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COMPANY PROFILE
Google Inc.
REFERENCE CODE: 5B199F61-608D-4923-B4A3-
F5EE15285ADE
PUBLICATION DATE: 5 Mar 2015
www.marketline.com
COPYRIGHT MARKETLINE. THIS CONTENT IS A
LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
OR DISTRIBUTED.
TABLE OF CONTENTS
Company
Overview................................................................................
..............3
Key
Facts.......................................................................................
........................3
SWOT
Analysis..................................................................................
...................4
Google Inc. Page 2
© MarketLine
Google Inc.
TABLE OF CONTENTS
COMPANY OVERVIEW
Google Inc. (Google or "the company") is a global technology
company that offers search, advertising,
operating systems and platforms, enterprise, and hardware
products. The company operates in the
US, the UK and in several other countries across the world.
Google is headquartered in Mountain
View, California and employed 47,756 people as of December
31, 2013.
The company recorded revenues of $59,825 million during the
financial year ended December 2013
(FY2013), an increase of 19.2% over FY2012. The revenues
increased primarily due to an increase
in advertising revenues generated by Google websites and
Google Network Members' websites.
The operating profit of the company was $13,966 million in
FY2013, an increase of 9.5% over
FY2012. Its net profit was $12,920 million in FY2013, an
increase of 20.3% over FY2012.
KEY FACTS
Google Inc.Head Office
1600 Amphitheatre Parkway
Mountain View
California 94043
USA
1 650 253 0000Phone
1 650 253 0001Fax
http://www.google.com/Web Address
59,825.0Revenue / turnover
(USD Mn)
DecemberFinancial Year End
47,756Employees
GOOGNASDAQ Ticker
GOOGLNASDAQ Ticker
Google Inc. Page 3
© MarketLine
Google Inc.
Company Overview
SWOT ANALYSIS
Google Inc. (Google or "the company") is a global technology
company that offers search, advertising,
operating systems and platforms, enterprise, and hardware
products. The company enjoys strong
market share and global reach, which provides sustainable
advantage as the company's entrenched
position in the market enables it to drive revenues. However,
intense competition has the potential
to impact the market share and growth prospects for the
company.
WeaknessesStrengths
Excessive dependence on advertisingGlobal search engine
dominance
Limited success of Google’s social networksAndroid's success
is a growth driver in the
mobile market
ThreatsOpportunities
Intense competitionPositive outlook for smartphone and tablet
market PRISM electronic surveillance program
issue highlights the data privacy concerns
among users
Display and mobile ad spend are growth
drivers
Intellectual property infringement claimsPoised to benefit from
growing online video
consumption
Strengths
Global search engine dominance
Google enjoys strong market share and global reach. The
company's search engine has leading
technology which enabled it to gain market share. Google
consistently upgrades and enhances its
search algorithms to achieve better results. Google's results
were recognized as being highly accurate
from early on, with the search engine gaining popularity very
quickly. In 2001, Google started giving
links to major news outlets on the Google search page, which
led to the development of Google
News. Subsequently, the company released image search
capabilities, which were later enhanced
to also include search for videos, news stories, and other rich
data. In 2010, the company launched
Google Instant, which provides results even before the user
stops typing. Google also launched
voice search and native language search capabilities, which
enables users to ask questions and
hear answers spoken back. This feature works on the Google
Search App for iOS, Android and
Chrome browsers for laptops and desktops. As such, the
company's competitors have struggled to
match the search engine's accuracy and have fallen behind in
popularity. However, despite the best
efforts of its competitors, Google holds the majority of the
share in the global search engine market,
and this does not look set to change.
Google Inc. Page 4
© MarketLine
Google Inc.
SWOT Analysis
According to industry estimates, as of March 2014, Google's
search engine had a market share of
more than 71% measured against global website traffic. Google
gained ground in the mobile market
as well. Further, the industry estimates indicate that over 90%
of the mobile search is conducted
through Google search engine. Further, Google's share of
overall US core search market was
approximately 67.6% in January 2014 compared to 67.3% in
December 2013. The company therefore
enjoys technology leadership which enabled it to drive growth
and gain market share. The technology
leadership also provides sustainable advantage as the company's
entrenched position in the market
enables it to drive revenues.
Android's success is a growth driver in the mobile market
Google entered the mobile operating system market by
acquiring Android, which enjoys several
unique advantages and has emerged as a leading player in that
market. Android operates in the
burgeoning market of mobile phones. This market has seen
strong growth in recent years, much of
which has been driven by a surging demand for smartphones.
This provides Android with excellent
growth opportunities, translating into growth for the overall
company. Android has exploited these
opportunities better than its rivals, including Apple, Microsoft
and BlackBerry, to establish itself as
the clear leader in terms of the number of devices using its
operating system (OS). Android belongs
to a consortium of companies known as the Open Handset
Alliance. This includes handset
manufacturers such as HTC, Motorola and Samsung.
Consequently, Android is the chosen OS on
a range of phones that span a broad pricing spectrum. This gives
it a competitive advantage over
the likes of Apple and RIM, whose OSs are only available on
their own phones. As of September
2013, Android was the leading mobile OS with more than one
billion Android devices activated
globally. According to industry estimates, Google’s Android
platform is the leading smartphone
operating system in the world with a market share of
approximately 78.9% in 2013 compared to
68.8% in 2012.
Android is the Open Handset Alliance's first joint project and
was launched with the explicit goal of
being the first open, complete, and free platform created
specifically for mobile devices. Android
powers several flagship mobile phones of leading players like
Samsung and also the handsets of
lower priced players. The fact that Android is the operating
system powering such a wide range of
phones suggests that it has access to every level of the
smartphone market in terms of price, and
this is where it has a clear advantage over many of its
competitors. It has been adopted as the OS
of choice by a number of popular handset manufacturers
including HTC, LG, Motorola and Samsung.
The iPhone has undoubtedly been a phenomenally successful
product for Apple and it is credited
as the device that kick-started the smartphone revolution. iOS
is, however, limited as it is only
available on one phone, the iPhone. This is a high-end,
expensive product and as there is no cheaper
version of the device, Apple does not have access to customers
at the lower-cost end of the market
in the way that Android does. Android's presence on phones at
both the cheap and top ends of the
market gives it a much wider potential market, a clear
advantage over the likes of Apple. On the
other hand, the Microsoft’s Windows Mobile OS has limited
market share of 3.6% in 2013. The
limited appeal of the Windows Mobile OS has forced a number
of Microsoft loyalists, including HP
to launch devices based on the Android OS. Moreover, Nokia,
which is in the process of being
acquired by Microsoft has also launched Android based mobiles
in March 2014. These indicate the
popularity and appeal enjoyed by Android.
