Google

Google

Introduction

Google (or "the company") is one of the leading internet technology and advertising companies in the world. The company specializes in internet search engines and related advertising services. Google also specializes in providing operating systems for cell phones, known as “Android”. It maintains a large index of web sites and other online content, which are freely available through its search engine (Burrows, 2011). In the next section, we will perform a Google SWOT analysis, analyze the current situation using the SWOT framework, and identify facts in the case that match concepts of strategic planning (vision, goals, and strategies) and relate them with the case.

Discussion & Analysis

Strengths

Google's profitability has increased in recent years. The company's operating profit increased at a CAGR of 25% for the period 2008-10 from $6,632 million in 2008 to $10,381 million in FY2010. Similarly, the net profit also increased at a CAGR of 42% during the same period from $4,227 million in 2008 to $8,505 million in FY2010. As a result, the company's operating and net profit margins have increased from 30.4% and 19.4%, respectively, in 2008 to 35.4% and 29%, respectively, in FY2010 (Burrows, 2011).

Google has a wide portfolio of offerings. The company's integrated offerings include search, platforms, enterprise products and operating (Robert, 2005).

Following are some of Google's leading products:

Google.com

Gmail

Google Docs

Google Reader

Google Instant

YouTube

Google Sites

Google Calendar

Google Groups

Google+

Google Chrome OS

Orkut

Google Books

Android

Google TV

Wide portfolio of offerings enables the company to enhance its customer reach thereby equipping it with more sources to generate advertising revenue.

Weakness

Google has relatively low patent technology compared to its competitors. For example, as per the industry sources, the company was granted 282 US patents in 2010, compared to Microsoft's 3,094 new patents and Apple's 563 patents. Also, in July 2011, Apple, Microsoft, RIM, and the other consortium partners won Nortel's bidding and gained access to over 6,000 mobile patents. Although, in the same month, Google purchased 1,030 patents from IBM to protect its Android platform from litigation, it may not completely protect the company from patent wars, especially from the combined efforts of Apple and Microsoft to target Google's Android platform (Georgem, 2001).

Furthermore, the legal uncertainty around the open source operating system may make new customers wary about licensing the Google mobile platform and also can cost current Android customers millions of dollars. In addition to fighting lawsuits against itself, Google also has to concentrate on helping out its carriers who are ...