In 2013, Google’s earnings trounced all analyst’s expectations as fourth quarter revenue rose to $16.86 billion, which was 17 percent higher than 2012 (Rosenblatt, 2014). The operating income also rose, which increased from $4.27 billion to $4.84 billion (Rosenblatt, 2014). The earnings per share expectation from most analysts were higher than reality, however, the compa-ny’s final earnings per share of $12.01 was higher than the $10.65 a year earlier (Rosenblatt, 2014).
For Google, the past several years have shown consecutive years that the total revenue crossed $50 billion. For example, in 2013 it reached $57.86 billion, and in 2012 it was $50.18 billion (Rosenblatt, 2014). The total revenue included revenue from …show more content…
With this prestigious following, Google is able to sell advertisement slots on their web pages. With high levels of competition between Yahoo and Bing search engines, Google is able to win over the consumer by offering highly accurate search results when using their search engine. In addition to Google’s superb search engine, they also have a brand that the majority of the population is familiar with. Brand familiarity strengthens an organization’s image and allows Google to combat any competing search engine in their way.
Weaknesses
Google may attract over 80% of search engine users and have a high level of brand famil-iarity (Purcell, Brenner, & Rainie, 2012), but they are not perfect. Google relies on advertise-ments as their main form of revenue. To be more specific over 90% of Google’s revenue stems from advertisements (MarketLine, 2014, p. 6). Furthermore, Google seems to be content with their current operations. They fail to legitimately compete with electronic competitors, such as Apple, Microsoft, and Samsung. While these competitors continuously release a variety of elec-tronic devices, Google settles for releasing mediocre tablets (Nexus) and chrome books. While this is somewhat inline with the company’s mission and vision statement, some in the industry construe this as an area of