Google Inc. Page 5
© MarketLine
Google Inc.
SWOT Analysis
The increasing popularity of Android is expected to speed up
innovation on the mobile front thus
ensuring that more users will start browsing the net from their
phones. This ensures that more and
more traffic is driven to one of Google’s many services, which
are embedded in the Android platform,
where they serve ads thus enhancing Google’s revenues.
Weaknesses
Excessive dependence on advertising
The company primarily depends on advertisements for a
majority of its revenues. For FY2013,
FY2012, and FY2011, advertising accounted for 84.3%, 87.1%
and 96.4%, respectively, of the
company’s total revenues. In addition, expenditures by
advertisers tend to be cyclical, reflecting
overall economic conditions and budgeting and buying patterns.
Adverse macroeconomic conditions
can also have a material negative impact on the demand for
advertising and cause its advertisers
to reduce the amounts they spend on advertising. The
company’s continued dependence on
advertisement for a majority of its revenues indicates increased
vulnerability to the ad spending
patterns.
Limited success of Google’s social networks
Although Google is the leading search engine and its web
properties are one of the most popular
sites for up-to-date information, its attempt to achieve similar
following in the social networks has
resulted in only limited success. The company’s tryst with
social networking started in 2003, with
the acquisition of Pyra Labs, the creator of the Blogger
platform, which is currently languishing behind
other players, including WordPress, Typepad and Tumblr. The
company’s Orkut social network
service launched in 2004 was quite popular before the arrival of
Facebook. Similarly in 2009, Google
launched the Google Wave service, but it was unsuccessful in
attracting a large customer base or
retaining the people who joined in the initial excitement.
Google’s fresh attempts at reviving its social
networking position began with the introduction of Google+ in
mid-2011 which resulted in limited
success. As of October 2013, Google+ had 540 million 30-day
active users. In comparison Facebook
had 1.2 billion monthly active users (MAU) and 757 million
daily active users (DAUs) on average in
December 2013. Limited success of Google’s social networks is
a competitive disadvantage especially
as the social platforms continue to attract higher advertising
dollars and are forecasted to grow
tremendously. Competing head to head with entrenched players
like Facebook for social network
user base will be an uphill task for Google.
Opportunities
Positive outlook for smartphone and tablet market
The smartphones and tablets market is expected to grow at a
robust pace in the medium term.
According to industry estimates, the global shipments for
smartphones reached 1,004 million units
Google Inc. Page 6
© MarketLine
Google Inc.
SWOT Analysis
in 2013 compared to 725 million units in 2012. Furthermore,
smartphone shipments are expected
to grow at a compounded annual growth rate (CAGR) of 13.3%
between 2013 and 2017. Also
smartphones dominate the total handset market with a share of
more than 50%. Furthermore, the
demand for tablets is also increasing. The shipment of tablet
PCs is estimated to grow from 144.5
million units in 2012 to more than 410 million units by 2017,
growing at a compound annual growth
rate (CAGR) of 23.2% for the same period.
The company’s Android platform is the leading smartphone
operating system in the world with a
market share of approximately 78.9% in 2013 compared to
68.8% in 2012. Similarly in the tablet
market, Android is the leading players with a market share of
62% in 2013 compared to 46% in 2012.
Android is estimated to continue to be the market leader in the
medium term for both the smartphone
and tablet markets. Robust outlook for the smartphone and
tablet market will increase the company's
number of Android devices in the coming years.
Display and mobile ad spend are growth drivers
Display advertising trends indicate a positive momentum.
According to industry estimates, in 2014,
the US digital display ad spend is expected to record a strong
growth rate of more than 15% compared
to 2013. The estimates also indicated that Google is expected to
hold a share of 24.6% in 2014
compared to less than 20% share it held in 2013. Advertisers in
the US are expected to spend on
various display ad formats served to desktops, laptops as well as
mobile phones, tablets and other
devices. Rising display ad spend will enable the company to
boost its revenues, as it generates
major portion of its revenues from display advertising.
A key growth area for Google would be mobile advertising
space, which is an emerging opportunity
and will shape to be a prominent one for the company.
According to industry estimates, the global
mobile advertising is expected to generate total revenues of $18
billion in 2014 compared to $13.1
billion in 2013. The global revenue is expected to reach
approximately $41.9 billion in 2017. The
growth in mobile advertising market is primarily due to
increased uptake in smartphones and tablets,
as well as the merger of consumer behaviors on computers and
mobile devices. Google has a strong
presence in the mobile ad segment and will benefit from the
growth in the segment.
Poised to benefit from growing online video consumption
The demand for online viewing of video content has been rising
at a robust pace. According to
industry estimates, the global online video market is projected
to reach $37 billion by 2017 which
includes subscriptions, transactions and advertising. The growth
is expected to be driven by
proliferation of broadband access and expanding viewership in
emerging markets. The US represents
the largest market for online videos, which is expected to
contribute to over half of all revenues in
2017. The online video market in the US is projected to witness
significant growth primarily driven
by the increased options for viewing videos among online
consumers.
Google has significant presence in the online video market. The
company operates YouTube, a
video-sharing website which allows users to upload, view and
share videos online. According to
industry estimates, YouTube held a market share of more than
20.5% in the US video ad market. It
Google Inc. Page 7
© MarketLine
Google Inc.
SWOT Analysis
is also estimated that, YouTube’s share of the US video ad
market would reach 22.9% by 2015
generating $1.6 billion of net ad revenues. YouTube
experienced strong growth in the recent times
particularly from mobile viewers and has established key
partnerships with content companies to
help monetize mobile video. The company's YouTube is well
positioned to lead the penetration into
the online video market which will enhance top line growth and
also facilitates expansion into a high
growth market.
Threats
Intense competition
Google's business is rapidly evolving and intensely competitive,
and is subject to changing
technologies, shifting user needs, and frequent introductions of
new products and services. The
company faces formidable competition in every aspect of its
business, particularly from companies
that seek to connect people with information on the web and
provide them with relevant advertising.
Google faces competition from general purpose search engines,
such as Yahoo and Microsoft's
Bing; vertical search engines and e-commerce websites, such as
Kayak (travel queries), Monster.com
(job queries), WebMD (for health queries), and Amazon.com
and eBay (e-commerce); and social
networks, such as Facebook and Twitter. The company also
faces competition from other forms of
advertising, such as television, radio, newspapers, magazines,
billboards, and yellow pages, for ad
dollars; mobile applications on iPhone and Android devices; and
providers of online products and
services. A number of the company's online products and
services, including Gmail, YouTube, and
Google Docs, compete directly with new and established
companies, which offer communication,
information, and entertainment services integrated into their
products or media properties.
