Analysis

SWOT Analysis

Strengths

• Alphabet has a strong search engine due to its parent company’sresources and its stance in the external market.
• Alphabets has theresources and skills to develop new products and services without any hindrance.
• Since the company has energy and aim tocreatenew market dynamics, it has a strong culture and innovationadoption, making ita strong player in the market.
• The company has a strongecosystem of products and services and an especially strong position in the online advertisingsegment, making it utilize the platform for further market acquisition.(Reeves, 2015)
• Lastly, the company has a massive amount of information, through Googleplatforms, making it analyze the customer needsand changing market dynamiceffectively.

Weaknesses

• Though Alphabet has strong assets and market value, it faces issues in diversifying the product line.
• It faces challenges in maintaining its brandimage in the niche sectors such as Apple is offering, due to non-aligned market and organizational strategy.
• The financialplanning is not done properly, leading to ineffective investment in the projects, resulting in losses.
• It has weak culture, though it is tryingto develop the culture, the traditional cultural roots still existin the firm.

Opportunities

• Since the company has developed a separateidentity in terms of organizational cultureand formation, it has the opportunity to manage its pricing strategy in the market,allowing it to maintaincustomer loyalty.
• Since the company willtarget the online platform, it has the opportunity to gather immensesales from the online channels.
• The extensive market development will lead to market dilution, makinga clear stance for Alphabet in the market.
• Since environmental policies are changing in the market, it may offer the opportunity to company to developenvironmental friendly technology, capitalizing the opportunityon a big scale.

Threats

• Since in the US, the increasing trend of bringingbusiness back to the US has taken a strong grip, expanding the services in the international market may become an issue for the company dueto governmental policies.
• It may face high threat of imitation in differentmarkets due to differentpolicies and legal structure.
• The difference in liability laws may hinder the performance of Alphabet due to different liability charges.(Harnoss, 2015)

PEST Analysis

Political Factor

US has a strong democratic system, with low governmentpolicies and restrictions for businesses to pursue in themarket.The US government,however, strictly regulates the businessactivities convened with environmentalissues. Perhaps, it promotes the localbusinessesand supportsinternationalization.In addition, the government has also recently recovered from financiallosses, makingitspolitical stancestable and strong.

EconomicFactor

US is the largest economy in the world thatgathers its strengths from well-developedmanufacturingindustriesand service sector.After therecovery from the financial crisis, the economy has stabilized, depicted from the increased consumer consumptionandriseofthe service sector in the market, leading to the development of strongserviceand manufacturing sector in the region. In addition, the GDP rate of the country has also increased and stabilized, outlining the sustained market positionand growth.

Social Factors

U.S, like otherdevelopedcountries, is facing the issueof aging population in the market that may greatlyaffecttheoffering of the company andmayalso change ortrim the level of the offerings.In addition, the increasing trend of insourcing the employee base to perform functions has increased, however, the legislation and government regulation may hinder such a trend in the market.Additionally, the markets have become technically adapted and smart, giving rise to innovative home solutions........................

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