been invested in internet search, cloud computing and advertising technologies, which hosts and develops a number of internet based services and products. (Google) With Google’s most recent endeavors their strategic plan is to become the marketplace for reviews. It seems like now and days the best critics are the actual customers themselves. Zagat Survey LLC is the Zagat is the world's leading provider of consumer survey-based information on just about anything. (ex. Restaurants, hotels, Night clubs, etc.). With this in mind, Google set out to purchase Zagat as an attempt to now control the marketplace for reviews. The article that will be referenced in this paper, “Zagat Deal Extends Google's Influence”, is an article supporting the purchase; this article was published in The Wall Street Journal on September 9, 2011 by Amir Efrati. (Efrati) Strategic Action There are over 350,000 customer opinions surveyed from around the world, on which Zagats’ ratings and reviews are based upon. Zagat has become the world’s most trusted source to help customers make informed and smart decisions. One way Google plans to incorporate Zagats’ established reviews are by putting it into Google Maps and places, which are also integrated on cell phones and across the internet. With Google being the company with the ability to reach...
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