Technology is disruptive and sustainable competitive
advantages are not assured. If Facebook is
more cost effective for advertisers, they might eventually find a
way to reach audience through these
sources. Similarly, other companies have been gaining ground
in Google's forte of search advertising.
Furthermore, its closest competitors, Yahoo! and Microsoft
have launched several initiatives to
capture share in these markets. Yahoo!'s strategy involves
connecting all of its online services, such
as its search engine, maps, and so on. Meanwhile, Microsoft is
attempting to integrate its internet
searching and desktop so that its search engine will be
embedded in all of its software, in the hope
that there will no longer be a need for Google. Additionally,
applications like Siri for iPhone have
introduced the users to a reality without Google search.
In addition, the company faces a fierce competition in the
mobile markets. Google's significant
competitors in mobile operating systems market include
Microsoft, BlackBerry, and Apple. Also the
growing consolidation in the industry will put pressure on the
company's growth. For instance,
Microsoft's acquisition of Nokia's devices and services business
is expected to further strengthen
Microsoft’s market position which will compete more strongly
with Android devices. The intensifying
competition has the potential to impact the market share and
growth prospects for Google.
PRISM electronic surveillance program issue highlights the data
privacy concerns among users
Google Inc. Page 8
© MarketLine
Google Inc.
SWOT Analysis
Recent revelations about the extent to which the US National
Security Agency (NSA) obtains electronic
data from third-parties is likely to have an immediate and
lasting impact on the company. PRISM is
NSA's electronic surveillance data mining program which
allows officials to gain access from nine
internet companies to a range of digital information, including
e-mails and stored data, on foreign
targets operating outside the US. Allegedly, the NSA has direct
access to the servers of these
companies, including Microsoft, Google, Yahoo, Facebook,
PalTalk, Skype, YouTube, and Apple.
Further Google is said to have received millions of dollars to
cover the costs as part of this program.
The company has been facing scrutiny from various
governments for allegedly violating data privacy
laws due to its involvement in the PRISM project. For instance,
Sweden's data privacy watchdog
banned the use of Google applications including Gmail, for
government workers in the city of Salem.
Similarly, France and Spain led a Europe-wide push to get
Google change its policies on collecting
user data after it was revealed that the company was part of the
PRISM project. Google was found
guilty of breaking French laws and was given three months to
change its privacy policies or risk a
fine. Spanish Data Protection Agency is reportedly planning to
penalize the company for its alleged
violation of data privacy laws.
Such allegations of Google's involvement in the PRISM project
will impact the company's brand
image and market share. Users have been becoming very weary
of the websites such as Google
capturing their data. The company's alleged involvement in the
PRISM project is likely to impact the
usage of its websites and other applications amidst concerns
over data privacy. Increasing scrutiny
will also result in investigations from various governments. In
addition, such allegation will restrict
users' activities, which in turn will impact the company's
topline growth.
Intellectual property infringement claims
The company is subject to a number of intellectual property
infringement claims. Internet, technology,
media, and other companies own large numbers of patents,
copyrights, trademarks, and trade secrets
and frequently enter into litigation based on allegations of
infringement or other violations of intellectual
property rights. In addition, patent holding companies may
continue to seek to monetize patents
they have purchased or otherwise obtained. As Google has
grown, the intellectual property rights
claims against it have increased and may continue to increase as
it develops new products, services,
and technologies.
A number of patent, copyright, and trademark infringement
lawsuits have been filed against Google
claiming that certain of its products, services, and technologies,
including Android, Google Search,
Google AdWords, Google AdSense, Google Maps, Google
Books, Google News, Google Image
Search, Google Chrome, Google Talk, Google Voice, and
YouTube, among others, infringe the
intellectual property rights of others. Third parties have also
sought broad injunctive relief against
the company by filing claims in the US and international courts
and the US International Trade
Commission (ITC) for exclusion and cease and desist orders,
which could limit its ability to sell
products or services in the US. Adverse results in any of these
lawsuits may include awards of
substantial monetary damages, costly royalty or licensing
agreements, or orders preventing it from
offering certain features, functionalities, products, or services,
and may also cause Google to change
Google Inc. Page 9
© MarketLine
Google Inc.
SWOT Analysis
its business practices, and require development of non-
infringing products or technologies, which
could result in loss of revenues.
In addition, many of Google’s agreements with its customers
and partners, including certain suppliers,
require it to indemnify them for certain intellectual property
infringement claims against them, which
could increase Google’s operating costs as a result of defending
such claims. Such customers and
partners may also discontinue the use of Google products,
services, and technologies, as a result
of injunctions, which could result in loss of revenues and
adversely impact its business. Regardless
of the merits of the claims, intellectual property claims are
often time consuming, expensive to litigate
or settle, and cause significant diversion of management
attention. Any adverse decision may have
an adverse effect on the company’s business, consolidated
financial position and results of operations.
Google Inc. Page 10
© MarketLine
Google Inc.
SWOT Analysis
Copyright of Google Inc. SWOT Analysis is the property of
MarketLine, a Datamonitor
business and its content may not be copied or emailed to
multiple sites or posted to a listserv
without the copyright holder's express written permission.
However, users may print,
download, or email articles for individual use.
MY CRITERIA
When deciding on major career decisions, such as choosing an
employer, it is imperative for that employer to embody several
features that meet your professional and personal preferences.
One preference included in my criteria for an ideal company, is
growth. Company growth and individual growth are two very
important characteristics a company should encourage. Rather
than simply growing in size, a company should also promote
growth through product expansion and philosophy. As the
company adapts to market and consumer needs, it avoids
becoming obsolete and therefore gains an edge on its
competitors. From a personal perspective, it is essential for the
company to have an opportunity for the employee to grow with
them as well. This creates a trusting relationship between
employer and employee because it supports a commitment to
encourage an individual’s need for change.
Secondly, a company should demonstrate a functional and
positive working relationship with clients, suppliers, and
employees. Establishing and maintaining a positive
environment for everyone involved is key to the company’s
success. Satisfied clients are more likely to return for more
business and will often help the company gain new clients by
giving good reviews. Maintaining good relationships with
suppliers is also important because it will allow internal and
external operations to flow more smoothly. Moreover,
employers should focus on sustaining relationships with their
employees. After all, a company’s success lies within the
dedication and hard work of its employees. To show their
appreciation, companies should offer benefits like health and
dental insurance on top of employees’ salaries and bonuses.
