Google Strategy

Q1.

The search engine industry is not just focused on searching for information but also a tool used for advertising as well. Comparing the current 2009 data that has been obtained, it is relatively clear that there are 5 other players who are alongside Google when it comes to this category. They are mainly:

• Yahoo which has its advantages and disadvantages

• MSN Live Search or also known as "Bing"

• Baidu – The China based search engine

• Ask.com

• AOL, where search engine is powered by Google

Looking at the figures comparatively, we deduce that Google own 65% of U.S. Market and 85% of the Global Search Engine Market. The data that was obtained from Stat Counter Global Stats for the Year 2009 indicated that Bing's market share in the beginning of June edged higher than MSN Live search's market share previously. Google's market share also did not show huge signs of decline. The latest statistics also showed that the new players Baidu from China had acquired about 2.8% of the global market and was positioned right behind Bing who had 3.3%.

There are the five competitive sources which I have identified from Porter's

1. The first of which is the bargaining power of buyers

In 2008, advertising revenue for Google accounted to almost 97% of the total revenue earned. There were however many single account contributions to net revenue which made up the rest of the revenue earned. The strategy of selling popular keywords was highly regarded.

2. The second source would be the bargaining power of suppliers

Apart from the large market share which Google enjoys, suppliers could continue to place their trust in Google for a means of a stable source of income.

3. Threats of Substitute Products/Services

In the current market, there are many other substitutes when it comes to the search engine category. All of them are in direct competition with Google. However when it comes to organization of data and conducting thorough searches, Google seems to be the most efficient for most businesses. Google could also enhance its search for advertisements as well to eliminate the competition. The number of users in the world has increased sharply and enabling searches to be fast and providing searches for advertisements would prove to be a successful mix.

4. Threat of new Entrants

Entering in the Internet search market is huge as the players that are currently inside competing have infrastructure big enough to sustain their market share. There is a high barrier to entry for newcomers and they would need to