Introduction
Founded in 1998 by Sergey Brin and Larry Page, Google LLC has become a leading player in the technology industry (p. 316). The company is known to market Internet-related products and services. The company’s mission has been to “organize the world’s information and make it universally accessible and useful” (p. 315). The firm’s business model is characterized by numerous products such as video game consoles, software, Android-powered watches, search engine, search-based ads, cloud computing services, and Google Glass (p. 315).
Strengths
- Google’s business model features numerous products that resonate with the needs of more customers (p. 315, p. 319).
- The firm’s mission attracts many customers and stakeholders, thereby making it profitable (p. 315).
- Google launched its Android operating system in 2008 (p. 322). Companies such as Nokia, HTC, and Samsung collaborate with Google to produce exemplary smartphones.
- Google’s superior products such as Google Maps, Google+, Blogger, and Gmail have succeeded in the market (p. 322).
- The corporation’s strategy dominates global Internet advertising (p. 322).
- Google Apps compete directly with existing packages (p. 323).
- Google’s Chrome and Chrome OS (operating system) encourage more users to embrace cloud computing options (p. 325).
- The company’s long-term strategy is expected to deliver advanced apps that can compete with Microsoft (p. 327).
Weaknesses
- Google has been deviating from its original business model (p. 317). The firm’s penetration into new industries continues to attract competition (p. 322).
- Google is known to focus mainly on advertising (p. 319). The emergence of a powerful online advertiser can disorient its performance.
- Secrecy is a challenge that is yet to be addressed by Google. The algorithm applied for different search results has attracted fines and penalties.
Opportunities
- More companies are relying on Android OS such as Huawei, Samsung, and HTC (p. 322).
- The number of Internet users has been increasing steadily (p. 319).
- The firm’s model can deliver diverse services and products to more people in different market segments (p. 323). The strategy can result in profitability.
- The growing population and economic performance in different regions such as India and China can support the company’s future performance (p. 322).
- Many customers prefer Android-powered mobile devices and smartphones (p. 322).
Threats
- Competition from companies such as Microsoft and Sony is on the rise (p. 326, p. 327).
- Many analysts believe that Google’s business model is sustainable (p. 323).
- The algorithm adopted by Google threatens its future profitability. Its secrecy has attracted lawsuits and fines (p. 326).
- Mobile cloud computing is a new reality that threatens Google’s future performance (p. 324).
Suggested Strategic Actions
Two strategic actions are recommended for Google. The first one links Google’s strengths with opportunities. The second one will link its strengths with threats.
Linking strengths and opportunities
Mobile cloud computing and the use of smartphones are emerging trends in the world today (opportunities) (p. 323). Google is a pacesetter in innovation. It is also a provider of quality search engine services and adverts (strengths). The firm can use these strengths to develop a new plan that focuses on the changing nature of mobile e-commerce. It can combine the scheme with its apps in order to maximize revenues.
Linking strengths and threats
Competition from companies such as Microsoft and Sony has increased significantly (p. 326). Google’s decision to invade the companies’ market segments has led to this scenario (p. 326). The company can utilize its superior model and resources to ensure products are delivered to more customers successfully.