m Introduction- Strategic Management.

m Evolution of IT Industry.

m Porter¶s 5 Forces (a)- Concept Introduction.

(b)- Relevant Search.

m Conclusion
m j field that deals with the major intended and
emergent initiatives taken by general managers.

m On behalf of owners, involving utilization of

resources, to enhance the performance of ¿rms in
their external environments.

m It entails specifying the organization's mission, vision

and objectives, developing policies and plans, and
then allocating resources into actual reality.
m O
 



 
.

m O
  O   .

m O
  


.

m O
  

 

m O 
is a framework for the industry
analysis and business strategy development formed by
Michael E. Porter of Harvard Business School in 1979.

m It draws upon Industrial Organization (IO) economics to

derive five forces that determine the competitive intensity
and therefore attractiveness of a market.

m jttractive means ± 




.
Unattractive industry ± O 

 available
profits for all firms are driven down to zero.
m   of Porter's five forces refer to competition from
external sources. The remainder are internal threats.

m Porter's five forces include -  forces from  



competition: threat of substitute products, the threat of
established rivals, and the threat of new entrants

m  forces from 


 competition: the bargaining
power of suppliers and the bargaining power of customers.

m jd hoc basis.
m ðoogle Market share ±  !


m Bing Market share - "#
.

m ðoogle ± Search engine.

m Bing ± Decision engine.

m Business Strategy - ðoogle ± |
 , $, 



$
, Computing & data warehousing.

m Business Strategy ± Bing ±  &  .

 Daunched on 28th May 2009

 Replacement of MSN Dive Search

 Tie up with Yahoo for replacing yahoo search with

Bing on 29th July 2009

 Current market share is 16.28%

 Daunched in January 1996 by Darry Page

 Corporate office in California, USj

 ðrown through new products, acquisitions and

partnerships.

 Current market share 71.47%

 µNo. 1 place to work¶: Fortune Magazine

Porters¶ Five Forces Model
 Market leader is ðoogle (71.47%)

 ðoogle synonymous with search

 Bing + Yahoo search = Tie UP

(3.49%) + (6.68%) = (10.17%)

 BINð Faces a huge short term threat.

 Dong term threat from competitors might reduce

 High Rivalry within industry.

 Negligible substitutes

 Static in nature

 Dibraries, Encyclopedias, Magazines,

Newspapers, etc

 Dow threat from substitutes

 Current monopolistic position held by ðoogle.

 Difficult to enter and sustain.

 Dack of qualitative and quantitative information.

 Familiarity of users with current players.

 Dow threat of new entrants.

 Suppliers are:
Information seekers
Content Supplier
IT Supplier
Equipment Supplier
Maintenance Service Supplier

 Facilitate revenue generation.

 No payment, barter of information for information

seekers.

 High bargaining power.

 Can supply to any other search engine

 jdvertisers are the buyers

 Pay for ad space

 Source of revenue

 High bargaining power

 High market share of ðoogle

m ðoogle¶s - |%&

m | 
1. Number one search engine on the net.

2. The & 



 of its search
engine is reliable & user friendly.

3. It¶s acquired ', regarded to be

the number-one online video portal
users.

4. It¶s $% & $| programs working as the main

mechanism.

5. It¶s hired O ( specially to work for enhancing the search engine

algorithms which will render the search faster, relevant & more efficient.

6. It provides its search engine interface to ##



m %

1. Dependent mostly on its search based
marketing.

2. The cost for the data-center getting

higher & higher.

3. It¶s weak presence regarding the social-

networking space.

4. It does not hold any strategy for

contraction.
m & 



1. Using higher value content on the net.

2. Simple specialist search, which can be

integrated using open-url.

3. It can increase its overall commercial

spending online.

4. Its can enhance by having new

acquisitions.
m  


It can lose control over the indexing

policy owner.

2. Dibrary services becoming less visible.

3. Users ending up not getting to the

institutional subscription.

4. Competition from firms like Yahoo, MSN.