Competitive Rivalry/CompetitionGoogle has a limited growth capability as they have many rivalries. Amazon is Google’s largest competitor. Google has to consider the external factors that are listed below as they contribute to strong competitive rivalry for example: Large number of firms which is a strong force, High diversity of firms is also a strong force, Low switching costs also is a strong force.
Google has lots of competitors, such as Yahoo, Apple, Bing, Amazon, and others. Because of the different products google make, Google also has a different set of competitors. Customers can easily change companies as they have low switching cost meaning that Google prices are similar to other competitors so it is not a problem for customers to change but Google offers unique products that other competitors are nowhere near developing and have an edge on everyone, for example, the google driverless car.Bargaining Power of BuyersThis factor is weak when it comes to influencing the decisions that google make like their strategic decisions. The external factors listed below all count to the weak bargaining power of buyers on Google for example: Small size of individual buyers is a weak force, High and increasing demand from buyers is also weak force, Moderate quality of information which is a moderate force.The individual buyers/customers on have a small influence on Google and the demand for Google’s products are high as well as Google’s competitors.
The quality of information refers to the customers only knowing a limited bit of information. Bargaining Power of SuppliersThe bargaining power of suppliers is one the weak forces as they have a wide selection of suppliers that they can use to get products and other needed materials. There is a high availability of supply which contributes to the bargaining power of suppliers being weak, also there are many suppliers which also affects this force. The supplies also have a very high availability which means google can easily choose what supplier they want to go to and change suppliers.
Google have unique products that the suppliers produce which means google have a different set of suppliers from other companies.