Google is undoubtedly the world’s best-known corporation for spearheading the search engine revolution and allowing internet users to search for information with a mouse click. Technology companies must consider both internal and external strategic factors while conducting business. These strategic concerns focus on how firms deal with their rivals.
An ever-changing environment in the internet services and consumer electronics markets needs an organization’s capacity to maintain its long-term survival and profitability. In the context of the competitive industry, this SWOT analysis examines Google’s great strengths and weaknesses and its opportunities or threats. A company’s performance is evaluated in the current market situation, such as significant changes in technology and shifting customer preferences (Leonow et al., 2019). Strategic planning at Google LLC can benefit from conducting a SWOT analysis.
Google was founded in California in 1998 by Larry Page and Serge Brin. Their research at Stanford University led them to create a massive technological corporation (Doeden, 2021). Since then, the company has seen phenomenal expansion and has emerged as a front-runner in the mainstream media market. Google’s effort in organizing information has been a massive success for the online business and, by extension, the global economy since firms, people, and users can search and access data on anything, anywhere, and anytime.
Given the company’s creative and successful business strategy, outstanding brand recognition, and accompanying efforts, Google is a globally valued firm. The strategic planning and competitive positioning of the technology company consider the internal and external factors identified in this SWOT analysis. These SWOT analysis aspects are linked to Google’s overall competitive advantage strategy and global expansion techniques.
Google SWOT Analysis
SWOT Analysis is the best way of evaluating Google’s strengths, weaknesses, opportunities, and threats. SWOT analysis is used to analyze a company’s competitiveness and establish strategic planning.
· The Biggest Search Engine
· Increased User Traffic Capability
· Massive Data Collection and Accumulation
· Revenue from Advertising and Display Ad
· Google Android and Other Mobile Technology
· Over-reliance on Confidentiality
· Ad rates are dropping.
· Personal data protection laws and policies
· Corporate fraud
· High rate of staff turnover
· Android is an operating system for smartphones and tablets.
· Diversifying beyond ads
· Cloud Computing and Cloud Storage
· Working from Home
· Social-media competition
· Anti-encryption campaign to decrease child abuse
· Computing on the go
· A policy of Censorship.
Strength of Google
Business analysts look at the company’s use of information and communication technologies (ICTs) to see how that affects its ability to compete. The following are Google’s core strengths.
The Biggest Search Engine
With a monopoly on most online queries, Google is the most powerful search engine in existence. With more than 65 percent market share, Google dominates the internet search business (Srinivasan, 2020).
Increased User Traffic Capability
Google’s capacity to increase internet user traffic has made it one of the largest and most influential brands. There are more than 1.2 billion unique queries performed on Google per month on average, according to the company. Because of this, it has a distinct advantage over its competitors in the marketplace.
Massive Data Collection and Accumulation
Google has created many programs and tools. Moreover, half of all smartphones in use today are powered by Google’s Android operating system. Gmail (and GSuite) is the accepted standard for personal and corporate email. Cloud-based storage provider Google Drive offers free and premium storage options for digital files. Google owns YouTube, the largest video-sharing website (Google, 2022). Google uses these tools for advertising products to specific people based on the information it gathers.
Revenue from Advertising and Display Ad
Advertising and display Ad income make up most of Google’s revenues. The Google Play store generates 30 percent of the company’s profits. Because of its partnership-based revenue model, the firm can boost its top and bottom lines with little resources. Adaptability has been key to the company’s success in a volatile market.
Google Android and Other Mobile Technology
The company’s use of Android and other mobile technologies has elevated it to the status of a major rival of Apple in the market for similar devices and operating systems.
Over-reliance on Confidentiality
Experts have criticized Google for keeping its search algorithm and key formulas under secrecy. Users and business owners are suspicious of Google’s opaque system. Google has provided a sheared version of its optimization technique in recent years.
Ad rates are dropping.
As a result of decreased ad sales, the performance of the business has suffered a significant blow in the past few years, notably in 2013. The current economic recession and more aggressive competition are to blame for this trend. Apple has taken moves to monetize search on its smartphones, so Google must be aware of its challenges.
