Buyer bargaining power is medium due to the influence of a company’s reputation on the likelihood of buyers using its products. In Google’s case, the company has suffered a decline in brand reputation due to legal cases. The threat of new entrants is low because the industry of information technologies is dominated by such large companies as Google, Microsoft, Apple, and others. It is difficult for new startups to overcome their competition and influence the operational outcomes of the company.
Rivalry among competing sellers entrants is high due to the continuous decisions of Google to acquire particular companies or implement technological approaches introduced by other rivals. For example, Google tends to compete with Apple on the basis of hardware development; in addition, it competes with Microsoft in cloud computing. As the case demonstrates, often, Google has to borrow ideas and follow its rivals’ decisions to remain competitive.
The threat of substitute products is low since the presence of products offered by Google dominates contemporary individual use and corporate information processing. The bargaining power of suppliers is low because the products developed by the companies depend on their internal resources.