This article covers the SWOT analysis of Google

SWOT analysis of google

Strengths of Google:

The first in the SWOT analysis of Google is Strength.

Google carries a diversified product portfolio that caters to Web Browsing, Video content, Online Advertisement, mobile operating system, browser usage, and many other verticals.

It is the largest advertisement company and generated most of its annual revenue from Advertisements

The major contributors are:

AdWords and Search Advertising.

Any search of information in Google Search Engine displays a list of search results by Google Algorithm. The Algorithm attempts to provide the closest result for the information searched and may suggest relative information web pages. Any recommendations you see after you logged in to any of the Google Sites are generated through Google AdWords.

To gain the Top spots in Google Advertisements, advertisers bid for the same where the highest bid may lead to top positions and low bid may not even get displayed. Pay Per Click cost is been paid by an Advertiser to Google which may vary from few cents to $50 for a highly competitive search.

AdSense Network: Caters Non-Google websites that allows Google to display advertising on their web pages. It works like Google’s onsite advertising, but advertisement is displayed on Google-approved sites only. On Click of an Advertisement displayed revenue sharing is done between the site owner and Google. AdSense acts as the primary source of income for the company contributing roughly 22% of revenue.   

Other sources of Revenue:

The other sources of revenue are also one of the biggest strengths of Google. It consists of Cloud Computing businesses such as Play Stores, Chrome cast, Chrome Books. Software-based business such as the Android operating system and Google Apps. Whereas offline projects (Hardware products) include Google Glasses, Self-Driven cars, Google Pixels Smartphones, Google Home Smart Speakers, Google Wifi mesh Wireless Routers and Google Daydream virtual reality headset.

Language Support and Voice Assistance:

Google translates more than 100 languages at various levels and servers more than 500 million people daily. It’s Artificial Intelligence function include Written Word Translation, Website Translation, Document Translation, Speech Translation, Mobile App Translation, Image Translation, and Hand-written Translation.

With a high competition with Amazon Alexa, Modern MI assistance, Apple Voice Assistance (Siri) Google is in a race of Pushing his voice assistants “Ok Google” and every Giant is trying to become the default voice assistant for the smartphone devices across the world

 Google may have taken a lead over Siri it developed an Automatic Speech Recognition (ASR) through Google Home capable of understanding more than 115 languages.

Weakness of Google

The second point in the SWOT analysis of Google is its weakness.

  • Google CEO Sunder Pichai is expected to testify before Congress on in a World-Wide Range hearing about Data Breaching, Misinformation campaigns, and concerns
  • Largest Financial Mistake was purchasing Motorola Mobiles at $12.5 billion in 2011 where Lenovo bought Motorola Mobility from Google for $2.91 billion just two years after the acquisition.
  • Search Algorithms are not accurate and many of the times make mistakes.
  • Apple has already started working on his search engines which can impact the revenue in future and falling Ad rates and other economic factors such as Global economic slowdown directly impacts the declining revenue from Ads which directly impacts the profitability of the company. 
  • Shut Down of business in China
  • Weak presence in Social Networking Space.

Opportunities for Google

Opportunities form the biggest point in the SWOT Analysis of Google.

Below are some of the opportunities for Google.

  • Android Operating System
  • Cloud Computing
  • Payment Gateways
  • Diversifying business into Hardware and Software business models
  • Google Giga Fiber
  • Enhance itself but Acquiring new business.
  • Mergers with Other Portals to increase its Revenue.

Threats for Google

Some of the biggest threats for Google are as below:

  • Alibaba is moving in the Chinese market whereas in 2018 Google has shut down its operations in China
  • Uphill Battle to catch up the capabilities of voice assistants like Home, Siri, Alexa, and Tech Startups in a race to set as a default voice assistance.
  • Lenovo has chosen Alexa to power its low-cost assistance products of Consumer voice control.
  • High Advertisement Cost leads to shifting of Companies to other platforms such as Social Media Sites.
  • Since every platform is having its mobile interfaces leading the customer to directly access the web applications, Mobile Computing is becoming a major threat leading to Ad revenue Loss
  • Confusing Pay per click policies.

Challenges for Google

  • Amazon

Amazon one of the Internet Giants for Online Shopping also has a diversified portfolio and both Google and Amazon are in the business of selling Goods and Services. Where the end customer very often hops from Google Search Engines go directly to Amazon. According to eMarketer reporting on a survey that 48% of the online shoppers started directly accessing Amazon whereas 35% of the end-users still use Google Interface.  

Amazon also offers addon services like Buy and Sell Information, Product Reviews, Answers to Customers Queries

Every time the customer bypasses Google, the company fails an opportunity to show an ad to the viewers

This concludes the SWOT analysis of Google

LATEST POSTS:

Leave a Reply

Your email address will not be published. Required fields are marked *