Google in 2010 - Five Forces Analysis

Google in 2010 - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Large industry size (Google in 2010) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Google in 2010) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Fast industry growth rate (Google in 2010) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Large number of substitute inputs (Google in 2010) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Google in 2010) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (Google in 2010) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

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Substitute has lower performance (Google in 2010) A lower performance product means a customer is less likely to switch from Google in 2010 to another...
Limited number of substitutes (Google in 2010) A limited number of substitutes mean that customers cannot easily find other products or services...
Substitute product is inferior (Google in 2010) An inferior product means a customer is less likely to switch from Google in 2010 to another product...

Bargaining Power of Customers

Product is important to customer (Google in 2010) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Google in 2010) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (Google in 2010) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (Google in 2010) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong distribution network required (Google in 2010) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Advanced technologies are required (Google in 2010) Advanced technologies make it difficult for new competitors to enter the market because they have to...

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