Google Strategy

Google’s Strategy in 2010

Chotsani Lewis

MGMT 440

04/27/2013

SWOT Analysis

Strengths

* Leader in search engine

* High percentage of smartphones through Android

* High in videos through YouTube

* Product integration

Weaknesses

* Not enough purchasing of mobile ads causing them to not be as valuable to advertisers

* Unprofitable products

Opportunities

* Improve their online video and online advertising

* More products to add to their recent released laptop (Google Chrome)

* Work on advertising their social network (Google +) more

* Building of a new internet service that’s faster and low in price (Google Fiber)

Threats

* Apple

* Microsoft

* Facebook

* IBM

Major Problems/Issues

Google’s main source of income that is solely relied on is their revenues from online advertising. Many people do not purchase from the ads. Also, personal computers are very slow in today’s market, which gives Google a decline in its computer search engine market. The number of mobile users is growing more and more. This means there will be fewer searches on the computer and will cause lower income for Google. Mobile searches do not make as much money as computer searches. On a mobile device, there is less space for ads. Due to this issue, the cost per click has had a sudden drop recently. The amount of money Google makes from each click is part of their ad business.

Google also has unprofitable products causing them to lose money. Motorola is experiencing a loss in its revenue. There are other products associated with Google that are also not doing so well. Unprofitable products lead to unprofitable company. When consumers are not attracted to certain products, they also seem to not be attracted to the company as a whole.

Analysis

With so much competition, Google must really work hard to stay on top. Apple has already dropped YouTube as a standard app on their devices. They have also stopped using...