Alphabet Inc. (formerly known as Google) is a multinational technology company that specializes in internet-related services and products. It generates over 80% of its revenue from online advertising through its Google division. Alphabet dominates several key markets such as web search, video sharing, digital advertising and mobile operating systems. However, it is highly dependent on advertising revenue and faces increasing competition. Opportunities for growth include expanding its subscription video business on YouTube and advancing in artificial intelligence and edge computing technologies.
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ABOUT ALPHABET
Name Alphabet Inc.
Logo
Industries served
Internet (Google Search, Google Ads, Gmail, YouTube)
Computer software (Android, Chrome)
Consumer electronics (Chromecast, Google TV, Pixel)
Venture Capital (CapitalG, GV)
Healthcare (Verily, Calico)
Geographic areas served Worldwide (more than 100 countries)
Headquarters Mountain View, California, U.S.
Current CEO Sundar Pichai
Revenue (US$) 182.527 billion (2020) 12.8% 161.857 billion (2019)
Profit (US$) 40.269 billion (2020) 17.3% 34.343 billion (2019)
Employees 135,301 (2021)
Main Competitors
Amazon.com, Inc., Apple Inc., Facebook Inc., Microsoft Corporation, The
Walt Disney Company, Netflix, Inc. and many other Internet, computer
software, consumer electronics and healthcare companies.
3. Alphabet Inc, (formerly known as Google) is a collection of wide variety of
businesses, specializing mainly in internet services and software industries.
In 1996, Google was started as a project to create a search engine and was
first called Backrub.
Now, Alphabet (a parent company of Google) is an internet giant, dominating
mobile OS (Android), browser (Chrome), search (Google Search) and online
advertising (Google Ads) markets.
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BUSINESS DESCRIPTION (1/2)
Alphabet generates revenues primarily through Google’s advertising
business.
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BUSINESS DESCRIPTION (2/2)
“ ”
Alphabet
Google 99.6% Other Bets 0.4%
5. 29.8%
23.5%
10.2%
36.5%
Google
Facebook
Amazon
Others
1. Dominance in web search, video content sharing, digital advertising, mobile
operating systems (OS), web browser and many other markets
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STRENGTHS
S W
O T
Alphabet’s Google dominates most of the
markets it operates within, including:
• Digital advertising
• Web search
• Mobile operating system
Digital ad spending share in the U.S. in 2020
6. 1. Overdependence on revenue from advertising
Alphabet’s Google is very vulnerable to the following changes in the digital advertising
market:
• increasing competition;
• query growth rates;
• the evolution of the online advertising market;
• changes in advertising offerings;
• advertising trends;
• user preferences.
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WEAKNESSES
In 2020, Alphabet’s
Google earned
US$146,924 billion or
80.5% of its total revenue
only from advertising.
S W
O T
7. 1. Growing market for subscription-based video on demand services
• YouTube is the most popular video on demand streaming platform in the
world, with more than 2 billion users.
• According to Statista, the market is expected to grow by 10.17% on
average from 2021 to 2025.
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OPPORTUNITIES
S W
O T
8. 1. Widespread adoption of advertisement-blocking software
• In 2020, Alphabet earned US$146,924 billion or 80.5% of its total revenue
solely from advertising.
• Over 763 million devices running ad block as of December 2019.
• Over 236 million people were blocking ads on desktop;
• Over 527 million people were using mobile browsers that block ads by
default.
SLIDE | 8
THREATS
S W
O T
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GET THE FULL
PRESENTATION
BUY ALPHABET
(GOOGLE) SWOT 2021
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0001326801/4dd7fa7f-1a51-4ed9-b9df-7f42cc3321eb.pdf Accessed March 23, 2021
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SOURCES (1/3)
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Accessed March 23, 2021
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SLIDE | 12
SOURCES (3/3)
13. Ovidijus.Jurevicius@strategicmanage
mentinsight.com
Strategic Management Insight
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