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Google Competitive Analysis

1. Using competitor intelligence from the case material, assess the levels of market commonality and resource similarity that Google has with key industry competitors. For this question identify the market commonalities for this industry and the resource commonalities or differences for Google and Yahoo, Apple and Microsoft. There will be some similarities for some aspects, e.g., company size, expenditures, sales data and budget/resources available. How will they influence competitive behavior and the intensity of rivalry?

2. Conduct a competitor analysis and prepare an anticipated response profile for each major rival. ( What I am looking for with your competitor analysis is for you to identify the future objectives, (current ) strategies, likely assumptions and capabilities of Google's three main competitors based on the information in the case. For example, what are the future objectives, as identified in the case, for these four firms. Then, I expect the students to prepare a response profile for each of the three rivals. What will the competitors do in the future and where does Google hold an advantage over these three competitors, if any?

3. Considering Google's external and internal environmental conditions, prepare a SWOT analysis to reveal insights to enhance the company's efforts to compete or improve performance? Concerning this third question on the SWOT analysis insights, prepare a SWOT analysis for the Google firm and include this in your paper.

Solution Preview

Step 1
There are several commonalities between Google, Yahoo, Apple, and Microsoft. Each of these companies is very large in size. According to 2009 figures, Google's total assets are $40.5 billion; Microsoft's total assets are $77.9 billion, Yahoo's total assets are $14.9 billion, and Apple's total assets are $14.9 billion. The expenditures are also comparable. The operating expenditure for 2009 are $6.4 billion for Google, $25.9 billion for Microsoft, $3.2 billion for Yahoo, and $11.7 billion for Apple. The sales data (revenues) for 2009 are $23.6 billion for Google, $58.4 billion for Microsoft, $6.4 billion for Yahoo, and $42.9 for Apple. The budget resources (free cash flow) for the year 2009 are $8.5 billion for Google, $15.9 billion for Microsoft, $844 million for Yahoo, and $8.9 billion for Apple.
Since each of these companies is large in size, the intensity of competition is high. Also, the operating expenditures are large for each company. The sales data is also large for these companies. Finally, the budget based on free cash flow is large for each of these companies. These are commonalities. The differences are that Microsoft has the largest size, operating expenses, sales data, and budget. Yahoo has the smallest size, operating expenses, sales, and budget. Google is second largest in size, but is third largest in operating expenses, sales, and budget. The effect on intensity of competition will be that Microsoft will use its size and volume to compete strongly with Google. Yahoo and Apple will compete with Google in specific segments.

Step 2
Competitor Profile:
Future Objectives: has the vision of being a worldwide leader in software, services, and solutions ...

Solution Summary

This solution explains analysis of Google. The sources used are also included in the solution.