What are the company’s key resources and competitive capabilities? What competitive liabilities and resource weaknesses does it have? What opportunities exist? What threats to its continued success are present?
The key resources and competitive capabilities of the search industry are due to the huge company’s success. For instance, Google gains the trust of users through reliable, accurate searches and a clear distinction of upfront advertisements in searches. Therefore, the online business user’s can do their work in minimum physical locations and lower fixed cost. These locations is fully utilized as they maximize the creativity and being in high-spirit for their working environment. The employees are hired selectively amongst some of the greatest minds in technology and related fields, and are given the tools, freedom, and encouragement to be innovative and fulfilled by their job. Several iconic features of Google remain unparalleled, including their extensive Google Earth and Google Maps capabilities, archetypal YouTube video streaming, and Google Search Appliances that allow other companies to feature Google search bars within their own sites.
Being a leader in the search industries, Google is also has a few number of weaknesses. These could have serious implications on the future of their business as such the low revenue that is acquired from YouTube represents a lost opportunity for such a large online presence. Their grasp on the comprehensive social networking market is far behind those of their competitors. And while they remain an industry leader, their international reach in emerging markets such as China leave much to be desired and acquired.
The rapid growth in search industries which revolving around technology and the Internet turns out of giving many opportunities to Google currently and in the near future. For example, the Internet and mobile advertising growth lead the way for increasing importance of Search Engine Optimization for marketers. More data on users becomes more readily available using data collected from searches and Chrome. Possibly the most important up-and-coming necessity for innovative companies such as Google is the availability for users to have all of their information in one account through cloud computing.
Being in such a competitive and fast moving environment will comes together with the threats to the firms. Companies who are leaders in their industry in avenues Google has attempted to take, such as Facebook for social networking, Microsoft Office for word processing, and Weather.com for detailed weather reports, make finding a stronghold in such ventures very difficult. Users who are already fully integrated are unlikely to switch, and may be hesitate to have their personal information in multiple locations. Cloud computing poses a serious threat to possible hacking and identity theft, since a single set of login information could allow access to a multitude of facets of personal information.
The ethical concern in the minds of many consumers regarding the ability of companies to track user viewing habits hurts users’ trust in Google, and is characterized in the blocking habits of Explorer and Firefox. Without access to this information however, the full potential of selective online advertising cannot be reached. Google must also confront substitute services as they arise, so that their main competitive advantage in search specialization is not replicated. In addition, they must be aware of any intellectual property rights laws that may be passed in the near future so as not to impede onto the service they provide.