Presented by-

Tamal Manna
Enroll: 251091131
At a Glance
 Introduction- Strategic Management.

 Evolution of IT Industry.

 Porter’s 5 Forces (a)- Concept Introduction.

(b)- Relevant Search.

 Conclusion
Strategic Management
 A field that deals with the major intended and
emergent initiatives taken by general managers.

 On behalf of owners, involving utilization of

resources, to enhance the performance of firms
in their external environments.

 It entails specifying the organization's mission,

vision and objectives, developing policies and
plans, and then allocating resources into actual
reality.
Evolution of IT Industry

 Phase one - Testing and maintenance.

 Phase two - Product development.

 Phase three – Business ownership.

 Phase four - Bellwether for global markets.

Concept Introduction
 Porter's five forces is a framework for the industry
analysis and business strategy development formed
by Michael E. Porter of Harvard Business School in
1979.

 It draws upon Industrial Organization (IO) economics

to derive five forces that determine the competitive
intensity and therefore attractiveness of a market.

 Attractive means – overall profitability.

Unattractive industry – “ Pure Competition” available
profits for all firms are driven down to zero.
Porter’s 5 point Analysis
 Three of Porter's five forces refer to competition from
external sources. The remainder are internal threats.

 Porter's five forces include - three forces from

'horizontal' competition: threat of substitute
products, the threat of established rivals, and the
threat of new entrants

 Two forces from 'vertical' competition: the bargaining

power of suppliers and the bargaining power of
customers.

 Ad hoc basis.
Relevant Search
 Google Market share – 71.47%.

 Bing Market share - 16.28%.

 Google – Search engine.

 Bing – Decision engine.

 Business Strategy - Google – Search, Ad words,

ranking Algorithm, Computing & data warehousing.

 Business Strategy – Bing – Type less & do more.

 Launched on 28th May 2009

 Replacement of MSN Live Search

 Tieup with Yahoo for replacing yahoo search

with Bing on 29th July 2009

 Current market share is 16.28%

 Launched in January 1996 by Larry Page

 Corporate office in California, USA

 Grownthrough new products, acquisitions

and partnerships.

 Current market share 71.47%

 ‘No. 1 place to work’: Fortune Magazine

Porters’ Five Forces Model
 Market leader is Google (71.47%)

 Google synonymous with search

 Bing + Yahoo search = Tie UP

(3.49%) + (6.68%) = (10.17%)

 BING Faces a huge short term threat.

 Long term threat from competitors might reduce

 High Rivalry within industry.

 Negligible substitutes

 Static in nature

 Libraries,
Encyclopedias, Magazines,
Newspapers, etc

 Low threat from substitutes

 Current monopolistic position held by Google.

 Difficult to enter and sustain.

 Lack of qualitative and quantitative information.

 Familiarity of users with current players.

 Low threat of new entrants.

 Suppliers are:
 Information seekers
 Content Supplier
 IT Supplier
 Equipment Supplier
 Maintenance Service Supplier

 Facilitate revenue generation.

 No payment, barter of information for information

seekers.

 High bargaining power.

 Can supply to any other search engine

 Advertisers are the buyers

 Pay for ad space

 Source of revenue

 High bargaining power

 High market share of Google

Conclusion
 Google’s - S.W.O.T

 Strength
1. Number one search engine on the net.

2. The speed & simplicity of its search

engine is reliable & user friendly.

3. It’s acquired You Tube, regarded to be

the number-one online video portal
users.

4. It’s Ad Words & Ad Sense programs working as the main

mechanism.

5. It’s hired PhDs specially to work for enhancing the search engine
algorithms which will render the search faster, relevant & more efficient.

6. It provides its search engine interface to 88 languages.

 Weaknesses
1. Dependent mostly on its search based
marketing.

2. The cost for the data-center getting

higher & higher.

3. It’s weak presence regarding the social-

networking space.

4. It does not hold any strategy for

contraction.
 Opportunities

1. Using higher value content on the net.

2. Simple specialist search, which can be

integrated using open-url.

3. It can increase its overall commercial

spending online.

4. Its can enhance by having new

acquisitions.
 Threats

1. It can lose control over the indexing

policy owner.

2. Library services becoming less visible.

3. Users ending up not getting to the

institutional subscription.

4. Competition from firms like Yahoo, MSN.