Questions Based on Strategic Management


Question :1

Why should a U.S. - based company be concerned if an earthquake, tsunami, or nuclear power plant accident occurs in Japan?


Although, it will be detrimental for the Japanese economy in a situation of any incident such as earthquake, tsunami or nuclear power plant accident occurring in it, but certain U.S. companies will be badly affected by it as well. The two giant economies have long been powerfully integrated through a robust network of trade in goods services. Japan is an important market for U.S. companies that have made huge investments in its economy. Japan being a primary market in terms of consumerism for these companies, so if any of the above mentioned mishaps occur in Japan, it will be devastating for the growth and turn-over of these companies. U.S. companies have been giving tough competition to their counterparts in Japanese market in almost every field for decades now, thereby giving very limited scope for companies belonging to other countries to make their way in (Nanto, Cooper & Johnson, 2011). These companies have successfully established their manufacturing facilities, distribution networks and effective brand name in areas particularly automobile, telecommunications, electronics and finance just to name a few. So, in the wake of any of the natural disasters, these companies experience a severe setback in their respective businesses. For example earthquakes and tsunamis of larger scale render the telecommunication services completely collapsed by badly hampering the infrastructure required for their proper functioning. As a result of that, the concerned companies have to spend extra money to fix it. Also, a nuclear disaster such as that of Fukushima, in which major U.S. companies have stakes, can come down heavily on their businesses.    

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Question :2

With rapid changes in technology, the boundaries of industries are being redefined. What industry is Google in? Who are Google's main competitors today and where might new competition come from?


Google is a technological giant that is providing products as well as services around the world in the field of organizing information. The main area of Google’s expertise is its ability of being a potent search engine, which is most commonly used and biggest one in the entire planet. It has been estimated that Google’s search engine processes one trillion unique URLs a day. Also, Google has propagated its business into multiple new segments such as mapping software to the programs of word processing along with email clients and popular media sites such as YouTube. 
In the search engine segment, Google competes with other giants such as Yahoo - search innovator, AOL- an internet service and media company, Microsoft- the established software technology giant. In other segments of its business, Google faces stiff competition from other technology companies like database technology services giant Oracle, integrated circuits manufacturing giant Intel, open source software service company Red Hat, internet protocol device making giant Cisco Systems, technology company Hewlett-Packard, software security systems company like Symantec and worldwide technological giant IBM. One more potent competitor of Google today is social media as well as technological giant Facebook as it is also creating a search engine with a concept of social search. Google also recognizes that it needs Facebook’s data of social search ("In what industry does Google compete", n.d.) In future, the biggest competitor of Google could come in the form of an idea that internet content can and should be paid for.

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  • In what industry does Google compete. Retrieved 10 March 2016, from

  • Nanto, D., Cooper, W., & Johnson, R. (2011). Japan’s 2011 Earthquake and Tsunami: Economic Effects and Implications for the United States. Retrieved 10 March 2016, from

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