The External Technological Threats to Google

1596 Words4 Pages

External Factors Evaluation (EFE)
Developing Competition of Various Search Engines
There are external environmental factors that include political, macroeconomic, international, technological, and legal that can threaten Google’s business. In this executive summary, the technology and political threats will be the focus of concern that bring challenges for Google. In today’s market, the technology field is the most volatile and disruptive. Therefore, sustainable competitive advantages are not assured (MarketLine, 2013). The three key threats that can affect Google today are: 1. Developing competition of various search engines, 2. Intense competition of competitors’ mobile operating system, 3. Increasing allegations of Google’s involvement in the PRISM project.

The external technological threats to Google are competitors such as Amazon, Apple, Bing, Facebook, and Yahoo who all have a search engine capability Yahoo and Bing are the closest competitors to Google in the original search engine market. Still, Google remains the leader followed by Facebook as the dominate company in the search engine market both domestically and globally as ranked by alexa.com (Competitive Intelligence, 2014). However, being in the dominate position does not exempt Google from external factors that can bring threats to the company. According to Google’s 2013 fourth quarter results, 67% came from search engine revenue and represents a 22% increase over fourth quarter 2012 (Google Inc., 2014). As of January 2014, Google leads the U.S. search market with 67.6% market share (up 0.3 percentage points), Microsoft is at 18.2% while Yahoo reported at 10.8% (comScore, 2014). To continue to be the leading internet search engine provider, Google needs to guard i...

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