Google Case
1) Factor behind Google early success:
a) Advanced Algorithm.
b) The high growth of World Wide Web
c) Better and more efficient algorithm d) Receive great funding from two huge venture capitals e) Well combined CPC and CPR to charge the advertisers
f) Business Model innovation (Search engine, contextual, Froogle, local advertiser, etc.)
g) Product Improvement (fine tune the algorithm, give software to optimize clients’ ads)
h) Innovation management (Google unique atmosphere that is very supportive for any kind of ideas, even for the barely impossible one.)
2) I believe in the long run the search business will become more concentrated toward Google, as long as its algorithm is still relevant. However, the way WWW (World Wide Web) involves is something that Google should be worried. Nowadays, WWW involves so rapidly that makes it very hard for a company, even as big as Google, to predict what the people want exactly with search engine. The biggest problem is they just do not know to which direction people are going to change. For example, now people may use Google to search for information, news, or something. Next year, people may demand to search something and buy directly with one click button (like Amazon has) from the search engine. In order to catch up with that and be the leading in search engine, Google needs to do intensive research and tweak the algorithm of the search engine to accommodate such involvements in the WWW. I also believe that this is winner take all business. This reminds me to MySpace and Facebook. MySpace use to be the leading in social network, however once Facebook came, it completely the idea of social media. When people feel the advantage of such change, they will definitely move to what they think are better. As a result, Facebook can be said to own almost all the market. In the Google case, if somebody comes with a search engine that has way better and more efficient algorithm, people will leave Google, just like people
a) Advanced Algorithm.
b) The high growth of World Wide Web
c) Better and more efficient algorithm d) Receive great funding from two huge venture capitals e) Well combined CPC and CPR to charge the advertisers
f) Business Model innovation (Search engine, contextual, Froogle, local advertiser, etc.)
g) Product Improvement (fine tune the algorithm, give software to optimize clients’ ads)
h) Innovation management (Google unique atmosphere that is very supportive for any kind of ideas, even for the barely impossible one.)
2) I believe in the long run the search business will become more concentrated toward Google, as long as its algorithm is still relevant. However, the way WWW (World Wide Web) involves is something that Google should be worried. Nowadays, WWW involves so rapidly that makes it very hard for a company, even as big as Google, to predict what the people want exactly with search engine. The biggest problem is they just do not know to which direction people are going to change. For example, now people may use Google to search for information, news, or something. Next year, people may demand to search something and buy directly with one click button (like Amazon has) from the search engine. In order to catch up with that and be the leading in search engine, Google needs to do intensive research and tweak the algorithm of the search engine to accommodate such involvements in the WWW. I also believe that this is winner take all business. This reminds me to MySpace and Facebook. MySpace use to be the leading in social network, however once Facebook came, it completely the idea of social media. When people feel the advantage of such change, they will definitely move to what they think are better. As a result, Facebook can be said to own almost all the market. In the Google case, if somebody comes with a search engine that has way better and more efficient algorithm, people will leave Google, just like people