According to sources, Google held a market share of more than 73% in the search advertising industry in 2019. Alphabet has proven its capabilities in terms of mergers, acquisitions and successfully integrating businesses into the company. Worldwide smartphone OS market share (in percentages). company’s product portfolio is very diverse, October 2, 2015 (Google founded in September 4, 1998), 110.855 billion (2017) 22.8% increase over 90.272 billion (2016), 12.662 billion (2017) 35% increase over 19.478 billion (2016). (2017). All rights reserved. Google has become the biggest search engine globally, commanding 86% of the search market, followed by Bing, Yahoo and Baidu with 6.55%, 3.27% and 1.08% respectively as of 2018. In June 2020, more than 1,600 Google employees petitioned the company to stop offering its G-suite services to police departments in the light of Black Lives Matter protest. Growing brand awareness. With more than 86.2% of the global online search market, Google has become the biggest search engine in the world operating in 219 countries globally, ahead of competitors Bing, Yahoo, and Baidu with 6.55%, 3.27%, and 1.08% respectively as of 2018 (Statista 2018). Indeed, this very aspect can make the company take the next evolutionary leap into the emerging world of nano-computing. Management Study Guide is a complete tutorial for management students, where students can learn the basics as well as advanced concepts related to management and its related subjects. Ovidijus is the founder of SM Insight and the lead writer since 2013. Alphabet is like many other technology companies in the sense that without such acquisitions, they would have to invest heavily in R&D to either improve their products or create new ones. Available at:, Statista (2018). Available at: http://files.shareholder, (2018). In the last several years, Google has enjoyed consistent growth in its revenue and income. The US tech giant has created a near monopoly in the global search market commanding the biggest market share in UK, USA and across many European countries. Google is already making moves to exploit the demand for remote work solutions and recently added video-calling features and other collaboration tools in Gmail to attract companies seeking to empower their employees to work from home or remotely. The service was introduced in Kenya and used balloons to provide affordable 4G internet to under-covered rural communities in the East African nation. Read more about Google and its business in this SWOT analysis, analyzing the strengths, weaknesses, opportunities, and threats before the company. Providers of digital video services, such as Amazon, Facebook, Hulu, and Netflix. Explore Our Work. Google can target advertisements or adapt its products to its users’ needs better than any competitor, because it has both smarter algorithms and much more information about its users.[5]. Laws and regulations as well as, regulatory threats continue to remain an important obstruction in the way of faster growth of technology brands like Google. Available at: https://www.fastcompany, Google Inc. (2012). However, the increased use of cloud-based technology products globally has shown that the cloud industry is poised for faster growth. Contents. Available at:, Crunch Base (2018). Figure 2. To protect its interests, Google has attempted to launch several social media platforms unsuccessfully like Google Plus and Shoelace, which failed to gain traction and forced the company to shut it down. The report will also examines threats from economic, social, technological, legal and environmental issues while also identifying the available growth opportunities in Google’s business environment Using Google’s SWOT analysis, the report looks at the search giants key strengths and weaknesses and how it can use these strengths to mitigate threats and take advantage of arising external opportunities. While Amazon has gained a little in the digital advertising industry, the market share of Google in the digital advertising industry is still substantial. The company dominates the digital advertising market through many different channels, including its own AdWords advertising program, AdSense, YouTube and the Android OS. The revenue of Google from the nonadvertising sources is growing fast. While Google has since its foundation focused upon employee satisfaction and motivation, the CEO Sunder Pichai recently publicly accepted that the company was dealing with employee discontent. Internet of Things (IoT) connected devices installed base worldwide from 2015 to 2025 (in billions). Perhaps the biggest strength of Google is that it is the undisputed leader in search engines, which means that it has a domineering and lion’s share of the internet searches worldwide. Form 10-K for the Fiscal Year Ended December 31, 2017. If Google addresses its weaknesses and threats, no other competitor can outperform or even match this company. The company invested USD 13,95 billion, USD 12,28 billion and USD 9,83 billion on R&D for 2016, 2015 and 2014 respectively. Moreover, wearable technologies and autonomous driving are also generating a high level of interest. Google and Facebook Tighten Grip on US Digital Ad Market. Internet of Things. This gives it an unrivaled and unparalleled edge over its competitors in the market. The US tech giant has created a near monopoly in the global search market commanding the biggest market share in UK, USA and across many European countries. Half of global digital ad dollars going to Google and Facebook, says report. The report also comprises discussions of Alphabet marketing strategy and addresses issues of corporate social responsibility. Google maintains a leadership position in online advertising segment. It is currently a subsidiary of the holding company Alphabet Inc which currently controls a diverse range of businesses including YouTube, Dialogflow, AdMob, Google Japan, Android and Google environment among others. While Google has brought a large range of cloud computing products, its main focus was digital advertising and the company remained lagging behind the leading players in the area of cloud computing. Available at:, Gartner (2018). 