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Latest posts by Prudence K. Magezi(see all)

    Using Google’s Porter’s five forces analysis, this report helps us analyze the nature of competition Google faces and how search engine industry five forces including bargaining power of buyers, suppliers, and the rest of the five forces are affecting the search engine industry and Google in particular. The report goes on to show that Googles dominance of the search engine industry is partly down to the power it wields over some of the five forces. For instance, Google wields considerable power of its suppliers and buyers, a situation compounded by the low threat posed by Google substitutes or new entrants in the search engine industry.

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    Google Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:
    • Analyse the search engine industry and how the five forces have affected the biggest search engine  in the world – Google, and rivals and the impact on industry structure, attractiveness, and profitability.
    • Understand how Google has managed to defend against intense competition from Microsoft's Bing, Yahoo, etc. and the strategies it uses to create 'blue oceans' that are defensible, helping it capture and maintain competitive advantage.
    • To apply strategy business models and frameworks such as Porters five forces to real company cases.

     

    Analyse the search engine industry and how the five forces have affected Google and rivals.

    1.0 INTRODUCTION


    Google Inc. is an American search engine founded by Sergey and Larry Page in 1998. It is currently a subsidiary of the holding company Alphabet Inc which currently controls a diverse range of businesses including YouTube, Dialogflow, AdMob, Google Japan, Android and Google environment among others.

    With more than 86.2% of the global online search market, Google has become the biggest search engine in the world operating in 219 countries globally, ahead of competitors Bing, Yahoo and Baidu with 6.55%, 3.27% and 1.08% respectively as of 2018 (Statista 2018). Using Porters five forces analysis, this report analyses the impact of Porters five forces on the search engine industry and in Google in particular, to try and understand their role in Googles dominance of this market.

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