Google, Inc. is one of the leading search engines on the internet today. Their pioneering software has revolutionized the way information is organized and retrieved. A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is an interesting way to take a closer look at a companies situation in a given market. I took a closer look at where Google is sitting in relation to some of it’s biggest competitors, Microsoft and Yahoo.
Strengths
Leading player in the global Internet software & industry services market
3.1% share of the market value
66.8% share of the global search market
Robust financials
Year/Year net income increase of 14.5%
Year/Year gross profit increase of 30.75%
Strong brand image/awareness. CNBC ranked Google as the number one brand for 2011 and Millard Brown ranked Google as the number two brand in the world for 2011.
The company’s strong infrastructure base allows it to introduce new innovative products and services to gain a competitive advantage
Google provides an interface that is available in over 100 languages
Strong infrastructure base
Low operating cost in regards to products & services
The speed & ease of navigation of Google’s search engine is consistent & reliable
Strong social networking/media segment market share
Orkut & Gmail are very popular social networking sites
Youtube online video services is a leading media platform
Weakness
Too dependent on advertising revenue.
68% of Google’s income is generated through online advertising
Lack of product integration
Company has been focused on launching new products in recent years and less on integrating products into a whole to deliver a more integrated system for the end consumer
Competitors like Yahoo have done a better job of product integration, which puts Google at a competitive disadvantage
Opportunities
New products & services
Android phone and applications
Google TV
Strategic Acquisitions
57 Acquisitions were