Strategy of Google Company

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Table of Contents

Introduction
SWOT Analysis
References

Introduction

Google Company was started in 1996 by two computer science graduates from Stanford University. The two graduates developed the search engine and named it Back Rub. One year later, the search engine had gained popularity among the Silicon Valley Internet Users.

They changed the name from Back and Rub to Google in 1998. Since then, this company has experienced a massive growth in the internet industry. It was ranked the best search engine in the world. The company recently launched a mailing system, G-mail, which would allow its users to send and receive emails, share pictures and many other services that other industry players had not come up with in this industry. It has the largest market share, with a market growth that has remained positively skewed for the last ten years.

Currently, the company has partnered with a number of mobile telephone manufactures to develop internet enabled phones. This has earned it a lot of revenue. In 2006, it acquired YouTube as a strategy to expand its market share and sources of revenue. Through this, the company has become the largest internet advertiser, earning it more income. The management entered into alliance with Logitech, Sony, Adobe and DISH Network to develop Google TV. This would provide users with television channels and recorded programs on demand.

SWOT Analysis

This company can best be analyzed through SWOT analysis. Kotler and Armstrong (2010) note that this brings to focus a competitive advantage of a firm.

The company has several strengths that make it maintain its market lead. This company has had time to expand its financial base. As at December 31, 2009, the company had an asset base of $40,496,477. This huge financial strength makes it easy to effectively compete in the market. The company has the widest geographical coverage than any other search engine. It was rated the best search engine in 2010.

Its mailing system has been rated as the most reliable in the world, outsmarting some of the traditional players like yahoo. Its acquisition of YouTube has made it able to attract advertising firms, making it increase its market share. The company has a team of highly innovative employees. This has seen it develop some products that are widely accepted in the market.

However, the company has some weaknesses that have limited its ability to expand at a rate that had been predicted by the management. One major weakness of this company is its inability to control spammers. Through the advertisements made by the customers, a good number are fraudsters. This has seen many of the Google’s customers complain because of the loss from this. Its aggression into the mobile telephone sector may also jeopardize its ability to concentrate in other sectors.

There are several opportunities that exist for this company in the world market. Its partnership with Logitech, Sony, Intel, DISH Network and Adobe to provide programmed television services introduces it into a new industry that will enable it attract more customers to its current base. It also has the opportunity to attract Smartphone companies in developing other new models of phones.

The main threat of this company is the competing firms in this market. Firms like yahoo, Ask, Facebook, Tweeter and Flickr are eating into the market share of this company. Other external threats include hackers who are able to hijack in the system and interfere with the normal operations of this firm.

References

Kotler, P., & Armstrong, G. (2010). Principles of Marketing. 13th Ed. New Jersey: Pearson Education Press.

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Strategy of Google Company

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