Google Inc (GOOG): A SWOT Analysis

Blue Sky Opportunities: Google has a number of other opportunities which are very innovative and highly ambitious including the Google Inc (NASDAQ:GOOG) Fiber and other non-revenue generating opportunities like Google Glass, self-driving cars etc. And some of these initiatives might be more feasible projects with favorable economics in the future.

Threats

Social Networking: A number of social networking social sites, including Facebook Inc (NASDAQ:FB) are heavily competing with Google for web traffic. And in addition, Facebook competes heavily with Google Inc (NASDAQ:GOOG) for online advertising dollars, in addition to user traffic.

Search and Mobile Apps: In addition to existing search companies vying for search volumes like Bing and Yahoo! Inc. (NASDAQ:YHOO), newer search platforms like Facebook’s Graph Search might gain more momentum in the future. And also the rise of mobile devices has led to mobile applications allowing users to bypass search, which can be a big headwind for the company in the future.

The Takeaway

Google Inc (NASDAQ:GOOG)’s dominant position in the lnternet landscape gives the company a lot of advantages in growing its business. The company has very limited downside risk, and a lot of optionality for the upside. The company has more than $54.4 billion in cash, which it can use to acquire inorganic growth opportunities as well.

Ishfaque Faruk has no position in any stocks mentioned. The Motley Fool recommends Apple, Facebook, and Google. The Motley Fool owns shares of Apple, Facebook, Google, and Microsoft.

The article Google: A SWOT Analysis originally appeared on Fool.com.

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