Google SWOT analysis (Essay Sample)

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Strengths
Valuable and consumer experience are the crucial substances. The quality products offered by the organization are directed towards solving the client’s wants and issues through provision of exceptional consumer experience. The products produced by the company form an ecological unit due to their addition therefore encouraging the use of more organizational commodities due to customer’s experiences. Google has great access to the leading faction of internet users worldwide .It s world mobile search market users is at 89% and also has access of the world desktop search market users at 79%. This makes it easier for Google to promote and sell commodities with the internet users representing a tremendous large market for the company. Google’s financial situation is also growing at a higher rate because it’s among the most profitable organizations in the universe, with $48 billion just in cash and another $7 billion in debt. It also has $11 billion profits (22%) and earnings as nearly $50 billion. This makes it hard for other companies to compete with them. Google has witnessed great success in its Android servers in the mobile market. The company is also one of the richest in the modern world.
Weaknesses
However it also faces a series of weaknesses: The Company is frequently involved in lawsuits due to violated copyrights and other few logical property. These lawsuits are time consuming and quite costly and cause the company’s distraction of advancement but litigating mostly. They have many commodities that don’t really add value for the organization which make losses only therefore decreasing company’s earnings (Girard 66). The company is also faced with a threat of relying on a single source of income which is advertising. The company has also not been doing well in the social networks. All its social networks such as Google+ and Google- Wave service have not achieved much since their inception. The company has to work harder on this so as to fill the niche and get a larger market share (Google Inc. SWOT Analysis 27)
Opportunities
They have opportunities such as becoming the best communal networking and internet search instrument available due to Google Plus’ great pustule to coalesce all Google’s services. Google has an opportunity of owning both the cloud and the edge if it continues with the same innovation strategies that it is using. The Smartphone and tablet markets are increasing year after year thus providing opportunities for Google to expand on its services. The increased number of internet users also translates to increased number of clients. Mobile ads are also on the rise providing an emerging opportunity that will increase the revenue of the company.
Threats
However it also faces threats such as leaking of secret company information can put the future of new Google commodities at risk and may lead to a higher chance of gaining competition from other companies in the market. Google is facing a lot of competition in the industry. The company faces stiff competition from Microsoft which has recently introduced windows mobile operating system which has really challenged Google. There are also new search engines such as Amazon, WebMD, Face book and many others which are a challenge to the company. The increased number of mobile internet users also provides a challenge to Google as there is very little spaces on the mobile phones where Google can place its ads. This high number also lowers the number of computers used meaning reduced searches and consequently lowers revenues for the company.
Offensive marketing strategies
Offensive marketing strategies are those that act as the driving force of your business in the new and primary segments. On the other hand, the defensive strategies normally protect the already secured segments maintaining the name of your brand. Google uses its offensive strategies to put its promotions and best offers out there so as to beat their competitors. Through the domination of search engines, Google owns the cloud. Google is also truing to gain more browsers in an attempt to compete on the ownership of this edge with Microsoft. Google has also been spending a lot in its Android mobile technology in an attempt to beat the Apple’s iPhone.
Defensive Marketing strategy
The deal of Google buying Motorola seems to be more of a defensive rather than offensive strategy. All along Google has been a software company and integrating it with hardware means that it is using Motorola to consolidate Android to implement the strategy of ubiquity. This move has had some effects to the competitors as well as the hardware partners who have been upset by this competition. Microsoft has been really challenged and will have to come up with a new strategy to beat this move by Google.
Subsidiary strategies
Google is as well using other subsidiary strategies so as to improve on its welfare. Google has expanded its use of the Double Irish strategy so as to reduce its tax burden. It is doing this by using a legal practice though it is ethically questionable. This move is saving the company billions in taxes all over the world. This strategy involves moving money around the world involving two particular tactics referred to as the "Double Irish" and "Dutch Sandwich”. In other words, the company licenses or sells its overseas rights to intellectual property in the US to a subsidiary country which has a much lower tax rates. The subsidiaries pay a lower price for these rights just like any other outside company. These payments normally contribute to taxable income making the parent company setting them very low. This move normally transfers the profits overseas (Jarvis 88).
Alliances
Alliances are agreements between two or more existing parties in pursuing agreed objectives and targets while still remaining independent organizations. Google has partnered with Intel to come up with PC hardware and Software. Intel will provide chips that will be used in the Google’s Android devices. This alliance will also come in handy now that Google has closed a deal with Motorola (Ryan 108). It is circumstances that have led to this Alliance between these two giant companies. Intel is looking forward to see Google beat Apple because Apple uses its own self made chips in its Smartphone sand tablets. Google has to have faster chips since it acquired the phone business of Motorola. Nokia, which was Intel’s major partner shifted to using Windows Phone 7 owned by Microsoft. Google has also launched Genomics Effort by joining Global Alliance. This Alliance is responsible for securing affective sharing of the clinical and genomic information in the cloud.
Marketing strategies in Developing countries
Nokia’s biggest competitor Android has hit hard in the developing countries. This is a Google’s product and it has done very well in these developing countries so far. Google has employed professional strategies to promote Android’s use in the developing countries. It has done this by producing a variety of Android phones which have become very popular and familiar to the people (Ryan 129). Most people pr...