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Strategic Analysis of Google

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by

Anh Nhat

on 12 February 2015

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Transcript of Strategic Analysis of Google

Competitors Analysis
Overview and Current Situation
Internal Analysis
External Analysis
Google's Strategy
Problems and Recommendation
Implementation
Outline
7
Demographic

Political/ Legal
Physical
Sociocultural
Technological
Global
Segments
Internal Analysis
The overview of Google
- Resources
Financial Capital
Human Resources / Culture
Innovation / Technology
Google
an American multinational corporation
Reputation
Products and service : search , cloud computing, software
online advertising technologies
Capabilities
Motivating & Empowering Employees
Creative Culture
Develop technology
Efficient Search Algorithm
VRIN Model
Innovation & Technology
Core Competency
Strength
Weaknesses
Significant Brand Image
Strong Infrastructure Base
Too Dependent On Advertising Revenue
Lack Of Product Integration
Founder: Larry Page and Sergey Brin
Founded time: 1998 September 9


Recent situation
2012:
acquired Motorola Mobility
a fiber-optic infrastructure was installed in Kansas City
launch of a new company called Calico
announced plans for a new 1-million-sq-ft office in London
2013:
the most visited website in the world
Headquarter: Mountain View, California
Bargaining power of Suppliers
Bargaining power of
Buyers
Threat of
new Entrance
Threat of
Substitute goods
Rivalry among Firms
Implementation Plan
Problem and Recommendation
Google's Business Strategy
SWOT Analysis
External Analysis
Financial Analysis
Sustainability of Competitive Advantage
Past
Present
Future
Market Share
Differentiation Strategy
General Environment
Industry Environment
Innovation & Technology
3. Managing Android

2.Situation in China
1. Privacy Issue
" ...to be the most essential global Internet service for consumers and businesses."
"..to enable people and businesses to realize their full potential."
"...to bring the best personal computing experience to (...) consumers around the world through its innovative hardware, software and Internet offerings."
Most valuable U.S. company in the world

Competitor in Mobile Platform Industry

Products: electronics, computer software and hardware, e.g. MacBook, IPhone, ITunes, IPod

"Culture of secrecy"
introduced the first PC

enormous presence in technology

direct competitor of Google

Products: online services, computer software, electronics, e.g. MSN, Windows Vista, MS Office, Xbox 360
Competitor in Search Engine Industry

Products: online services, applications, media products and solutions, e.g. MyYahoo!, Yahoo! Messenger, Yahoo! Search, Yahoo! News

since 2008: decline in market share
"...to give people the power to share and make the world more open and connected."
Competitor in Advertising platform

social networking service

increasing number of users and time spent online

2013: 1.2 billion monthly active users
Relatively young user base
less affected by the baby boomers
not a gender specific issue

economics
Profitability
Stock Price
Internet navigable
Google's corporate offices
multiple cultural and convenient environment
attractive products web search engine

innovation

unique organization culture for creativity
1. Profits on the hardware
2. Apps are more used than mobile search
3. Apple applications make more money
4. Apple applications make developers money
increasing concern over online privacy
users more sensitive and fear exploitation of their data
Recommendation
Solution

saving information only for a certain period
additional settings
censoring mechanism by Chinese Government
Competition against Baidu
Recommendation
Acquiring local search engine
Invest in Application
3 years
privacy issues
copyright laws
taxation on internet sales in the future: threat
chinese government toward google
consequently internet based advertising despite of a period of recession
Recommendation

smartphone
the google' search technology
5 Forces Model
20 offices in the US and international locations in over 30 countries
115 countries have personalized search
Bargaining power of Buyers in
Search Engine
(Low)
Search Engine: Advertiser
Mobile OS : Manufacturing
Company
<Search Engine Marketshare>
source : comscore Explicit Core search Share report March, 2011
Search Engine

:
Internet Server Provider
Mobile OS :
Program Provider
Bargaining Power of Buyers in
Mobile OS
(Low)
<Mobile OS Marketshare in 2011>
Threat of New Entrance in
Research Engine
(Low)
Capital
Server
Data
Threat of New Entrance in
Mobile OS
(Moderate High)
Revenue in Billion USD
Threat of Substitute goods in
Research Engine
(Moderate High)
Threat of Substitute goods in
Mobile OS
(Low)
Royalty
Free Open Source
Rivalry among Firms in
Search Engine
(Moderate Low)
Rivalry among Firms in
Mobile OS
(Low)
<Smartphone Growth rate in 2011>
- Highest market share
- Patent
Bargaining power of suppliers in
Search Engine
(Low)
Bargaining power of suppliers in
Mobile OS
(Low)
energy efficient data servers
use of solar power Google endeavors
"a substantial 20-year green power purchase agreement"
Full transcript