Google Corporation’s Situational Analysis
Google Company has been one of the strongest companies that have been in operation for long. It is characterized by a continued high growth rate in the past five years. The Company operates worldwide in a market that has strong competition. Using the SWOT analysis tool, it is evident that the Corporation has a strong foundation.
Google Inc. enjoys a high power of substitutes with no switching costs incurred. Additionally, the company does not give power to the suppliers. In this way, it proves that the company has control over the production, the supply of products, and the pricing (Durica & Svabova, 2015). In order to maintain the customer base in the market place, Google Inc. offers moderate power to its customers. This is to ensure that the customers dedicate themselves to purchasing from the company. It also indicates that they have a share in enjoying the control of market prices of its products as well as the quality.
Despite of the existing big range of strengths that give it dominance in the corporate world of technology, some weaknesses are evident and they pose challenges to the corporation. Primarily, the corporation is dependent on the internet (Durica & Svabova, 2015). The company has to wait for improved network coverage in order to expand its services to developing countries. This presents a challenge to the business in comparison to other competitors such as Apple that has in the establishment of physical presence in the same countries.
Based on technological changes, the company can engage in the tapping of the existing mobile users in order to offer them products that are mobile user friendly. Additionally, Google is well-positioned in a bid to offer fiber coverage and expand it to many countries. In this way, the overall revenue will increase greatly.
Despite the lucrative opportunities that are promising, some significant threats have been observed in the operations of Google Company. Over the years, more companies have come up and presented tough competition to Google (Durica & Svabova, 2015). Such companies include Apple and Yahoo. The existence of these companies means that they produce products that are similar to Google’s and thus imitation of products weakens its competitive advantage in the market.
The tentative target market of Google Inc. is each individual that has access to the internet. With the large potential market of an estimated a billion-plus customers. This means that its marketing objectives should be based on tapping customer potentiality.
Durica, M. & Svabova, L. (2015). Improvement of Company Marketing Strategy Based on Google Search Results Analysis. Procedia Economics And Finance, 26, 454-460. http://dx.doi.org/10.1016/s2212-5671(15)00873-4