Strengths
Google’s strategies have enabled the company to be able to achieve its goals. The company’s strategies have been narrowed down into a sentence whereby its main strategy is to make more people to use the internet (Steiber, 2014). Through making more people to access the internet, the company can be able to gain a lot since most of the internet users tend to use google in order to again access of a lot of information (Amerland, 2010). In addition, when more people are using the internet, they will be able to involve themselves in revenue generating activities, hence affecting the company positively.
Secondly, Google possesses very loyal employees, who have enabled the company to achieve a lot. The company takes care of its employees, through offering them very high salaries, free trips, and free food (Steiber, 2014). This consequently enables the company to be able to beat its competitors, due to effort that the employees put in place in order to ensure the company is able to satisfy its customers. On the other hand, google dominates a very huge market share, due to its partnership with android phones, since all Android phones use google (Amerland, 2010).
Weaknesses
Google has been facing a lot of challenges particularly when it comes to mobile phones business. The company recently acquired Motorola, a mobile phone manufacturing company, but it has not been able to gain profits. This has consequently seen the company experiencing huge losses of up to 1 billion each and every year (Steiber, 2014). On the other hand, due to the emergence if mobile advertisements, the company’s advertising rates have drastically dropped. This has consequently reduced the profits that were being gained by the company in the past (Amerland, 2010).
The sustainability of the company’s revenue is not guaranteed, since the advertisers may terminate the contract, due to different reasons at any time (Amerland, 2010). The high advertisements prices are also affecting the company negatively, since most advertisers have opted for other means of advertising their products other than through AdSense (Steiber, 2014). Furthermore, most of the products in the company’s portfolio do not generate any profits. This consequently costs the company a lot of money to be able to put such products on their portfolio and they do not therefore gain the company any profit.
According to the above analysis, this stock should be included in my portfolio, simply because the company has been able to come up with ways through which it can be able to earn profits. This company has been able to control its market share, even with the current economic crisis in the world (Steiber, 2014). The company has also partnered with mobile companies such as Android phones, whereby the company can be able to earn profits particularly when the mobile users save and store their contacts of google mail. In addition, since the company depends only on advertisements, it has been able to avoid investing in areas which might affect its performance (Amerland, 2010).
Furthermore, the company’s revenue and profits have since grown, due to its adoption of the new technology and the advertisement trends (Amerland, 2010). This has consequently enabled the Google to be able to grow without any problems at all (Steiber, 2014). Even though the company has encountered losses due to investing in mobile phones, the return on investment has been very good, thus enabling the company to be able to gain profits even as other technological companies tend to stagnate due to the economic problems in the world.
Reference
Steiber, A. (2014). The Google model: Managing continuous innovation in a rapidly changing world.
Amerland, D. (2010). SEO help: 20 steps to get your wesite to Google's #1 page. Cheadle, Cheshire: New Line Pub.
