ENVIRONMENTAL SCANNING
Environmental Scanning
Google can use environment scanning in creating value. Google has stayed ahead of Yahoo through its element of newness, development of its brand status, reduction of risk, customization, and reduction of risk. The ideas around the creation of value developed after the management analyzed the information about the competitors and its internal capacity.
Evaluate the Company’s External Environment
The analysis of the external factors provides the management with an understanding of the opportunities that are available and how to mitigate the threats in the market. Based on the PESTEL analysis below it is important for Google to focus its efforts on technological and economic factors.
The General Environment
Assessment of the general environment involves determining significance and timing of the trends and changes in the strategic management of Google Inc. The assessment under this section is done using Porter’s Five Forces.
The threat of suppliers is low and will remain as such as long as the company manages to maintain its dominance in the market (Chaneta, 2011). The ad system managed by the company is an important source of income since the ad-maker, and the ad-receivers are part of the customer portfolio of the company. The ability of the company to maintain customer and seller collaboration is critical to reducing the cost of revenue as a percentage of sales.
Industry Operating Environment
