Google Case Study

Google shares market with many competitors, such as Yahoo!, Microsoft, Sina and so on, even Google handles nearly half Web searches. The force of competitors is high. As many competitors with similar products, Google has to devise new and more efficient way to attract customers. That is why Google improve its technology which can evaluate millions of variables about its users and advertisers, link them with millions of potential ads, and deliver the message to which each user is most likely to respond (Laudon K & Laudon J 2007, p 308).
Before entrant Web searches market, investor need to the financial, legislation or experience require. Barriers are high if new entrants want to against Google. Microsoft has a history of diminishing or destroying its competitors. According to Laudon K & Laudon J (2007, p 309), Microsoft supported MSN Search, but it is just 13% of worldwide search requests.
A product is more special, there will be less substitute products. Laudon K & Laudon J (2007, P 308) state Google only need to spend $1 for every $3 its competitors spend to deliver a comparable amount of computing power. Not only in price Google has advantage, but also has multiplying tools. Google has introduced Google Spreadsheets, Google Apps, Google Toolbar, Google News, Google Desktop, Google Map, Gmail and Froogle. Because the multiple-choice tools, some customers think Google could not be replaced by other companies. Besides that, Google are trying to replace other competitors. According to Laudon K & Laudon J (2007,P 309), Microsoft has thwarted competition through strategic pricing and feature enhancements, however, Microsoft fears Google’s Web-based computing model could make it possible for computer user to bypass its products entirely.
In this report, the customer bargaining power and supplier bargaining power are combined, because the user is both Google’s customer and supplier. Google is just a searches engine; it provides a way to look for information; it does... [continues]

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