2. I would define Google’s industry as internet computer software with Apple as its main competition along with Yahoo, Bing, and AOL. I believe Apple is Google’s main competition because they offer similar features in the products they manufacture. Even though the products that both companies offer have different software, they are the most demanding in the market. Both companies have major opportunities in the market since the more software that is updated and created by these companies, the more consumers want to purchase. The fact that these companies keep moving forward make consumers want to follow and not fall behind. Computer software is not an industry in which anyone can create and so it is an industry in which a company can capture value from it and can benefit from not having a lot of competitors for this same reason.
3. The major trends that are impacting Google’s industry include the demographic trends, technological developments, and macroeconomic impacts. Demographic trends would affect the computer software industry because Google would have to scan the environment to make sure that that consumers that would use the software would outweigh the number of users that would prefer not to use it. These being the people of older age that have not kept up with the technology trend. Technological developments are probably the most important trend since it directly affects how Google would create their new software and by what means. Macroeconomic impacts is also very important since it would affect how much consumers are willing to spend and the matter of unemployment and inflation can affect this matter. The growth prospect for Google is the technology development that is occurring at this period in time. There is no better time than now to create and improve software that is sought out by almost everyone in all parts of the world. Being part of a complicated industry is also a growth prospect since there are not a lot of major competitors that can compare to Google.
4. I believe Google’s industry is a competitive market since it is not only used by people, but also by businesses. The internet software industry also impacts the global economy with many companies trying to reach for the top. According to Gartner, in 2013, worldwide software revenue stood at $407.3 billion, compared to $388.5 billion in 2012. It is the fastest growing industry in the IT space. Google has a number of competitive advantages because of its size, innovation, and market position. Their advantages can be can be narrowed down into three categories: infrastructure, innovative services, and market share.
5. I would recommend to invest in google because of the competitive advantage they have and because their stock price is likely to increase each year. They have 50.1% of the market share according to Comscore, which is twenty percentage points above Apple who has 30.2% The company is also in good standing as their revenue continues to increase even though their operating expenses have increased as well. Their current revenue is at $20,257 million as of the quarter ending on March 31, 2016 with operating expenses of $14,915 million. Google is a company that will be in service for many years as technological innovations take place. They move forward as new innovative services are created.
Moe Nash
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