Google Analysis and PESTLE Analysis - Case Study Example

REPORT ON GOOGLE ANALYSIS AND PESTAL ANALYSIS Google, Inc Google Inc, the giant in internet browsing, has been founded in the year 1998. Larry Page and Sergey Brin are the founders of the revolutionary internet browser. Google’s objective was to provide its customers with a quick and easy accessible browser. Google follows the mission statement where they claim “to organize the world’s information and make it universally accessible and useful”. Their focus is to offer their users a high quality search engine. This enables Google to expand their market share and to become the most popular web browser in the world (Google, Company Overview, 2013). How Google grew in size Through its operation Google Inc became a dominant player in the internet market by offering a simple web page crawling. Google has followed a method of excellence in whatsoever they performed which accounted for their overall success. Google always rendered their effort to provide customers with a better and a faster browser. They incorporated excess bytes to enhance the efficiency of the webpage offering their consumers with better delivery of service. Google has always given importance to the speed factor in every product they launch (Anthony, 2008). Google Inc had followed a massive growth and continued to expand through continuous acquisition. They strategized acquisition as an expansion strategy and went on adding resources towards their product line. Their acquisitions include YouTube, Google voice, blogger, Google analytics etc. Google expanded their user base and continued to absorb web developers and engineers in their team (Guglielmo, 2012). Another important expansion strategy undertaken by Google is that they have always prioritized their user. With the changing time and demands of the customers, Google has always offered their customers with innovative products. They designed the new internet browser keeping in mind their targeted customer group. Their goal in this pretext is to keep on building new tool and application for the users. They always built their tools in a very simplified way keeping in mind that the user found it to be user friendly enough. Google till date had successfully catered the need of their customers all over the world through effective customization (Google, What we Believe, 2013). Google Inc undertook another marketing strategy of focusing on the target market for its rapid expansion. Google is about to launch Goggle Glass which enables glasses in the tiny prism to produce audible sound without getting directly connected to the ears. This assures an introduction of unique technological device that can be operated using voice control. This will also feature Google map, video conferencing etc which in turn will cater to the needs of the consumers on a larger scale. The application and inference are massive as per the Google authority. Unique technology had been the unique selling preposition for Google. However in this launch they have attempted to fulfill the need of their customers as their marketing plan. They focused on the target market and designed their product accordingly. This in turn helped Google in the expansion of their market share by proper utilization of their opportunities and becoming a threat to its competitors (Ritson, 2013). Google Inc always followed a strategy of Four E’s that is earn, entice and defend, expand and experiment. It has always targeted the competitor’s customers for expansion. As per Google it is hard for them every time of find new customers and keep competing with every new service. So they efficiently used the strategy of four E’s for expansion (Faktor, 2013). Through the effective use of the technology Google has captured the market share within the informational technology field. During 2010 they launched the Nexus One mobile phone through their first hardware proposing. In 2002 they collaborated with information technology giants and sold out servers to them and provided them with Google power search which served the purpose of intranet setting (Faktor, 2013). PESTEL Analysis: The basic aim of PESTEL analysis for any organization is to understand what is happening in the external environment and how the same is affecting the organization. Factors affecting the external environment of the company are beyond the control of the firm. This external environment consists of macroeconomic as well as micro economic factors. The micro economic factors in turn influence the non capacity of the company to produce and provide the market. Whereas, the macroeconomic factors affect the marketing decision of any company, these factors are external to any company and beyond the control of the company. They do not have an effect on the marketing strategy of any concern but indirectly they influence the marketing strategy of a concern. In accessing the macro environment factors one can adopt PESTEL analysis. A PESTEL analysis helps in evaluating the political, economical, social, technical, legal and environmental scenarios of a company in which it operates. This analysis is mainly performed for formulating a strategic decision making policy. In this paper a pestle analysis over Google Inc has been taken to understand the greater picture of the environment in which the company is operating. PESTLE analysis over Google Inc has been a useful tool for evaluating the potential risk associated with the market. It is primarily a generic orientation tool for the company. This serves as a yardstick towards the company to understand where it is standing now (Lorat, 2005, pp. 6-8). Political factors consist of the rules and regulations of any country within which the company is operating. A company needs to change its strategy accordingly to the varied political factors of different countries. This factor not only concerns about the rule and regulation of the government nut how those rules affect the company (Allen, 2001, pp. 54-56). Google has always operated within a shaky political