14 Aug BACKGROUND OF THE COMPANY Google’s ad-dependent business model enables it to lau

BACKGROUND OF THE COMPANY
Google’s ad-dependent business model enables it to launch free operating systems
and productivity software, giving it an advantage against Microsoft (.fool.com/quote/nasdaq/microsoft/msft”>NASDAQ:MSFT), which relies on revenue from paid software. Google pulled all
those free apps together with Chromebooks, which are aimed at students, young
professionals, and small to medium-sized businesses. Chromebooks only accounted
for 1% of the PC market last year, but Gartnerestimates that their
share might rise to 4% by 2017.

From <.fool.com/investing/general/2015/07/03/swot-analysis-of-google-inc.aspx">http://www.fool.com/investing/general/2015/07/03/swot-analysis-of-google-inc.aspx>

STRENGTHS

WEAKNESSES

Strong market position
Global search engine dominance
Android’s success is a growth driver
in the
mobile market

Robust financial situation

Strong brand image

Diversified product line
Low
operating cost

Strong infrastructure base

Excessive dependence on advertising
revenue

Lack of product integration as
compared to competitors

Limited success of Google s social
networks

No strategy for contraction

OPPORTUNITIES

THREATS

Growth in internet usage

Increasing worldwide online (display
& mobile) ad spending

New products and innovation

Positive outlook for smartphone and
tablet

market

Poised to benefit from growing online
video

consumption

Intensive competition

Exchange rate fluctuations

Lawsuit expenses from intellectual property infringement claims

Hacking and other related security issues
PRISM
electronic surveillance program
issue
highlights the data privacy concerns
among
users

Economic downturn

PERSONAL STATEMENT

Google has two core strengths. Its search engine processes nearly
70% of the world’s queries, and Android powers nearly 80% of smartphones
worldwide. Therefore, it isn’t surprising that Google is the largest Internet
advertising company in the world by annual revenues.
Google leverages its strengths in search and mobile by corralling
users into its ecosystem with useful apps like Maps, Drive, Gmail, YouTube, and
Google Now. These apps gather information on users, enabling Google to craft
better targeted ads across its network. In addition to selling ads, Google
generates additional mobile revenue by taking a 30% cut of Play Store
purchases. Those growth engines pumped out robust top and bottom line growth
over the past five years.

From <.fool.com/investing/general/2015/07/03/swot-analysis-of-google-inc.aspx">http://www.fool.com/investing/general/2015/07/03/swot-analysis-of-google-inc.aspx>

BACKGROUND OF THE COMPANYGoogle’s ad-dependent business model enables it to launch free operating systems
and productivity software, giving it an advantage against Microsoft (.fool.com/quote/nasdaq/microsoft/msft”>NASDAQ:MSFT), which relies on revenue from paid software. Google pulled all
those free apps together with Chromebooks, which are aimed at students, young
professionals, and small to medium-sized businesses. Chromebooks only accounted
for 1% of the PC market last year, but Gartnerestimates that their
share might rise to 4% by 2017. From <.fool.com/investing/general/2015/07/03/swot-analysis-of-google-inc.aspx">http://www.fool.com/investing/general/2015/07/03/swot-analysis-of-google-inc.aspx>STRENGTHSWEAKNESSES
Strong market position Global search engine dominanceAndroid’s success is a growth driver
in themobile market
Robust financial situation
Strong brand image
Diversified product line Low
operating cost
Strong infrastructure base

Excessive dependence on advertising
revenue
Lack of product integration as
compared to competitors
Limited success of Google s social
networks
No strategy for contraction OPPORTUNITIESTHREATS
Growth in internet usage
Increasing worldwide online (display
& mobile) ad spending
New products and innovation
Positive outlook for smartphone and
tablet
market
Poised to benefit from growing online
video
consumption

Intensive competition
Exchange rate fluctuations
Lawsuit expenses from intellectual property infringement claims
Hacking and other related security issues PRISM
electronic surveillance programissue
highlights the data privacy concernsamong
users
Economic downturn PERSONAL STATEMENT Google has two core strengths. Its search engine processes nearly
70% of the world’s queries, and Android powers nearly 80% of smartphones
worldwide. Therefore, it isn’t surprising that Google is the largest Internet
advertising company in the world by annual revenues.Google leverages its strengths in search and mobile by corralling
users into its ecosystem with useful apps like Maps, Drive, Gmail, YouTube, and
Google Now. These apps gather information on users, enabling Google to craft
better targeted ads across its network. In addition to selling ads, Google
generates additional mobile revenue by taking a 30% cut of Play Store
purchases. Those growth engines pumped out robust top and bottom line growth
over the past five years. From <.fool.com/investing/general/2015/07/03/swot-analysis-of-google-inc.aspx">http://www.fool.com/investing/general/2015/07/03/swot-analysis-of-google-inc.aspx>

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