Opportunities and Threats
Done by June Vu
Opportunities
Growing number of mobile internet users
This is a chance for Google to increase their revenue by displaying more ads for mobile phone users, also develop new beneficial applications for mobile phones.
Obtaining patents through acquisitions
In order to grow and compete against other technology giants, Google has acquired plenty of other trending and successful businesses with strong patent portfolios like YouTube, DoubleClick or its largest acquisitions of Motorola Mobility.
Driverless electronic cars
On May 28th, 2014 Google presented a Self – driving car with no steering wheels or pedals. This is a major technological step that Google contributed.
Google fiber cables
Recently, Google developed the new fiber cables with connection speed of 100 times faster than the regular broadband. Google fiber is still launching trial in certain residential communities in the United States.
Threats
Growing number of mobile users
Increasing number of mobile users means there will be fewer searches made on computers, which might lower Google’s revenue and growth.
Unprofitable products
Since most of Google’s income comes from advertisement, so the majority of its products are free of charge and in the long run, this might decline Google’s profit.
EU antitrust laws
Earlier this year, Google has been accused for prioritizing its own services rather than competitors’ through the search engine, created an unfair competition between businesses. By settling this case, Google might have to receive harsh penalties against its system.
Intense competition
The company has to deal with competition from companies that seek to connect people with information on the web and provide them with relevant advertising, like Yahoo! or Microsoft. (Datamonitor, 2014)
