Google Case Essay

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Google’s Strategy in 2010 1. Discuss competition in the search industry. Which of the five competitive forces seem strongest? Weakest? What is your assessment of overall industry attractiveness? Search Engine Industry is built upon Search and also advertising. If we look at the latest data (for year 2009) there are beside Google 5 big players: * Yahoo, which has a challenger’s and loser’s position * Bing, this is new brand name for MSN Live search * Baidu, China search engine * Ask * AOL Where search engine is powered by Google At the figure, we can see that Google own 65% of U.S. Market and 85% of global Search Engine Market. Data from St at Counter Global Stats for Year 2009 shows that Bing market share was in start (June 2009) a little higher then MSN Live search had in past. In that time there is also a little decrease of Google’s market share. In the latest statistics there is a new competitor from China Baidu (2,8% of global market), which is right behind Bing (3,3%).I can identify following five competitive forces of Porter’s model (figure on right side): Bargaining power of Buyers In 2008 almost 97% of Google’s revenue was made by advertising. There are many single account contributing low percentage to net revenue (max. is 3%). They realize that selling popular keywords is valued. Bargaining power of Suppliers Beside Google’s big market share, suppliers trust Google’s ad system as reliable source of income. Threat of substitute Products and Services There is now other suitable substitute for search. Organizing information and conducting searches like Google do is for near future business with no threats. Beside that number of Internet users worldwide is rapidly increasing. On the other side internet advertising is 2nd best form of ads (just behind newspapers). Threat of new Entrants If you want to enter in

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