I. Theoretical and social significance of the study: Strategy and Google
II. External Analysis: Environmental and Industry Analysis
General Environment: STEEP/PEST Tool
Industry Analysis: Michael Porter’s Five Forces
III. Internal Analysis: Google’s Strategy
Google’s Generic Strategy: Differentiation Strategy
Google’s Business Strategy: Competitive Advantages (RPV Theory)
Google’s Corporate Strategy: Firm Scope (Horizontal, Geographical, Vertical Scope)
Abstract: This paper examines Google’s strategies and conducts external and internal analysis based upon the current strategic issues Google is facing with the rise of Facebook in the online advertising market. The paper uses STEEP/PEST analysis, the Five Forces Model, Generic Strategy Analysis, and Competitive Advantage Analysis for a qualitative case study. The paper aims to study what strategy is and draw theoretical and social significance from analyzing the actual case of Google.
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The general environment will be analyzed through STEEP/PEST factors, and industry analysis will be addressed with Michael Porter’s Five Forces Model to define the attractiveness of industry....
The degree of profitability depends on the competitiveness of a firm in an industry, as “the essence of strategy formulation is coping with the competition.” Industry competition consists of five basic forces – the threat of new entrants, the bargaining power of customers, the bargaining power of suppliers, the threat of substitute products or services and the jockeying among current contestants....