A Giant or a Colossus with Feet of Clay? Google SWOT Analysis

google swot analysis
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Some things are so familiar that you may think that they have always been part of our life. These are the things that you won’t google because….they are Google itself! However, Google SWOT analysis is not all rainbow, because, like any company, Google also has some weaknesses and threats to consider.

Google has changed our lives in many ways, and it’s nice to know that the whole vibrant world is a click away! Our faith in the search capacities of the system is unwavering. But what about the capacities of the company itself? It’s time to learn whether we’re standing on the shoulders of giants or a colossus with feet of clay.

   Google SWOT Analysis

Of course, our geeks like Google, and the phrase why not google it? is firmly established in our vocabulary. Still, it was a matter of time and controversy to decide whether Google has good prospects for the year 2019. We have summarized Google SWOT analysis 2017 and Google SWOT analysis 2018, and that’s how our assessment looks like.

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      💪 Strengths

  • Strong brand image: Everyone knows Google! The phrases like why not google it? or I’ll google it have become an integral part of the modern lexicon.

People trust Google! One survey shows that more people trust Google than the U.S. government! That is a considerable factor in Google SWOT Analysis.

  • The dominance of search engine: Of course, there are many search engines at your service, but the popularity of Google is indisputable. In 2012, Google had a 65.2% share of the search landscape and has continued its expansion since then.

Still unconvinced? Then consider the comparison between the most popular search engines below.

A graph shows the most popular search engines.

(Source: Search Engine Land, 2012)

  • Android’s success: Acquisition of Android was a breakthrough in Google’s development. Nowadays, the number of active Android users is over 1 billion people, which means that Google holds 83% of the market share! So, who doubts Google’s supremacy?!

      ❌ Weaknesses

In fact, some experts doubt the company’s success and point out to weaknesses in Google’s performance. These are factors that you must consider in your Google SWOT Analysis:

  • Heavy reliance on advertising: It is not a secret that 90% of Google’s revenues come from advertising. Being a super popular advertising platform is cool, but it also means vulnerability to external factors, like financial crises. When people are short of money, they stop investing in advertisement and hope for word of mouth.
  • Limited physical presence: Believe it or not, many people prefer dealing with companies that have physical offices and brick and mortar stores. We can spend long hours discussing the advantages of e-retailing, while Apple fans are standing in lines to get iPhone X model.
  • Low popularity of Google’s social network: While many people have heard about Google networks, a few have the Google Plus account. Facebook is still the most popular social network in the USA, with 68% of Americans using it occasionally or regularly.

      📈 Opportunities

But the company should not lose optimism since some opportunities are waiting in the short and long run:

  • Growing mobile usage: According to expert estimates, 67% of the world population will own a mobile device by the year 2019. That’s a huge opportunity for Google that is recommended to offer mobile-friendly products to tap more users!
  • Expansion of Google Fiber: A part of the Access division, Google Fiber provides broadband Internet and IPTV to various locations in the USA. The prospects are very good, since, in 2016, Google Fiber had 68.715 IPTV subscribers and 453,000 broadband customers.
  • Growing tablet and smartphone market: As we’ve entered the digital era, there’s a constantly growing demand for smartphones and tablets. In the near future, the shipment of smartphones will reach 1.7 billion. And guess who will be there, ready to offer mobile-friendly products?!
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      📉 Threats

But let’s not forget about existing threats:

  • In-app searches: The trend is that customers are shifting their attention to specific search apps, while Google remains a general search platform. In perspective, this shift will bring a reduction in the company’s traffic and take advertisers off the site. Remember, I’ve mentioned that 90% of Google’s revenue comes from advertising?
  • Competition: IT is no longer a niche. Many companies have entered the industry, and some of them make a serious competition to Google. Competition from Yahoo and Apple is no longer a secret and should be considered in Google’s strategic planning. Also, the company should not ignore the competitive threat from the national and regional companies offering similar products and services.
  • Imitation risks: Surprisingly, a significant threat comes from big companies like Nexus that imitate Google’s products. Needless to mention that imitation of Google’s products can result in a massive outflow of customers.

   Google Competitors

Obviously, Google’s SWOT analysis is incomplete until there is a clear understanding of who the competitors are. Our geeks have drafted the list of ten companies that Google should watch for:

   Google’s Top-10 Competitors:

1. Microsoft

2. Facebook

3. Yahoo

4. AOL

5. Verizon

6. Baidu

7. Alibaba

8. Ask.com

9. Apple

10. Amazon

   And What about YouTube?

The situation is, in fact, interesting because Google bought YouTube in 2006 for US$1.65 billion, and this video-sharing platform operates as one of Google’s subsidiaries. The platform is popular among customers, with a total number of 1.9 billion monthly active users.

Obviously, purchasing YouTube was one of Google’s greatest strategic decisions. However, there is a reason to fear that Google will lose the lion’s share of its users in the near future. And the irony is that the massive outflow will take place because of… YouTube. We mentioned company’s reliance on advertising in Google SWOT analysis, and considering the role of YouTube in revenue generation, its fate is crucial for Google’s prosperity.

According to Leif Johnson, The Radar expert, Amazon is “a little more angry about YouTube getting pulled from the Amazon Echo Show.” On 5 December 2017, Amazon filed two trademark requests with the US Patent and Trademark Office. Although the story hasn’t reached its logical conclusion yet, we can expect Amazontube and Opentube becoming Youtube competitors.

Our geeks will follow Google vs. Amazon case, so you get the most recent data for the most accurate the most accurate business forecasts.

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