Group 1_ Case Workshop 1 (2)

CASE WORKSHOP 1 GROUP 1 1. What industry is Alphabet Inc. competing in? Alphabet Inc. is a global technology company competing in various industries. The company generates most revenue from it subsidiary Google and from its online advertising business services 1 . Alphabet’s 57.43% of the total revenue is generated from online advertising subsidiaries. The company provides online advertising services through its Google Network services, which include AdSense, Google Ad Manager, and AdMob. 2. One example for each of the elements of the PESTEL framework and which is the most significant facing Alphabet Inc. 's industry going forward. I. Political Factors As an online advertiser, Google must comply with advertising technologies and practices. Failure to comply with US-EU Data Privacy Regulation may result in disruption to services, financial penalties and reputational harm. 2 II. Economic Factors Expenditure by advertisers is correlated to overall economic conditions. In the event of adverse macroeconomic conditions like economic recession, it can affect the demand on advertising resulting in fluctuations in the advertising spend. 3 III. Social Factors Google should be well aware in advance of any shifts in consumer behavior relating to their buying preferences. Social media has played an influential role in understanding consumer behaviour by giving advertisers the ability to dramatically increase revenue through advertising to direct target audiences 4 . Users are becoming increasingly reliant on product reviews and service referrals on social media. Utilizing trusted sources rather than seeking traditional search engines will impact the future of user traffic on Google web services. This can lead to a loss in impressions for businesses that want to advertise on their platform. IV. Technological Overall, it is evident that going forward technological factors play the most important role in the digital advertising industry. 5 The most significant framework facing Alphabet’s industry is Technological. As AI continues to innovate, major players must understand the evolution of the applications to develop a future framework 6 . Late adoption of AI could result in a missed opportunity which would allow competing companies to capture increased market share of the advertising business. V. Ecological Google and other technology firms have publicly announced their commitment to addressing climate change. 7 Digital Advertising has the ability to produce a significant carbon footprint. 8 In an attempt to reduce the impact on global warming, firms must reduce their ecological footprint to improve sustainability. 1 Alphabet 2023 K10 Filings, Page 32 2 Alphabet 2023 K10 Filings, Page 11 3 Alphabet 2023 K10 Filings, Page 19 4 Forbes “How Social Media Impact Consumer Buying” 5 Alphabet 2023 K10 Filings, Para 2, Page10 6 Harvard Business Review “How to Design an AI Marketing Strategy” 7 Alphabet 2023 K10 Filings, Page 7 8 Entrepreneur “Digital Ads Are Fueling a Climate Disaster. Take These Steps to Offset The Industry's Hidden Toll on Our Planet”