Personal data protection laws and policies
Many industry professionals have criticized Google for its excessive dependence on privacy, particularly the company’s efforts to conceal information about its algorithmic techniques. Several measures have been put in place to remedy the situation since then.
Google uses its dominating position as the most popular search engine in an unethical manner to prevent new competitors from entering the market. A lawsuit was recently filed against Google alleging that the company conspired with Apple to make it the default search engine in the United States for the Browser.
High rate of staff turnover
Google has a high employee turnover, even though it provides its employees benefits like full healthcare provision, travel insurance, and friendly vacations. Companies that are complicit in tyranny or societal ills and those who encourage these things are reviled by their consumers. Around 1,600 Google employees sent a petition to the business in June 2020 requesting that it stop supplying its G-suite services to law enforcement agencies in response to the demonstrations organized by the Black Lives Matter movement.
Google LLC may take advantage of several attractive opportunities in its key industries and emerging markets.
Android is an operating system for smartphones and tablets.
Google’s initiatives to expand Android offer the biggest expansion. Because of this, it has a higher potential to compete against Apple’s iOS. The firm has developed into a significant competitor to both Samsung and Apple. Android offers more customization than iOS. Google was a pioneer in developing the Android operating system presents the company with its most significant opportunity.
Diversifying beyond ads
The corporation must diversify into non-ad income if it wants to remain successful. Current indications are that it is adjusting to this, as demonstrated by its drive towards commercial transactions via sites like Google Books, Google Maps, etc.
Cloud Computing and Cloud Storage
Google continues to maintain an interest in cloud computing due to the company’s substantial background in the delivery of storage and cloud solutions. The cloud computing paradigm is an excellent method to break into the market for commercial software and services. Google has a leg up in the cloud computing market thanks to its extensive background in storing and delivering data to remote servers. The cloud-computing paradigm may allow it to break into the business sector. Cloud computing and cloud storage present significant opportunities for Google’s business. All organizations may now acquire cloud-based software through an online store launched by the corporation.
Working from Home
There is a growing demand for remote work solutions, as Microsoft and Zoom have made large sums from their teleconference services. Taking advantage of the rising need for remote work solutions, Google has integrated Gmail teleconferencing functionality, attracting enterprises searching for remote work options.
The expansion of enterprises and the fast advancement of technology pose threats to the sector. SWOT analysis defines these risks as external elements that hinder the technological business. Hazards to Google’s strategy and profits include:
Social Media has threatened Google’s internet supremacy, and the business must draw an ace to cope with Facebook/Meta and Twitter. Facebook features a marketplace, business pages for information and promotions, and targeted advertising. Before turning to search engines like Google or Bing, many users turn to Facebook groups for assistance.
Anti-encryption campaign to decrease child abuse
Cases of internet child exploitation images have risen from thousands to millions. To guarantee that those who abuse children online are brought to justice as quickly as possible, several governments and organizations that advocate for children are calling for the abolition of encryption technology. Governments and child welfare groups believe that Google and other digital corporations should stop employing encryption. Without the ability for users to remain anonymous on the internet, Google may lose subscribers.
Computing on the go
Google also faces competition from the burgeoning field of mobile computing, which poses a risk that the corporation may be left behind by newer companies who are quick to capitalize on the potential to expand their mobile computing footprint.
The policy of Censorship.
Google has not been able to shield itself from the criticism leveled against its censoring policies. The formation’s political and ideological affiliations have been the subject of several leaks, which whistleblowers have initiated.
Using SWOT analysis, you can see how Google stacks up against the competition in its many SWOT factors. The wide use of Google’s products and services enables the company to realize enormous revenues. The search engine continues to expand its user base year after year and make technological advancements. If Google fixes its weaknesses and threats, no other corporation can even match or even beat them.
Doeden, M. (2021). Sergey Brin: Groundbreaking Google Founder. Lerner Publications™.
Google (2022). Our products, available at: https://about.google/products/
Leonow, A. I., Koniagina, M. N., Petrova, S. V., Grunt, E. V., Kerimkhulle, S. Y., & Shubaeva, V. G. (2019). Application of information technologies in marketing: experience of developing countries. Revista Espacios, 40(38).
Srinivasan, D. (2020). Why Google dominates advertising markets. Stan. Tech. L. Rev., 24, 55.