Google Inc

Google Inc. was started off as a research company but it has become a dominant player and the leading search engine (Google Inc). Google search engine accounts for more than 75% of the web search market.

Environment analysis Economic

The integration of world economy has provided environment for growth of Google. It has moved to new emerging markets like China, Taiwan, and others with huge internet market As more people get into web surfing and world economy improve, Google has greatly benefited by increasing users to 2.2 billion people in the world. Its stock market has experienced high rate of growth from $85 in 2004 to about $509.25 today (SlidShare). Revenues have grown to $23.651 billion in 2009 and total assets increasing to $40.487 billion (Stross, 2010).

Political-legal

The government has been providing enabling political environment for the growth of the industry. The government has put in regulations including cyber crime laws that are meant to provide operation framework for the industry. However, the industry has been faced with many legal challenges especially concerning security. Google has been face by many legal case including Click Fraud, Google "Bombing", DOJ requested search histories, case on "Net neutrality" (SlidShare).

Social

Inter is being adopted at a growing rate as a part of social life. The number of internet users has grown to more than 1,802,330,457 in 2009 recordign a 26.6% internet penetration Google does not have a face for customers (SlidShare). As the culture of surfing is entrenched into the world, Google has provided a search engine preferred by most people with a market share of 78.4% in the world and 63.2% in United States (Stross, 2010).

Technological

The internet search markets it growing in technology at a very high rate. As new technology comes into the market, some search engines have found it difficult to keep up with emerging technologies (SlidShare). Google has set trends in search, internet direct advertising, and portable applications. Google has developed various technologies like PigeonRank that has made the search engine more effective and accurate (Stross, 2010). It has provided innovative web applications that have revolutionized internet search market.

Porters Analysis Supplier power

Google has a large negotiating power compared to its suppliers. Being market leader, Google has a large negotiating power because most suppliers want to have long term relationship with large companies (Coleen 3). Many of the suppliers for Google Inc. are established firms which mean it is difficult to define the relationship between these firms since Google may have little power to influence and dictate the terms of their relationship. However, Google Inc. can be considered to have substantial influence on purchase decision.

Buyer power

Google Inc. is undisputed market leader. It has been able to attract a large number of customers despite being a later comer in the market (Sarah 2). However, consumers retain strong purchasing power due to availability of substitute search engines. Consumers use bids to place advertisement which means they have opportunity to go to other search engines (Stross, 2010).

Threat of substitute

There is low threat of substitutes for Google Inc. apart from the competing search engines (Coleen 3). The competing search engines are yet to catch up with Google Inc technology. Currently, there are no substitutes for search engines.

Barriers to entry

There are few barriers to entry in the industry (QuickMBA). The only barrier is invention and application of technology. Search engine market is based on degree of technology applied by the particular search engine. Google may therefore face threat in future since there are few barriers to entry of new players.

Degree of rivalry

There is high degree of rivalry in the industry. The main competitors for Google include YAHOO, MSN Search, Amazon's A9, eBay, Ask Jeeves, and many others (Coleen 3). Although Google is currently on top of these competitors, it may be just a matter of time before they catch up with Google Inc. technology and replace it as market leader.

Present day Google

Google Inc. has maintained an index of websites and other online content and has made this information available to anyone who wants to use the information. The company operates online advertising market which has grown rapidly and is currently valued at $25.5 billion (Scooper Tutorials). There is no doubt that Google Inc. remains a leader in the search engine market and it may take time before the company is overridden as the market leader. Google Inc. uses automated search technology which helps people to access instance and appropriate information on the online index. Much of revenues for Google Inc. come from online advertisement with many companies using Google Adwords program as a valuable internet marketing tool. There are other third-party websites that forms a part of Google Network which use AdSense program for advertisements.

Presently Google Inc. is doing all it can to enhance consumer experience. It has started acquiring related businesses to increase its portfolio. It has acquired Postin Inc. that was a provider of information security and other compliance solutions. In 2009, Google Inc. also completed its acquisition of DoubleClick, which was a company offering online advertisement, serving and management technology to the advertisers, web publishers, and advertisement agencies. DoubleClick was though to have commanded advertisement market and its acquisition enabled Google Inc. to access more than 2.2 billion people in the world increase its revenues and holding market share of 69% of the online advertising market (Scooper Tutorials). In the future, Google Inc. pegs its growth on technology. The company hope to improve its technology and innovation to keep its market growth rate since the search engine market is based on technology.