Services Marketing Of Google

Swot Analysis of Google’s Service Marketing

Your Name (First M. Last)

School or Institution Name (University at Place or Town, State)

.

Swot Analysis of Google’s Service Marketing

Introduction

Google is considered to be a multinational high-tech corporation in America. It devotes itself to advertisement technology, cloud computing, internet search, and other fields. It provides and develops a huge number of services and products that are based on the internet. The significant profit of Google is considered to be of marketing services. After more than a development of twenty years it is recognized as the highest search engine of global internet with several users. The framework of SWOT is utilized for confirming the threats, weaknesses, and strength of competition of corporations so that they can link the internal and external resources with the environment together.

Discussion

Strength

The main source of revenue of Google is considered to be its business of advertising. In 2017, the marketing generated almost a hundred billion dollars or eighty-seven percent of the total revenue of Google and eighty-six percent of the total revenue of Alphabets. According to the report generated by eMarketer, Google earned almost forty-two percent of the digital advertising revenue of America which is considered to be twice the revenue of other larger online earners like Facebook. Google dominates the market of digital advertising through several different channels that include its own advertising program of AdWords, Android OS, YouTube, and AdSense. By dominating the market of online advertising, it can better understand the current trends of advertising, collect a huge information amount related to the shopping habits of online users and increased their concerned services by enhancing targeted advertisement. The leadership of the Market gives Google a lot of attention, publicity, and more utilizers through strong recognition of the brand. To a various extent, Google can utilize its dominant share of the market as a power source over its suppliers, competitors, and customers. Google has brilliant performance in the modern markets. It has manufactured expertise at getting into new markets and building the success of them. This expansion has assisted Google for building a new stream of revenue and diversifying the cycle of the economy that risk in the markets in which it operates in. Google has powerful free flows of cash which provide resources in the company hand for expanding into new projects (Wieland, Hartmann, & Vargo, 2017).

Any online organization which attracts a sizable visitors number is considered to be the target of the market for Google. Its strategy of the business is ahead of several competitors and will leave no competitors more efficient its quest. Google has dominated the navigation market by giving a serious threat to all other navigation companies. Google is successful relatively at new projects execution and manufactured good returns on the expenditure of capital by making new streams of revenue. Activities automation bring quality consistency to the products of Google and has also enabled the organization for scaling up and scaling down which is generally based on the conditions of demand in the market. Google has also built a network of reliable distribution which can reach its potential market majority. Google also provide high customer satisfaction level. The company with its dedicated department of customer management of relationship has able for achieving a high customer satisfaction level among the current customers and good equity of brand among the potential customers. Google also has the successful track record of integrating firms through acquisition and mergers. It has integrated successfully several companies of technology over the past few years for streamlining the operations and for building a reliable chain of supply. The acquisition is also considered to be a significant strategy in gaining competitive advantage of Google. It can target the marketing and adapt its product to its need of users better than another competitor as it has several information and smarter algorithm related to its utilizers.

Weakness

In spite of its dominance in the market, weaknesses of Google present challenges to the business. The most significant Weakness of the marketing services of Google is that code of conduct of google state that it shares openly confidential information of the company across the organization. Therefore, with more than twenty thousand employees all around the globe, sharing critical information within the organization can bring significant risks to the company. Confidential information leaks, intentionally or unintentionally are considerably more problematic for controlling when several employees are accessible to this data. According to the recent report gathered from emarketer, digital ad revenue of Google is expected to observe a decline in the shares of the market of nearly thirty-eight percent in 2019 that is due to the ongoing recession of economy and growing competition with the other competitors like Facebook. The overdependence of google on marketing services has enhanced speculations regarding the future of the company. The company generated eighty-six percent of total revenue from its marketing services related projects but the experts suggested that the potential change in the revenue can damage the company considerably. Many significant brands have boycotted against Google after their discovery that their advertisement was running along the side of extremist, and the content filled with hatred. It has a negative impact on the image of Google. The companies which boycotted against the search engine of google include Verizon, AT&T, and Johnson & Johnson in the United States of America, Lloyd's of London, the Guardian newspaper, Marks & Spencer, the BBC, HSBC, RBS, and L’Oreal in the United Kingdom, and some other brands which include Sainsbury, Volkswagen, Tesco, Havas, and Audi. Moreover, in addition to these brands, the British government has also boycotted the search engine of Google. The privacy policies of Google has also been slammed by several experts for its excessive reliance on privacy particularly when it comes to hiding data related to algorithms. The company has since taken several steps for addressing the allegations (Karjaluoto, Mustonen, & Ulkiniemi, 2015).

