The Political & Economic Factors in the Google’s Macro-Environment
The political factors in the macro-environment influence Google’s decisions ad operations. Opportunities offered by the political factors globalization and the stable political climate in a booster market. The major threat is the state-sponsored online competitors. Globalization has offered a prime opportunity for the Mountain View, CA-based search engine to exploit the vast online market from a more informed global population.
It also helps in the spreading of information, awakening, and changes from traditional practices amongst consumers and organizations. In a knowledge-guided economy, Google Inc. plays a vital role in changing lives as it rolls over its new products across borders. Moreover, the stable political climate in booster markets creates a favorable environment for Google to maximize profits. The biggest threat from the political perspective is the presence of government-subsidized online companies. For instance, the government sponsors most of Chinese online companies.
According to the PESTEL analysis, external economic factors play the role of influencing opportunities available for organizations. Google Inc. thrives under the economic stability of its major markets and the rigorous growth of developing and emerging economies. These factors are viable opportunities for Google Inc. They create new momentum for the company to explore and invest. In fact, the company can expand globally owing to these economic factors. The increasing gross domestic product for most countries including South Africa, China, India, and the United Kingdom is good news for Google Inc. The increase in GDP for these countries among others indicates economic growth.
Changes in interest rates affect investment companies, especially those that target global markets. Google Inc. falls into this category. Its investment ambitions across borders will be underpinned by the dynamics of interest rates in target countries. It is worth noting that economic factors have little impact on technology and online investors such as Google Inc. The company is isolated from economic forces since it relies on virtual investments via the Internet. As such, economic turbulence and financial crises have little impact on Google’s business model.