Competitive Analysis for Google and Yandex PDF

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Competitive Analysis for Google and Yandex ‘Search Engine Industry’

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MACRO ENVIRONMENTAL FACTORS FOR SEARCH ENGINE INDUSTRY..............................................................................................................................İİİ POLITICAL FACTORS............................................................................................................................................................................................................................İV ECONOMIC FACTORS........................................................................................................................................................................................................................... İV TECHNOLOGİCAL FACTORS........................................................................................................................................................................................................................ İV CULTURAL FACTORS..................................................................................................................................................................................................................................İV DEMOGRAPHİC FACTORS............................................................................................................................................................................................................................V Changing age structure.........................................................................................................................................................................................................................v Geography and gender structure..........................................................................................................................................................................................................v NATURAL F ACTORS.....................................................................................................................................................................................................................................V PORTER’S FIVE FORCES..........................................................................................................................................................................................................................V COMPETITIVE RIVARLY OR COMPETITION:..................................................................................................................................................................................... V BARGAINING POWER OF BUYERS......................................................................................................................................................................................................V BARGAINING POWER OF SUPPLIERS................................................................................................................................................................................................V THREAT OF SUBSTITUTES OR SUBSTITUTION..................................................................................................................................................................................V THREAT OF NEW ENTRANTS OR NEW ENTRY.................................................................................................................................................................................Vİ MARKETING STRATEGIES....................................................................................................................................................................................................................Vİ MARKETING MIX FOR GOOGLE.........................................................................................................................................................................................................Vİ 1.PRODUCT........................................................................................................................................................................................................................................vi 2-PLACE:...........................................................................................................................................................................................................................................vii 3-PRICE:............................................................................................................................................................................................................................................vii 1-Freemium Price:........................................................................................................................................................................................................................vii 2-Market-Oriented Pricing:..........................................................................................................................................................................................................vii 3-Penetration Pricing:...................................................................................................................................................................................................................vii 4-Value-Based Pricing..................................................................................................................................................................................................................vii 4-PROMOTION..................................................................................................................................................................................................................................vii 5-PEOPLE..........................................................................................................................................................................................................................................vii 6-PROCESS:.......................................................................................................................................................................................................................................vii 7-PHYSICAL EVIDENCE:.................................................................................................................................................................................................................vii MARKETING MIX FOR YANDEX N.V................................................................................................................................................................................................Vİİ 1.PRODUCT.......................................................................................................................................................................................................................................vii -CLICK HOUSE:........................................................................................................................................................................................................................viii -CAT BOOST..............................................................................................................................................................................................................................viii -APP METRICA..........................................................................................................................................................................................................................viii 2.PRICE.............................................................................................................................................................................................................................................viii 3.PROMOTION.................................................................................................................................................................................................................................viii 4.PEOPLE.........................................................................................................................................................................................................................................viii 5.PHYSICAL EVIDENCE:................................................................................................................................................................................................................viii 6.PROCESS.......................................................................................................................................................................................................................................viii 7.PLACE............................................................................................................................................................................................................................................viii COMPETITIVE ANALYSIS.......................................................................................................................................................................................................................İX GOOGLE’S MARKETING STRATEGY................................................................................................................................................................................................. İX POSITIONING......................................................................................................................................................................................................................................x 1-MULTI-SEGMENT POSITIONING.........................................................................................................................................................................................xi 2-STANDBY POSITIONING.......................................................................................................................................................................................................xi 3-IMITITAVE POSITIONING......................................................................................................................................................................................................xi YANDEX’S MARKETING STRATEGY.................................................................................................................................................................................................Xİ -SEGMENTATION – TARGETING- POSITIONING...........................................................................................................................................................................xi MARKETING METRICS.............................................................................................................................................................................................................................1 CSI FOR YANDEX........................................................................................................................................................................................................................................2 CSI FOR GOOGLE........................................................................................................................................................................................................................................3 STRATEGIC SUGGESTIONS......................................................................................................................................................................................................................3 APPENDIX :....................................................................................................................................................................................................................................................7