The last important characteristic is a company’s location. I
would prefer to work in a location within or close to a large
city, rather than in a rural area. Additionally, a company that
has multiple locations gives an employee the chance to travel
and experience different aspects within the organization around
the world. More locations can also offer extra job security by
giving employees the option of relocating.
SWOT Analysis
Grant Thornton’s strengths lie within its diversified
geographical presence, wide selection of services, and a strong
presence in Asia Pacific. The company reports stable profits
across 100 countries with networks of 121 interdependent firms
and 30 international business centers (COMPANY PROFILE:
Grant Thornton, 2013, p.5). Global presence combined with
steady profits allow the organization to attract a broader scope
of clients and reduce risks due to its strong global image. Grant
Thornton’s variety of services also attracts numerous clients
through assurance, advisory, tax, audit, financial management,
IT, and performance management services. A large range of
services allows the firm to provide cross selling opportunities in
new and present-day markets. Moreover, Grant Thornton’s
recent growth in Asia Pacific has generated an increase in
revenue of $399 million in FY 2010 to $579 million in FY 2012.
This caused an increase in the company’s overall revenue by
10.4% in FY 2012 compared to the previous year (COMPANY
PROFILE: Grant Thornton, 2013, p.5).
The organization’s largest and most apparent weakness is its
size compared to competitors. As a result, it is nearly
impossible for Grant Thornton to compete with larger
accounting and advisory firms like the Big Four. For instance,
in FY 2012 Grant Thornton generated $4,182 million with an
estimated 35,000 employees compared to Deloitte Touche
Tohmatsu, one of the Big Four firms, who reported $31,300
million with over 193,000 employees (COMPANY PROFILE:
Grant Thornton, 2013, p.5). This places the firm at risk of
potential acquisition by larger firms carrying more financial
muscle.
Along with Grant Thornton’s strengths and weaknesses, the firm
also has opportunities for expanding into new and existing
markets and rapidly growing in these emerging markets. In
recent years, Grant Thornton has placed its focus on industry
target markets. In July 2012 Grant Thornton appointed new
members in Hati and acquired FPA Group, a Poland provider of
outsourcing services. In October 2012, new member firms were
appointed in Africa and Dominican Republic. The company also
formed new member firms from existing firms in Armenia,
Tajikistan, and Uzbekistan (COMPANY PROFILE: Grant
Thornton, 2013, p.6). Development in these new markets will
provide an opportunity for additional customer base and a future
increase in revenues.
Intense competition, increasing regulation in government
contracting, and a weak global economic outlook threaten Grant
Thornton’s success. Grant Thornton operates in a highly
competitive environment that is growing rapidly in additional
competitors. This intense competition could wear down the
firm’s market share and reduce profitability. The company is
also exposed to risks regarding government contracting entities.
Changes in government and political developments such as
budget deficits and uncertainties, can cause price reductions in
the firm’s services or termination all together. Another threat
to Grant Thornton is the recent turmoil of the global economy.
Global growth dropped to 3% in 2012 and dropped even further
to 1.2% in 2013. Weak global economic growth coupled with
economic and political uncertainties could potentially reduce
the demand for services offered at Grant Thornton (COMPANY
PROFILE: Grant Thornton, 2013, p.7).
MY OPINION
I like how Grant Thornton places importance on creating a great
working environment for their employees. The firm offers an
environment for employees to grow and develop their careers,
while encouraging the importance of balancing your
professional and personal life. Grant Thornton appears to truly
care for their personnel’s wellbeing and strives to create
meaningful bonds with each individual on a comforting and
appreciative basis. I also like the abundance of locations Grant
Thornton occupies. Having the opportunity to travel the world
and experience different cultures through my career would be a
dream come true. Although it appears to be one of Grant
Thornton’s biggest weaknesses, I appreciate that the company is
relatively smaller than its competitors because I feel it gives
them more flexibility. Larger companies take much more time to
incorporate major changes to the organization, whereas with a
smaller company this process can happen much more quickly.
One disadvantage of being significantly smaller than your
competitors is the stability of the company. Job stability is very
important to me and Grant Thornton’s significantly smaller size
could result in a possible merger initiated by one of the larger,
Big Four advisory firms.
CONCLUSION
Grant Thornton and Ernst & Young possess many of the same
characteristics. Both companies are nationally and
internationally based, offering an opportunity to travel to
different places around the world. These firms also appear to
value their employees in high respects through efforts to expand
their personnel’s professional careers while encouraging the
importance of their personal lives. Grant Thornton and Ernst &
Young offer their employees remarkable benefits on top of fair
salaries. Either company I chose to work for, would
compensate their employees well. However, Ernst & Young has
a bit more versatility due to its larger global position and
expansion rate. Due to this, they may be able to give their
employees better salaries, opportunities for career advancement,
and higher organizational stability.
Perhaps the only real difference between Grant Thornton
and Ernst &Young is the gap between company size and
financial muscle. Ernst &Young is obviously much larger and
more successful than Grant Thornton on almost all business
aspects, but sheer size isn’t enough to sway an advantage. Both
companies continue to propose satisfying job stability,
professional and personal growth, and encourage healthy
relationships with their employees. Due to the fact that the
differences between both organizations is irrelevant in terms of
my personal criteria, I would not be able to place one above the
other. For this reason, I would enjoy working for both Grant
Thornton and Ernst & Young.
APPLE SWOT Analysis
Just like any other company, Apple Inc. has its strengths,
opportunities, weaknesses and threats. Its strengths lie in its
ability to establish and maintain a competitive advantage via
their successful vertical and horizontal integration and
impressive growth rates and cash flows. Vertical integration has
helped in maintaining a loyal customer base since it has made it
possible for Apple Inc. to have control over its customer’s
experiences with their products (Apple Inc. MarketLine
Company Profile). Another strength portrayed by this company
is that of maintaining high average selling prices (ASPs) within
the industry. This serves as strength since most of its
competitors have shown a diminishing nature in their pricing
strategies for their products and services. Its sole weakness,
however, is its relatively high dependence on the iPhone and
iPad products. For instance, these products had accounted for
about three-quarters of the company’s total revenue by the end
of the 2014 financial year. This serves as a risk since the failure
of either of these product lines in the market serves as a
hindrance to the growth of this company (Apple Inc.
MarketLine Company Profile).
