MGT498 - Strategic Management_Part 2, Strategic Management Journal_Iwasewski

Part 2, Strategic Management Journal Forrest Iwaszewski MGT/498 – Strategic Management Professor William Crigger February 26, 2024

SWOT Analysis Internal Strengths  Strong Brand Recognition  Global Influence  Technological Innovations  Diversity  Revue Growth  Employee Satisfaction  Large User Base  Dominant position in the global search engine market Weaknesses  Dependence on advertising revenue  Lack of diversity in revenue streams  Privacy Concerns  Unfair Business Tactics  Tax Avoidance  High dependence on online technology  Employee Turnover Opportunities  Cloud Computing  Artificial Intelligence  International Expansion  Diversification of Revenue  Expansion in Emerging Markets Consumer subscription-based products  Financial Performance Threats  Competition  Data Privacy  Ad-blocking  Regulatory Risks  Disrupting Technologies  Cyber Threats  Regulatory Compliance Concerns External Analyze Alphabet’s strengths and include specific examples based on your SWOT analysis findings. Alphabet Inc., the parent company of Google, has several key strengths. Firstly, it holds a dominant position in the global search engine market, with Google having a market share of over 90%. Secondly, Alphabet has successfully diversified its revenue streams beyond search, venturing into areas such as cloud computing, hardware, and emerging technologies. Thirdly, Alphabet places a strong emphasis on innovation and technological advancement, pioneering in

Evaluate Alphabet’s weaknesses against its opportunities.   Alphabet Inc., has several weaknesses and opportunities. Weaknesses: 1. Dependence on Advertising: Alphabet's primary source of revenue is advertising, which makes it vulnerable to changes in market conditions. If businesses cut back on advertising spending, Alphabet's revenues could decline. 2. Privacy Concerns: Google has faced criticism and legal challenges related to privacy issues. These concerns could harm Alphabet's reputation and lead to costly legal battles. 3. Regulatory Challenges: Alphabet operates in a highly regulated environment and faces potential regulatory challenges, particularly in Europe, where privacy laws are stricter. Opportunities: 1. Diversification: Alphabet can diversify its revenue streams. It has made investments in areas like cloud computing, autonomous vehicles, and healthcare technology, which could provide significant growth opportunities in the future. 2. Expansion in Emerging Markets: There are significant growth opportunities in emerging markets, where internet penetration rates are still relatively low. 3. Advancements in AI and Machine Learning: Alphabet is at the forefront of AI and machine learning technology. These technologies have the potential to revolutionize a wide range of industries and create new opportunities for Alphabet. Alphabet's weaknesses against its opportunities, we can use a SWOT analysis. This involves identifying the company's strengths, weaknesses, opportunities, and threats, and then developing strategies to leverage its strengths and opportunities to overcome its weaknesses and threats. For example, Alphabet could use its expertise in AI and machine learning to develop new products and services that diversify its revenue streams, reducing its dependence on

advertising. It could also invest in privacy-enhancing technologies to address privacy concerns and regulatory challenges. Propose   problem-solving strategies to address Alphabet’s weaknesses or threats that could be mitigated by a business opportunity or business decision. Despite its remarkable success, Alphabet also faces several weaknesses and threats that could hinder its growth and profitability. However, these challenges can also be viewed as opportunities for the company to innovate, adapt, and strengthen its position in the market. Alphabet's significant reliance on advertising revenue makes it vulnerable to fluctuations in the advertising market. To diversify its revenue streams, Alphabet could:  Expand into new business areas: Alphabet could leverage its technological expertise and infrastructure to venture into new markets, such as e-commerce, fintech, or healthcare.  Develop innovative subscription-based services: Alphabet could offer premium versions of its existing products or introduce entirely new subscription-based services to generate recurring revenue.  Explore strategic partnerships and acquisitions: Alphabet could partner with or acquire companies in complementary industries to expand its reach and diversify its revenue sources.