Google swot analysis 2017

GOOGLE INC.SWOT ANALYSIS 2017

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ABOUT GOOGLEName Google Inc.

Logo

Industries servedInternet (Google Search, Google AdWords, Gmail)Computer software (Chrome OS, Picasa, Google Earth)Consumer electronics (Chromebook, Nexus, Google TV)

Geographic areas served Worldwide (more than 50 countries)Headquarters Mountain View, California, U.S.Current CEO Sundar Pichai

Revenue US$74.541 billion (2015) increased 13.5% over US$65.674 billion (2014)

Profit US$16.348 billion (2015) increased 15.6% over US$14.136 billion (2014)

Employees 61,814 (2016)Parent Alphabet Inc.

Main CompetitorsAmazon.com, Inc., Apple Inc., Facebook Inc., Microsoft Corporation, Samsung Electronics Co., Ltd., International Business Machines Corporation and many other Internet, computer software and consumer electronics companies.

Google Inc. business overview from the company’s financial report:

“Our founders started Google because they share a profound sense of optimism about the potential for technology to create a positive impact in the world. As Larry and Sergey explained in their first letter to shareholders, our goal is to: “... develop services that significantly improve the lives of as many people as possible.”In many ways, Google itself began with a series of questions: What if we could download and index the entire web? What if we could organize all the world’s information? And then we went out and searched for the answers.

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BUSINESS DESCRIPTION (1/2)“ ”

We know we’ve found the right answers when they pass what we call the "toothbrush test," whether this product will be used by hundreds of millions of people everyday, hopefully twice a day.

• We generate revenues primarily by delivering online advertising that consumers find relevant and that advertisers find cost-effective.

• We provide our products and services in more than 100 languages and in more than 50 countries, regions, and territories.”[1]

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BUSINESS DESCRIPTION (2/2)“ ”

1. Dominance in web search, video content sharing, online advertising, mobile OS, browser usage and many other markets

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STRENGTHSS WO T

Google31.0%

Facebook7.8%

Microsoft2.5%

Yahoo2.5%IAC

1.0%

Others55.2%

Net digital advertising revenue share worldwide in 2014

Source: eMarketer[2]

Google dominates most of the markets it operates within, including:

• Online advertising

• Web search

• Smartphone OS

1. Overdependence on revenue from advertising

Google is very vulnerable to the following changes in the digital advertising market:

• increasing competition;• query growth rates;• the evolution of the online advertising market;• changes in advertising offerings;• advertising trends;• user preferences.

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WEAKNESSESS WO T

In 2015, Google earned US$67.4 billion

or 90.4% of its total revenue only from

advertising.

1. Growing market for subscription-based video on demand services

• YouTube is the most popular video on demand streaming platform in the world, with more than 1 billion users.[22]

• The market for subscription-based video on demand services is growing and will reach 200 million users by 2020.[24]

• YouTube could introduce a subscription-based service, charging users for viewing video on demand content such as movies, TV shows and TV series, as well as YouTube’s own original content.

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OPPORTUNITIESS WO T

1. Reliability and user experience of the Android OS may decrease significantly due to increasing fragmentation

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THREATSS WO T

Figure 10 reveals that Android OS is very fragmented due to

differences in its many versions and each

manufacturers’ customizations.

Source: OpenSignal[33]

1. Google Inc. & Alphabet, Inc. (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at: https://abc.xyz/investor/pdf/20151231_alphabet_10K.pdf Accessed January 8, 2017

2. eMarketer (2014). Microsoft to Surpass Yahoo in Global Digital Ad Market Share This Year. Available at: http://www.emarketer.com/Article/Microsoft-Surpass-Yahoo-Global-Digital-Ad-Market-Share-This-Year/1011012 Accessed January 8, 2017

3. Net Market Share (2016). Search Engine Market Share. Available at: https://www.netmarketshare.com/search-engine-market-share.aspx?qprid=4 Accessed January 8, 2017

4. IDC (2016). Smartphone OS Market Share, 2015 Q2. Available at: http://www.idc.com/prodserv/smartphone-os-market-share.jsp Accessed January 8, 2017

5. Naughton, J. (2015). Google’s dominance faces a challenge at last. Shame it’s too late. Available at: http://www.theguardian.com/commentisfree/2015/apr/18/google-eu-monopoly-inquiry-too-late-to-stop Accessed January 8, 2017

6. Wikipedia (2016). List of mergers and acquisitions by Google. Available at: https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Google Accessed January 8, 2017

7. Wikipedia (2016). List of mergers and acquisitions by Microsoft. Available at: https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Microsoft Accessed January 8, 2017

8. Wikipedia (2016). List of mergers and acquisitions by Facebook. Available at: https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Facebook Accessed January 8, 2017

