Strength
Google has always enjoyed the reputation of innovation and
creativity. The biggest resource of Google is its people. Tons of top engineers
and talents are attracted to this giant. Google employees work under a very
flexible and comfortable environment and company structure to make sure their
creativities. Its technology team makes sure Google is always in advance of
everything. With the best people in the company, Google knows what it is doing.
Its strong brand identity also can’t be ignored. Google made “google” a verb
that equals “search”. The equation that “Google=Search” brings Google tons of
benefits. It takes controls of 6.5% internet traffics, which makes it reach out
huge population. Also, Google create its own eco-system in which Google won’t rely
on any other channels or companies.
Weakness
As we all know that now Google is everywhere. It’s now in
search engine, social network, mobile devise, tablets, software, TV, and even
car business. There is an old saying in Chinese, “Things will develop in the
opposite direction when they become extreme.” In my eyes, Google now is in too
many areas but its major profit only comes from advertisement on its search
engine. Google’s focus has been distracted to many places. No one can make sure
that all the investment will get returns. Costs in R&D and human resources
are very high. Wastes are created to drag Google’s speed back.
In addition, Google Android can also be regarded as a
weakness of Google. Android is an open system that others can get the code and
modify for free. Compared to its biggest competitor iOS, which is a closed
system, Android lost tons of profit. Even though Android has bigger market
share, it lost profit.
Opportunity
If Google can turn its weakness around, opportunities occur. As
I talked in Google’s weakness, Android system right now can’t help Google make
money. How to improve the system or the formation and how to use Android to
make sustainable profit are key issues. Right now Android is used as a platform
to provide Google’s services such as Google Map and Gmail. The essence of these
services is still advertisement based business model. The real benefit of
Android operating system is hidden. It’s an opportunity for Google. Google now
has both software (Android) and hardware (Motorola). With these resources,
Google has the opportunity to compete with and win Apple. In addition, Google
TV, Cars, Glasses and Cables are all undergoing. Once these products find a
profitable and practical business model, it will be very promising with all the
innovation and first mover advantages.
Threats
When it comes to threats, the first thing comes to most people’s
mind will be competitions. Google faces even more fierce competition than any
other companies since Google has too many fragments. In each field, Google
faces different competitors, some of which are very strong such as Apple,
Amazon, Facebook and AT&T. Google is the best in search engine, but not in
portable devices and cables networks. The threats from these strong competitors
of market share and profit won’t make Google as easy as its in search engine
fields.
Patent problems also threat Google. Apple just won Samsung a
big one. What’s next?
With the whole SWOT analysis above, my suggestion on Google’s
strategy is to invest more on its R&D department to look for an exit for
its Android operating system and focus on it. Keep make smart decisions on
acquiring companies. Use its huge influence on Internet to attract more
attention on what it is doing.
Menting, I agree with you that Google at this point in the game has its eggs in many baskets and has to be careful not to lose focus on what they are good at while trying to gain success and competitive advantages in other areas. They need continue to work diligently to maintain their strength as the top search engine. They also need to continue to offer excellent customer support to maintain profitability with advertising. As a compnay they may need to take themselves out of any areas where it would "cost" too much, either monetarily or opportunity-wise to be successful, and invest more in the areas where they have a chance to be profitable based on talent they already have or by aquiring the talent to do so.
ReplyDeleteI really liked the point regarding the word "Google" being not just the name of their company, but also used as a verb. This is something that didn't occur to me as I was considering Google's strengths, however, is in fact one of the best examples of brand recognition and resonance with customers. When considering this attribute of Google's, I thought of it as a weakness when it comes to expanding into other markets. It's obvious that Google is looking to dominate and become profitable in many areas outside of their search engine. However, the concept of being known in a particular way or associated with a specific service or product is where I found the weakness to come into play.
ReplyDeleteNow, reflecting on this I feel that it can be viewed both ways. The difference is in how Google aligns their strategy to target those new markets. How significantly does their strategy change depending on how they perceive their own strengths and weaknesses?
I agree with you that Google should be more focused. In Steve Job's biography, he mentioned the same problem with Google. In fact, Google has already slashed 20% of its wireless work force and it is in the process to put in a sharper focus in its wireless strategy around Android and high end market. We will see if it works out better this time around.
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