The paper "Characteristics of the Market Industry of Google Company" is a good example of a marketing case study. An industry can be analysed for its attractiveness to an organisation or company based on a number of characteristics existing in the market. These could be competitive characteristics, organisational characteristics or any other feature that would best define a goods and service market. The key characteristics used to describe the market structure include the nature of competition and mode of pricing in the market. The market structure has a significant influence on the behavior of firms in the market.
The market structure affects how firms price their commodities, and hence affect the supply of different commodities in the market. As competition increases, there will be a high supply of goods as more companies try to dominate the market (Tools, 2013, p. 1). The growth of a company’ s sales over time is used to draw the life cycle of the company. The distinct stages of a company’ s life cycle include introduction, growth, maturity, and decline. The company sales begin slowly during the introductory phase and then take off speedily during the growth phase.
However, the sales level out during maturity before declining gradually in the final stage. Profits, in contrast to sales, continue to boost throughout the life sequence, as companies utilise expertise and economies of scale to minimise unit costs over time (Kulzick, 2000, p. 1). External Analysis Analysis of the company’ s external operating environment is an essential component of the strategic management process of an organisation. The aim of the external analysis is to determine threats and strategic opportunities in the company’ s operating environment that will influence how the firm pursues its goals.
Three interrelated environments ought to be examined when carrying out an external analysis: the industry environment where the firm is operating; the national or country environment; and the broader macro and socioeconomic environment. Analysing the company’ s environment involves an evaluation of the competitive structure of the industry, inclusive of the company’ s competitive position and its formulation begins with an analysis of the forces shaping competition in the industry in which the company is based. The purpose of this assessment is to understand the prospects and threats facing the company and use the comprehension to identify strategic measures that will assist the company to surpass its rivals.
Opportunities arise when a company is able to take advantage of the conditions in its environment to implement and formulate strategies that will enable it to become more profitable (Hill & Jones, 2010, p. 55). The External Analysis structure, also referred to as Porter’ s five forces are among the fundamental business models commonly used managements and businesses to describe the external operating environment of a company. The model developed by Michael Porter is applied in assessing market forces surrounding industry and develop strategic recommendations.
Porter’ s structure models an industry to be influenced by five forces. Businesses seeking to develop an edge over their rival firms can implement this model to have a better understanding of the environment in which their firms are operating (Porter, 2013, p. 1).
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