The company enjoys certain opportunities, especially those of
growth in the near future. Such opportunities are brought about
by Apple Pay, the expected growth in the smartphone market as
well as that of tablets and the increased use of the company’s
products in the enterprise markets. The company’s threats
include the possible impact that the reduction of smartphone
subsidies could have on Apple’s shipments, the negative impact
of their high pricing on their growth rate and the highly
challenging and competitive market the company is situated in.

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(Insert Company Logo Here)Job DescriptionTitleReports To .docx

  • 1. (Insert Company Logo Here) Job Description Title: Reports To: Status: (Non-Exempt or Exempt) Job Summary: (This should include a brief overview of the company and a brief overview of the position.) Essential Job Functions: (List essential job duties and responsibilities) 1. 2. 3 4. 5. 6. 7. 8. Qualifications: Skills: (List skills required) 1. 2. 3. 4. 5. Education and experience: (List minimum education required)
  • 2. 1. 2. 3. 4. Physical Demands and Working Conditions: (List typical working conditions) Compensation and Benefits: (Examples: Base pay, bonus structure, medical/dental, vacation, paid time off, etc) COMPANY PROFILE Google Inc. REFERENCE CODE: 5B199F61-608D-4923-B4A3- F5EE15285ADE PUBLICATION DATE: 5 Mar 2015 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
  • 3. OR DISTRIBUTED. TABLE OF CONTENTS Company Overview................................................................................ ..............3 Key Facts....................................................................................... ........................3 SWOT Analysis.................................................................................. ...................4 Google Inc. Page 2 © MarketLine Google Inc. TABLE OF CONTENTS COMPANY OVERVIEW Google Inc. (Google or "the company") is a global technology company that offers search, advertising, operating systems and platforms, enterprise, and hardware products. The company operates in the US, the UK and in several other countries across the world. Google is headquartered in Mountain View, California and employed 47,756 people as of December 31, 2013.
  • 4. The company recorded revenues of $59,825 million during the financial year ended December 2013 (FY2013), an increase of 19.2% over FY2012. The revenues increased primarily due to an increase in advertising revenues generated by Google websites and Google Network Members' websites. The operating profit of the company was $13,966 million in FY2013, an increase of 9.5% over FY2012. Its net profit was $12,920 million in FY2013, an increase of 20.3% over FY2012. KEY FACTS Google Inc.Head Office 1600 Amphitheatre Parkway Mountain View California 94043 USA 1 650 253 0000Phone 1 650 253 0001Fax http://www.google.com/Web Address 59,825.0Revenue / turnover (USD Mn) DecemberFinancial Year End 47,756Employees GOOGNASDAQ Ticker GOOGLNASDAQ Ticker
  • 5. Google Inc. Page 3 © MarketLine Google Inc. Company Overview SWOT ANALYSIS Google Inc. (Google or "the company") is a global technology company that offers search, advertising, operating systems and platforms, enterprise, and hardware products. The company enjoys strong market share and global reach, which provides sustainable advantage as the company's entrenched position in the market enables it to drive revenues. However, intense competition has the potential to impact the market share and growth prospects for the company. WeaknessesStrengths Excessive dependence on advertisingGlobal search engine dominance Limited success of Google’s social networksAndroid's success is a growth driver in the mobile market ThreatsOpportunities Intense competitionPositive outlook for smartphone and tablet market PRISM electronic surveillance program
  • 6. issue highlights the data privacy concerns among users Display and mobile ad spend are growth drivers Intellectual property infringement claimsPoised to benefit from growing online video consumption Strengths Global search engine dominance Google enjoys strong market share and global reach. The company's search engine has leading technology which enabled it to gain market share. Google consistently upgrades and enhances its search algorithms to achieve better results. Google's results were recognized as being highly accurate from early on, with the search engine gaining popularity very quickly. In 2001, Google started giving links to major news outlets on the Google search page, which led to the development of Google News. Subsequently, the company released image search capabilities, which were later enhanced to also include search for videos, news stories, and other rich data. In 2010, the company launched Google Instant, which provides results even before the user stops typing. Google also launched voice search and native language search capabilities, which enables users to ask questions and hear answers spoken back. This feature works on the Google Search App for iOS, Android and Chrome browsers for laptops and desktops. As such, the company's competitors have struggled to
  • 7. match the search engine's accuracy and have fallen behind in popularity. However, despite the best efforts of its competitors, Google holds the majority of the share in the global search engine market, and this does not look set to change. Google Inc. Page 4 © MarketLine Google Inc. SWOT Analysis According to industry estimates, as of March 2014, Google's search engine had a market share of more than 71% measured against global website traffic. Google gained ground in the mobile market as well. Further, the industry estimates indicate that over 90% of the mobile search is conducted through Google search engine. Further, Google's share of overall US core search market was approximately 67.6% in January 2014 compared to 67.3% in December 2013. The company therefore enjoys technology leadership which enabled it to drive growth and gain market share. The technology leadership also provides sustainable advantage as the company's entrenched position in the market enables it to drive revenues. Android's success is a growth driver in the mobile market Google entered the mobile operating system market by acquiring Android, which enjoys several unique advantages and has emerged as a leading player in that market. Android operates in the
  • 8. burgeoning market of mobile phones. This market has seen strong growth in recent years, much of which has been driven by a surging demand for smartphones. This provides Android with excellent growth opportunities, translating into growth for the overall company. Android has exploited these opportunities better than its rivals, including Apple, Microsoft and BlackBerry, to establish itself as the clear leader in terms of the number of devices using its operating system (OS). Android belongs to a consortium of companies known as the Open Handset Alliance. This includes handset manufacturers such as HTC, Motorola and Samsung. Consequently, Android is the chosen OS on a range of phones that span a broad pricing spectrum. This gives it a competitive advantage over the likes of Apple and RIM, whose OSs are only available on their own phones. As of September 2013, Android was the leading mobile OS with more than one billion Android devices activated globally. According to industry estimates, Google’s Android platform is the leading smartphone operating system in the world with a market share of approximately 78.9% in 2013 compared to 68.8% in 2012. Android is the Open Handset Alliance's first joint project and was launched with the explicit goal of being the first open, complete, and free platform created specifically for mobile devices. Android powers several flagship mobile phones of leading players like Samsung and also the handsets of lower priced players. The fact that Android is the operating system powering such a wide range of phones suggests that it has access to every level of the smartphone market in terms of price, and
