Google Swot Analysis

SWOT Analysis:

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 rйsumйs a day

* Froogle.com / Google Product Search

Threats

* Potential Yahoo/Microsoft alliance

* Facebook

* Click fraud

* Copyright disputes stemming from Google Book Search and the digitization of millions of books

* Censorship

* Google Earth's effect on security

Strengths:

1. Website - www.google.com - The site provides Google users easy access to information worldwide. The immediate information is available to anyone with internet access. Users are fed information from the site's online index at a speed less than 5 seconds. iGoogle also allows users to customize the homepage with news, sports, weather forecasts, and other information to their liking.

2. Patent for ranking tool - Software program PageRank is Google's system for ranking web pages. This program was developed by Google founders Larry Page and Sergey Brin. PageRank uses a link structure to determine a user's value of a page and its importance to the search. There are more than 10 other aspects that Google determines when putting together the matches of a search (Google).

3. Revenue from advertising programs - Google's primary source of revenue is through advertising. Google's two main advertising programs are AdWords and AdSense. AdWords allow advertisers to promote their advertisements to people who are searching for related information. AdSense promotes advertisements on websites of Google network members that match the company's content (Google).

4. 2007 Fortune #1 Best Company to Work For - Google offers its employees free meals at its 11 cafeterias within their California headquarters, GooglePlex. Google also has numerous snack bars all within 150 feet from each worker. Google owns and operates five wireless enabled coach busses that provide transportation from five locations around the Bay Area. Those who drive their own vehicles are treated to on site car washes and oil changes. Google also offers employees up to $5,000 towards the purchase of a hybrid car. Google also offers many other financial rewards to ease childbirth, for referring an employee, and for new career opportunities. At the GooglePlex, employees can do their laundry for free, get a massage, study a foreign language, work out, as well as drop off dry cleaning. Five on site doctors are also present to provide free check ups (money.cnn.com).

Weaknesses:

1. Google's tendency to solve engineering problems instead of user problems -

Google has had a tendency to lack follow up on certain projects causing problems for users and employees. Always inventing and reinventing new engineering projects, Google employees sometimes push other projects aside in hopes for new breakthroughs.

2. Google's contextual ads continuously targeted by click fraud - Google is constantly contested by click fraud which is an internet crime that occurs when some illegitimate source pretends to be user and clicks on pay per click ads. This accumulates the charge per click without any knowledge or interest in the link.

3. Google's failed efforts offline - Google has struggled to penetrate other markets such as print media. Its attempt to purchase and auction off advertising space in various magazines has also been unsuccessful. Most researchers determine print media as a less effective and slower response printing tactic. Google has revolutionized online and rapid response advertising and are continuing their attempt to upgrade print media advertising.

Opportunities:

1. Advertising partnership with Yahoo - With recent discussions between Microsoft and Yahoo, top officials for both companies have spoken in attempt to form a partnership. Discussions now revolve around Yahoo potentially using Google's search program as well as their ad system with revenues split between the two.

2. Experimental partnerships with radio and print media - Although struggling to break through, Google