SWOT analysis of YouTube
This SWOT analysis of YouTube aims to provide the readers with a comprehensive insight into the strengths and the weaknesses of YouTube. It also aims to examine the opportunities the company should explore and the threats it needs to keep an eye on. YouTube is the largest video-sharing website in the world, headquartered in California, the USA.
Strengths of YouTube
YouTube was originally developed by three former employees of PayPal – Jawed Karim, Steve Chen, and Chad Hurley. The trio’s understanding and experience of the industry have been very fundamental to the development of the site. Indeed, Jawed Karim uploaded the 1st ever video to the site.
YouTube is owned by another tech giant and household name Google (Alphabet). Google took over YouTube in November 2006 with a massive $1.65 billion. Google’s involvement has taken YouTube to such a stage of height which is absolutely unmatched and highly unlikely to be defeated by any competitor any time soon.
YouTube is the 2nd highest ranked website in the world as of June 2019 (Alexa Internet, 2019). Approximately 1.8 million sites link to YouTube. It is worth mentioning that YouTube’s parent company Google is No. 1 in global Internet engagement.
The mission of YouTube is to give everyone a voice and to show them the world (YouTube, 2019). Well, more than 1 billion people around the world already use YouTube. YouTubers watch approximately 6 billion hours of videos every month and upload 300 hours of videos every minute (Maloney, 2017). It is amazing that approximately 1000 videos are uploaded by the time someone finishes watching one video on YouTube.
YouTube’s net advertising revenues were about $7.8 billion in 2017which are expected to increase to $11.76 billion in 2020. Its advertising revenues in the USA were $3.88 billion in 2017 which are expected to reach $5.47 billion in 2020 (Statista).
Weaknesses of YouTube
YouTube has been criticised over the years by activists and national governments for failing to monitor its contents appropriately. Many videos have been criticised for containing provocative, violent, and depressing contents. Likewise, bigotry, hatred, and propaganda are the common themes of many videos available on YouTube.
As YouTube is a public platform, anyone can upload and watch videos without any substantial barriers. This may lead to copyright challenges. With billions of users and videos in action, YouTube has indeed become a hotbed for copyright infringements. In addition, YouTube adverts are often very intrusive as well.
Opportunities for YouTube
The use of the Internet and Smartphones is on constant rise around the world. The vast majority (if not all!) of the Smartphone users install YouTube on their phones. This clearly shows that the use of YouTube is highly likely to continue to increase in the future. Similarly, more and more people are developing and sharing their contents on YouTube. In fact, videos have largely overtaken written blog contents.
Threats to YouTube
Threat is the last element to address in the SWOT analysis of YouTube. YouTube faces genuine competition from a good number of competitors. The main competitors are YouTube are Facebook, Vessel, Vimeo, Flickr, Dailmotion, Metacafe, Photobucket, Veoh, Bit.tube, Snapchat, Netflix, Twitter, BuzzFeed and Vice. All of these platforms now have their own compelling video offerings.
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Last update: 16 June 2019
Alexa Internet (2019) youtube.com Competitive Analysis, Marketing Mix and Traffic, available at: https://www.alexa.com/siteinfo/youtube.com (accessed 15 June 2019)
Maloney, K. (2017) 7 Astonishing Facts About YouTube That You’ve Never Heard, available at: https://www.huffpost.com/entry/7-astonishing-facts-about_b_14630278?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAHpTwYM6deZQCRPsbvz9Ru_ZMMp8S_H6noNbbucarHCP88HYO9U9XLWs0os7_aiAZPfwU77Fl2GtUm2pr51PUHk04FvHN_Yr5I8ne0M3u0OqRx1BJd7juIXIiada7GkF3F9KHJUYLL4s2Kf3w1V0cq8Vu9fe0ZMSxTwRb_POXHUI (accessed 15 June 2019)
Statista (2019) Net advertising revenues of YouTube in the United States from 2016 to 2020 (in billion U.S. dollars), available at: https://www.statista.com/statistics/289660/youtube-us-net-advertising-revenues/ (accessed 15 June 2019)
YouTube (2019) About us, available at: https://www.youtube.com/intl/en-GB/yt/about/ (accessed 14 June 2019)
Photo credit: Pixabay.com
Author: Joe David
Joe David has years of experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality and tourism management.