Google Porter's Five Forces Analysis

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Michael Porter 5 Forces
The Porter's Five Forces analysis is a powerful framework used by most of the business to evaluate their level of competition within an industry. The Porter's Five Forces analysis is useful because it allows the company to understand their current strength of competitive position as well as how they could compete in the market. By doing so, the company can come out with corporate strategy in order to stay competitive and profitability in the industry. Michael Porter 5 Forces includes the threat of new entrance, the threat of substitute product or services, the bargaining power of buyers, the bargaining power of suppliers and the competitive rivalry among current members of the industry.
1. Bargaining power of buyers
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In addition, this industry is highly dynamic. Creativity and innovation are the most important success factors. Thus, the new competition or innovative idea can emerge easily at any place or time.
Based on the reasons mentioned above, Google is believed to a have moderate threat of new entrants.

4. Rivalry forces among existing firms (Moderate to High pressure)
Brand loyalty is another factor that influenced the rivalry force among existing competitor. Consumer loyalty towards Google is high which means Google have high brand recognition in this industry. Therefore, that is not an easy task for a new entrance to compete with Google. Thus, Google must constantly bring the issues of brand image awareness into their consideration when generating their business strategies.

Intensity of competition in the industry is also one of the issues that Google need to consider. Currently, the main competitors for Google are Yahoo and Microsoft which posted revenue of $7.0 billion and $51.1 billion respectively (Google, 2007). Besides that, Yahoo and Microsoft are constantly increasing their search
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The higher the similarity of products and services offered between Google and its competitors, the higher the threat of substitute product. The availability of others vertical search engine such as Trip Advisor (vacation), booking (hotel reservation), career builder (job seekers) have increase the threat of substitute product. Although not all the vertical search engine offered by most of the others competitor are similar to Google, still consumer could find some alternative other than Google search

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