Question

Can you do a 5 force analysis on the company Google and how they acquired Fitbit please.

Answer 1

Answer:

Five Forces Analysis of Google

A Five Forces analysis of Google requires thought for the states of related however various ventures and markets. For instance, the outside analysis represents the web search showcase, alongside the cloud administration showcase and the computerized publicizing industry. The Five Forces in Google's industry condition can be outlined as follows:

• Competitive rivalry or competition: Strong Force
• Bargaining power of buyers: Weak Force
• Bargaining power of suppliers: Weak Force
• The threat of substitutes or substitution: Moderate Force
• The threat of new entrants or new entry: Moderate Force

Competitive Rivalry or Competition: Google faces the solid force of competitive rivalry or competition. Under Porter's Five Forces model, competitive rivalry restrains the development of firms in the innovation and online administration industry. Google must consider the accompanying outer factors that add to such solid competitive rivalry:

• An enormous number of firms in the IT and online administrations industry (solid force)
• High decent variety of innovation firms (solid force)
• Low exchanging costs for clients (solid force)

Google's competitors range different ventures, in spite of the fact that those that have the most noteworthy effect on the business include Internet benefits or related platforms. For instance, the organization contends with Yahoo (claimed by Verizon), Apple, Microsoft, IBM, Comcast, Amazon.com, Snap (Snapchat), Twitter, and Facebook. Additionally, Google presently offers Chromecast, Pixel gadgets, and different items notwithstanding Search and publicizing administrations. In the Five Forces analysis model, this assorted variety of items corresponds to a different arrangement of competitors in innovation ventures and markets. This condition applies a solid force on Google's same old thing. Moreover, clients experience low exchanging costs since it is simple for them to move from Google to different organizations. Along these lines, in this piece of the Five Forces analysis, the low exchanging costs add to the solid force of competition against the innovation firm.

Bargaining Power of Google's Customers: The bargaining power of buyers feebly impacts Google's matter of fact. Considering Porter's Five Forces analysis model, such a feeble outer force has a restricted impact on vital administration choices in the innovation business. The accompanying outer factors add to the frail bargaining power of clients on Google:

• The little size of Google's individual clients (feeble force)
• High and expanding request from buyers (feeble force)
• Moderate nature of information for clients (moderate force)

With just a little commitment to Google's incomes, every purchaser applies just a feeble force on the organization. Due to the high and expanding interest for items from the innovation corporation and its competitors, singular buyers apply just a negligible effect on the business and the business. In this Five Forces analysis of Google, the moderate nature of information alludes to clients' information. For instance, promoters get to examination information that are constrained in informing about the elements and intricacy of the internet publicizing industry condition. The utilization of Google's showcasing blend or 4Ps deals with the bargaining power of clients assessed in this piece of the Five Forces analysis.

Bargaining Power of Suppliers: Suppliers' power is feeble against Google. In this current Porter's Five Forces analysis case, such shortcoming exists particularly in light of the fact that there are numerous suppliers to look over. The accompanying outer factors add to the frail impact of suppliers on Google:

• High accessibility of supply (frail force)
• The huge populace of suppliers (powerless force)
• Little to direct estimate of Google's individual suppliers (powerless force)

The high accessibility of supply in the mix with the enormous populace of suppliers debilitates the bargaining power of any single provider against Google's matter of fact. In the Five Forces analysis setting, this factor implies that it is moderately simple for the innovation monster to move to start with one provider then onto the next. The online organization's suppliers are various in light of the fact that the organization has a different exhibit of items. These suppliers incorporate processing equipment makers. Also, a large number of these suppliers are little contrasted with Google. Given the shortcoming of suppliers decided in this Five Forces analysis, the innovation organization can force its requests and influence its business size against suppliers. Google's corporate social obligation system can help adjust suppliers' key situating to the organization's key bearing.

The Threat of Substitutes or Substitution: Google faces the moderate threat of substitutes or substitution. In this Five Forces analysis case, substitutes incorporate other promoting stations, for example, TV, radio, and print media, and different advances that are options in contrast to the organization's items. Google's administration must consider the accompanying outer factors that add to the moderate threat of substitutes/substitution:

• Moderate exchanging costs among Google and substitutes (moderate force)
• Moderate to the high accessibility of substitutes (moderate force)
• Substitutes' low to direct performance-to-value proportion (powerless force)

The moderate exchanging costs make it reasonably simple for clients to move from Google's items, including publicizing administrations, to substitute items. In Porter's Five Forces analysis model, this factor applies a moderate force on the innovation organization's matter of fact. Likewise, the moderate to the high accessibility of substitutes implies that clients have significant alternatives in the event that they need to move away from Google. Be that as it may, a large number of these substitutes have moderately low performance-to-value proportion contrasted with the organization's online administrations and equipment and software items. For instance, in promoting, substitutes like TV are compelling however more costly than web-based publicizing efforts. The business qualities that appeared in the SWOT analysis of Google neutralize the threat of substitution. This piece of the Five Forces analysis shows that the recognized outside factors force the moderate threat of substitution against the innovation organization.

The threat of New Entrants or New Entry: The threat of new entrants (new entry) decently impacts Google's the same old thing. These new entrants incorporate new pursuits or speculations of huge innovation organizations, just as new companies offering items like Google's. In Porter's Five Forces analysis model, the accompanying outside factors add to the moderate threat of new entrants/new entry against the innovation business and its industry condition:

• The moderate expense of working together (moderate force)
• The significant expense of brand improvement (frail force)
• Firms' general ability to satisfy regulatory prerequisites (solid force)

In light of Porter's Five Forces analysis framework, the moderate expense of working together implies that an impressive number of new businesses and different firms can enter the market and straightforwardly contend with Google. Likewise, the capacity to fulfill regulatory necessities makes it simple for new entrants to get built up and contend in the innovation and online administrations advertise. In any case, the expense of brand improvement is high, bringing about numerous new businesses' trouble in continuing their tasks in the long haul, particularly in light of the fact that Google as of now has one of the most important brands in the world. In view of this piece of the Five Forces analysis, the threat of new entry is a moderate issue in the innovation organization's administration and key development.

How Google acquired Fitbit: The acquisition bodes well: Google has gone through years attempting (and to a great extent neglecting) to break into the wearables showcase with its Wear OS stage, however, it's battled to have a genuine effect.

• Fitbit's equipment slashes have consistently been extraordinary, giving Google a lot more grounded establishment to expand on for future Android-coordinated wearables gadgets. What's more, the organization's solid spotlight on wellness following could normally be incorporated into Google's current Google Fit applications, as well, offering Google a strong option in contrast to the Apple Watch's profound wellness following reconciliation with the iPhone.
• On the other side, Google's product aptitudes and wide engineer backing could help Fitbit's smartwatches like the Versa get somewhat more astute, nearby the more profound programming reconciliation with Android that a closer relationship could offer.