RUNNING Head: (GOOGLE) STRATEGIC ANALYSIS AND RECOMMENDATION 1
(GOOGLE) STRATEGIC ANALYSIS AND RECOMMENDATION 7
(Google) Strategic Analysis and Recommendation
Being one of the best companies in the world Google Inc. (Google or “the company”) is a worldwide technology organization that provides search, enterprise, platforms and operating systems, marketing and hardware products. The organization have premises in UK, US and in other nations across the globe. The headquartered of Google is in Mountain View, California and has employed about 47,756 individuals as of December 31, 2013.The corporation command strong global reach and market share that offer maintainable advantage as the corporation ingrained position in the market permits it to drive revenues. However, extreme competition has capability to influence the market share and growth prospects in the company.
The success of Google Corporation is directly founded on its capability to exert its strengths. Mostly the company strengths must be enough to sustain its growth in the SWOT analysis model. One of the main strength of the company is that it is an excellent frontrunner in search engine that shows its dominance in the market and a big portion of the internet searches globally. Google control about 63% of all shares in the market via the internet searches where even the rivals are unable to match their success (Falagas, et.al.2008). Also another strength that Google enjoy is the ability to generate use traffic. Being one of the household brands worldwide its capability to motivate internet operators’ traffic is renowned, and hence this has assisted it in becoming one of the utmost influential brands globally. In fact, Google corporation attain more than 1.2 billion hits a months in relations to various exceptional searches that operators implement on the website and thus this ensure it have unparalleled edge and unrivaled advantage over its rivals in the marketplace. The company also through revenue model reaps huge profits via third partnership with sites that have held the organization through also its capability to swab up incomes and upsurge both its bottom-line as well as it top-line is apprehensive. This remains also an important asset of the corporation that has aided it gauge better statures. One of the last strengths of the company is the introduction of Mobile and Android Technologies and thus this has enabled it to become a direct rival of Apple as far as these strategies, where also operating systems are looked upon.
Irrespective of its market supremacy, Google’s weaknesses brings trials to its corporate. According to Googles Code of Conduct it openly shares private corporation information across the organization. The company faces many risks as a result of having more than 20000 employees around the globe who openly share private information within the company (Falagas, et.al.2008). This is a big challenge as the information leak either intentional or otherwise is more difficult to control when a lot of workers are privy to such statistics. About 90% of all google revenue is as a result of online advertisement where also the online advertisement is predicted to improve in double digits and thus will enable google to grow its revenue in the short run (Falagas, et.al.2008).However; in the long run the company may face slow revenue growth or even the decline. Bearing in mind that Google is big corporation it has many services and product that add very little value to the company thus resulting to loss in many instances and finally decreasing the company revenue’s. Also, the company is mostly involved in hearing over the entered patents and other intelligent property. All in all this litigation are more expensive and use a lot of time and in most cases amuses the corporation from innovating rather than litigating.
The company is well known for organizing information concisely and precisely. The information provided by Google has been crucial towards expansion of global internet use, contributing massively to the global economy. The reason why Google is associated with being a global economy enhancer is because other corporative have utilized its search engine through a click of a mouse and get some crucial information vital for their development. Google has a motto,” do not be evil”. It means that the company is geared towards providing information that will help people solve their problems. Google’s practices have been criticized by some authoritarian states like China for providing information to their citizen, which in their view is destructive but on a true balance, Google has committed no offence and instead it has done more good than harm (Falagas, et.al.2008). The following are opportunities which the company can utilize on; Android system: the company can properly utilize the app and pose serious competition to Apple. Utilizing non Add models: Google should devise other platforms of generating revenue rather than depending on ads only. Google play and Google glasses: the company can fully exploit these opportunities and succeed effectively in future. Cloud computing: Google should move towards commercializing the idea in future because it has already initialized it. The following the possible threats that Google is likely to face; Facebook’s competition. Advertising through social media platforms and more specifically Facebook poses a big threat to Google. The company is forced to device other means to counter competition from these social media platforms. Mobile computing: Mobile computing poses another big threat to Google’s success because most people nowadays have resulted towards using mobile devices to get information. Obviously, mobile users use more mobile compatible apps than Google which is not fully compatible.