INDUSTRY PROFILE FOR GOOGLE AND YANDEX

If we want to describe the definition of search industry simply; it is a term that defines data collection systems that identify and present the information sorting function and its suitability to its source. Online searches are among the most popular web activities on the globe. Internet users can use global search engines like Google, Yahoo if they want. They can also scan worldwide data using other local search engines such as Yandex, Baidu or Naver.Search results are usually associated with previous searches of the individual, based on the relevance o f the result pages and the data provided by the search engine's algorithm. Google; It is a multinational technology company based in California, offering advertising and online searches as well as qualified digital products such as software. (Defining Google as just an internet company is incomplete, because Google also produces the phone; Google Pixel and computer; Google Chromebooks.) In the United States of America in December 2018, the US is among the companies that provide search engine; With a capacity of 246 million visitors, Google ranked first with a 62.3% market share. In the United States of America in December 2018, the US is among the companies that provide search engine; With a capacity of 246 million visitors, Google ranked first with a 62.3% market share. Besides, Google has a steady market share in the world market and is a leading company in the global search market industry. ( Google has 92.72 % global market share in 2017)** Compared to Google, Yandex is in the follower company position in the search engine market; It is a large internet and technology company which is founded in June 2014 as popular search engine in Russia. In terms of the Internet Company, it is one of the largest companies in Europe.(Yandex has 0.52 % global market share in 2017 ,but they have also 42.13% market share in Russia in 2017)** Yandex offers customer-oriented products and services based on the latest innovations in data acquisition, machine learning and machine intelligence. Yandex search engine allows you to access different, diversified information available online. The company makes use of different disciplines to develop algorithms that systematically make and present information related to internet users: artificial intelligence (AI) , mathematics, linguistics, machine learning.

MACRO ENVIRONMENTAL FACTORS FOR SEARCH ENGINE INDUSTRY PEST analysis examines some of the factors that a company may be affected from externally such as Political, Economic, Technological, Socio-Cultural, Demographic and Natural Forces. These elements affect many of the important activities of this company, such as efficiency and activities, positively or negatively. POLITICAL FACTORS: One of the factors influencing the macro environment is the political factors. If we think

of the search engine industry in terms of the market, if companies exhibit a stable stance, governments will help these companies, and they will have the opportunity to advertise on Google, the industry's leading company.In addition, as most governments have not defined too many laws for online web-based information-sharing channels.This gives the companies in the search engine industry more convenience in terms of laws. However, some political factors, such as tax policies and labor laws, do not positively affect companies which are in search engine industry. ECONOMIC FACTORS: The first element that comes to mind for economic factors is GDP. The increase in GDP

in any country positively affects the country in terms of employment and development This increase positively affects the developed and international companies such as Google,Yandex vs in the search engine industry. For example, with this positive impact, our company will show an increase in Google (internal and external)

investments, and more and more ads are delivered through Google as these investments increase. With the increase of ads, the number of users for Google will also increase. Any web-based company starts to offer a higher quality service as the number of users increases and improves the quality of products. The dynamics of leading firms in the search engine industry are dependent on investments. Therefore, any increase in interest rates creates a positive impact for these firms.Interest rates are in some countries such as China, 6.4 percent, 6.1 percent in the United States and 8.2 percent in the UK. These rates provide information about the amounts that companies can invest in, and when a company has more money, they allocate more budget for their advertisements, so this budget will also have a positive impact on search engine's companies. Another economic element, the inflation rate, may be a problem for customers, but this may benefit companies and may result in an increase in their revenues.For example, inflation in China, the UK, the US and India increased by 2.5 / 9.5 percent year-on-year. This increase means that raw materials in countries are getting more expensive from year to year, and companies are making more money with this cost. This will increase the number of advertisement and clicks generated by web-based search engine's companies such as Google,Yandex,Bing vs.All in all,this situation can affect positively on search engine market. TECHNOLOGİCAL FACTORS: Infrastructure, changes in technology, new innovations, technology incentives

are the most fundamental technological factors that influence on search engine's industry. Also, as a technological company, Google which is the leader company in search engine industry helps improve and renew the world. Although technological factors are important factors for the Google company, it is also part of the strategy that the company applies to compete. Companies in the search engine industry do not only serve as search engines such as Yandex, Google, Yahoo and other products and services. These companies offer their services from their own websites. The IT infrastructure of sites such as Google and Yandex is very hidden because these infrastructures are very important for market strategies.In addition,Google uses a different version of Linux operating systems that are customized for them in the control part to find new discoveries.This success in Google's technology is made possible by the use of Adwards and Adsense as the infrastructure of the advertisement system, as well as innovative systems such as Gmail, Google Froogle, Google Spreadsheets and Google Analytics. All of the above mentioned tools are provided free of charge by Google in order to make the life of the user, that is, more practical, as well as to increase the efficiency in their daily lives. As a result, this sector includes companies with technology as the main basis and therefore includes innovations and developments. CULTURAL FACTORS: In the PEST analysis for search engine industry, socio-cultural elements constitute

certain social values, traditions and some expectations against society. We can categorize these expectations as follows; income rates, demographic rates of the population and the educational qualifications of the society. Google which is our leader company a globally operating company because there are no segments classified by certain attributes that Google can reach, and anyone who is able to access the Internet can also reach Google, so Google is universal. Universal companies in the search engine industry like Google, Yandex does not have a specific revenue segment or doesn't specificize their segment by religion, language, or race, and it has a positive impact on market share and market power, because this firms can give advertisement to every segment. So with that situation,search engine's companies can improve their profits.User dynamics is very important for search industry companies.Google stores the information collected by users for a whil...