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Google Inc Case Study

Essay by   •  July 12, 2011  •  Essay  •  810 Words (4 Pages)  •  1,965 Views

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Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program.

The business strategy is very clear and concise. They expand and enhance their brands worldwide by sticking to the company's mission statement "to organize the world's information and make it universally accessible and useful". They carefully invest in internet activities and other content that fits into the core businesses and brand portfolios, with a focus on growing the brand across the globe. Their main focus is to strengthen their relationships with advertising, online, mobile and licensing partners as well as develop new ways of reaching and serving the target and potential audiences.

There are many variables in the general environment that affect the Internet-based services. The income distribution around the United States and age structure can affect how many and what types of movies consumers will buy. Economic conditions also play a role in what movies consumers will buy as well as the media to acquire a movie. Political and legal factors, such as labor laws and property rights can affect the costs of film production. Socio-cultural factors also play into the general environment, such as the economy. In economic downturns, comedy and dramas often excel, while in economic upturns, science fiction and family movies are more profitable. Action, adventure, and horror films seem to be neutral to the economy. Also, in a growing technological world, having the latest and best 3-D technology could prove to be an advantage in the film industry. Global emerging markets such as BRICs enable firms in the film production industry to extend their market and business internationally but not without consequences.

The industry analysis consists of several key factors. The first of which would be the threat of new entrants. The treat is rather low compared to other industries because of partnerships and business relationships. There are a lot of distributor agreements and contracts that keep the symbiotic relationship successful. A lot of marketing and advertising is present in the industry and therefore, a new competitor would have to accumulate a mass of initial funds to begin to compete. Potential threats come in the form of technology, when a competitor has the advantage to reach the masses. The internet, such as YouTube, is also a threat because entertainment can be accessed quickly and efficiently. The bargaining power of suppliers and buyers are both moderate in Viacom's industry because both need each other to succeed. The rivalry among competitors is very high in the industry because they often compete for the same target markets. The threat of substitutes also looms in the industry because of pirated movies,



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