1. With Pixel, Google is pricing and marketing the device to go head-to-head with Apple and Samsung. Google’s large empire touches billions of users’ lives every day. 2. Apart from the leading and fastest search engine, Google has also brought a large range of other products and services used by individuals and businesses worldwide including cloud-based services. All it takes to gather information now is a click of the mouse. Available at:, Interbrand (2018). Failure in Social Media Revolution: Before the emergence of social media giants like Facebook and Twitter, most people relied on Google to access the latest news digitally. In Notesmatic. He's been using his knowledge on strategic management and swot analysis to analyze the businesses for the last 5 years. In this effort, google has introduced paid services such as, The primary threat that Google faces is from its competitors. However, the company’s product portfolio is very diverse and includes both related and unrelated hardware and software products and services. Google has kept updating and releasing new versions of the Android OS for its users worldwide. This SWOT analysis show… If Google addresses its weaknesses and threats. Global market share distribution in desktop search segment as of April 2017[2]. Please consider supporting us by disabling your ad blocker. The majority of Alphabet’s new initiatives and projects require massive capital investments for development with no sign of profit in the foreseeable future and there is a risk that some of them may not make profit at all. Another threat to Google is from the emerging area of mobile computing that threatens to pass the company by as newer companies seize the opportunity to ramp up their mobile computing presence. Available at:, Android (2018). Porters Five Forces of Google 2019, Free 2. Our vision is to remain a place of incredible creativity and innovation that uses our technical expertise to tackle big problems. Available at:, Transparency Market Research (2018). Revenue from the Top Subscription Video on Demand Apps Grew 77% Last Year in the U.S. She is a creative writer, corporate storyteller and global brand consultant, who has a unique combination of a business and creative mindset. Mobile Operating System Market Share Worldwide. Online advertising is the main source of revenue for Google which is currently the leading player in the digital advertising industry. 123 Writing is a trading name of Research Global Ltd, a company registered in England and Wales. About; Team; Careers; Our Values; Press; Our Customers; Company Information; Contact Us; Languages. Google employees also say that their job is low stress with positive implications on their performance. [5] Taking into account an increasing popularity of online advertising compared to traditional media advertising not only for the US, but in the global scale in general, it can be argued that leadership in online advertising is a massive strengths for Google that can be beneficial for long-term perspective. Google is already dealing with a large number of regulatory and legal challenges including antitrust issues, anticompetitive behavior, and investigations into its attempts to establish its monopoly in the internet world. Form 10-K for the Fiscal Year Ended December 31, 2011. Initially introduced only as a search engine, Google has effectively dominated this segment due to the speed and efficiency of operations according to the mission of the company “to organize world’s information and make it universally accessible and useful”[1]. However, apart from its online products and services, the company has also brought some hardware products like Pixel smartphones as well as Android OS to the market. Google can lose a majority of the 2 million YouTube subscribers due to the price hike. The Pixel could also be a part of Google’s larger strategy to defend its mobile search ad business. 4. . Retrieved from Google’s revenue from cloud computing has grown a lot in the last year. Available at:, Forbes (2018). Android OS is the number one mobile OS in the world, being used by some of the largest smartphone vendors such as Samsung, Huawei, Xiaomi, OPPO, Lenovo, LG and Huawei. In recent years the company has also grown its investment in research and development fast. The SWOT analysis of Google shows the strengths, weaknesses, opportunities, and threats of the biggest online search engine. Google is a leading technology enterprise that enjoys strong brand recognition in all corners of the world. Share your thoughts and experiences in the comments section below. SWOT Analysis of Google. Apart from that, the other sources of revenue have an overall very small contribution to its entire earnings. We face competition from: You can find more information about the business in Alphabet's official website or Wikipedia’s article. The popularity of Google allows it to enjoy huge profits. Google has become the biggest search engine globally, commanding 86% of the search market, followed by Bing, Yahoo and Baidu with 6.55%, 3.27% and 1.08% respectively as of 2018. Within Google, our investments in machine learning over a decade have enabled us to build products that are smarter and more useful -- it's what allows you to use your voice to ask the Google Assistant for information, to translate the web from one language to another, to see better YouTube recommendations, and to search for people and events in Google Photos. Almost 87.35% of the search in the web is conducted in Google in the year 2020(2). Social networks, such as Facebook, Snap, and Twitter. Available at:, U.S. Patent and Trademark Office (2017). Specifically, the range of innovative products and services introduced by Google include, but not limited to self-driving car equipped with video cameras, radar sensors and a laser range, Google TV, a platform that integrates television and internet, Google Replay, a source for achieve of tweets, Priority Inbox feature in e-mails and others.