This article provide Swot Analysis of Google. Google is the leading tech company in the world and has been ranked as the most innovative company and second to the most valuable brand in the World (Prachi, 2018). The company is also referred as the most successful internet company especially in the search engine, online advertising. The organisation main products include, internet service, software, electronics, capital venture, healthcare among others. The organisation has been since it establishment in 1998 has grown tremendously. For instance, the organisation recorded 22.8 percent increase in its revenue from $90.3 billion in 2016 to $110.9 billion in 2017. Between 2016 to 2017, the organisation recorded about 35 percent increase in its profit (Ovidijus, 2018).
Google operates in a very highly competitive environment from most tech companies in search engine (Bing.com, Yahoo, Yandex, Ask.com, etc.), e-commerce site (Amazon.com, e-bay etc.), social media site (Facebook, Twitter, etc.), android and software (Samsung Electronics, Apple etc.). But in spite of the intense competition, Google has stand out among the many competing firms in the industry it operates. The organisation major products include: search, YouTube, Google play, Chrome, Gmail, Android, Google maps with each of these products having more than one billion active users in a month.
The table below will present an overview of Google SWOT Analysis and Discussion in details will follow suit.
SWOT ANALYSIS IN DETAILS
Key Player and Dominant Web Search Engine: Google is a dominant player in search engine and has grown from 70 % average search in 2016 (Pratap, 2016) to about 73.73 in desktop market share and 92.9 % in mobile search as at March 2018 (Ovijidus, 2018). The company arguably hold more than 90% market share on both platform in Europe and noted by Pratap (2016) the name google is associated with search engine.
Dominant player in Online advertising revenue: Google dominates the online advertising revenue holding more than 40% revenue from digital advertising in United State and is twice more than the most competing from – Facebook. The organisation generates about 87 % of its revenue from advertising. Because google has enormous amount of user information, the company is position a leading earner in advertising through kit various platform: YouTube, AdWords and AdSense and lots more.
Successful Brand Image: Google the subsidiary of Alphabet has gained a successful brand image over time and has become one of the most valuable brands in the world. Forbes has ranked the company as the second most valuable brand in the world with value of $141.7 billion. The brand image was achieved from it excellent performance in innovation, search engine, android operating system among others.
Successful Business Acquisition Strategy: One of the powerful business strategy of Google is business acquisition making the company spend less R&D. As reported by Ovijidus (2018) about 118 companies were acquired by Google since 2012-2017.
Source of Revenue: As noted earlier 87 percent of google revenue are from advertising, making the organisation prone to economic fluctuation. There is need for the organisation to radically diversify it revenue base especially with the intense competition from Facebook.
Excess User information and Secrecy: Google has been accused of excess possession of user information and secrecy in its algorithm. In fact, the company has placed a serious restriction to its algorithm language providing only a tip after much pressure. The recent Facebook data scandal further increase search light on the operation of the company.
Poor Performance in Social Media: The organisation has been performing poorly and remain uncompetitive with social media giants like Facebook, Twitter, Snap among others even with the creation of Google plus.
Opportunities Available for Google
Dominant of Android Operating System: Google has become the major player in the Android operating system recently and has become the leading competitor in Apple and Samsung.
Diversification to other non-related Ad Program: The organisation can diversify into other related industry and non-related industry. Google has also diversified into other commercial transaction like Google Books, Google Maps etc.
Cloud Computing: Although, Google has been providing series storage facility to many business organisations. The niche has been growing and google can take advantage of large scale enterprise market using cloud computing paradigm.
Threat to Google
Increased Threat from Facebook: Google major rival is Facebook and the company currently control 20% of digital ad revenue in United State after google that earn about 42 percent.
Innovation from Major Competitors: Innovation from strong competing tech companies like Amazon and Apple can disrupt the market dominance of Google in its major niche.
Ovijidus, J. (2018). SWOT analysis of Alphabet (Google) (16 Key Factors in 2018). Available [Online] at https://www.strategicmanagementinsight.com/swot-analyses/google-swot-analysis.html
Parachi, J. (2018). SWOT analysis of Google. Available [Online] at https://www.managementstudyguide.com/swot-analysis-of-google.htm Pratap, A. (2016). Google SWOT Analysis 2016. Available [Online] at https://www.cheshnotes.com/2016/09/google-swot-analysis/