Google's Strategic Change Plan Company Analysis

Google's Strategic Change Plan
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Google's Strategic Plan
Establishing a concrete plan is the initial stage in managing strategic change as it involves evaluating the challenges, opportunities, and parameters of business evolvement. Several factors push for organizational changes, including government regulations, technological innovations, competition, new products, growth, and employee needs and development (Kotter and Schlesinger, 2008). The vast intersection of factors necessitating strategic change requires managers to consider both internal and external environmental influences and how they can affect change within its operations to fit the industry while maintaining business objectives. This shows that implementing a strategic change plan factors the current and required systems, processes, culture, and people- managers, employees, and customers (Stanleigh, 2015). A strategic change plan involves outlining what, how, where, and why to ensure functionality by considering its suitability, feasibility, and acceptability (Crawford, 2013 p. 11). This report analyzes Google's strategic plan by presenting its strategic audit through analyzing its current services and market reach, external environment factors, measure against Porter five forces, SWOT analysis and the core competencies, and strategic change options and their suitability, feasibility, and acceptability and how an implementation action plan.
Google's Strategic Audit: Current Services and Market Reach
The strategic audit covers the overall production management processes and activities of a company to identify the strengths, deficiencies, and challenges of adaptation to change and address the causes according to the internal and external factors (Hoshang et al., 2020). This shows that a strategic audit analyzes both the current management strategy, its strengths, weaknesses, risks, and the resources needed to implement a progressive strategy. Google's strategic audit begins with analyzing its partnerships, product catalog, customer segmentation, resources, activities, and cost structure (Innovation Tactics, 2020). Since its launch in 1998, it has diversified its services to include Adverts, Android, Chrome, Google maps, commerce, cloud, search, social networking, and YouTube (Pratap, 2018). Apps and in-app purchases, cloud services, and hardware also contribute to the revenues, thus catering to a wider customer base (Witzenburg, 2018). The company's advertising revenues in 2019 reached $161.86 billion, showing its customer base and market share in advertising, streaming, and communication services (Business Strategy Hub, 2020). Cloud services in 2019 represented 5% of its annual income, indicating its expanding business scope and customer reach. Google's vast product catalog serves different types of customers, including personal users, websites, brands, businesses, advertisers, influencers, news, and content creators (Innovation Tactics, 2020).
External Environment Factors: PEST Analysis
Political and legal factors influencing Google include government regulations, especially due to privacy violations like the 2016 elections and the Cambridge Analytics scandal (Witzenburg, 2018). The European Union policies also scrutinize Google's operations to identify any data manipulations in commerce searches. Through the FCC, Trump's administration's view of technology companies after the 2016 elections in terms of monopolization, privacy, and discrimination also presents a political challenge (Zhang, 2019). However, the Chinese government's citizen monitoring and barriers to the company indicate government laws in the company's expansion and survival (Hartono, 2013).
Economic influences affecting Google operations include the increment in international businesses, which increases the demand for advertising services boosting Google's market share (Witzenburg, 2020). Hartono (2013) notes that improving GDP in developing countries, increased interest and inflation rates also increase the expansion plans as more people can advertise and access the services globally. Tax laws in the U.S., leading to repatriation and oversees investments, also improve long-term returns in other countries, improving profits (Zang, 2019). Zhang (2019) also notes that improved Internet access in Africa is also an economic contributor to the expanded market share.
Social and environmental factors are usually dictated by customer evolution and concerns over its services and products. The increase in privacy protection by individuals, businesses, and governments has greatly disparaged the company's adverts based on personal data analysis (Witzenburg, 2018). Social pressures like privacy affect the laws regulations controlling data access by tech companies motivating legal and opt-out actions, which affects the company's market share (Zhang, 2019). The need to keep up with consumer needs and preferences in privacy and environmental laws are also some socio-cultural factors affecting the market share and activities.
As a technological company, Google's nature, political, economic, and social, intersects to influence its technology developments and adoptions. Increased internet access, faster browsing, and technology diversification from desktop to mobile, cars, and home computers are also increasing Google's market share (Zhang, 2019). Witzenburg (2018) also noted that adblockers are detrimental to business reliance on advertisements. The acquisition of startup tech companies is also another technology factor enhancing Google's business strategy as it helps it maintain its position as an innovation leader (Hartono, 2013).
Porter's Five Forces Application to Google
Power of Suppliers
Google suppliers hold moderate power over the company's business modules due to its power in the promotion of the supplier's products (Witzenburg, 2018). The power comes from Google's diverse product catalog and the intersectionality of responsibility from different suppliers like internet providers (Zhang, 2019). Hartono (2013) notes that suppliers like Microsoft have a good relationship with google establishing a collaborative approach to business interactions.
Barriers to Entry
Few barriers exist in blocking new entries into the advertising scene enjoyed by Google (Witzenburg, 2018). Although there are no regulatory barriers, the finances and infrastructure needed to enter the market are immense and require collaborations or extensive experience (Hartono, 2013). Facebook and Amazon's entry into the market shows the capital, infrastructure, and time investment needed to enter the business (Zhang, 2019).
Competitive Rivalry
Although there are major competitors to Google's services, each of the main challengers has its competencies, although it is still the leader in online searches and adverts (Zhang, 2019). Amazon and Facebook have created a string competitive environment for Google as they continue to share in advertising revenues. The moderation of competition is due to the capital requirements needed to compete with Google effectively.
Threat of Substitution
The data collection achieved by Google in the two decades it has been in operation significantly lowers substation products' threat (Zhang, 2019). Although it is easy to switch service providers, the similarity of their services and the incorporation of Google services makes it harder to use substitute products.
Customer power
Google services hold a high power in streamlining the adverts, and revenue generations and a switch to competitors can easily affect the market share (Witzenburg, 2018). Its power is derived from its distinction in customer information, thus enabling personalized advertising, which reduces the alternatives for customers as each advertiser has its powers of scale (zhang, 20190).
SWOT Analysis and Core Competencies
Google's SWOT analysis covers several stronghold factors contributing to its majority market share, expansion strategies, and competing firms' pressure to analyze the possible risks and directions. The company's strengths include its position as the main search engine (86.86% market share), adaptability through broad products, and rapid growth (Business Strategy Hub, 2020). Strong brand recognition has helped the company maintain a strong presence in both advertising services and companies' search preferences like Yahoo, Bing, Facebook, and Microso...