Dependence on the internet and minimal physical presence are considered to be some other significant weaknesses of the google. As dependence on the internet explains that Google has to wait for the coverage of the internet in order to improve in the several developing countries before it can expand its operations like online advertising in such countries. Google has most of his business on the internet therefore, it is weak in competing against the organizations which are strong in their physical presence as well.

Opportunities

Global plus is an insignificant spot for combining all of the services of Google and then become the best internet and social networking available search tool. It has several opportunities for making several headways in the freelancing market. Google TV is a new service which offers programming of TV, movies and much more across the home connection of internet. So if Google is able for expanding such service to offer premium channels, local stations, and services of pay-per-view than several consumers may be willing for replacing their services of current cable or satellite TV. The ventures of Google are considered to be a new capital group of venture within the google whose main focus is in the investments in organizations which are developing modern and new technologies. Ventures of Google are now only considering investing with the start-up organizations within North America. Google is now prepared for the market and it recently introduced Google Glasses which can boost the development and progress of Google marketing services. With the cloud and storage solution, Google can play a significant role in the marketing services of Google. It introduced a modern digital store that offers software which is based on cloud to all the organizations. Google also needs for undertaking a process of diversification and aim for building a model of non-Ad Business accordingly. It requires for pursuing adaptability through committing itself to more transactions which can make sure sustainable revenue (Chaffey, & Ellis-Chadwick, 2019).

Threats

The most significant threat which Google is facing is from its competitors Amazon and Facebook. These two competitors are slowly building a strong competition with Google in the field of marketing services. Their increasing popularity and new features have the ability to take the spotlight far away from Google. It has also been involved in the controversies of antitrust by both the EU and US lawmakers for years. These regulators of antitrust have imposed a fine of almost five billion which has created a big challenge for Google. The downturn of the economy can specifically affect Google due to highly discretionary revenue sources. The largest revenue source can be affected negatively due to the decline in consumer spending. The ability for providing and growing an innovative service directly depends on the ability of retaining and hiring the employees with the capability which creates such services. The key personnel loss can hinder the marketing service technology of Google or its strategic direction (Plantin, et, al., 2018).

Conclusion

The SWOT analysis of marketing service of Google shows that it has sufficient strengths. Google's popularity is allowing it to enjoy significant profit in the field of marketing but still, there are several weakness and threats which can hinder the economic growth of Google. It can better its marketing services upon addressing the factors of strategy that is identified in the current SWOT analysis. So, in order to address its weaknesses, Google should work on the area of its physical presence through opening of several physical stores and promotions and should also improve its technology in order to outperform its competitors.

References

Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK.

Karjaluoto, H., Mustonen, N., & Ulkuniemi, P. (2015). The role of digital channels in industrial marketing communications. Journal of Business & Industrial Marketing, 30(6), 703-710.

Plantin, J. C., Lagoze, C., Edwards, P. N., & Sandvig, C. (2018). Infrastructure studies meet platform studies in the age of Google and Facebook. New Media & Society, 20(1), 293-310.

Wieland, H., Hartmann, N. N., & Vargo, S. L. (2017). Business models as a service strategy. Journal of the Academy of Marketing Science, 45(6), 925-943.