Larry Page and Serge Brin founded Google in 1998. While studying at Stanford University, carrying out their research project, they formed a Google search engine. This global search engine has revolutionized the digital world. Today, the world is able to find any information just with a single click. Furthermore, google goes with the motto of ‘Do not be Evil’, which states the positive and productive use of google services. This engine has revolutionized the global economy in a way in which anyone can access business information at any time and at any location.
This SWOT Analysis provides a detailed analysis of strengths and weaknesses which are played in the internal environment. It also examines opportunities and threats that are acting externally and are responsible for the industrial growth of the company.
STRENGTH OF GOOGLE
Google’s SWOT Analysis reveals the abilities which permit it to handle the hard global competition. Google’s information and communication technologies enhance its corporate competitiveness.
Leading Search Platform around the Globe
Google accounts for more than 65 percent of the market share of online searches. Its undisputed position as a leader in the search market and controls the majority of internet searches. Therefore, Google has become the world’s leading online search engine. Statista revealed an 86.86 percent share of Google in the market of desktop searches by July 2020. Thereby controlling mainstream cyberspace.
Vast Data Collection
Google provides excellent services in the digital world. It provides applications and tools excessively. Android OS powers around half of the world’s mobiles. Email services are provided by the ‘Gmail’ and ‘GSuite’. Google Drive serves as a cloud storage platform where users can go free or pay for services. Youtube has become a standard for video streaming and sharing networks globally. The advertising industry is also served well by using these tools.
Mobile Operating System
Android OS is as famous in mobile devices as Microsoft is in computing devices. Samsung, Huawei, Xiaomi, Vivo, OPPO, and Lenovo companies utilize Android OS by Google. It has a market share of about 71.9 percent, whereas Apple iOS captured only 27.33 percent of customers. Adaptation to Android OD leads to the use of other Google Services like Google Play, Google Maps, Chrome, and Google Search. Google, therefore, acts as the global leader in the digital world.
Ad-based Business Model
Another effective strength of Google is its capacity to run an Ad-based business successfully. 30% income from Google Play is generated through this model. The corporation is gaining finances through this strategy. It has agreements with other third parties to lead to this end. Advertising revenue was around $38.9 billion in the year 2019 earned through the advertising industry.
WEAKNESSES OF GOOGLE
Corporation’s projected growth and efficiency are deeply affected by these internal elements. This SWOT section exposes those internal factors that are contributing to diminished efficiency, hindering growth, and arising technical and operational challenges. Following are weaknesses and challenges in Google’s business capabilities.
Data-gathering scares users
Google requires a lot of personal data while one is using Google services. Customers dislike the invasion of Google in personal privacy. On the other hand, life without Google can be difficult to manage due to its services range.
Concealed Algorithm of Google
Google search provides ranking from top to bottom where it ranks sites. A top position is desirable due to the chances of increased revenue. Sites even pay for links referring to rank their site and earn revenue. Google states that it ranks most popular websites with most users; no one knows the specific method, criteria, or algorithm used by it. Lack of transparency is often criticized by business owners and users.
Risk in Ad revenues
Google’s advertising policy is cost-per-click (CPC). These CPCs are vulnerable to change. They decline when users switch their platform of ad-running from Google to Facebook or Instagram. Therefore, Google cannot rely on revenues from the advertising industry as it can pose a threat to Google’s stable revenues.
Sky-Rocketing Prices
Google’s monthly subscription to YouTube has been increased from $49.99 to $64.99 since June 2020. At the same time, its rivals in Video-Streaming industries like Netflix, Disney+, and Peacock are offering mare quality and quantity data between $5 to $10 monthly subscriptions. This weak price strategy is a threat to the potential decline in million users of YouTube.
Complex Employee Turnover
Although Google offers many perks to its employees like medical and health care, travel insurance, and lovely vacations still, the corporation has a high turnover rate. Clients hate corporations that promote social imbalance, oppression or working for tyrants.
OPPORTUNITIES FOR GOOGLE
There are several external factors that can aid in Google’s business, organizational performance, and financial gains. Google has much room to expand its services and operations to earn revenue. The exciting opportunities available to Google are discussed below.
Android Operating System
Google’s pioneering of Android OS has enabled it to catch the exciting market. Customized google services and user-friendly strategies have helped Google to capture the mobile phone market. Samsung and Apple face threats from Google phones which are better connected to its Android OS. Therefore, there are still many opportunities for growth and expansion for Google corporation in the race mobile phones and OS.
Ad-free models of business
Google mustn’t rely on revenue generated through the add industry. This market is inconsistent and changeable, and Google earns the majority of its revenue from it. Google Books and Google Maps are earning rapidly. The company’s shift towards more commercial transactions is evident. Google must understand that there is a great deal of opportunity other than add-market carrying potential of massive revenue flows.
Cloud Computing and Cloud Store Services
Cloud-based services are growing at a pace. Giants like Microsoft are investing in this sector. Google has earned a revenue of 5.5 percent from Google Cloud Platform (GCP) in the year 2019. The company is ready to exploit these opportunities. It started an online shop store that would sell cloud-based software to users. Google can diversify its revenues by investing in cloud services.
Google Play and Google Glass
Google’s quest to hit the spot in nano-computing technology holds a massive opportunity for the company. Google Glasses and Google Play would enhance Google’s advancement and development. It will propel Google to compete in the futuristic nano-computing arena in the future.
Exploiting AI, ML, and robotics industries
The company has already devised many hardware and software accessories in the field of artificial intelligence, machine learning, and robotics. Many customers appraise the successful launch of driverless cars, Google Home Speaker, and Fitbit.
THREATS TO GOOGLE
Google Corporation is not prone to rise challenges in market competition and rapid technological innovation. These are the risks prevailing in the external environment of Google’s business. This SWOT Analysis emphasizes the threats face able to company.
Apple’s Divergence
Apple has made Bing the primary search engine on Siri and Spotlight’s platforms. Apple has also enabled ad-blockers to block most of the ads on the safari browser. Moreover, it also prevents Google Maps from operating in CarPlay.
Amazon’s Marketplace
Amazon is posing a threat of switching Google’s users from google to Amazon stores. Reviews, stores, and sellers on Amazon are capturing the online business market. Therefore, Google must advise strategic policy to tackle this threat.
Mobile Computing
Newer mobile computing organizations are providing services. Google is facing a threat in the rapid expansion of other companies in mobile computing. Google must devise a long-term strategic plan to ensure its computing presence.
Pandemic Shocks
Pandemic has harmed the world economy enormously. Around all microscale and macroscale corporations are affected by it. Google lnc.. is no exception in this. The company suffered a decline in advertising revenues of 5.3 percent. Google’s revenues are threatened due to this economic instability.
Final Words on Google SWOT Analysis
To conclude, This SWOT Analysis has identified the firm’s strengths and weaknesses which are relative to internal elements faced by the corporation. Opportunities and threats, playing externally, are also covered in the Analysis. Google is planning to play on a long-term basis. Its leadership position enables it to remain popular and dominant in smartphones, smart homes, and the advertising industry. The search engine industry is the real strength of Google. Google must continue to innovate its search engines so that it can remove uncertainties and dangers. This SWOT Analysis has explored the variables in depth.
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