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GOOGLE WK6 PA2

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Introduction

Twenty-three years ago, the world of the internet changed forever with the birth of Google, which has grown to be one of the best search engines, service providers, and products line for more than a decade now. Through the years, Google has risen to take the lion's share on the search engine market. Through its triumph, Google Inc. had successfully produced several services and products that have also proved to be essential in the current digital world, these include, Gmail, Google Drive, google maps, google earth, google hangouts, Google scholar, YouTube, and google meets. These cut across business, and personal use. Google meets has been essential and has played a key role during the pandemic by providing a linking and communication channel, that has proved to be significant than that of other companies.

Force’s analysis

1. Industry competition is fierce.

Threats and rivalry from industry players are ferocious. Few corporations have the capability and procedural aptitude to compete in Google's sphere planetary. Through the cloud marketplace ahead traction, corporations such as Microsoft and Amazon are putting up a robust and belligerent fight against Google. Salesforce, Oracle, and Microsoft compete with Google in rapports of merchandise innovation and product development (Lau, et al., 2021).

2. Latent for innovative industry participants – Insignificant (Very Low)

There is no original corporation that can contend with Google in rapports of bazaar segment. Only reputable companies such as Apple Inc., Microsoft Corporation, Amazon, and Facebook have a chance to contend with Google. The search engine is not one of their main proficiencies (Ekinci and Bulut 2021).

3. Suppliers' authority is limited.

Google operates in a field where dealers' bargaining power has conventionally been modest to short. Google offers the majority of its non-tangible items, which primarily operate in the package and simulated spheres. Dissimilar to Apple and IBM, a great portion of the establishment's proficiencies are profoundly contingent on its hardware products. Various of Google's services are established in-house using Google's creator team and patented software. As a result, Google does not characteristically have a benefactor who provides their products and facilities in the software section. The numeral of providers mandatory for product lines of products like the Chromebook, Pixel, and Chromecast is relatively large. There is fierce competition among providers to win Google's indenture because it significantly boosts their marketplace reliability (Steiber and Alänge 2013).

4. Customer Supremacy – Mild

The number of buyers/customers is extremely large. As a result, customers' bargaining power is extremely limited. Google's clients in digital advertising are also limited to a few large corporations. Small to medium-sized businesses have a big client base with slight or no negotiating control. These constitute a greater proportion of Google's purchaser base (Phair,2021).

5. Substitute product risk – Restrained

The company is one of the companies with a massive client database, with information dispensed willingly by the clients. Google provides offers a wide variety of free relatively free products and services include, including Gmail, Google Drive, Google sheets, google photos, and many more. Because of these wide varieties of services and products, it has attracted a wide audience, hence a large user database. However, Google inc. lags behind in generating revenue in conjunction with corporate companies. Google has to go head-on head with techno giants like Microsoft, who are the providers of services like Microsoft outlook, office, windows operating system, and many more. Google also has to compete with Amazon, Apple Inc, and Facebook primarily in revenue, since one of how google injects its revenue, is via advertisement. In regards to advertisements, the fiercest competitor is Facebook. This is because of its large number of users which enables it to reach a wider audience than Goggle. Amazon web services and Microsoft also compete with google in Artificial intelligence, with Amazon's Alexa, Microsoft's Cortana, and not forgetting Apple's Siri (Nagpal, 2020)

A list of industry driving forces and key success factors

In 2011, Google inc. closed its stock market at $482.8, just before the announcement of Google+. There were also $322.25 million in remaining shares. Google has a marketplace capitalization of $155 billion. That limit was raised by over $20 billion following the introduction of Google+ (Duan et al., 2020). Some of the significant contributions that led to the great success of google include:

Synchronized headship assembly: Larry Paige, Larry Brin, and Eric Schmidt work as one unified component to communicate the corporation's vision and mission at the practical, functioning, and commercial heights.

Pledge to high-tech innovation: google inc. ensures that it delivers the modern advances in technology at the most competitive price.

Smart overhaul: Partnering in and integrating productions that share Google's idea; for instance, Google Earth, Google Pixel, and Waze are some of the investments that Google has made to progress and advance its product line and services (Chik, 2011).

SWOT analysis and financial analysis for Google’s performance between 2009 and 2019.

