kimmie
What Would You Do?
Chapter 15
Google Headquarters, Mountain View, California
Founded in 1998, Google just had its most dominant year, with its search market share rising from 77 percent to 83 percent and revenues jumping 25 percent. Because most of the revenue came from search, Google is trying to diversify. But it faces intense competition in every market.
In traditional search, Microsoft’s Bing search engine and Facebook, which passed Google as the most popular website in the world, pose threats as people desire more personalized and social media-related search information. Searches for local information, such as restaurant reviews or directions, are 20 percent of all Google searches and half of all mobile or smartphone searches. Yet, local-related search advertising is a weakness for Google, but a strength for Groupon, Facebook Places, Living Social, Foursquare, and Bing. Although Google’s Android smartphones have more market share than Apple’s iPhone, the Android software is open source, so Google makes no money except for built-in Google Ads and services. Likewise, Google trails Apple and Amazon in the number of publishers who use their software, devices (i.e., smartphones, tablets, book readers), and online stores to sell electronic versions of newspapers, magazines, books, music, TV shows, and movies. Finally, Google’s Chrome web browser (13% market share) competes with Microsoft’s Internet Explorer (55%), Mozilla’s Firefox (22%), and Apple’s Safari (7%).
In short, Google is trying to position itself for the day when people won’t automatically use a Google search box to find information. Keith Woolcock, founder of 5thColumnIdeas, a technology research firm, doubts Google is up to the task, saying, “The problem for me as an investor is that Google looks a little too [much] like last year's model. It’s the chicken in the sandwich—Apple and Facebook are on the opposing sides. Google is in the middle. Really, it looks to me as though it has become the
Chapter 15
Google Headquarters, Mountain View, California
Founded in 1998, Google just had its most dominant year, with its search market share rising from 77 percent to 83 percent and revenues jumping 25 percent. Because most of the revenue came from search, Google is trying to diversify. But it faces intense competition in every market.
In traditional search, Microsoft’s Bing search engine and Facebook, which passed Google as the most popular website in the world, pose threats as people desire more personalized and social media-related search information. Searches for local information, such as restaurant reviews or directions, are 20 percent of all Google searches and half of all mobile or smartphone searches. Yet, local-related search advertising is a weakness for Google, but a strength for Groupon, Facebook Places, Living Social, Foursquare, and Bing. Although Google’s Android smartphones have more market share than Apple’s iPhone, the Android software is open source, so Google makes no money except for built-in Google Ads and services. Likewise, Google trails Apple and Amazon in the number of publishers who use their software, devices (i.e., smartphones, tablets, book readers), and online stores to sell electronic versions of newspapers, magazines, books, music, TV shows, and movies. Finally, Google’s Chrome web browser (13% market share) competes with Microsoft’s Internet Explorer (55%), Mozilla’s Firefox (22%), and Apple’s Safari (7%).
In short, Google is trying to position itself for the day when people won’t automatically use a Google search box to find information. Keith Woolcock, founder of 5thColumnIdeas, a technology research firm, doubts Google is up to the task, saying, “The problem for me as an investor is that Google looks a little too [much] like last year's model. It’s the chicken in the sandwich—Apple and Facebook are on the opposing sides. Google is in the middle. Really, it looks to me as though it has become the