The Analysis of Google

Google, being as one of the major search industry in the global level, affects people’s life every day. The analysis of Google Company from its competitive and financial position in the search industry field weighs a lot.

Before analyzing Google Company, the first thing we need to do is to make a general survey of the overall search industry. First of all, it is important to know the competition in the search industry. By analyzing that, we have to know what 5 competitive forces are. “They are the rivalry of competitors within its industry; the threat of new entrants into an industry and its market; the threats posed by substitute products that might capture market share; the bargaining power of customers; the bargaining power of suppliers” (JA 12). In terms of these 5 competitive forces, the strongest one is the rivalry of competitors within its industry. As we all know, different country has different search engines. In China, what we most use is Baidu browser. However, with the development of technology, more and more developers find different ways to develop new types of browsers. And in China, we often use QQ browser and Sogou browser to substitute Baidu browser. So, from my perspective, it should be the strongest one in the 5 competitive forces. And in those 5 competitive forces, the threats posed by substitute products that might capture market share is the weakest one. The overall attractiveness of the search industry is promising. With the development of the technology and Internet, more and more people rely on these newly invented Internet.

In the beginning, the search industry is dominated by several leading Internet search firm, such as Google. But nowadays, with the development and availability of Internet, more and more burgeoning searching engines come into our eyes, such as Yahoo! and MSN. We have more choices to make when we want to search for something on the Internet. The key industry driving forces are divided into internal forces and external forces. “The internal forces are core capabilities, employee turnover, product and technological innovation. The external forces include economic conditions, competition, demographic changes, technological evolution, social trends, local & national politics, and environmental issue” (Issac 33). I anticipate that in the next five years, products and technological innovation is more likely to bring about major changes. With the development of technology, new products would come out.

When it comes to the key success factors for the search industry, it is of great importance to know that it is the development of the technology and innovation. In 2012, Google achieved great success in the search industry. And in the same year, it invested money in the research and development of non-search industry, such as cloud computing. At the same time, Google cooperated with other digital companies to launch Google TV. In 2012, Google acquired Motorola Company to engage into hardware segment of the smartphone and tablet computer industry. By thrusting into the new field, Google encountered both opportunities and challenges. And those propel the development of this company. Compared with the key success factors for the search industry, and that of the smartphones & Google are the trial to the new technology.

Google Company targeted its ads to the specific based on the browsing history of them. And it helps its customers to make advertisements on the Internet. Google engine can be applied both to the company intranets but also to the personal computers. Google Company makes benefits by attracting advertising customers. Besides, in 2006, it acquired the YouTube Company. It makes profits by adding advertisings to the videos on the YouTube. In 2008, the company also generated its new program to receive licensing fees. There all together increase the benefits the company get. Besides that, as I have mentioned above, the company acquired with other digital companies and it also researches and develops new products, such as TV and mobile phones. These are the main resources of acquiring money for the company.

The success of the Google Company has a close relationship with the strategy it adopts. Google’s multiple acquisition and its research & development activities all help it to become dominant in the Internet advertising field. This strategy makes it to become the number one search engine in the whole world. Besides that, some other functions added into the Google website also increases the visit number. It makes a second attempt at developing social networking site. And this also proves to be successful.

The business model proves to be successful. We can see the revenue and profits from the charts. The revenue of it increases dramatically from 2008 to 2012. “It is necessary for the investors to be impressed with its financial performance” (Finger 12). Compared with some other digital devices, such as Apple and Microsoft ware, Google encounters a rivalry. With the development of smartphone, more and more people access to the Internet. Apple Company also has a long history. In 2011, the Apple Company becomes the largest seller of digital devices, such as iPhone and computers.

The key resources and competitive capabilities are its large customers of search industry. The customers are those from big companies and young college students. And the company could use large amount of money to invest in new areas such as cloud computing and TV. Those industries are new and potential field. In the search industry, there exists large amounts of competitiveness. With the new coming of technology era, the smartphone becomes popular. So the big sell of smartphones will become a big rivalry to this company. As I have mentioned before, this company has a large amount of customers. They have more chance to access to the new field and new technology. But what we need to notice is the threats existed. They are the outside rivalry and the reform of the technology.

I insist that Google Company is a worth loyalty company. It conforms to the ethics principle of the company. Although in some small issue it obeys the international rules. In general it is an ethical company. I am impressed with its adherence. Being as such a big company, it is hard to realize all the principles it has set.

In the next five years, in order to confront the competitiveness, Google Company needs to enlarge this customer base and invest more money on the technology innovation, and also the cooperation with other big companies.