The Strategic thinking of a company is based on how the company does business. For example, manufacturing companies do plan in terms of big projects which take long time to be implemented and require long preparations. Basically, companies which build complex items or structures naturally plan their production in life cycles and can take about one to two years or sometimes even longer. Long cycle planning was a business model that was most prevalent in the 20th century and was mostly engineered through the power of books and proper business planning. Internet companies like Google should work with a different pace in order to meet the ever changing demands of its users around the world. Google for instance should make short time plans which results to big positive impacts on an ongoing basis to its radical customers. For the company to succeed and supersede its competitors it should ensure that it keeps on evolving on a daily basis incorporating all the customers’ demands continuously.
The next step of actions that the company needs to think of is how to use its current strengths to overcome its weaknesses and effectively compete against its competitors. Apart from apple, Facebook is the biggest threat to Google’s growth in the advisement business now and in future. Facebook has grown exponentially commanding the social media business as well as the securing a trusted advertising platform. Google on the other hand, depends mostly on advertising through ads(Falagas, et.al.2008).. Use of ads in advertising compared to use of social media platforms, is not a new generation’s form of advertising. Google should rethink on its business model and embark on creating a medium size social media platform that compete effectively with Facebook. By doing that Google will be able to take advantage of its big capacity to effectively advertise through that social media platform. The social media platform can help Google to increase its clicks reducing the number of clicks that Facebook has as well as increasing its chances of data trafficking through internet.
Another serious threat that Google should address using its strength of having esteemed customers is the threat of incompatibility. Google apps have shown their redundancy when it comes to being compatible with modern generation internet devices. Unlike Facebook and Apple apps, Google apps keeps on encountering problems when being used through either a tablet or a mobile phone. Note that the above statement excludes the mobile android app. The company should develop an app that is faster and effective to use through these new generations’ devices (Falagas, et.al.2008). Google has the opportunity of taking advantage of the cloud computing technology which was first envisaged by the company. With the growth of the technology in the world, then this is automatically the best time that Google spreads it to the rest of the world before its competitors take that advantage first. The company has also another serious weakness of over relying on the internet to sell. This weakness can be easily countered if the company adopts use of physical stores to sell some of its products. Another serious threat that the company has the capacity to resolve is the problem of products counterfeiting. The problem can be countered easily if Google educates its users about how their original products look like. The company can further carry out another SWOT analysis and look for specific recommendations on how to fight the challenge of software counterfeiting globally.
[bookmark: _GoBack] In conclusion, Google is company that has a big potential of growing in future and thus expand its market position. Even though, expansion is hard task and it takes meticulous and great strategy planning for the company to attain its aim. Thus Google require approving an open mind in directing its practices and businesses strategy that will help them in the future. One of the strategic recommendations for Google Company would be to continue upholding its competitive advantage via the product variation. The diversifying of product portfolio in the search engine firm will be important in making sure wider audience is reached by Google. For example, Google give various search engines tools to be used by various applications including Google Maps, Google Earth, Google toolbar and many more others. Thus having a diversified product portfolio will enable the Google to continue expanding its client’s base. Among the essential goals in the Google Strategy is the Mobile Operating system Mobile industry and also various secure platforms (services, devices, application and networks) are already part of google strategies. It is also advisable for Google to capitalize on its different initiatives through using its essential competencies. The company is in a good position of having a core capability such as good corporation values that entices a pool of top talent wanted for invention, brand equity and public relations. These essential capabilities will play an important part in safeguarding the corporation’s market share upsurges in its corresponding ingenuities.
Falagas, M. E., Pitsouni, E. I., Malietzis, G. A., & Pappas, G. (2008). Comparison of PubMed, Scopus, web of science, and Google scholar: strengths and weaknesses. The FASEB journal, 22(2), 338-342.