A brief review of Google LLC (now a leading subsidiary under Alphabet Inc.) ;its PESTEL & SWOT Analsis.

1. PREPARED BY SABA TARIQ
MBA 2ND SEMESTER
ROLL NUMBER 05
GOOGLE LLC

2. ABOUT GOOGLE
• Google began in January 1996 as a research project by Larry Page and Sergey Brin
while they were PhD students at Stanford University. Together they own about 14% of
its shares and 56% of the stockholder voting power through super voting stock.
• The domain name for Google was registered on September 15,1997 and the company
was incorporated on September 4,1998.
• Google hosts and develops a number of inter-based services and products, which
include online advertising technologies, search engine, cloud computing, software, and
hardware.
• An initial public offering (IPO) took place on August 19, 2004, and Google moved to
its new headquarters in Mountain View, California, nicknamed the Googleplex.
• In August 2015, Google announced plans to reorganize its various interests as a
conglomerate called Alphabet Inc. Google, Alphabet's leading subsidiary, will
continue to be the umbrella company for Alphabet's Internet interests. Upon
completion of the restructure, Sundar Pichai was appointed CEO of Google, replacing
Larry Page, who became the CEO of Alphabet.

3. ABOUT GOOGLE
(Cont.)
• Google is indubitably the most popular and most exciting company in the world today.
According to its corporate website, its mission is to “organize the world's information
and make it universally accessible and useful” (Google, 2010)
• Google ranked first place in Fortune Magazine's annual “Best Companies to Work For,”
besting other top companies for two consecutive years, in 2007 and 2008. The most cited
reason its performance as a top employer is because of its internal company culture.
• On its website, its policy of “favoring ability over experience” rings true as the
employees of Google are all college degree holders at the very least. Because Google is
oriented toward its “youthful” internet-savvy market, the average age of its employees is
noticeably lower than most companies. The median age at Google is 30 years old and the
gender distribution is 65% male and 35% female.
• There is also a great degree of independence for Google engineers because of the so-
called 20% program. Engineers can devote 20% of the total number of work hours on
projects that truly interest them

4. PRODUCTS & SERVICES
• Google core search engine—Google Chrome.
• Services for work and productivity—Google Docs, Sheets & Slides.
• Email—Gmail, Inbox.
• Scheduling & Time management—Google Calendar.
• Cloud Storage—Google Drive.
• Social Networking—Google+.
• Instant Messaging and Video Chat—Google Allo, Duo, Hangouts.
• Language Translation—Google Translate.
• Mapping & Turn-By-Turn Navigation—Google Maps, Waze, Earth, Street View.
• Video Sharing—YouTube.

5. Products & Services(Cont.)
• Note-Taking—Google Keep.
• Photo Organizing and Editing Google Photos.
• Operating System—Android Mobile Operating System, Chrome OS, a lightweight
operating system based on the Chrome browser.
• Google has moved increasingly into hardware; from 2010 to 2015, it partnered with
major electronics manufacturers in the production of its Nexus devices, and in
October 2016, it released multiple hardware products including the—Google
Pixel Smart Phone, Home Smart Speaker, Wi-Fi Mesh Wireless Router,
and Daydream View Virtual Reality Headset.
• In February 2010, it announced Google Fiber, a fiber-optic infrastructure that was
installed in Kansas City; in April 2015, it launched Project Fi in the United States,
combining Wi-Fi and cellular networks from different providers; and in 2016, it
announced the Google Station initiative to make public Wi-Fi available around the
world, with initial deployment in India.

6. PORTERS FIVE FORCE ANALYSIS
Entry Barriers The web environment of search
engines is more enriched, compared with the past
years and it's more familiar for users. As a result,
the entry of new firms is not such a big threat for
existing companies, especially for Google.
Suppliers The main suppliers of Google are
advertisements of companies, which expect to be
popular in the world, so this factor contributes to
the direct profit. Therefore, the negotiating power
of suppliers is relative low, because Google is the
pioneer of searching services.
Competitors The main competitors of the company
are Microsoft and Yahoo which have significantly
lower profit. For the achievement of their profits,
trademarks like MSN and Live-search played very
important role. The company's high market share
gives it the advantage to improve the quality of
information and make the search easier. As a result,
Google creates successful advertisements rapidly in
comparison with its competitors.
Customers The strategy of the company is to obtain
new and more advertisements, of which the profit is
maximum 3%. So it accumulates the profit from
many small advertisements. Many firms want to
advertise themselves and users have the opportunity
to find them through keywords. Then, the percent
of profits increased, because it is considered as an
extra service. This attracts many companies which
results in Google buying power in low levels.
Substitutes Due to the uniqueness and immediacy, there
aren't specific substitutes for data search. In order to
Google to serve the users and become more competitive,
with the help of some tools, classifies the data by date.
The leading position of Google and the possible future
entrance of competitors depend on the satisfaction of
customers and shareholders.

7. SWOT ANALYSIS
1.
• There is a wide range of functions offered such as Google docs, Google
earth, Gmail, Google translator and Blackle, besides its main operation
as a search engine.
2.
• Good reputation and strong brand name.
3.
• Loyal customers.
4. • Introduction of Android and Mobile technologies.
5.
• Pay high attention to the users & has strong patents portfolio.
6.
• Unique product-service with friendly working environment
Strengths

8. Weaknesses
1. • Relies heavily on one source of income.
2.
• Unprofitable products.
3.
• Patent litigations.
4.
• Excessive reliance on secrecy.
5.
• Whoever is interested in using Google for advertising purposes does not have a clear
idea where it would be more profitable to place their advertisements as the cost or
click charging is very confusing.
6.
• Lack of compatibility with some of the next generation devices.

9. Opportunities
1.
• Diversification into non-Ad business models.
2.
• Android operating system.
3.
• It can provide more hand-held devices to capture a larger share of the market.
4.
• Google Glass and Google Play.
5.
• Cloud computing.
6.
• Using higher value context on the web.

10. Threats
1.
• A lot of legal trials due to users’ invasion of privacy.
2.
• There are a lot of competitors and rivals.
3.
• The confusing policy for advertisements may disappoint the potential clients and Google may
start losing them.
4.
• If it decides to follow its competitor by changing it minimal user friendly interface it may lose a
lot of its users.
5.
• Privacy issues regarding the contents ownership.
6.
• It can lose its brand loyalty if it merges with other large firms.

11. SABA TARIQ
MBA 2ND SEMESTER