Google Porters 5 Forces
Google’s Five Forces
Supplier Power * As long as Google continues its dominance as the number one internet search engine in the world, supplier bargaining power will remain low. * Thanks to programs like AdSense and AdWords, which forms the framework of the advertisement system that Google has in place, both the advertiser and the user of the search engine are Google customers. * Google has also formed a joint relationship with Android to increase their sales market and bottom-line profitability.
Buyer Power * The power of the customer in the IT field of Internet and Computer Software industries is particularly strong. * There are a lot of other search engines and companies that compete with Google in the many fields that Google has expanded itself into. * Advertising is the primary means of generating revenue/ profits – if there are no buyers on the Google then the advertisers are wasting their time and will take their money elsewhere, which would lead Google to lose revenue and affect the company’s bottom line. * Another issue that Google faces is with their mobile phones. If there phones are too expensive then consumers will ignore their products, in favour of cheaper brands of phones. Therefore, essentially consumers control the price at which Google sells their phones.
Competitive Rivalry * As a search engine, Google has a fair number of competitors (Ask Jeeves, Yahoo!, MSN to name a few). However despite this, Google still is ultimately the most popular of the Search Engines having 1.14 billion searches in December 2012 alone. * Google is also facing competiveness from social networking sites like Facebook and Twitter, since it has begun to expand into social networking, when it launched Google+ in February of 2012. * Technology wise, Google is also competing against Apple and the Apple IPhone when Google released the Android-operating systems. * Because Google has long since established in the search
Supplier Power * As long as Google continues its dominance as the number one internet search engine in the world, supplier bargaining power will remain low. * Thanks to programs like AdSense and AdWords, which forms the framework of the advertisement system that Google has in place, both the advertiser and the user of the search engine are Google customers. * Google has also formed a joint relationship with Android to increase their sales market and bottom-line profitability.
Buyer Power * The power of the customer in the IT field of Internet and Computer Software industries is particularly strong. * There are a lot of other search engines and companies that compete with Google in the many fields that Google has expanded itself into. * Advertising is the primary means of generating revenue/ profits – if there are no buyers on the Google then the advertisers are wasting their time and will take their money elsewhere, which would lead Google to lose revenue and affect the company’s bottom line. * Another issue that Google faces is with their mobile phones. If there phones are too expensive then consumers will ignore their products, in favour of cheaper brands of phones. Therefore, essentially consumers control the price at which Google sells their phones.
Competitive Rivalry * As a search engine, Google has a fair number of competitors (Ask Jeeves, Yahoo!, MSN to name a few). However despite this, Google still is ultimately the most popular of the Search Engines having 1.14 billion searches in December 2012 alone. * Google is also facing competiveness from social networking sites like Facebook and Twitter, since it has begun to expand into social networking, when it launched Google+ in February of 2012. * Technology wise, Google is also competing against Apple and the Apple IPhone when Google released the Android-operating systems. * Because Google has long since established in the search