Google Swot
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Google
The name Googol was founded by a gentleman named Milton Sirotta. Mr. Sirotta was the nephew of an American mathematician named Edward Kasner (Google, 2004, 1) The company name Google was created in reference to the actual number googol which is represented by a number followed by 100 zeroes. The meaning behind the company’s name was to reflect the companies mission to organize immense amounts of information available on the web(Google, 1). In 1995 Google was created by two young men, Larry
In overview google’s mission is to organize the world’s information and make it universally accessible and useful (Google.com, 2004, 1). Since its creation in 1995, Google has since evolved not only into the worlds largest Internet search engine, but is also one of the Internets largest advertisers.
Strengths, Weaknesses, Opportunities, Threats and Trends (SWOTT)
Strengths.
Google’s strengths are many, and they are getting stronger with each passing day. Competition from Yahoo and Microsoft in many ways, keeps the trio at Google on their toes and thinking of ways to improve an already invincible machine. In the past year alone so much has taken place with the company going public, its unique management structure, the acquisition of blogger.com, the introduction of Gmail, local and mobile searches, a Marconi award, and on and on it goes. Eric Schmidt has made it very clear that the status quo is not, and never will be an option at Google.
Diversity and innovation have been strengths from the very beginning. From the very first version of Google’s algorithmic search engine to the very last upgrade, others have tried to copy and imitate Google’s unique search engine and advertising machine. Yahoo has narrowed the gap, spending over $2 billion to acquire commercial search pioneer Overture Services, Inktomi and Kelkoo. Microsoft has followed suit spending over a half billion dollars to develop a new and improved MSN search engine. Even still, Google accounts for 75% of external referrals to most websites. Webmasters are lining up to bid on search words and position on search hit lists. Get on the wrong side of Google,Inc. and you may find yourself penalized by Google and traffic suddenly disappears.
We certainly cannot talk strengths without addressing the financial successes the company has enjoyed in the last few years. When Google, Inc. filed to go public last year, speculation ended about the company’s profitability. They generated over $960 million in revenue in fiscal 2003 and posted $105 million in net profit. That was the third consecutive year of profitability for Google. In the first quarter of this year, the company earned almost $390 million in revenue and posted a $64 million profit. Google generates 95 percent of its revenue from advertising, which it shares with its distribution partners such as America Online that use its search index. Advertisers buy keywords that launch small text ads next to search results. Advertisers pay the amount they bid for the terms but only if someone clicks on their ads.
2. Weaknesses.
As is often the case with successful companies, it is easy to become enamored with what made you successful in the first place. In Google’s case, that would be search advertising. It was intense concentration on search ads that took them quickly to the top and the same focus on search ads could end up costing them dearly. Some feel Google relies too heavily on revenue from search ads and that the company should expand revenue streams from other forms of advertising as well as developing its other offering more fully.
The company prides itself (or so it seems), on its triad in management. Co-founders Larry
Another Achilles heel may be the sheer numbers that make the search engine the best in the world. Millions