The cooperation’s income has risen since 2002. According to clement 2019, the corporation income was $23billion in 2009, and ten years later, it was more than $160 billion Google posted an operating margin of 19% at the end of March 2020. In the first quarter of the same year, the company's advertisement sales rose by 13%, and currently, Google's price to sale ratio is 6.01, which according to market analysts and experts is above average.

The Price to Earnings ratio of google is a mind-boggling 29.00

At the final of the 2019 fiscal year, the debt to ratio was 0.08, and the ratio has never gone above the 10%, in fourteen years, that I between 2005 – 2019.

Google's core strengths include market supremacy in search engine queries, a lack of market rivalry, brand awareness, adaptability, and rapid development.

Deficiency: Overreliance on ads, unfair market practices, bad pricing policy, absence of self-assurance and confidentiality, and an embargo by major establishments and governmental bodies are only a few of its defects.

Prospects Income from foundations other than advertisements, merchandise portfolio diversification, leveraging the exertion from condition to seizure personalities and establishments with their products, and simplification of their purposeful requests are some of the resources that the company and exploit to raise income and compensate for its falling marketplace portion (Nagpal, 2020)

Intimidations include dwindling marketplace segments and shares, with Facebook and Amazon developing as potential replacements as much as it looks far from it, but it should not be looked down upon. Google is facing challenges such as search portals, gender disparity inside the association, a prickly quest engine venture (dragonfly) with China, antitrust disagreements with the European Union and several other countries, and employee repercussion throughout the Black Lives Matter crusade (Nagpal, 2020)

Conclusion

The world of technology has changed significantly over the years, and so has Google, one of the biggest techno giants in the 21st century. Google had managed to penetrate almost every industry in the world. The company has been driven by five forces analysis including fierce industry competition, insignificant latent for innovation industry innovation, limited supplier authority, mild customer supremacy, and restrained substitute products. Google has continuously joined and remained to be innovative in emerging markets, including podcasts, artificial intelligence, and machine learning. Google has not penetrated the market with its smartphones, like Samsung and Apple, and to do so, they need to be consistent and make their smartphones more affordable, as much as they are the leading in the market of smartphones operating system with their android platform.

References

Chik, W. (2011). The Google conundrum: Perpetrator or facilitator on the net? – Forging a fair copyright framework of rights, liability and responsibility in response to search engine

2.0 – Part I: The Google Images Search Engine. Computer Law & Security Review, 27(2), 111-132. https://doi.org/10.1016/j.clsr.2011.01.009

Duan, Y., Li, X., Zhang, L., Chen, D., Liu, S., & Ji, H. (2020). Mapping national-scale

aquaculture ponds based on the Google Earth Engine in the Chinese coastal zone.

Aquaculture, 520, 734666. https://doi.org/10.1016/j.aquaculture.2019.734666

Ekinci, C., & Bulut, A. (2021). Google search and stock returns: A study on BIST 100 stocks. Global Finance Journal, 47, 100518. https://doi.org/10.1016/j.gfj.2020.100518

Kwak, K., Lee, S., Ham, M., & Lee, S. (2021). The effects of internet proliferation on search engine and over-the-top service markets. Telecommunications Policy, 102146.

https://doi.org/10.1016/j.telpol.2021.102146

Lau, P., & Koo, T. (2020). Online popularity of destinations in Australia: An application of Polya Urn process to search engine data. Journal Of Hospitality And Tourism Management, 42, 277-285. https://doi.org/10.1016/j.jhtm.2020.01.012

Nagpal, M., & Petersen, J. (2020). Keyword Selection Strategies in Search Engine Optimization: How Relevant is Relevance?. Journal Of Retailing.

https://doi.org/10.1016/j.jretai.2020.12.002

Phair, J., Dalmia, V., Sanon, O., Leinbach, C., Rai, A., & Lipsitz, E. et al. (2021). The current state of vascular surgery presence and educational content in Google and YouTube internet search results. Journal Of Vascular Surgery.

https://doi.org/10.1016/j.jvs.2020.12.112

Steiber, A., & Alänge, S. (2013). A corporate system for continuous innovation: the case of Google Inc. European Journal of Innovation Management.