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Google's Pestel and Five forces analysis
1.
2. MISSION
Google’s mission statement is “to organize the world’s information and make it universally accessible
and useful.”
VISION
Google’s vision statement is “to provide access to the world’s information in one click.”
3. GOAL
Make computing simple again
Google is trying to tie its software to everything.
Become our primary interface to the world.
Improve the quality and reach of the internet.
Control more of the purchase cycle.
Extend/improve life and cure disease.
4. P
E
S
T
L
E
Monopoly
Flow of information
Cash in foreign bank
Huge amount of cash
Drop in the value of a currency could reduce the company’s value
Growing use of mobile devices
Innovation
Growing Internet Access
Shopping search
Social media
Regulation on Online piracy
Patent Dispute
Costlier green energy sources
Google might not be able to offer free services as it has in the past.
PESTEL ANALYSIS
5. GOOGLE’S STRATEGY
Corporate level
Stability - Stability approach to set a steady course
Growth - Sustainable growth strategy
Retrenchment – Orkut (Sept 2014)
Combination type - many times
Business level
Focus on the user
Believes in constant improvement
Speed is priority
Democratic approach is used
Hungry of betterment
Functional level
Work from home
Innovation labs
Individual start-ups
6. PORTER’S 5 FORCES ANALYSIS
Potential New Entrants
Barriers to entry in the internet search market are high.
New Entrant need thousands of servers located across the world.
Huge capital investment is required.
Suppliers Power
Google’s ad system is a reliable source of income because both the ad-making partner and ad-
receiving individual are both customers of Google’s.
supplier bargaining power will remain low.
Rivalry
complimentary products to their main internet search service.
Yahoo, and Microsoft (operating under their respective brands – MSN and Live Search)
Buyer Power
The power of buyer is low as there are very few search engine.
Limited search engine
Potential Substitutes
No suitable substitute for search.
7. WORK CULTURE
Open
Innovative
Smart with emphasis on excellence
Hands-on
Supports small-company-family rapport
8. BEST PRACTICES
70/20/10 Rule
HIRING
GIVING MORE POWER TO THE PEOPLE
USE PEOPLE ANALYTICS TO DRIVE YOUR HR PRACTICES