For Google Based on the organization you selected in Module 1, use the following

Question

For Google

Based on the organization you selected in Module 1, use the following guidelines to write an environmental analysis and an industry analysis of 350-500 words:

Using the GCU library or other external credible sources, research the segments of the general environment to write the environmental analysis of your Capstone Project.

Incorporate the five forces of competition to help write the industry analysis of your Capstone Project.

If you are entering global or international markets, use the CAGE model (see "Distance Still Matters: CAGE Distance Framework") to help you write the industry analysis of your Capstone Project.

What do you see as being the trends, outlook, or forecast for the type of organization that you are writing about in your Capstone Project?

Explanation / Answer

Environmental analysis of Google

The industry in which Google operates is Internet Industry, headed by Dr. Eric Schimidt (CEO), specialized in internet searching and online marketing. In the year 1998, the company was primary incorporated as a privately held company (About Google, 2008). The main office of the company is situated in the Silicon Valley of California. The business produces most of its profits from keyword based advertising. The mission statement of the Google is to systematize the information of world and make the information universally accessible and useful. The company believes that the most effective and ultimate way to accomplish their mission is to put the needs of their users first.

Industry Analysis

Using its dominant role in the industry to fuel expansion, Google has diversified into a number of new sectors, from mapping software to word processing programs, email clients and media sites such as YouTube. With a commanding stake in the market, the company must now defend its position while still adapting to the rapidly changing technology landscape.

While Google is best known to consumers for the free services it provides, such as its search engine, email accounts, map application, Web browser and new social media programs, the company's profitability is based on Web marketing revenues. Those small ads you see along the side of your search results or Gmail account are part of a profitable marketing business aimed at the millions of users of Google products.

As Internet usage increases throughout the world, the Internet marketing space grows with it, with an increasing number of companies wanting to reach the exploding number of Internet users. Google's dominant position in the market presents the company with an advantage. According to a digital marketing intelligence analyst, Google's market share in the United States among search engine providers grew in 2011 to more than 65 percent. Similarly, use of other programs like the Google Chrome Web browser and Gmail has expanded since the introduction of the services, becoming important players in their respective fields.

From its namesake search engine, Google, Inc., has expanded to include a number of Internet properties. Part of this expansion has been driven by Google's own developers, who rolled out applications such as SketchUp and Google+. Yet the company has also been aggressive in acquiring competitors in media and advertising fields, such as YouTube and the advertising firm DoubleClick. These new applications have strengthened Google's position as a major provider of Internet content, expanding Google's free service offerings to an ever-increasing base of users and advertising consumers.

As a major multinational corporation, a good deal of Google's expansion has occurred outside the United States, where it has often started at a disadvantage. As of 2009, Google makes more than 50 percent of its profits from markets outside the United States, with offices in Europe, Asia and Latin America. Google has struggled to replace local competition in critical markets like China. The overall strength of the company's global position gives it an advantage, but as the rise of Google over earlier players like AOL demonstrates, small, nimble companies are often able to outrun older and larger competitors.

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