Organizational theory- Mba 617 SWOT ANALYSIS By: Amanda dixon Organizational theory- Mba 617 February 12th, 2017

Googles strengths Leader in internet search engines Strong Financial position Vast amount of users and brand recognition Broad range of services (google docs/maps, chrome, computer software and electronics) Positive Acquisition history Innovative culture

weaknesses Many google products are offered free to consumers, not generating profits Relies heavily on few sources for income Like advertising (ad rates are falling)

Opportunities Android acquisition Growing number of internet users in mobile sector Diversification into other business beyond advertising Expansions into other electronic products Innovations (Google fiber, google cars and google vision)

Threats Unprofitable products and services Ad based revenue dependence Competition - Microsoft, apple, Facebook

SWOT SUMMARY google has been known for many years for their internet browsing services, online advertising and fun culture. However, more recently known for their acquisitions, product expansion and innovations. Google is now a multinational corporation with a diverse portfolio and over 2.5 million users. In 2015, googles revenue hit $74.5 billion dollars, up from 2014 (Martonik. Page 1). One of their more successful ventures recently has been their android operating system, as of 2015 android has captured “87.5 percent of global smartphone market share” according to cnbc. Further, nearly 9 out of 10 smartphones are using their system says the article (Kharpal. Page 1). Although, the company continues to expand and have a huge presence in the online market The Downside would be that google offers its customers a lot of free services that aren't generating revenue. Currently, advertising and now android are a few of their most profitable segments. Not to mention, ad revenues seem to be on the decline, due to the downturn in the economy. The upside is that are a lot of opportunities for in the market right now with all the companies new innovations and strategic acquisitions. The company now has the capabilities to really take advantage of the mobile, internet and electronic market. Plus, there are a lot of opportunities in driverless cars and Wi-Fi ventures. This far, the company has done a great job at growing and gaining competitive advantage through their recent acquisitions and innovations. The company continues to improve and sustain existing products while also acquiring new businesses, skills and capabilities. However, there is a lot of competition (Microsoft, apple, face book) and innovation in their existing markets (smart phones and services, internet related products) so they have to be very strategic about how they move forward to ensure capturing the market before their competitors. Recommendations: Going forward, I would recommend putting a lot of effort into new innovations in the smartphone segment, as they’ve become increasingly popular (even over personal computers). I think as long as google continues to capture the smartphone market with new innovations and a focus on customer services, they have a huge opportunity. I personally have been considering switching from apple products, as many other users. I think due to the goggles innovation and reputation, they will have many smartphone users excited to try out their products. one of their biggest disadvantages has been the fact that they offer so many free services (profit wise) so this android acquisition could be just the thing that pushes them into a new and very profitable market.

References Carson, nicholas. (September 22, 2014). “A List Of Products Larry Page Has Google Working On Other Than Search, Such As Spoons”. web. February 12, 2017. retrieved from:http://www.businessinsider.com/a-list-of-google-products-2014-9 Kharpal, arjun. (november 3, 2016). “Google Android hits market share record with nearly 9 in every 10 smartphones using it”. Cnbc. web. Feburary 12, 2017. retrieved from: http://www.cnbc.com/2016/11/03/google-android-hits-market-share-record-with- nearly-9-in-every-10-smartphones-using-it.html Martonik, andrew. (feburary 1,2016). “Google announces Q4 and FY 2015 earnings: $74.5 billion in revenue for the year, $21.3 billion for Q4”. web. Feburary 12, 2017. retrieved from: <http://www.androidcentral.com/google-releases-q4-and-full-2015-earnings> “Revenue of Google from 1st quarter 2008 to 4th quarter 2016”. Statista. Web. February 12,2017. retrieved from:<//www.statista.com/statistics/267606/quarterly-revenue-of- google/> “Google acquisitions”. Crunch base. Web. February 12, 2017. Retrieved from:<https://www.crunchbase.com/organization/google/acquisition>