Google's Pestle And Pestel Analysis Of Google

PESTEL Analysis

Google’s PESTEL analysis shows us the most significant factors from external environment which affect the company. These external factors are the opportunities or the threats of Google Inc. This PESTEL analysis also helps the investors to understand the value of Google and its position in a remote business environment.

Political Factors

External political factors which influence Google include the activities of the governments. Political factors partly determine the effect that governments have on businesses.

Political factors in the external environment are mainly Google 's opportunities. Globalization increases the demand of the online advertising. The stable political climate in major markets reduces barriers to expansion

In the model of PESTEL analysis, economic external factors may change the market opportunities available to businesses.

Economic stability of the key markets and the rapid growth of developing countries can create a new impetus that Google can benefit from. The company can use this for global expansion.

Google products are free for their customers, except advertising and your own brand smartphone. However, the condition of the local economies and the global economy as a whole, has a significant influence. In times of crisis, for example, budgetary constraints of economic agents have a negative impact on overall advertising spending, hence the demand for Internet advertising - the main source of revenue for the company.

For the rest of the business decreased purchasing power influences positively. Other things being equal, increases demand for free products, such as those of Google, amid paid - for example, at Microsoft.

Social Factors

Social or sociocultural external factors affect the way customers respond to products of

As a result, there has been significant public pressure on the organization 's practices regarding collection, use, disclosure and security of personal information. There is serious criticism on the company, describing it as "Big Brother", which is likely to damage its reputation. Another problem is the virtual absence of censorship on advertising and clips distributed on the network.

Technological Factors

Google has faced significant opportunities based on these technological externalities. The company can expect higher revenues from advertising as emerging markets become more connected online.

The transition itself to the smartphones is characterized by much higher penetration rate than mobile devices in the nineties. Although these factors do not affect the production of products and services on Google, they have a serious impact on the way you use Internet-based services, such as demand and represent a significant change in consumer habits.

Ecological Factor

Although Google generates most of its revenue online, the company is subject to environmental or ecological externalities.

Google has options for dealing with these environmental externalities. The main idea is to improve the ecological / environmental impact of the company. Google can expect better meeting of the clients based on a positive perception of the environmental contribution of the