Google Case Strategy

Internal & External Analysis (IFE and EFE Matrix attached)

Google is one of the leading internet technology and advertising companies in the world. The company generates 97% of its revenues in both 2008 and 2009 from its search-based advertisers. Besides, it maintains a large index of web sites and other online content, which are freely available through its search engine.

Based on the Porter’s Five Model, the strongest intension relates to rivalry competition which is attributed by fierce competition among three main competitors and low switching cost. Nevertheless, Google dominates in search (over 60% of market share) followed by Yahoo! (around 20%) and Microsoft (under 9%).

SWOT Matrix (SWOT attached)

a. SO—capitalize in Google’s rich and various resources to strengthen its dominant position in the internet advertising market. Internet advertising in U.S. is expected to grow from $21.4billion in 2007to $42 billion in 2011.

b. WT—take advantage of 2008 financial recession to integrate its product and improve corporate coordination problem

c. SO—use Google’s all strength listed above to invest in mobile search and Google business applications, which can also diversify the sources of revenue and business risks. Positive outlook of Android phones would solidify its mobile search market share and increase its share of mobile advertising market.

d. SO & ST—use corporate significant brand image and robust financials to penetrate the emerging markets with potential of high growth in internet advertising. Asia (market penetration of 15%) functions as a new field where Google can generate considerable revenues but also shielded from competing in the intense domestic market competition.

BCG Analysis

* Online advertising falls in the category of Star. Although some economists have forecast industry to be mature, Google still enables to bring new ways of delivering ads, whether on blogs or through email, video, or social media almost every...