Full Answer Section

Threats

Economic downturn
Changes in consumer behavior
Technological disruption
Recommendations

Marketing/advertising activities: Continue to invest in marketing and advertising to maintain brand awareness and market share. Focus on developing innovative and engaging marketing campaigns that reach Alphabet’s target audiences.
Operational activities: Improve operational efficiency to reduce costs and improve profitability. This could involve investing in new technologies, streamlining processes, and automating tasks.
Product activities: Continue to develop new products and services that meet the needs of Alphabet’s users. Focus on innovative products and services that are differentiated from the competition.
Porter’s Five Forces Model

Company: Alphabet Inc. (Ticker: GOOGL)

Supplier Power: Low

Alphabet has a large and diverse supplier base, which gives it a lot of bargaining power. Alphabet can switch suppliers easily if necessary.

Buyer Power: High

Alphabet’s customers are businesses and consumers. Businesses have high buyer power because they can easily switch to other search engines and advertising platforms. Consumers also have high buyer power because they can easily switch to other websites and apps.

Threat of New Entrants: Low

The barriers to entry in the search and advertising industries are high. New entrants would need to invest heavily in infrastructure and marketing to compete with Alphabet.

Threat of Substitutes: High

There are a number of substitutes for Alphabet’s products and services. For example, businesses can use other search engines and advertising platforms. Consumers can use other websites and apps.

Rivalry Among Competitors: High

Alphabet faces competition from other technology companies, such as Amazon, Microsoft, and Meta. These companies offer a variety of products and services that overlap with Alphabet’s offerings.

Recommendations

Expand into new markets: Alphabet can expand into new markets to reduce its reliance on the advertising revenue. For example, Alphabet can expand its cloud computing business and develop new products and services for businesses and consumers.
Differentiate products and services: Alphabet needs to differentiate its products and services from the competition. This could involve investing in research and development, acquiring complementary companies, and partnering with other companies.
Maintain strong brand recognition: Alphabet needs to maintain its strong brand recognition. This could involve investing in marketing and advertising, and delivering a great customer experience.
By following these recommendations, Alphabet can drive sales over the next year and maintain its competitive advantage.