Google External Factor

In: Business and Management

Submitted By Mickeybee
Words 389
Pages 2
Problem statement
Google’s problem has to do with the future direction of the company. Google went from writing algorithms for Yahoo!, to creating its own search engine and now exploring different ventures in the technology industry. It has expanded so large that it competes wit nearly every company in the information technology industry. Google has been successfully organizing information from the Internet, but they estimate it would take them 300years to complete the task. Thus, the question to be asked is: “What should Google do next?”

Technological Environment
Technology is a fast paste industry and new products are constantly entering the market. In order for companies to not fall behind, it will have to continuously innovate new technological products and services.

Sociocultural Environment
Today’s society is very dependent on technology; notably the Internet. It allows people to connect with each other and represents a simplistic yet efficient way to gather information. Never has society ever been so reliable of their smartphones, computers, tablets and the Internet that it has become a lifestyle.

Threats of New Entrants
The barriers to entry in the search engine industry are moderately high. Companies within the industry are well defined and occupy most of the market share. Although switch cost are low, established companies offer advertisers lower paid listing costs than upcoming businesses. Capital requirement are extremely high in the industry. It takes time and effort for firms in this industry to build its knowledge and to analyze user’s search habits. Thus, the threat of new entrants is rather low.

Threat of Substitute Products
There is no real substitute for the search engine industry for the users. However, advertiser may look for alternative media to get their message delivered. They can choose to advertise on social media…...

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