Write a Swot analysis of google and its competitors………………
Table of Contents
1.0 EXECUTIVE SUMMARY. 3
2.0 MARKETING PLAN.. 3
2.1 Customer Analysis. 4
3.0 SWOT ANALYSIS OF GOOGLE AND ITS COMPETITORS. 4
3.1 Strength. 4
3.2 Weaknesses. 5
3.4 Threats. 5
4.0 Google’s SMART analysis. 5
5.0 THE MARKETING STRATEGY. 6
6.0 THE MARKET MIX. 7
6.1 Product planning. 8
6.2 Distribution (Place) Decisions. 8
6.3 Promotion of the Google products. 8
6.4 Pricing of Google products. 9
7.0 Cost/Benefit Analysis. 10
8.0 Recommendations. 11
9.0 Conclusion. 12
10.0 References. 13
MARKETING PLAN FOR GOOGLE INC.
1.0 EXECUTIVE SUMMARY
Google Inc. Is a company offering internet search engine, cloud computing and advertising avenues for their products. Google offers the following products in the market; advertising program, Google search services, productivity tools, enterprise products and other products and services. The Google market ranks second in the cloud storage services where the Amazon cloud drive rules the market and the Apple i cloud close behind Google. It is therefore of much necessity that Google formulates a solid marketing strategy to beat its main rivals such as Amazon and Apple. This will entail a formidable pricing strategy, setting the target market through proper product distribution mechanism and good promotional techniques. The internet market has a stiff competition which requires the different market participants to constantly formulate strategies that are able to meet the changing consumer demands. The Google Inc. Satisfies the Social needs of Maslow Hierarchical needs. The following describes a possible market plan which can be adapted by Google in the bid to beat its core rivals in the internet search engines.
2.0 MARKETING PLAN
A marketing plan describes in details the actions necessary to obtain the targeted marketing objectives through extensive and intensive market research, a brand choice and pricing, promotion and distribution of the products. Google Inc. is not yet the number one company but its one the leading internet search engine company. Google is yet to achieve its core objective of becoming the number one internet Search engine company. Its marketing strategies are not achieving the desired objectives due to some stipulated weakness that this paper will address.
2.1 Customer Analysis
Most of the Google customers are based in US only denying other customers in other parts of the world to access its usage. The customers use internet everyday and hence the need for the multiple technology device-Androids. The current users of Google are the loyal customers which imply Google has miles to climb in getting new customers and recovering the original users who went to competitors’ base.
3.0 SWOT ANALYSIS OF GOOGLE AND ITS COMPETITORS
Swot analysis involves a clear analysis of the strong point, faults, break through and the available risks to any business:
Google has a strong brand name which enables it to be easily pronounced, memorised and identified by its customers. The name is fairly short and resembles the products that Google offers. Besides Google has presently many users across the world who boost their advertising space by other companies. Google also offers a variety of products to its customers at a very operational cost in 88 different languages across the continents. In addition, the company offers Google cloud music with 80GB free storage and support streaming sweet memory system. The Google cloud music has a high social reputation among its users and different stakeholders which holds it at the top.
On the other hand, the Apple icloud has the strength of shorter time for uploads and that it has deals with four main music companies (entertainment Music by Sony, EMI group, the Universal Music group and Warner Music group). The deals promote promotional strategies of the company. Moreover Apple Icloud has iTunes dominance in the digital music.
Google posse’s weaknesses that are capitalised by its competitors to beat the company in the market: these include; lack of privacy, copyright and censorship which make it possible for the competitors to easily identify and strategize how to beat them. This is because their database can easily be accessed by competitors thereby moving a head before Google does so. Besides Google music cloud has a relatively low awareness and it lacks licences with the major labels while the competitor’s Amazon has a high support streaming. Moreover, the Google cloud music is accessed from Androids devices only while its competitor’s Amazon can be accessed from PC, Mac, Androids and Apple devices limiting its download and use by its customers.
Google has an opportunity with Google music cloud where there is a possible future increase in its usage as per the current trend. The trend shows the Google music cloud is slowly penetrating the market as its existence and use is being absorbed by the customers.
Google has a potential threat of facing a stiff competition from cloud computing companies such as Amazon icloud. The competition is slowly increasing which may jeopardize its operation unless urgent measures are undertaken by the management to counter the competition.
4.0 Google’s SMART analysis
SMART analysis takes care of analysing the objectives of a company as being specific, measurable, achievable, and realistic and time bound. The objectives consist of;
v To have an up to date search tools containing all public information
v To be the best in search
v To avail their tools everywhere
v To be the best in the scale of creativity and advancement.
Google objectives are specific in the sense that the company aims being number one internet search engine in the world. It is for this reason that they are launching more new products with free bundles and easy access to its customers. They offer their services in 88 different languages internationally recognized to suit various users. These objectives are measurable and achievable as seen from the continued growth in the market of their products. Many internet users can easily search for information and download music from YouTube at any time, cost and place. In addition their objectives are realistic and have a time bound. This is in respect to its social reputation among the users of Google music cloud. They are given 80GB free for storage of the download. These services are charged at a low cost attracting more and more users of Google applications. In terms of innovation Google scouts around for the best talents in invention and innovation who chip in new ideas hence innovation. Google releases timely products like a new prototype for News on Google is one of the best and improved invention that permits other new sources and firms and persons debate particular issues.
5.0 THE MARKETING STRATEGY
The best marketing alternative Google can apply is expanding to a multi-country service. This will enable Google Inc, to be number one with a brand image that is better than its competitors. The company will achieve a more competitive large market share resulting into a long run profits as its services will be accessed worldwide and open to a full market at the competitors’ level: The problem initially related to its services being accessed only in US despite having many everyday users of internet. This problem will be stemmed out of existence with the diversification into foreign markets to penetrate and form a stronghold where the competitors have already established their base. For example the UK market is a potential market where Google can venture its products on diversification possibility.