  • 9. this is where it has a clear advantage over many of its competitors. It has been adopted as the OS of choice by a number of popular handset manufacturers including HTC, LG, Motorola and Samsung. The iPhone has undoubtedly been a phenomenally successful product for Apple and it is credited as the device that kick-started the smartphone revolution. iOS is, however, limited as it is only available on one phone, the iPhone. This is a high-end, expensive product and as there is no cheaper version of the device, Apple does not have access to customers at the lower-cost end of the market in the way that Android does. Android's presence on phones at both the cheap and top ends of the market gives it a much wider potential market, a clear advantage over the likes of Apple. On the other hand, the Microsoft’s Windows Mobile OS has limited market share of 3.6% in 2013. The limited appeal of the Windows Mobile OS has forced a number of Microsoft loyalists, including HP to launch devices based on the Android OS. Moreover, Nokia, which is in the process of being acquired by Microsoft has also launched Android based mobiles in March 2014. These indicate the popularity and appeal enjoyed by Android. Google Inc. Page 5 © MarketLine Google Inc. SWOT Analysis The increasing popularity of Android is expected to speed up innovation on the mobile front thus
  • 10. ensuring that more users will start browsing the net from their phones. This ensures that more and more traffic is driven to one of Google’s many services, which are embedded in the Android platform, where they serve ads thus enhancing Google’s revenues. Weaknesses Excessive dependence on advertising The company primarily depends on advertisements for a majority of its revenues. For FY2013, FY2012, and FY2011, advertising accounted for 84.3%, 87.1% and 96.4%, respectively, of the company’s total revenues. In addition, expenditures by advertisers tend to be cyclical, reflecting overall economic conditions and budgeting and buying patterns. Adverse macroeconomic conditions can also have a material negative impact on the demand for advertising and cause its advertisers to reduce the amounts they spend on advertising. The company’s continued dependence on advertisement for a majority of its revenues indicates increased vulnerability to the ad spending patterns. Limited success of Google’s social networks Although Google is the leading search engine and its web properties are one of the most popular sites for up-to-date information, its attempt to achieve similar following in the social networks has resulted in only limited success. The company’s tryst with social networking started in 2003, with the acquisition of Pyra Labs, the creator of the Blogger platform, which is currently languishing behind
  • 11. other players, including WordPress, Typepad and Tumblr. The company’s Orkut social network service launched in 2004 was quite popular before the arrival of Facebook. Similarly in 2009, Google launched the Google Wave service, but it was unsuccessful in attracting a large customer base or retaining the people who joined in the initial excitement. Google’s fresh attempts at reviving its social networking position began with the introduction of Google+ in mid-2011 which resulted in limited success. As of October 2013, Google+ had 540 million 30-day active users. In comparison Facebook had 1.2 billion monthly active users (MAU) and 757 million daily active users (DAUs) on average in December 2013. Limited success of Google’s social networks is a competitive disadvantage especially as the social platforms continue to attract higher advertising dollars and are forecasted to grow tremendously. Competing head to head with entrenched players like Facebook for social network user base will be an uphill task for Google. Opportunities Positive outlook for smartphone and tablet market The smartphones and tablets market is expected to grow at a robust pace in the medium term. According to industry estimates, the global shipments for smartphones reached 1,004 million units Google Inc. Page 6 © MarketLine Google Inc. SWOT Analysis
  • 12. in 2013 compared to 725 million units in 2012. Furthermore, smartphone shipments are expected to grow at a compounded annual growth rate (CAGR) of 13.3% between 2013 and 2017. Also smartphones dominate the total handset market with a share of more than 50%. Furthermore, the demand for tablets is also increasing. The shipment of tablet PCs is estimated to grow from 144.5 million units in 2012 to more than 410 million units by 2017, growing at a compound annual growth rate (CAGR) of 23.2% for the same period. The company’s Android platform is the leading smartphone operating system in the world with a market share of approximately 78.9% in 2013 compared to 68.8% in 2012. Similarly in the tablet market, Android is the leading players with a market share of 62% in 2013 compared to 46% in 2012. Android is estimated to continue to be the market leader in the medium term for both the smartphone and tablet markets. Robust outlook for the smartphone and tablet market will increase the company's number of Android devices in the coming years. Display and mobile ad spend are growth drivers Display advertising trends indicate a positive momentum. According to industry estimates, in 2014, the US digital display ad spend is expected to record a strong growth rate of more than 15% compared to 2013. The estimates also indicated that Google is expected to hold a share of 24.6% in 2014 compared to less than 20% share it held in 2013. Advertisers in
  • 13. the US are expected to spend on various display ad formats served to desktops, laptops as well as mobile phones, tablets and other devices. Rising display ad spend will enable the company to boost its revenues, as it generates major portion of its revenues from display advertising. A key growth area for Google would be mobile advertising space, which is an emerging opportunity and will shape to be a prominent one for the company. According to industry estimates, the global mobile advertising is expected to generate total revenues of $18 billion in 2014 compared to $13.1 billion in 2013. The global revenue is expected to reach approximately $41.9 billion in 2017. The growth in mobile advertising market is primarily due to increased uptake in smartphones and tablets, as well as the merger of consumer behaviors on computers and mobile devices. Google has a strong presence in the mobile ad segment and will benefit from the growth in the segment. Poised to benefit from growing online video consumption The demand for online viewing of video content has been rising at a robust pace. According to industry estimates, the global online video market is projected to reach $37 billion by 2017 which includes subscriptions, transactions and advertising. The growth is expected to be driven by proliferation of broadband access and expanding viewership in emerging markets. The US represents the largest market for online videos, which is expected to contribute to over half of all revenues in 2017. The online video market in the US is projected to witness significant growth primarily driven
  • 14. by the increased options for viewing videos among online consumers. Google has significant presence in the online video market. The company operates YouTube, a video-sharing website which allows users to upload, view and share videos online. According to industry estimates, YouTube held a market share of more than 20.5% in the US video ad market. It Google Inc. Page 7 © MarketLine Google Inc. SWOT Analysis is also estimated that, YouTube’s share of the US video ad market would reach 22.9% by 2015 generating $1.6 billion of net ad revenues. YouTube experienced strong growth in the recent times particularly from mobile viewers and has established key partnerships with content companies to help monetize mobile video. The company's YouTube is well positioned to lead the penetration into the online video market which will enhance top line growth and also facilitates expansion into a high growth market. Threats Intense competition Google's business is rapidly evolving and intensely competitive, and is subject to changing
