The paper "SWOT Analysis of Google" is an outstanding example of a business case study. Google is one of the top internet-oriented companies that has highly impacted the lifestyles of millions of people all over the world following advancements in information technology. It forms one of the extremely dominant search engines as well as the most viewed websites globally. Google has really grown but it remains crucial to continually re-examine its external and internal business environment in order for it to maintain its competitive advantage (Grant 2011). Analysis Industry Google has a dominant role in the internet industry with its diversification encompassing several sectors such as media sites, word processing and mapping software.
An analysis of the industry in which Google operates will be done using Porter’ s five forces which are barriers to entry, buyer power, supplier power, the threat of substitutes and extent of rivalry (Grant 2011). Barriers to entry There are no strong barriers to entry in the internet market and thus if another firm was to invent a superior search engine, it may penetrate the industry and affect the dominating firms especially Google.
Yahoo and Microsoft have highly enhanced their search tools and may position them through their services as well as products. More so, internet advertising and regulations that oversee good and bad advertising operations are advancing each day a situation which may impact Google’ s current technology and ideas (Grant 2011). Buyer power The application of search grading is a substantial control position in the internet industry by those who own search apparatus in bargaining like Google. Nonetheless, customers of search engines are turning out to be more complicated and also demand additional services free of charge.
In addition, substitutes are readily accessible at the same charges hence buyer bargaining power is somehow high in this industry. No actual reviews are carried out in relation to the aspects that the web population would have interest on thus every search company utilizes researches to guess directions (Grant 2011). Supplier power Google is more of regionally rather than internationally dominant. It faces the risk of forward integration. This is because, its search may end up not working well with fresh launching of programs from Apple as well as Microsoft.
However, advertising forms a core source of Google’ s income and both the inventor as well as the user of the advert are all regulars of Google, and thus the influence of supplier is kept low (Miller-Jones 2010). Threat of substitutes The threat of substitutes in Google’ s industry is very high because switching charges are small. Buyer preference to substitute is mainly driven by pace and correctness of the outcome and too by the explicit pushing of adverts that are incorporated in the search outcomes and web pages. Google’ s search engine is being compromised by search services from its rival companies like Yahoo, Amazon and Microsoft (Miller-Jones 2010). Extent of rivalry Although Google has dominated the internet industry for quite some time, the degree of rivalry in the industry is very high with so many competitors offering different services and products that are comparable to those of Google.
However, Google has a significant market share which gives it a competitive advantage over its rivals since it facilitates the enhancement of the quality of Google’ s adverts as well as search results (Miller-Jones 2010).