INFORMATION TO TECHNOLOGY

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Alphabet Co. SWOT analysis

Alphabet Co.

Concepts and Applications of Information Technology

February 4, 2022

introduction

The SWOT methodology is a process of evaluating a company's strengths, weaknesses, opportunities, and threats. Using this analysis, it is possible for leaders in the business to know the business's health condition and come up with strategies in case the company is not doing well. In addition, performing a SWOT analysis helps the industry realize its strengths and opportunities. These opportunities can be exploited to increase the business's market share and profitability. The strengths can also be worked on to ensure the brand continues doing well. Therefore a SWOt analysis is an essential tool in the business because it also sheds light on how resources should be allocated. Thus it ensures the company is moving in the right direction. In addition, it is easy to develop strategies to improve the condition of the business. Its weaknesses, strengths, opportunities, and threats are known. These strategies can be designed to enhance the strengths or work on the weaknesses to improve performance in the business. The company can evaluate its competitive advantage through strategic planning and take advantage of the opportunities available. This paper carries out the SWOT analysis of Alphabet company, an American holding company and the parent company for Google. Alphabet supports ambitious projects by offering resources and the freedom to focus on its ventures (de Almeida Dourado et al., 2021). It helps these companies apply technology to see them succeed in their ideas. This company has its strengths, weaknesses, opportunities, and threats. By evaluating them, it is possible to develop what should be done to improve the conditions in the company. It is also possible to propose strategies that should be carried out if it wants to strengthen its competitive advantage.

The SWOT analysis

internal	external
strengths	weaknesses	opportunities	threats
· There is an advantage because of being the first mover for many products and services. · The organizational culture is creative, and there is a spirit of cohesiveness in the culture. · The company has a strong position in online advertising. · There is an ecosystem of products and services.	· reliance on marketing as the primary source of earning income · user information sharing · weak social network presence · many nonprofitable products · the employee turnover at the executive level is high	· acquisition of businesses that are related · focus on cloud computing can be increased · further development of google · there are benefits due to the shift from the desktop to mobile computing	· increased competition from similar existing companies · the emergence of new competitors · challenges when managing the current growth · there are potential lawsuits

Strengths

Alphabet company has been doing good in the market due to some of the areas they have perfected. These areas are highly profitable in the market. They give the company a lot of competitive advantage (Wirtz, 2021). The company was initially introduced as a search engine. The company has perfected this strength with time, and the services offered are very efficient and powerful. Th9is is because the company has massive amounts of data; hence it can generate information and deliver it to customers. Google has a market share of 79% regarding search engine services. This is an excellent strength that enables the company to be highly competitive. Secondly, the company hires many people in the research and development department; due to continued research about the market and the problems that can be solved, the company has developed a creative culture that comes up with innovative products that fit perfectly in the market and helps in solving the market problems. The organizational culture also has a high level of informality; hence it leads to effective integration of work with a play that leads to motivated employees and increases creativity. The company's position in online advertising is also huge and has a significant market share in online advertising.

Weaknesses

Although the company enjoys a significant advantage in online advertising, this is also a weakness. A large percentage of the organization's revenues are generated from online advertisements. Therefore this can be a disadvantage because a sustainable business should have a diversified portfolio and not rely on;y on one source of income due to market uncertainties (Bautista Mendo et al., 2020). If the advertisers terminate their contracts with the company, it cannot sustain its revenue since it depends mainly on one source of income. In addition, there are many other emerging companies, and there are also technological advancements that can lead to the introduction of more digital advertisements. This can lead to the company losing its source of income. The company also has a lot of services and products that are not profitable; this means resources are used in these products, but they do not generate any benefits for the company. Therefore this can lead to depletion of resources or even wastage of resources since the company cannot generate profits from these projects. There is a high employee turnover at the executive level, which leads to an increase in employee expense since employees' salaries at the executive level are high.

Opportunities

The business can acquire more businesses and expand. This development of more related companies can increase its market share; this is because the company gets to make products that they did not have before and therefore reach new markets. The acquired business also targets customers that were not targeted by the company; acquiring these companies helps the industry receive these customers. In addition, the company can increase its focus on cloud computing for its benefit; this can be another source of the business income so that it does not depend on one source of income.

Threats

Companies such as Facebook have also introduced services such as online advertising. This creates competition for the company. This is a significant threat considering large income sources for this company come from online advertisements. Therefore this poses a substantial threat to the company and decreases its market share in the online advertisement segment. Secondly, upcoming companies employ advanced technology; These companies may pose a significant threat because many customers prefer advanced technology.

Conclusion

The company has its weaknesses and opportunities; therefore, for the company to survive in the market, it must come up with strategies that allow it to be positioned appropriately and also to be flexible in cases of changes in the market and also technological advancements so that it may not be left out. The most important thing is to work on the weaknesses and exploit the opportunities to increase its market share and remain competitive in the market.

References

Bautista Mendo, J., Camarero Orive, A., González-Cancelas, N., & Molina Serrano, B. (2020). Update of the strategic framework for the Spanish port system using a SWOT analysis. Cuadernos de Administración (Universidad del Valle), 36(68), 96-111.

de Almeida Dourado, J. D., Jones, C. M., da Gama Afonso, H. C. A., & Botelho, L. D. M. M. (2021). Assessment of future Autonomous Vehicle market leadership in the US.

Wirtz, B. W. (2021). Google/Alphabet Case Study. In Digital Business and Electronic Commerce (pp. 649-680). Springer, Cham.