  • 15. technologies, shifting user needs, and frequent introductions of new products and services. The company faces formidable competition in every aspect of its business, particularly from companies that seek to connect people with information on the web and provide them with relevant advertising. Google faces competition from general purpose search engines, such as Yahoo and Microsoft's Bing; vertical search engines and e-commerce websites, such as Kayak (travel queries), Monster.com (job queries), WebMD (for health queries), and Amazon.com and eBay (e-commerce); and social networks, such as Facebook and Twitter. The company also faces competition from other forms of advertising, such as television, radio, newspapers, magazines, billboards, and yellow pages, for ad dollars; mobile applications on iPhone and Android devices; and providers of online products and services. A number of the company's online products and services, including Gmail, YouTube, and Google Docs, compete directly with new and established companies, which offer communication, information, and entertainment services integrated into their products or media properties. Technology is disruptive and sustainable competitive advantages are not assured. If Facebook is more cost effective for advertisers, they might eventually find a way to reach audience through these sources. Similarly, other companies have been gaining ground in Google's forte of search advertising. Furthermore, its closest competitors, Yahoo! and Microsoft have launched several initiatives to capture share in these markets. Yahoo!'s strategy involves connecting all of its online services, such as its search engine, maps, and so on. Meanwhile, Microsoft is
  • 16. attempting to integrate its internet searching and desktop so that its search engine will be embedded in all of its software, in the hope that there will no longer be a need for Google. Additionally, applications like Siri for iPhone have introduced the users to a reality without Google search. In addition, the company faces a fierce competition in the mobile markets. Google's significant competitors in mobile operating systems market include Microsoft, BlackBerry, and Apple. Also the growing consolidation in the industry will put pressure on the company's growth. For instance, Microsoft's acquisition of Nokia's devices and services business is expected to further strengthen Microsoft’s market position which will compete more strongly with Android devices. The intensifying competition has the potential to impact the market share and growth prospects for Google. PRISM electronic surveillance program issue highlights the data privacy concerns among users Google Inc. Page 8 © MarketLine Google Inc. SWOT Analysis Recent revelations about the extent to which the US National Security Agency (NSA) obtains electronic data from third-parties is likely to have an immediate and lasting impact on the company. PRISM is NSA's electronic surveillance data mining program which
  • 17. allows officials to gain access from nine internet companies to a range of digital information, including e-mails and stored data, on foreign targets operating outside the US. Allegedly, the NSA has direct access to the servers of these companies, including Microsoft, Google, Yahoo, Facebook, PalTalk, Skype, YouTube, and Apple. Further Google is said to have received millions of dollars to cover the costs as part of this program. The company has been facing scrutiny from various governments for allegedly violating data privacy laws due to its involvement in the PRISM project. For instance, Sweden's data privacy watchdog banned the use of Google applications including Gmail, for government workers in the city of Salem. Similarly, France and Spain led a Europe-wide push to get Google change its policies on collecting user data after it was revealed that the company was part of the PRISM project. Google was found guilty of breaking French laws and was given three months to change its privacy policies or risk a fine. Spanish Data Protection Agency is reportedly planning to penalize the company for its alleged violation of data privacy laws. Such allegations of Google's involvement in the PRISM project will impact the company's brand image and market share. Users have been becoming very weary of the websites such as Google capturing their data. The company's alleged involvement in the PRISM project is likely to impact the usage of its websites and other applications amidst concerns over data privacy. Increasing scrutiny will also result in investigations from various governments. In addition, such allegation will restrict
  • 18. users' activities, which in turn will impact the company's topline growth. Intellectual property infringement claims The company is subject to a number of intellectual property infringement claims. Internet, technology, media, and other companies own large numbers of patents, copyrights, trademarks, and trade secrets and frequently enter into litigation based on allegations of infringement or other violations of intellectual property rights. In addition, patent holding companies may continue to seek to monetize patents they have purchased or otherwise obtained. As Google has grown, the intellectual property rights claims against it have increased and may continue to increase as it develops new products, services, and technologies. A number of patent, copyright, and trademark infringement lawsuits have been filed against Google claiming that certain of its products, services, and technologies, including Android, Google Search, Google AdWords, Google AdSense, Google Maps, Google Books, Google News, Google Image Search, Google Chrome, Google Talk, Google Voice, and YouTube, among others, infringe the intellectual property rights of others. Third parties have also sought broad injunctive relief against the company by filing claims in the US and international courts and the US International Trade Commission (ITC) for exclusion and cease and desist orders, which could limit its ability to sell products or services in the US. Adverse results in any of these lawsuits may include awards of substantial monetary damages, costly royalty or licensing
  • 19. agreements, or orders preventing it from offering certain features, functionalities, products, or services, and may also cause Google to change Google Inc. Page 9 © MarketLine Google Inc. SWOT Analysis its business practices, and require development of non- infringing products or technologies, which could result in loss of revenues. In addition, many of Google’s agreements with its customers and partners, including certain suppliers, require it to indemnify them for certain intellectual property infringement claims against them, which could increase Google’s operating costs as a result of defending such claims. Such customers and partners may also discontinue the use of Google products, services, and technologies, as a result of injunctions, which could result in loss of revenues and adversely impact its business. Regardless of the merits of the claims, intellectual property claims are often time consuming, expensive to litigate or settle, and cause significant diversion of management attention. Any adverse decision may have an adverse effect on the company’s business, consolidated financial position and results of operations. Google Inc. Page 10 © MarketLine
  • 20. Google Inc. SWOT Analysis Copyright of Google Inc. SWOT Analysis is the property of MarketLine, a Datamonitor business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. MY CRITERIA When deciding on major career decisions, such as choosing an employer, it is imperative for that employer to embody several features that meet your professional and personal preferences. One preference included in my criteria for an ideal company, is growth. Company growth and individual growth are two very important characteristics a company should encourage. Rather than simply growing in size, a company should also promote growth through product expansion and philosophy. As the company adapts to market and consumer needs, it avoids becoming obsolete and therefore gains an edge on its competitors. From a personal perspective, it is essential for the company to have an opportunity for the employee to grow with them as well. This creates a trusting relationship between employer and employee because it supports a commitment to encourage an individual’s need for change. Secondly, a company should demonstrate a functional and positive working relationship with clients, suppliers, and employees. Establishing and maintaining a positive environment for everyone involved is key to the company’s success. Satisfied clients are more likely to return for more
