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Competition In The Bottle Water Industry

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Google's Strategy

1. Discuss competition in the search engine industry. Which of the five competitive forces seems strongest? Weakest? What is your assessment of overall industry attractiveness?

Suppliers are very weak:

Ð'* Computer components suppliers

Ð'* ?

Buyers Strong:

Ð'* Advertisers

Ð'* Web publishers licensing the search engine

Ð'* Telephone companies

Ð'* ?

Rivalry among search engine firms is Very Strong:

Ð'* Rapid growth in online auctions is acting to strengthen rivalry

Ð'* Technology advances from Microsoft is the strongest source of competition

Ð'* Recent entry of capable competitors (MSN) has heightened rivalry substantially

Ð'* Jockeying for position among the search engine competitors is very active.

Ð'* Competing with internet portals & web publisher for advertising dollars

Ð'* Rivalry is centered around:

o Name recognition, image

o Services provided

o Relationship with Internet users, web sites, & advertisers

o Relevancy of a search results

The threat of additional entry is weak:

Ð'* The search engine industry has very few legitimate competitors

Ð'* Entry barriers are high which lowers threat of new entry

Ð'* The major barrier is the marketing/advertising costs needed to attract site users in adequate growing numbers lowering this threat

Ð'* The industry is generating attractive profits which may attract people

Ð'* The pool of likely entry candidates is small lowering the threat

Ð'* The biggest potential threat is for new entry comes from existing online firms (like ISP providers) that expand technology and merge horizontally

Competitive pressure from substitutes is weak:

Ð'* There are few good substitutes

Ð'* The number and availability for efficient substitutes are few

Ð'* Competing with internet portals & web publisher for advertising dollars


2. How is the search engine industry changing? What forces seem most likely to bring about major change to the industry within the next 3 to 5 years?

Ð'* Yahoo & Microsoft developing their own search engines

Ð'* MSN integrating its search into outlook, internet explorer, and other Microsoft applications

Ð'* ISP providers horizontally integrating with data base experts

Ð'* Desk top search versions

Ð'* Web histories, music, ect

3. What are the key factors that define success in the industry? What are the key competencies, capabilities, and resources of successful search engine companies?

Ð'* Quality of search technology: advanced search functionality

Ð'* Relevant search results

Ð'* Size of the companies technology

Ð'* Innovative features (toolbars, integrating other features)

Ð'* Ability to provide relevant and useful advertising

Ð'* Ability to



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