Google Industry and Competitive Analysis

Industry and Competitive Analysis

Google’s rivals include companies such as Facebook, Yahoo, MSN, Apple, Amazon, and AOL. These include competitors in the “cloud” services, search industry, browsers, and smart phones.

There is potential for growth in this industry, as technology becomes more advanced and cheaper, it is easier to enter as competition. However, the customers in this industry are very loyal to their brands.

This is a rapid growing, global market. Technology is becoming cheaper and more advanced every day. This allows new brands to enter the market generating over $100 million in revenue per year. There are thousnads of small companies in this industry but the majority of the profits are coming from the larger ones like Google and Yahoo. Innovation is a huge factor in the success of these companies. While they all have similar search engines, they all provide them differently. Staying ahead of the game is key to be successful.

Porter’s Five Forces Analysis

Rivalry among companies competing: Strong

Brand loyalty is huge in this industry. It is relatively easy for customers to switch search engines but they tend to stay loyal to their brands. Google makes most of their profits from advertisers using Google’s search engine to match their services and products specifically to those people searching for similar products and services on the internet. Google is the leading internet search provider, with a market share of 66.7% in 2012. Microsoft’s Bing is its closest competitor with a market share of just 15.9%. This makes Google much like a monopoly in this industry.

Threat of entry: weak

The barriers to enter the search market are high. A huge amount of capital is required to build a sophisticated and complete network. Google is well established and has one of the largest computing/grid systems in the world. Also, the competition in the search engine industry and the advertising industry reflects that the market is relatively saturated....