Google has become the biggest search engine globally commanding 86.2% of the market, followed by Bing, Yahoo and Baidu with 6.55%, 3.27% and 1.08% respectively as of 2018. The US tech giant has created a near monopoly in the global search market commanding the biggest market share in UK, USA and across many European countries.However, a macro environmental analysis of Google’s business environment using Pestel reveals several factors that may hinder future growth of the tech giant. The way users browse and search for data is changing, and with it, the way advertising dollars are spent online.
Using a BCG matrix, this report looks at Googles strategic business units (SBU) to identify a portfolio of businesses that the company should continue investing in or those it should divest depending on their ability to become cash cows.
Google’s advertising has proved to be the company’s cash cow contributing 84% to the company revenue but this also leaves Google vulnerable to emerging threats that strike at the very heart of search and consequently advertising.