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Google External Analysis

2538 words - 11 pages

External Analysis of Google Inc.
External Environment
Global
Internet search is applicable to most cultures all over the world freeing Google from geographic dependence. In fact, the company now has 20 offices in the U.S. and international locations in over 30 countries working on research, sales, and marketing. Google offers a personalized search engine for more than 115 countries, and as language support improves, the company is likely to gain market share. As computers become more affordable, many people in economically disadvantaged countries are gaining access to the internet for the first time and Google would like to route them through its search and productivity products, like ...view middle of the document...

In fact, a recent Wired magazine article says that Google “looks particularly well-positioned to weather the downturn. Google’s focus on highly targeted, measurable advertising makes it more recession-proof than many other businesses in tech.” (Schiffman, 2008) The crucial need to stay informed and constantly connected keeps such services vibrant despite the parched surroundings.
Politcal and Legal
Formal institutions have not significantly affected Google’s operations, although Google has faced pressure from the Department of Justice to relinquish archived search terms (Buncombe, 2006) and from the Chinese government to censor search results (Liedtke, 2005). Google’s “Don’t be evil” mantra has been put to the test as users ask whether cooperation with governments undermines their privacy and freedoms. In 2008, Google responded to customer concerns when it added a privacy link to its home page. This link took users to a Privacy Center where they could learn about Google’s policies in regard to political and legal issues (Google, 2008).
Google has also faced concern on copyright issues because the company stores copies of third party web pages and images on their servers. They have responded to this criticism by releasing a copyright information page. The page provides the relevant information regarding digital information and provides links to notify both Google and the U.S. Copyright Office of suspected infringement (Google, 2008).
Socio-Cultural
The world is increasingly becoming more connected due to the means of communication available through the internet. And, for many people, the search giants like Google make the internet navigable. As internet use increases among all age groups and across all cultures, we will become increasingly more dependent on internet search.
In addition, most new cell phones are internet capable devices. People will use these devices for driving directions, to locate restaurants, check sports scores, download music, and even quick research. Google stands to benefit from this with an increased number of search queries. To enable more people to access Google’s services from their mobile devices, the company has released its Android Mobile Phone Platform and Operating System as well as the Google Mobile App that can be downloaded on other platforms such as the Apple iPhone.

Stakeholders

Figure 1. Stakeholder Importance
Google has a responsibility to manage its operations for the benefit of its stakeholders. Stakeholders include not only the shareholders of the company’s stock, but also the employees, customers, suppliers, trade associations, and community. Google decisions may be influenced by the government, activist groups, and the media, all who have their own agendas and responsibilities to the people they serve. Each stakeholder has a relationship with Google and this relationship is the source of the stakeholder’s power to affect Google’s decisions....

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