SWOT analysis is used to strategically plan and identify a company's internal strengths and weaknesses and the external environment that creates opportunities and threats. Company's use their external opportunities to reinforce internal strengths and improve internal weaknesses in an attempt to achieve organization goals.
The internal factors of strengths and weaknesses are measured by its impact on the goals and objectives of the organization. A company's strengths are its resources and any other developments that can create a competitive advantage. Some of the internal factors are part of the marketing mix - product, price, plan, and promotion. The non existence of specific strengths may also be categorized as a weakness.
The external factors of opportunities and threats present themselves from the external environment. Some external factors are new technology, change in regulations, and competing products and firms. A matrix is usually used to express the results of the analysis (David).
Strengths
Simple design and level of ease
Patent for ranking tool
Revenue from advertising programs
2007 Fortune #1 Best company to work for list
Weaknesses
Google's tendency to solve engineering problems instead of user problems
Google's contextual ads continuously targeted by click fraud
Google's failed efforts offline
Opportunities
Advertising partnership with Yahoo
Experimental partnerships with radio and print media
Acquisitions of businesses (YouTube, DoubleClick)
Other partnerships (AOL Time Warner, NASA, News. Corp.)
Increase in online advertising
Online video increasing
Google engineers are encouraged to spend 20% of their work time (one day per week) on projects that interest them
1,300 résumés a day
Froogle.com / Google Product Search
Threats
Potential Yahoo/Microsoft alliance
Click fraud
Copyright disputes stemming from Google Book Search and the digitization of millions of books
Censorship
Cited: "Authors Guild Sues Google, Citing "Massive Copyright Infringement"." The Authors Guild. 20 Sept. 2005. 21 Feb. 2008 <http://www.authorsguild.org/news/sues_google_citing.htm>. Beal, Andy. "Exclusive: Google 's Click Fraud Rate is Less Than 2%." Marketing Pilgrim. 11 Dec. 2006. 13 Feb. 2008 <http://www.marketingpilgrim.com/2006/12/google-click-fraud-rate-two- percent.html>. "Censorship by Google." Wikipedia. 25 Feb. 2008 <http://en.wikipedia.org/wiki/Censorship_by_Google>. David, Fred. Strategic Management. New Jersey: Prentice Hall, 2007. Elgin, Ben. "Google 's Print Auction Fizzles." BusinessWeek. 24 Mar. 2006. 24 Feb. 2008 <http://www.businessweek.com/technology/content/mar2006/tc20060324_25166 0.htm>. Meiners, Janet. "30% Increase in Online Advertising in 2008." Marketing Pilgrim. 4 Oct. 2007. 24 Feb. 2008 <http://www.marketingpilgrim.com/2007/10/30-increase- in-online-advertising-in-2008.html>. "NASA Takes Google on Journey Into Space." NASA. 28 Sept. 2005. 12 Feb. 2008 <http://www.nasa.gov/centers/ames/news/releases/2005/05_50AR.html>. "Time Warner 's AOL and Google to Expand Strategic Alliance." Google Press Center. 20 Dec. 2005. 19 Feb. 2008 <http://www.google.com/press/pressrel/twaol_ expanded.html>.