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Google Swot Analysis

Autor:   •  May 14, 2017  •  Lab Report  •  783 Words (4 Pages)  •  536 Views

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SWOT Analysis: Google

Strengths

Google takes pride in the foundation of their company. Google has great leadership skills that help the company keep a strong put together team. They take good care of their employees. Google believes that a stress-free environment for employees will help employees reach their full potential within the company. Google believes that when you have happy employees it helps with the production of the company. People tend to stay with the company longer, they thrive to better themselves within the company, and having a strong team helps with the success of Google.
Google is the most used search engine in the world. They make their customer needs a priority and by doing so, they are able to come up with things to make their consumer lives more convenient.

Weaknesses

Google does not reveal its algorithm for searches or even its basic formula as far as internet searches are concerned leading to many experts slamming the company for being opaque and hiding behind the veneer of secrecy. However, in recent years, Google has taken steps to redress this by providing a bare bones version of its unique search engine algorithm. This excessive reliance on secrecy could be detrimental to Google’s future.

In recent years and especially in 2013, the company has been faced with declining revenues from ads and as a result, the profitability of the company has taken a hit. This is partly due to the ongoing global economic slowdown and partly because of competitors snapping at its heels in a more aggressive manner. Indeed, Apple has already taken steps to garner search engine revenues in its devices and hence, Google must be cognizant of the challenges that lie ahead. The decline in advertisement rates could potentially spell disaster for Google if it continues. Google’s business model relies heavily on advertising and the numbers reveal that it gets more than 85% of its revenues from ads alone. This means that any potential dip in revenues would cost the company dearly (literally as well as metaphorically). The point here is that Google has to devise a more robust business model that embraces e-commerce and mobile commerce along with its current business model that is based on ad revenues alone.

Another weakness for Google is that it is not compatible with many next generation computing platforms including mobile and tablet computers and this remains an area of concern for the company.

Opportunities

Android Operating System- One of Google’s biggest opportunities lies within its effort to pioneer the Android OS.  The introduction of the Android OS has allowed Google to now become a direct competitor with Apple & Samsung/

Diversification into non-Ad Business Models- Google has the opportunity to expand and diversify into non-ad revenues.  In 2016, they began to do this with the virtual assistant Google Home (direct competitor to Amazon’s Alexa).  They can also expand its non-revenue into Google Books, Maps, etc. Google has also expanded into mobile phones, tablets, Chrome Books, Google Play, etc.

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