Environmental analysis is the process by which an organization can analyze information about its competitors, competitive rivalry, behavior and dynamics. As per our assignment help experts, This analysis is very helpful for Google incorporation to make more effective strategies to compete and survive in the market. The competitors of Google affect its returns and affect its ability to earn above-average returns.
Levels of Market Commonality and Resource Similarity: In the current competitive market, Google has strong level of commonality and resource similarity. The market commonality identifies about the markets in which all the competitors of Google are collectedly involved. Market commonality is the degree of importance of every competitor within a particular market. Google has high level of market commonality in Google applications such as Gmail, Google map, news, calendar, docs and other applications. In this market, Google performs better in the competitive market with its competitors such as Yahoo Inc., Microsoft Corp. etc. Competitive analysis includes both of these as units of measurement that are market commonality and resource similarity.
There are three types of divisions in which the competitors estimate their strengths in the multimarket competition. These segments represent competition level by colors such as Red (high), orange (moderate) and yellow (lower) (Williams, 2010). In addition, resource commonality level of Google with Yahoo is higher than Microsoft. It is because; Yahoo has similar applications such as Yahoo mail, messenger, groups, news and other different search options like, Google have. On the other hand, Microsoft has some similar types of resources such as MSN, Atlas online tools, but it also has some different market segments such as variety of Windows, servers and tools, online services and Microsoft business.
Influence Competitive Behavior and Intensity of Rivalry: There are some drivers identified by which Google influences behavior and intensity of its rivals. First, Google can create awareness of the degree of common interdependence that is resulted from market commonality and resource similarity. In addition, motivation is another concern that changes intensity and behavior by competitors’ incentive actions, reacting with an attack of a competitor and preferred gains and losses. Furthermore, ability to pull competitors, responses to activities of competitors also changes competitor’s intensity.
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