Google Company’s SWOT Analysis

After several years of a new search engine development, Larry Page and Sergey Brin launched a small company named Google, which only within a decade turned into a large international, multi-million enterprise specialized in the Internet technologies. Nowadays, its services and products go beyond Internet advertisement, electronics, and mobile applications. High quality, innovation, ease of use are merely a few values that made the brand a leader in its sphere of performance.

The purpose of this paper is to identify strengths and weaknesses of current Google’s internal business processes, as well as opportunities and threats posed by the external environment in which it operates, by using SWOT. Based on the results, strategic recommendations for Google will be developed.

Results

Strengths
  • The company has a highly diversified product portfolio including search software and hardware, mobile applications, online services, and so on.
  • Since 2001, Google’s financial performance continues to improve. Within merely a four-year span, the enterprise managed to double its total revenues, which equaled US $50,175 million in 2012.
  • An extensive acquisition portfolio largely contributes to the company’s profitability and allows entering new market segments. Motorola Mobility is one of the most lucrative among its recently acquired ventures.
  • Innovation and technological leadership are the major competitive advantages of the company.
  • The brand is positively perceived by the public.
Weaknesses
  • Although Google aims to expand in other industries such as electronics, it is still highly dependent on the Internet.
  • Currently, the organization’s output within the electronics industry is limited by smartphones. It means that Google’s capacity to reach regions with underdeveloped Internet network is low.
Opportunities
  • The use of mobile technologies and mobile Internet, as well as Internet television, significantly increased in the past decades. New solutions in the given market segment are extremely demanded.
  • The further penetration into the electronics and television industries can help Google discover new sources of income.
Threats
  • The technology and media industries are characterized by intense competition. The largest Google’s rivals are such large enterprises as Facebook, Microsoft, and Apple.
  • The market is saturated with multiple substitute products and services, which customers may purchase at variable prices. Additionally, competitive search instruments appear, e.g., Microsoft’s Live Search.

Strategic Action

Current Google’s strong and highly competitive product diversification strategy can be used to improve its presence in the electronics and technology market. Not only can the company introduce such new products as tablets, laptops, and other related technologies and accessories but also develop devices associated with limited competition in the market. The launch of a lower-priced mass-market Google Glass line is a bright example of this strategic approach. However, the management should consider all recent trends in the industry. For example, the development of VR and robotics technologies can be a promising orientation because they are extremely demanded in such sectors as gaming, medicine, and education.

Conclusion

The results of SWOT analysis reveal that Google has a plethora of competitive advantages and operational strengths. However, it also has some weaknesses, which limit the company’s growth. To maximize the identified opportunities and avoid environmental risks, it is suggested for Google to invest in other industries besides the Internet more actively. However, since a lot of similar electronics devices and technologies are already present in the market, the emphasis should be made on the exclusivity and uniqueness of new products.