Case1 - Porter\'s five forces for Google PDF

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Porter's five forces for Google...

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Google Porter’s Five Forces Analysis Porter’s Five Forces is an analytical framework stating the five factors which shape a firm’s competitive position within an industry (Bigdoli, 2018). Google’s Porter Five Forces analysis is as following:

Rivalry among existing firms: strong. This force plays an important role in the industry, because there are various, competitively strong companies, such as Yahoo, Bing (Google search competitors). Moreover, the company’s search engine sometimes generates poor search experiences. Therefore, instead of Google, some individuals choose to use vertical web search and go directly to specific websites, such as Amazon, Expedia or Kayak[ CITATION Joh17 \l 4105 ].

Threat of new entrants: moderate. The starting costs in this industry are not too high, therefore it is easier for firms to enter the marketplace, competing with Google. However, the company’s high brand awareness makes it a little harder for the new companies to compete at the same level[ CITATION Kas \l 4105 ].

Bargaining power of suppliers: weak. Google is significantly bigger than its suppliers and there is a big number of suppliers it can choose from. Moreover, the company is the main buyer for many of them and can easily switch at a low cost[ CITATION Kas \l 4105 ].

Bargaining power of buyers: weak to moderate.

Because of the small size of individual users and increasing demand from them, the buyer power is weak. However, buyers have many choices to switch for a low cost, so in case Google decides to increase its prices, its users can switch to other companies providing the same services, making the buyer power moderate[ CITATION Joh17 \l 4105 ].

Threat of substitute products/services: moderate. Even though a couple years ago, the threat of substitutes for Google Search was really low, currently it is moderate as there are other search engines which can be used. Some of them are: Bing, Yahoo! Search, Baidu, Yandex and many more. This has a significant effect on Google’s performance. In addition, instead of Gmail, individuals can use platforms such as Outlook or Yahoo!. Waze maps are Google maps alternatives, while Apple’s MacBook is a substitute for Google laptops and Amazon Alexa is a substitute for Google assistant.

REFERENCES Adam, K. (2017, May 10). Porter's Five Force analysis: Google. Retrieved from https://www.porteranalysis.com/porters-five-forces-model-google/ Dudovski, J. (2017, June 6). Google Porter's Five Force Analysis. Retrieved from https://research-methodology.net/google-porters-five-forces-analysis/ Fishkin, R. (n.d.). The 4 biggest threats google faces. Retrieved from https://moz.com/blog/the-4-biggest-threats-google-faces Bigdoli, H. (2017). Management Information Systems. Boston: Cengage Learning....