1. Use the “Five Force Model” to assess Google’s competitive environment. Rate each of the Five Forces as weak, moderate, or strong, and justify your ratings. I. Competitive Pressures Created by the Rivalry among Competitors sellers
Google’s competitive environment regarding rivalry is strong. Google has managed to stay ahead of its rivals. Google used its large cash reserves to make strategic acquisitions to be able to develop Internet applications which would offer new advertising opportunities. As a company, Google has diverse objectives and strategies. In 2005 …show more content…
Diffusion of technical know-how across companies and countries. With the help of technology and transformation of education model, diffusion of technical know-how becomes much more often than does before. Therefore, online Ads, the major revenue sources of Google, have become more and more vulnerable. Companies with abilities to offer what Google can offer for a much lower price pops up every day trying to encroach the Google’s online Ads market share. Google not only has to go to war with giant as Facebook and Apple, it also has to fight those new startups.
Emerging new Internet capability and applications. As Google’s business model in based on the Internet, the development of high speed Internet, especially the mobile Internet, will certain benefit Google. It helps Google to generate more internet Ads related revenue. Because mobile internet allows Google to collect more data from customers. it enables Google to push more personalized Ads.
Technological change and manufacturing process innovation. Next 3-5 years, we are likely to witness a blossom of wearable technology that further integrates us into the digital world. The Internet browsing trend