environment. Google has faced numerous threats in operating in different political environments. For example, once Apple brought lawsuit against Google to set the boundaries in regards to competition on the basis of the political scenario. In order to operate effectively and efficiently Google must address the threats faced in regards of the political scenarios for each country in which they are operating. It should go for a detailed analysis of the political barriers faced and address them (Google, Google History, 2013). The economy of the country in which a company operates also influences the marketing decision of the company. The stock market growths, GDP, disposable income, interest rates, unemployment etc are the key economic factors of any country and these will affect companies operating within their country’s dimension. Any mergers and acquisition made by a company with another company of the country also accounts for the economic factor. Google acquired Motorola Mobility to penetrate the appliance market and thus created Android OS to penetrate the smart phone market. Google also undertook many mergers and acquisition on basis of the economic issues. In order to explore the economic factor, Google Inc has to continuously keep on finding the revenue sources to cope up with the ever changing economic scenario (Henry, 2008, pp.51-56). The social factors consist of the cultural changes taking place within the country environment in which any company operates. This factor is sometimes addressed as the socio cultural factors for the PESTEL analysis. Demographic changes, social changes, strength of the consumers’ response of the country accounts as the key elements of the social factor. Google has always tended to be the face of the customers. Google now offers with another social media website named as Google+ . These assure the changes in the marketing policy of Google Inc induced by the social factors. Google should take the social media as the part of the development strategy to compete with its competitors and address the ever changing social cultural factors effectively (Henry, 2008, pp. 56). The major changes that take place in the general environment result into the technological change. A company is required to address these changes with innovation to meet the growing demands. Technological change for any company paves the way for innovation and customization. The speed at which a new technology is emerged accounts for the technological factor of any company. Google has been known as a technology veteran. As a technology based company, Google always had the foresight regarding what consumers will adopt. Addressing the needs of their customers they have always come up with latest technology with customization. For addressing the technological factor more efficiently the organization should focus in diversifying their technological process (Google, What we believe, 2013). Legal environmental factor refers to the legal aspects of the country in which a company runs its operation. Google Inc in their journey till now has faced lots of legal constraints. Oracle took actions over the company for infringement of copyright and patent. The company also faced lots of acquisition problems legally during its acquisition process. The company also been accused for breach of European and American rules of competition. They claimed that the dominant market position which the company enjoys is neither as per European rules nor American rules (Geiger et. al., 2012). The legal proceedings had a adverse impact over the company. To avoid these instances Google Inc. should formulate certain set of rules which they should abide by. While operating, a company should pay attention towards its environmental impact. The economic, demographic, political, regulatory factors constitute the overall environment aspect. Google in this aspect has given a profound importance. Google is in a process of creating a web for the betterment of the environment and declares “We are greening our company by using resources effectively and supporting renewable power” (Google, Google Green, 2013). The analysis depicts the current position of Google Inc. The analysis also frames up a guideline for the company regarding ways of performance improvement. The Reference List Anthony S, (2008), Google Chrome’s Disruptive Shine, Harvard Business Review, retrieved on 22 July from: http://blogs.hbr.org/anthony/2008/09/google_chromes_disruptive_shin.html Allen M, (2001), Analyzing the Organizational Environment, United Kingdom, Select Knowledge Limited Henry A, (2008), Understanding Strategic Management, New York, Oxford University Pres Inc. Faktor S, (2013), Deconstructing Google’s Strategy: Will Google Eat Your Business Next?, Forbes, retrieved on 22 July 2013 from: http://www.forbes.com/sites/stevefaktor/2013/05/23/featuredeconstructing-googlersquos-strategy-will-google-eat-your-business-next/ Google, (2013), Our History In Depth, Google History, retrieved on 22 July 2013 from: http://www.google.co.in/about/company/history/ Google, (2013) Google Green, retrieved on 22 July 2013 from: http://www.google.co.in/green/ Google, (2013), Company Overview, retrieved on 22 July 2013 from: http://www.google.co.in/about/company/ Google, (2013), What We Believe, retrieved on 22 July 2013 from: http://www.google.co.in/about/company/philosophy/ Geiger A et. al.,(2012), Google’s Never Ending Legal Problems, The Hill’s Congress Blog, retrieved on 22 July 2013 from: http://thehill.com/blogs/congress-blog/technology/226461-googles-never-ending-legal-problems Guglielmo C, (2012), Google Restarts M&A Plan, Gets Ready To Buy, Forbes, retrieved on 22 July 2013 from: http://www.forbes.com/sites/connieguglielmo/2012/04/05/what-companies-google-wants-to-buy-now/ Lorat N, (2005), Market Audit and Analysis, Germany, Grin Verlag Ritson M, (2013), Google Glass’s Clever Marketing Vision, Marketing Week, retrieved on 22 July 2013 from: http://www.marketingweek.co.uk/opinion/google-glasss-clever-marketing-vision/4006110.article Read More