GOOGLE Google has market leadership for search related advertising with 65 percent of all online searches in 2008. Google has a strong brand name. The company has developed a reputation for providing the best search results as an online search engine. Google is very easy to use or user friendly, anyone with minimal computer knowledge can easily maneuver its way through Goggles website and search for whatever information they would like. The simplicity of the website makes it so that users become familiar with Google very fast. Google is able to provide search results at a very high speed.
Someone can type a keyword in the search box regarding any kind of topics and search results will be displayed in seconds. Another strength of Google is its ability to adapt and innovate its products with changes in demand. Google shows strong financial position with positive cash flow and low debt. Some weaknesses of Google include manipulation of Google ranking technology by spammers. Google cost per click advertising charging and ranking policy confuse marketers in the sense that they cannot predict where their ad would be positioned and how much it would cost.
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Another weakness of Google is that it does not provide highly personalized search or expert search. Also Google does not have sticky like yahoo and MSN which can attract users. Although Google is the market leader among search engine websites, only 50 percent to 60 percent of search queries are answered appropriately. As far as opportunities, Google can add sticky like chat rooms and email systems to attract more users. Google can also add more personalized or expert searching. The company can add more services such as private database, print media and multimedia.
Google can merge with established mass market companies to gain more users and advertisers. As far as threats, Google is facing strong competition from rivals such as Yahoo, Msn and face book. Also Google depends partially on some companies or portals like AOL and getting those contracts terminated, Google would loose large amount of revenues. There is no real entry barrier in this kind of online business. This means more competitors can emerge in the future and by providing the same services with improve interface, they can steal Google’s market. Google confusing cost per click and ranking can detract many potential advertisers.
Companies like yahoo provide more services and solutions with conventional search than Google. Google might loose its users to companies with more services. As far as recommendations for strategy, Google should adapt a product development strategy where its focus will be on improving its currents services to attract new users. Google can focus on making its search engine more accurate, relevant and dependable than it is now. Google should also use a diversification strategy where they can add new services to attract new users. Services such as print, multimedia, instant messaging will drive new customers to Google.