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GROUP MEMBERS:

Syed fahad Ali


Muhammad Ameen

GOOGLE VS FACEBOOK
Micheal Porters Five Forces industry analysis and
strategy development is a staple in most business
schools. Having come across it again in book I was
reading I decided to apply it to our web design industry
to see what kind of analysis we get. The result was not
promising.
FIVE FORCES MODEL
FIVE FORCES MODEL
Rivalry among
existing
competitors
Threat of New
Entrants
Bargaining
power of
buyers
Threat of
substitue
product or
services
Bargaining
power of
suppliers
Threat of New Entrants Very High

Bargaining Power of Suppliers Moderate

Threat of Substitute Products High

Bargaining Power of Customers Low

Competitive Rivalry within an industry Very High

FIVE FORCES MODEL
Conclusion :
Surviving in an industry where the 5 forces are so strong
and prevalent is about choosing a strong value
proposition and sticking to it. Changing often or trying
different positions will kill you. The survivors will be
the ones who successfully build and defend a value
position. This is a marathon not a sprint. Stick to your
knitting, try and build a unique position and you might
be one of the winners when the dust settles.

FIVE FORCES MODEL
EFAS FOR GOOGLE AND FACEBOOK
External Factor Evaluation (EFE) matrix method is a
strategic-management tool often used for assessment of
current business conditions. The EFE matrix is a good
tool to visualize and prioritize the opportunities and
threats that a business is facing.

EFAS FOR GOOGLE
Particulars
OPPORTUNITY
weight Rate Weightage Score Comments
Brand image
0.1 5 0.5
Google is prominent
in the market which
can easily persuade
users to use its
application
Innovation
0.25 4 1
They came after
facebook in social
networking i.e.
google, however,
they 100+ features in
it.
Revamp/Redesign of
product
0.1 5 0.5
Defensive strategy
Penetration in the
Anroid design
0.1 5 0.5
Increase Users
Particulars
Threats
weight Rate Weightage Score Comments
Social Network/ Media
0.2 3 0.6
Social network change
their objective from
accessibility to social
networking i.e.
introduction of google
however at first orkut
was accepted as
successful social
network
Government
Restriction
0.05 4 0.2
They officially avoided
to unethical move that
can bring google to
under further
investigation
Gradually Increase of
shares
0.15 3 0.45
No comments
Rumor / Bad Publicity
0.05 1 0.05
Google has not taken any
action against bad
publicity campaigned
know by facebook
EFAS FOR GOOGLE
Total 1 3.8
EFAS FOR
FACEBOOK
Particulars
OPPORTUNITY
weight Rate Weightage Score Comments
Social Science
network
0.3 5 1.5
They were first who
came up with this
idea
Increase of shares
(gradually)
0.15 4 0.6
Their shares were
steadily moves up
with such a
tremendous growth
Government
Ristrictions on
google
0.05 2 0.1
They take the
advantage of this
event
Innovative
0.20 3 0.6
They were the first
who came up with
this idea
Particulars
Threats
weight Rate Weightage Score Comments
Google linking
twitter
0.15 2 0.3
They face problem
of dealing with such
event
Penetration in the
devives
0.10 2 0.2
They effectively
cope up with this
situation
Branch image of
google
0.05 2 0.1
Google Is a big giant
so they use the
strategy effectively
TOTAL
1 3.4
EFAS FOR FACEBOOK
EFAS FOR GOOGLE AND FACEBOOK
Conclusion:
The above results from the table showing that Google
has the weighted score of 3.8 stating average external
factors in particular company. However, Facebook has
the weighted score of 3.4 stating average external factors
but higher than the Google. However both have
performed above average.

CPM FOR GOOGLE VS FACEBOOK
A Competitive Profile Matrix is a strategy by the
management of a firm that is intended to compare it with
the major firms of the industry. The CPM shows the firm
its weak and strong points as compared to the major
players in the industry. The CPM takes into account
effectiveness of advertising, product quality,
management, finances, the prices and competitiveness
among other factor.

CRITICAL SUCCESS FACTOR
Critical success factors are extracted after deep analysis
of external and internal environment of the firm.
Obviously there are some good and some bad for the
company in the external environment and internal
environment.The higher rating show that firm strategy is
doing well to support this critical success factors and
lower rating means firm strategy is lacking to support
the factor.

COMPETITIVE PROFILE MATRIX EXAMPLE
CPM matrix shown below show the comparison among
Google vs Facebook.



Critical
Success
factor
Weight Rating Weighted
Score
Rating Weighted
Score
Social Web 0.2 4 0.8 5 1
Redesign
product
0.2 5 1 3 0.6
Financial
position
0.15 5 0.75 3 0.45
User loyalty 0.05 4 0.2 4 0.2
Growth in
market
shares
0.2 3 0.6 4 0.8
Workforce 0.1 4 0.4 4 0.4
innovation 0.1 3 0.3 4 0.4
Total 4.05 3.85
Google facebook
THANK YOU

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