Case Study Google Inc
1. Do you expect the search business to become more concentrated? Is search a winner-take-all business?
For the case of Google, we can conclude that the search business of Google has become more dominated and concentrated.
In terms of the companies, they do not expect the search business to be dominated by only fewer firms. Because the search business earned large revenues from the corporates’ advertisement and the fee is very high. If the companies want to advertise on the website of search business, they have no more choice to reduce the cost and to barging.
From individual users’ point of view, we also do not expect the search business to become more concentrated. Above of all, different customers have different needs on search engine that includes detailed market segmentation ones and comprehensive ones. Besides, due to a large proportion of revenue from advertising, the search engine is easy to grab the useless information for users but too many advertisements. Lastly, users’ privacy cannot be secured. If the search industry only dominated by a few magnates, it would lack of competitiveness to regulate the standards of information protection.
From our perspective, search industry is not a winner-take-all business. Firstly, We cannot deny that the network effects are positive and strong for both sides. The value of network will increase through attracting more users for the companies. The users can get more information from the companies. And the switching cost seems to be the lowest of service.
However, the cost of multi-homing for search is almost free for users and more expensive for advertisements. It will spend too much more time to get what they want.
Although the Google occupying the majority of market share, a company cannot meet the total demands of the market, especially for the new markets, for instance, the mobile search. What’s more, the other needs of search business are personalization, customization and diversified technology. For the
For the case of Google, we can conclude that the search business of Google has become more dominated and concentrated.
In terms of the companies, they do not expect the search business to be dominated by only fewer firms. Because the search business earned large revenues from the corporates’ advertisement and the fee is very high. If the companies want to advertise on the website of search business, they have no more choice to reduce the cost and to barging.
From individual users’ point of view, we also do not expect the search business to become more concentrated. Above of all, different customers have different needs on search engine that includes detailed market segmentation ones and comprehensive ones. Besides, due to a large proportion of revenue from advertising, the search engine is easy to grab the useless information for users but too many advertisements. Lastly, users’ privacy cannot be secured. If the search industry only dominated by a few magnates, it would lack of competitiveness to regulate the standards of information protection.
From our perspective, search industry is not a winner-take-all business. Firstly, We cannot deny that the network effects are positive and strong for both sides. The value of network will increase through attracting more users for the companies. The users can get more information from the companies. And the switching cost seems to be the lowest of service.
However, the cost of multi-homing for search is almost free for users and more expensive for advertisements. It will spend too much more time to get what they want.
Although the Google occupying the majority of market share, a company cannot meet the total demands of the market, especially for the new markets, for instance, the mobile search. What’s more, the other needs of search business are personalization, customization and diversified technology. For the