However, there are possible drawbacks associated with expansion of Google products into the foreign markets. For instance the cost related to expansion and diversification is very high which might suppress the profitability level of the company. Moreover, the venture is the most risky venture as Google may experience hardships in dealing with some Government especially the Muslim governments who do not have good diplomatic relations with the US. The licensing process might be hectic due to the different cultural diversity demanding only certain products to be sold in the country. This might constrain the level of services offered and the profits commensurate to the company. Furthermore, due to lack of privacy and censorship, copyright related issues might arise due to emulators’ actions especially from the domestic market new entrants. In some countries the issue of copyright is not highly regarded and as such Google’s products might suffer loss through piracy while other countries copyright is strictly emphasized something Google will have difficulties leaving up to their promise.
6.0 THE MARKET MIX
The market mix comprises of the four P’s used in marketing decisions. It incorporates product planning, product pricing and branding, distribution and promotional and advertising strategies (Hanis 2009). Google has the alternative to use these marketing mix concepts in its bid to penetrate other market boundaries.
6.1 Product planning
Google’s brand name is one of its strongest advantages as many users of its applications can easily identify with Google. The brand name corresponds to the functionality, packaging and quality of its applications. It makes the customers feel secure with the information acquires through Google as it also supports all the different fields anyone can think of. The brand name should be used in the all the countries where Google will set up its subsidiaries.
6.2 Distribution (Place) Decisions
Through the diversification process may employ the exclusive distribution of their products to attain wider market coverage of its products. In the UK market for instance, it should use Business to Business market of product distribution and marketing. The products will be issued to business offering internet services or those with extensive use of internet services to conduct their business. The businesses will be given accounts upon remittance of some fee to the Google Company. These accounts can then be used by the business units or institutions to give their clients log in usernames and passwords to access certain sites for product information.
6.3 Promotion of the Google products
As mentioned in the SWOT analysis, Google music cloud has a relatively low awareness among it s users. Google should carry out more advertisement campaigns through short messages to the potential users, Google adverts and emails which will encourage more of personal selling. Google should also conduct a pull strategy to entice the users towards use of the application. Besides, Google should conduct extensive online promotional campaigns to the different countries to inform and persuade the users to the use of its Music Cloud and with recent launching of cloud drive music cloud will achieve fame in the market with right advertisement channels. The company should also enter into deals with music copyrights in the different countries to avoid unnecessary litigation costs that can reduce their profit margins.
6.4 Pricing of Google products
Google music cloud should use penetration type of pricing strategy due to the large customer base the company has. The products Google offers like the search engines, productivity tools and the enterprise products should be offered for free or at a low cost say US$ 0.5 this will still capture the large loyal customer base in existence. But for the advertising program Google should use skim pricing where it will charge the clients for as much as US$ 576 for advertising space. This is for the reason that the advert will be accessed by a large group of users. Profits will be realized in the long run through the adverts.
The company can also use bundle pricing for example selling bundles to users of their products at a cost commensurate to the type of service offered. Users will buy bundles say 500MB for US$ 10 which can easily offset the high levels of costs associated with expansion. Price flexibility may also be another strategy to use especially to deal with the latest movies in the market. The download may be charged at a higher cost but as time goes by the cost should be reduced to allow the late users to access the product. Lastly the company should employ price discrimination in their product pricing. By provision of cheap services to learning institutions and higher charge for corporate bodies, a balance will be created through the whole pricing efforts.
7.0 Cost/Benefit Analysis
From the above analysis the following can be realized as profits and costs related to the venture.
Google Search Adverts Revenue in millions USD
You Tube Application 2200
Google Phone 1300
Google applications 1000
Gmail, Blogger and other 950
Orkut Social network 750
Search Applications 690
Adverts partnerships 1710
Total revenue (Millions US$) 9500
Less the cost of operation (6000)
Operating income 3000
From the above figures the revenues that will be realized will come majorly from UK as the customers have more enthusiasms when the services are being offered at their doorsteps. UK will realize sales revenue of US$ 2.1B from the previous US$ 976million due to expansion. The new venture will raise more revenue than the current one.
Through the diversification process it was pointed out that there are possible risks related to the move; one way of dealing with a risk such as licensing problem. Google could still diversify their business by entering into deals that are favourable to the country’s laws and regulations. By use of international diplomats, market research can be conducted to ascertain the business environment in the country of choice. This will also cover for the copyright menace and censorship nightmare. Some sites may be censored if the benefits related to them are not significant in the profit level contribution.
The high costs of venturing maybe offset through the large advertisement services extended to other companies. Moreover, the company can seek cost reduction from the host country through deals of investment into the country. Some nations are more receptive to any prospective foreign investment to boost the country’s GNP growth.
As mentioned in the weakness Google has a relatively low awareness for Google music cloud. Considering the invention of cloud drive, it is an opportunity for them to capitalize on their competitors’ slag to advertise the existence and usage of the tool. Online advertisement campaigns should be personalized to individuals with Google accounts to inform the users on existence of the products.
Finally Google should sell their products to businesses majorly with the aim of giving them Google accounts; an avenue suitable for advertisements campaigns. These accounts should be subjected to renewal every month for organizations and learning institutions to encourage monthly subscription.
Google Inc will be without doubt at the top if the above market strategy and recommendations are followed up to date. Through diversification the company will achieve greatest profit potentiality as their market share and size will receive a boost. The level of profits will be high and cost of operation will in the long run reduce increasing the cash flows of the company.
Gregory R. Hanis,(2009), Marketing plan format, International Society of Hospitality
Consultants, Journal of Management Research Marketing