Google Strengths and Weaknesses: SWOT Analysis

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Introduction

Corporates use SWOT analysis as a tool for making decisive and strategic decisions that are essential for the stability of the company in the long run. In fact, SWOT analysis is the most reliable tool managers utilize to come up with the best marketing decisions. SWOT is an abbreviation of the company strengths, weaknesses opportunities and threats. Critically the company strengths and weaknesses are found within whereas the opportunities and threats are found in the outer environment where the company operates. This tool is used to get the most out of the company strengths and minimize on the weaknesses (Ross et al, p. 91).

Google Strengths

Google market

Google marketing strategy majorly focuses on the younger generation of the world that is constantly searching for the information, acquiring knowledge, having fun and become familiar with what is happening around them within the internet. Though the younger generation is the main target market, Google in addition have diverse customer base including older generations, corporate and institutions. In the same vain Google market are all that use the internet search engines (Lussier and Achua, p. 423).

Key technologies

The software that Google uses is capable of accomplishing sequences of simultaneous tasks and calculations within the smallest time possible. Furthermore Google uses over 200 signals in its patented Page Rank TM algorithm. This patented algorithm enables the search engine to peruse the entire web and ranks the pages depending on their significance. Besides, Google uses Hyper-Marching Analysis (HMA) capable of analyzing the full text page and all existing technicalities such that the end result suits the requested information by the user.

Quality personnel

Google human capital is composed of employees with astounding profile, vast experience and high academic achievements. The top management comprises of people with technical experience in information technology and skills in knowledge based management (Lussier and Achua, p. 423). The top corporate executives holds at minimum MBA and PHD in various fields relevant with the mission, objectives and vision of the Google.

Capital Base and Revenue Streams

A decade after its incorporation Google has achieved capitalization of $105 billion surpassing major corporations such as Procter and Gamble. In terms of market capitalization Google is ranked number five. Much of its revenue comes from advertising. It is estimated that Google earns over 30% more per advertisement in revenue than its competitors such as yahoo. This increases Google comparative advantage over the competitors such as MSN that is entering the search engine market.

Google Weaknesses

Google suffers from various predicaments ranging from getting the best employee or applicant for various vacant positions. Besides, employees loyalty and dedication diminishes as various attractive firms enter the market. The greatest fear is that the staff that leaves Google may reveal trade secrets to the company top rivals. Moreover Google enter in numerous contracts that in one way or the other end up wasting the company resources.

Opportunities for Google

External environment provides many opportunities to be exploited by Google so as to become adaptable to the operating industry. An opportunity that is open to Google is the Web service that can work with any software installed. Many computer manufacturers also accept the new Google chrome operating system that in essence has weakened Microsoft (Ross et al. 91). Indeed the most available opportunity for Google is to ensure that the consumers and businesses are persuaded to use its new operating system as well as its internet usages and online applications.

Google Threats

The biggest threat to Google is its competitors that include Microsoft, MSN, Yahoo and Amazon.com. More than often these companies have been involved in stealing the Google patent and blocking any court injunctions made by Google. During Law suit engagements, these competitors tend to enter into mergers and other agreements to gouge Google. The company is also faced with the threat ensuing from its contracted employees. Its failure to motivate these contracted employees working all over the world is working against the company. Other threats are economic turbulences and financial crunch that has rocked the world economy in the last two years.

Works Cited

  1. Lussier, Robert and Achua Christopher. Leadership: Theory, Application, & Skill Development. Farmington Hills, Michigan: Cengage Learning, 2009.
  2. Ross, Holly, Verclas Katrin and Alison Levine. Managing Technology to Meet Your Mission: A Strategic Guide for Nonprofit Leaders. Hoboken, New Jersey: John Wiley and Sons, 2009.

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