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Even though Advertising for Google has been a major revenue source, their overdependence
on the advertising revenue is a major threat to the company. Just as the internet came very
quickly and benefited the company, the company is just as vulnerable to the change that
could occur due to increase in competition, query growth rates, and evolution of technology.
Query growth rate are growth at a rate higher than recent years because competition has been
becoming increasingly high with new companies and ideas entering the market. If new
advertisement strategies come about that Google does not adopt, it could destroy the
company. For example, Toy-R-Us, the toy retailer, claimed bankruptcy because of not
adapting to the change. While most competitors, like Target and Walmart, were already
transitioning online, Toy-R-Us kept their online presence weak and their in-store presence
like they did in the past. Google must avoid this and stay up to date on all current trends and
technological advances to maintain their strong presence. Since they have a large database of
information at their hands, keeping up should be a matter of efficiently using their data and
applying the necessary changes.
Online companies have been attacked a lot recently due to the lack of secrecy of their
customers. Companies like Facebook, who have had severe cases of consumer information
leaking, face hardship that didn’t exist at such a large scale before. Collecting data online, not
just history searches and shopping baskets, but addresses, phone numbers, credit cards,
provides the companies with liability risk. With big data comes big responsibility. Accurately
managing data and protecting it could also be detrimental to a company’s existence.
Facebook suffered a major decrease in their stock value since the infiltration of hackers in
their system. This proves to be a major threat to companies like Googles and managing their
information and customers privacy should be a main point to protect on behalf of the
company.
An opportunity for Google to grow using data is creating merchandises that are compatible
with next generation devices. Another opportunity is taking advantage of subscription-based
video on demand services such as YouTube. Popular services as this would greatly benefit
Google shift away from only advertisement revenue and into video subscription revenue.
This area is said to grow significantly in the next 5 years and given the data at the hands of
Google, they could begin something like this quickly and see that it does well. Using their
data collection from the users they currently have they can create their own video website and
have “Google Videos.” The previously spoken about “Google Glasses and Google Play” are
also great opportunities for Google in which they can use they knowledge they already have
to grow these two areas.