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Environmental Analysis of Google

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Environmental Analysis of Google

Introduction Today, Google, Inc. is worth more than General Motors, McDonald's and Disney combined, and the company continues to model the way in the global technology industry in which it competes. In fact, the company's name has become a verb and it is common practice for consumers to "Google" what they want to find online. To determine how Google, Inc. reached this dazzling level of performance in a relatively short period of time, this paper provides an analysis of the three external environments in which Google competes, the general environment, the industry environment and the competitor environment. Next, a discussion of two specific strategic issues as well as opportunities and threats that are facing Google, Inc. is followed by a summary of the research and important findings in the conclusion.

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External Environment General Environment. Today, Google, Inc. (hereinafter "Google" or "the company") competes in the global technology industry where in holds a leading position. The company remains committed to "improving the ways people connect with information" (Form 10-K, 2012, p. 3). The general environment in which the company competes is characterized by rapid growth as well as industry convergence as existing technologies and platforms are stretched to their limits (Hitt, Ireland & Hokisson, 2011). In this environment, Google has emerged as the major actor that is modeling the way for others. For

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