9. Wikipedia (2016). List of mergers and acquisitions by Apple. Available at: https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Apple Accessed January 8, 2017

10. Wikipedia (2016). List of mergers and acquisitions by Yahoo!. Available at: https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Yahoo! Accessed January 8, 2017

11. Microsoft (2016). 2015 Annual Report. Available at: https://www.microsoft.com/investor/reports/ar15/index.html Accessed January 8, 2017

12. Facebook, Inc. (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at: http://investor.fb.com/secfiling.cfm?filingID=1326801-16-43&CIK=1326801 Accessed January 8, 2017

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SOURCES (1/3)

13. Apple Inc. (2015). Form 10-K for the Fiscal Year Ended September 26, 2015. Available at: http://files.shareholder.com/downloads/AAPL/2067195377x0x861262/2601797E-6590-4CAA-86C9-962348440FFC/2015_Form_10-K_As-filed_.pdf Accessed January 8, 2017

14. Google Inc. (2012). Form 10-K for the Fiscal Year Ended December 31, 2011. Available at: http://www.sec.gov/Archives/edgar/data/1288776/000119312513028362/d452134d10k.htm Accessed January 8, 2017

15. U.S. Patent and Trademark Office (2014). Patenting by Organizations 2013. Available at: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/topo_13.htm Accessed January 8, 2017



18. Jaruzelski, B., Staack, V. & Goehle, B. (2015). Innovations New World Order. Available at: http://www.strategy-business.com/feature/00370 Accessed January 8, 2017

19. Interbrand (2016). Best Global Brands. Available at: http://interbrand.com/best-brands/best-global-brands/2015/ranking/ Accessed January 8, 2017

20. Forbes (2016). The World's Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed January 8, 201721. FastCompany (2014). Most Innovative Companies 2014. Available at:

http://www.fastcompany.com/most-innovative-companies/2014/google Accessed January 8, 201722. YouTube (2016). Statistics. Available at: https://www.youtube.com/yt/press/statistics.html Accessed January 8, 201723. Winkler, R. (2015). YouTube: 1 Billion Viewers, No Profit. Available at: http://www.wsj.com/articles/viewers-dont-add-up-to-profit-for-

youtube-1424897967 Accessed January 8, 201724. Thomas, D. (2015). How video-on-demand tech is changing the TV landscape. Available at: http://www.bbc.com/news/business-

34050865 Accessed January 8, 2017 25. ITU (2015). Internet of Things Global Standards Initiative. Available at: http://www.itu.int/en/ITU-T/gsi/iot/Pages/default.aspx Accessed

January 8, 2017SLIDE | 10

SOURCES (2/3)

26. EMC & IDC (2014). The Internet of Things. Available at: http://www.emc.com/leadership/digital-universe/2014iview/internet-of-things.htm Accessed January 8, 2017

27. Norton, S. (2015). Internet of Things market to Reach $1.7 Trillion by 2020: IDC. Available at: http://blogs.wsj.com/cio/2015/06/02/internet-of-things-market-to-reach-1-7-trillion-by-2020-idc/ Accessed January 8, 2017

28. Carter, J. (2015). Will Google Brillo shake the smart home to its very foundations? Available at: http://www.techradar.com/news/world-of-tech/will-google-brillo-shake-the-smart-home-to-its-very-foundations--1301655 Accessed January 8, 2017

29. World Health Organization (2015). Diabetes. Available at: http://www.who.int/mediacentre/factsheets/fs312/en/ Accessed January 8, 2017

30. Americans Diabetes Association (2014). Statistics About Diabetes. Available at: http://www.diabetes.org/diabetes-basics/statistics/?referrer=https://www.google.com/ Accessed January 8, 2017

31. PwC Health Research Institute (2014). Health wearables: Early days. Available at: http://www.pwc.com/en_US/us/health-industries/top-health-industry-issues/assets/pwc-hri-wearable-devices.pdf Accessed January 8, 2017

32. Mattera, S. (2015). Google's Android Has Never Been More Fragmented. Available at: http://www.fool.com/investing/general/2015/09/01/googles-android-has-never-been-more-fragmented.aspx Accessed January 8, 2017

33. OpenSignal (2015). Android Fragmentation Visualized. Available at: http://opensignal.com/reports/2015/08/android-fragmentation/ Accessed January 8, 2017

34. Dipane, J. (2016). Lollipop is now the most-used version of Android, Marshmallow up to 2.3 percent. Available at: http://www.androidcentral.com/lollipop-installs-surpass-kitkat-active-android-devices-marshmallow-23-percent Accessed January 8, 2017

35. PageFair (2015). The 2015 Ad Blocking Report. Available at: http://blog.pagefair.com/2015/ad-blocking-report/ Accessed January 8, 2017

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SOURCES (3/3)

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