1. Discuss competition in the search industry. Which of the five competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness?
Competition in the search industry is high. There are several search engines available, albeit Google holds the top percentage. Some of Google’s opposing forces are Yahoo!, Bing, and MSN search. The strongest is competitive rivalry and the weakest is buyer power. There is a big rivalry amongst search engines in gaining the newest advances and best technology to suit the customer. Buyer power is weak because there is no substitute for an online search engine. You could use an encyclopedia or something of that nature, but with online search engines, …show more content…
Google’s business model and strategy have proven to be successful, which can be seen in the continued growth of the company and its financials. I think investors would be pleased with the company’s financial performance. Google has grown rapidly; from 2004 to 2007 its revenue growth slowed, but still increased by more than 50% every year. The company reported a year-over-year growth of 31% for 2008. Beside constant growth of total revenue, net income has also constant growth accept in year 2008, where increase was not as high expected. In parallel there is also a growth of market share. By the year 2009 Google has almost monopolized its position in the search engine market. The company generated 97% of its 2008 revenue from advertising.
6. What are the company’s key resources and competitive capabilities? What competitive liabilities and resource weaknesses does it have? What opportunities exist? What threats to its continued success are present?
Large leader in the global search market with more than 85% of the searches conducted
Leader in the global search advertising market
Superior advertising algorithms