  • 21. business and will often help the company gain new clients by giving good reviews. Maintaining good relationships with suppliers is also important because it will allow internal and external operations to flow more smoothly. Moreover, employers should focus on sustaining relationships with their employees. After all, a company’s success lies within the dedication and hard work of its employees. To show their appreciation, companies should offer benefits like health and dental insurance on top of employees’ salaries and bonuses. The last important characteristic is a company’s location. I would prefer to work in a location within or close to a large city, rather than in a rural area. Additionally, a company that has multiple locations gives an employee the chance to travel and experience different aspects within the organization around the world. More locations can also offer extra job security by giving employees the option of relocating. SWOT Analysis Grant Thornton’s strengths lie within its diversified geographical presence, wide selection of services, and a strong presence in Asia Pacific. The company reports stable profits across 100 countries with networks of 121 interdependent firms and 30 international business centers (COMPANY PROFILE: Grant Thornton, 2013, p.5). Global presence combined with steady profits allow the organization to attract a broader scope of clients and reduce risks due to its strong global image. Grant Thornton’s variety of services also attracts numerous clients through assurance, advisory, tax, audit, financial management, IT, and performance management services. A large range of services allows the firm to provide cross selling opportunities in new and present-day markets. Moreover, Grant Thornton’s recent growth in Asia Pacific has generated an increase in revenue of $399 million in FY 2010 to $579 million in FY 2012. This caused an increase in the company’s overall revenue by 10.4% in FY 2012 compared to the previous year (COMPANY PROFILE: Grant Thornton, 2013, p.5). The organization’s largest and most apparent weakness is its
  • 22. size compared to competitors. As a result, it is nearly impossible for Grant Thornton to compete with larger accounting and advisory firms like the Big Four. For instance, in FY 2012 Grant Thornton generated $4,182 million with an estimated 35,000 employees compared to Deloitte Touche Tohmatsu, one of the Big Four firms, who reported $31,300 million with over 193,000 employees (COMPANY PROFILE: Grant Thornton, 2013, p.5). This places the firm at risk of potential acquisition by larger firms carrying more financial muscle. Along with Grant Thornton’s strengths and weaknesses, the firm also has opportunities for expanding into new and existing markets and rapidly growing in these emerging markets. In recent years, Grant Thornton has placed its focus on industry target markets. In July 2012 Grant Thornton appointed new members in Hati and acquired FPA Group, a Poland provider of outsourcing services. In October 2012, new member firms were appointed in Africa and Dominican Republic. The company also formed new member firms from existing firms in Armenia, Tajikistan, and Uzbekistan (COMPANY PROFILE: Grant Thornton, 2013, p.6). Development in these new markets will provide an opportunity for additional customer base and a future increase in revenues. Intense competition, increasing regulation in government contracting, and a weak global economic outlook threaten Grant Thornton’s success. Grant Thornton operates in a highly competitive environment that is growing rapidly in additional competitors. This intense competition could wear down the firm’s market share and reduce profitability. The company is also exposed to risks regarding government contracting entities. Changes in government and political developments such as budget deficits and uncertainties, can cause price reductions in the firm’s services or termination all together. Another threat to Grant Thornton is the recent turmoil of the global economy. Global growth dropped to 3% in 2012 and dropped even further to 1.2% in 2013. Weak global economic growth coupled with
  • 23. economic and political uncertainties could potentially reduce the demand for services offered at Grant Thornton (COMPANY PROFILE: Grant Thornton, 2013, p.7). MY OPINION I like how Grant Thornton places importance on creating a great working environment for their employees. The firm offers an environment for employees to grow and develop their careers, while encouraging the importance of balancing your professional and personal life. Grant Thornton appears to truly care for their personnel’s wellbeing and strives to create meaningful bonds with each individual on a comforting and appreciative basis. I also like the abundance of locations Grant Thornton occupies. Having the opportunity to travel the world and experience different cultures through my career would be a dream come true. Although it appears to be one of Grant Thornton’s biggest weaknesses, I appreciate that the company is relatively smaller than its competitors because I feel it gives them more flexibility. Larger companies take much more time to incorporate major changes to the organization, whereas with a smaller company this process can happen much more quickly. One disadvantage of being significantly smaller than your competitors is the stability of the company. Job stability is very important to me and Grant Thornton’s significantly smaller size could result in a possible merger initiated by one of the larger, Big Four advisory firms. CONCLUSION Grant Thornton and Ernst & Young possess many of the same characteristics. Both companies are nationally and internationally based, offering an opportunity to travel to different places around the world. These firms also appear to value their employees in high respects through efforts to expand their personnel’s professional careers while encouraging the importance of their personal lives. Grant Thornton and Ernst & Young offer their employees remarkable benefits on top of fair salaries. Either company I chose to work for, would compensate their employees well. However, Ernst & Young has
  • 24. a bit more versatility due to its larger global position and expansion rate. Due to this, they may be able to give their employees better salaries, opportunities for career advancement, and higher organizational stability. Perhaps the only real difference between Grant Thornton and Ernst &Young is the gap between company size and financial muscle. Ernst &Young is obviously much larger and more successful than Grant Thornton on almost all business aspects, but sheer size isn’t enough to sway an advantage. Both companies continue to propose satisfying job stability, professional and personal growth, and encourage healthy relationships with their employees. Due to the fact that the differences between both organizations is irrelevant in terms of my personal criteria, I would not be able to place one above the other. For this reason, I would enjoy working for both Grant Thornton and Ernst & Young. APPLE SWOT Analysis Just like any other company, Apple Inc. has its strengths, opportunities, weaknesses and threats. Its strengths lie in its ability to establish and maintain a competitive advantage via their successful vertical and horizontal integration and impressive growth rates and cash flows. Vertical integration has helped in maintaining a loyal customer base since it has made it possible for Apple Inc. to have control over its customer’s experiences with their products (Apple Inc. MarketLine Company Profile). Another strength portrayed by this company is that of maintaining high average selling prices (ASPs) within the industry. This serves as strength since most of its competitors have shown a diminishing nature in their pricing strategies for their products and services. Its sole weakness, however, is its relatively high dependence on the iPhone and iPad products. For instance, these products had accounted for
  • 25. about three-quarters of the company’s total revenue by the end of the 2014 financial year. This serves as a risk since the failure of either of these product lines in the market serves as a hindrance to the growth of this company (Apple Inc. MarketLine Company Profile). The company enjoys certain opportunities, especially those of growth in the near future. Such opportunities are brought about by Apple Pay, the expected growth in the smartphone market as well as that of tablets and the increased use of the company’s products in the enterprise markets. The company’s threats include the possible impact that the reduction of smartphone subsidies could have on Apple’s shipments, the negative impact of their high pricing on their growth rate and the highly challenging and competitive market the company is situated in.