Google, Inc. Term Paper

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Google is one of the most known search engines available today. Started up in 1999, Google slowly began to gain a high ranking among search engines and ad revenue vehicles. Through an analysis of Porter's five forces, one can begin to understand how Google became one of the most used search engines used today.

The first force to be analyzed is the threat of new entrants to the market. Currently, the threat of new entrants is low as people have already grown comfortable with the search engine choices presently available. Furthermore, Google has demonstrated that it has a strong foothold on the search engine market. In November 2009, Google "enjoyed a 65.6% share of all U.S. searches…[and outside] the United States Google's lead was even larger, exceeding a 90% share of search queries in numerous countries."

The second force that needs to be analyzed is the threat of substitutes. Presently, Google competes with a variety of search engines including Yahoo! And Microsoft's Bing. Additionally, the services that Google offers such as Gmail, Finance, Book Search, Maps, and Checkout -- although fully integrated through Google -- can be substituted by other email, financial, map, and e-commerce sites.

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While Google can be substituted by individual, specialized sites, Google's search engine capabilities are hard to be substituted as "Google's revenues come solely from licensing its search technology to Yahoo! And other sites" through December 1999." One area in which there appears to be a high threat of substitution is with Google+, the company's social networking service (SNS). However, while the number of Facebook users outnumbers Google+'s, studies have demonstrated that Google's SNS is favored over Facebook (Chang, 2012)

The third force, the bargaining power of suppliers, also appears to have a slightly higher impact on Google. Other suppliers can be defined as companies that offer search engine capabilities that are equal to or similar to Google's search engine offerings. Because of the low number of companies that offered search engine services like Google, these companies must make sure that their competitive streaks and attempts….....

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