The competitive advantage of Google
Google was able to create a competitive advantage initially before 2004 through:
- Perfecting their innovative search engines, in other words, instead of counting keyword like other existing search engines, Google created reliable search through several websites (p. 4). Another factor that led to an early was its strategy of monetizing paid search (p. 2-3). This aspect eased operations and even became economical to offer services to its customers.
- Google also was able to deliver search results that people were looking for. They used the natural search to deliver the content to the users. This aspect enhanced user’s confidence in Google leading to its early success. Another factor that contributed to the early success of Google was its focus on the needs of users. For instance, its editorial content was simplified making it easier and faster to use compared to those of competitors (p.4-5).
- The unmet needs were the need for new advertisement format and tracking mechanisms as well as leveraging advertising agreements. The company was able to deliver on this through its superior infrastructure, highly qualified employees, networking and novelty (p. 4).
Search a winner take-all-business
In terms of query volume, Google controls 85 percent, Yahoo 6.0 percent, and Microsoft 3.6 percent. With Google alone controlling 85 percent of the entire share, the answer to the question would be yes, the search is a winner-take-all business (p.11). Also, with large resources in store, it would take more than just a good idea to overcome Google.
Similarly, given that surfers have become enlightened and are looking for information in less conventional sites, Google’s style of search coupled with its well organized or indexed web pages makes it user-friendly particularly for young internet users and who happen to be the most consumers of the Internet. This factor alone makes it hard for other companies to compete with Google.
Options that made the most sense for Google in addition to enhancing its core search business
Building a full-fledged portal like Yahoo did not make sense for Google. In the search industry, a full-fledged portal provides access to third-party content, an aspect that would result in the additional cost of running the company (p. 13). This is because it would require the adoption of many platforms and web-based applications to perform multiple procedures successfully.
An e-commerce intermediate assists buyers to shop online. eBay is an example of an e-commerce intermediate (p. 12). Taking into consideration the differences between the offerings of eBay and that of Google, it is apparent that an e-commerce transaction starts with a search of sellers online, something that Google is also identified with.
Google can envelop Microsoft. This is because Google has been deliberating on going the Microsoft way by grouping desktop computers and tablets into a single bucket. Also, just like Microsoft, Google has been making adjustments to its enhanced campaigns to meet the needs of its advertisers. As a way to counter Microsoft’s AdCenter which uses standard keyword targeting and demographic targeting, Google has been creating reliable searches through several websites (p. 12). Based on the market share they control in the search industry, Google can envelop Microsoft. It is just a matter of time.
Works Cited
Edelman, Benjamin and Thomas Eisenmann. “Google Inc.” Case study (2011): 1-21.