Environmental Analysis. A. General Environment: A.1 Opportunities: 1. (SOCIO-CULTURAL-DEMOGRAPHIC FORCES) Understanding societal trends and preferences helps Google develop products aligned with user needs 2. (TECHNOLOGICAL FORCES) Al Integration: Leveraging artificial intelligence in product development to enhance user experience and efficiency, 3. (POLITICO-LEGAL) Complying with legal standards ensures that products meet regulatory requirements A2 Threats: 1. (TECHNOLOGICAL FORCES) Rapid changes may shorten the lifecycle of products, requiring frequent updates and adaptations. Operating Environment 8.1 Opportunities 1. (Rivalry Among Competing Firms) Fierce competition can drive innovation and push Google to. enhance product features continually. B.2 Threats {Community Perceptions) Privacy concerns or negative public perceptions impacting user trust. (Substitute Product) Rising popularity of alternative search engines or tech platforms 3. (Potential Entrants) Potential disruption from emerging tech startups challenging Google's services. 8. Internal Environment, .1 Strengths: 1. (MARKETING) Brand Reputation - Google's strong global brand reputation positively influences product adoption, as users often associate the brand with quality, reliability, and innovation. 2. (PRODUCTION/OPERATION) Skilled Workforce: Google employs a highly skilled and diverse workforce, contributing to the development of sophisticated and high-quality products 3. (MARKETING) Strong R&O Capabilities: Google boasts a robust research and development division, fostering continuous innovation and the creation of cutting-edge products. 4, (ORGANIZATION AND MANAGEMENT) Innovation Culture: The company’s culture encourages and supports innovation, attracting top talent and fostering an environment where creative ideas thrive. cz(FINANCE) Financial Dependency on Advertising: A significant portion of Google's revenue comes from advertising. Dependency on this revenue stream poses a risk, especially during economic downturns. {INFORMATION SYSTEM) Data Privacy Concerns: Google faces challenges related to data privacy concerns, impacting user trust. Striking a balance between innovation and user privacy is crucial {PRODUCTION/OPERATIONS) Dependency on Online Services: The majority of Google’s revenue comes from online services. Diversifying revenue streams beyond online advertising and services may be a consideration. {PRODUCTION/OPERATION) Acquisition Challenges: integrating acquisitions seamlessly can be challenging, potentially leading to internal disruptions and affecting the development of new products.2. ENVIRONMENT ANALYSIS D. EXTERNAL FACTOR EVALUATION MATRIX E. INTERNAL FACTOR EVALUATION MATRIX F. COMPETITIVE PROFILE MATRIXExternal Factor Evaluation (EFE) Matrix KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE RATING VALUES OPPORTUNITIES: (4) superior response 1. Understanding societal trends 0.31 3 0.93 (3)~ above average and preferences helps response Google develop products aligned (2)-ave. response with user needs, (1)— poor response 2. Al Integration: Leveraging 0.16 4 0.64 artifical intelligence in product development to enhance user experience and efficiency. 3. Complying with legal standards 0.10 a 03 ensures that products meet regulatory requirements. 4, Fierce competition can drive 0.05 3 os innovation and push Google to. enhance product features continually. THREA’ Overall Rating: 1, Rapid changes may shorten the 0.20 3 06 >2.5~ high response lifecycle of products, requiring 2.5 medium response frequent updates and adaptations. <2.5 —low response 2. Privacy concerns or negative 0.08 3 0.28 public perceptions impacting user trust. 3, Rising popularity of alternative 0.06 4 02a search engines or tech platforms.4, Potential disruption from 0.04 3 0.2 emerging tech startups challenging Google's services. TOTAL WEIGHTED SCORE 1.00 - (Overall Rating) 3.22 ‘With a 3.22 “High Response”: Google external position is FIRMInternal Factor Evaluation (IFE) Matrix KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE RATING VALUES ‘STRENGTHS: 1. Brand Reputation - Google's strong global brand reputation positively influences product adoption, as users often associate the brand with quality, reliability, and innovation. 2. Skilled Workforce: Google employs a highly skilled and diverse workforce, contributing to the development of sophisticated and high-quality products. 3. Strong R&D Capabilities: Google boasts @ robust research and development division, fostering continuous innovation and the creation of cutting-edge products. 4. Innovation Culture: The company's culture encourages and supports innovation, attracting top talent and fostering an environment where creative ideas thrive. 0.31 0.16 0.10 0.05 1.24 0.48 0.30 ots (4)- major strength (3)- minor strength (2)- minor weakness (2)- major weaknessWEAKNESSES: 1. Financial Dependency on Advertising: A significant portion of Google’s revenue comes from advertising. Dependency on this revenue stream poses a risk, especially during economic downturns. 2. Data Privacy Concerns: Google faces challenges related to data privacy concerns, impacting user trust. Striking a balance between innovation and user privacy is crucial. 3. Dependency on Online Services: ‘The majority of Google's revenue comes from online services. Diversifying revenue streams beyond online advertising and services may be a consideration 4, Acquisition Challenges: Integrating acquisitions seamlessly can be challenging, potentially leading to internal disruptions and affecting the development of new products. 0.15 0.10 0.08 0.05 0.45 0.30 0.24 os Overall Rating: >25 - strong internal position 2.5~ average internal position «2.5 - weak internal position‘TOTAL WEIGHTED SCORE 1.00 With a total weighted score of 3.31, Google's Internal Position is STRONG. CRITICAL SUCCESS FACTORS WEIGHT Google Microsoft (Bing) Yahoo Rating | Weighted Score | Rating Weighted Rating | Weighted Score Score 1. Search Algorithm Effectiveness 0.20 4 08 3 06 2 o4 2. User Experience and Interface 0.5 3 0.45 3 04s 3 0.45 3. Global Market Presence 0.20 4 08 3 06 2 o4 4. Innovation and Technology 0.5 3 0.45 3 04s 2 03 Integration5, Revenue Diversification 0.15 3 0.45 3 0.4 2 03 6. Customer Data Security 0.15 3 0.45 4 06 3 0.45 ‘OVERALL SCORE 1.00 - 34 2 315 - 23 Google is the strongest at 3.4 followed by microsoft bing at 3.15.