Google
Question 1: What were the key factors behind Google’s early success?
There are many key factors behind Google’s early success.
1) An innovative search engine was one of the key factors for Google’s early success. PageRank algorithm is used to resolve the keyword spam problem on the web. In addition, Google founders also included the number of websites that link to a page or “vote” in their search algorithm; hence the search result will be more relevant to customers’ needs.
2) Google focuses on customer oriented strategy. Comparing Google with other search engines like Yahoo! and Bing, Google webpage only has a search bar with no advertisements and other information. Google emphasizes on simplicity of interface and speed of page loads. This provides users with an easy and fast searching platform.
3) Google gained users’ trust is through delivering useful and relevant search results which closer to what users are really looking for. For the sponsored links, Google will only display those relevant to the searched keyword; therefore users will not feel irritated by the irrelevant searched results.
4) The effectiveness of Google in monetizing paid search scheme. Google implemented the “cost per click (CPC)” model by doing a ratio of actual CPC and expected click through rate (CTR) to ensure users saw advertisements closer to what they were searching for. This is a successful scheme which helps Google to maximize their revenue. Question 2: Do you expect the search business to become more concentrated? Is search a winner-take-all business?
Yes I do expect the search business to become more concentrated. In year 2009, Google has 85% of US Search Engine Market Share (based on the case study); apparently Google has dominated this industry. Yahoo offers editorial content for their users, whereas the displayed content may not be what users really looking for. On the other hand, the search business has zero switching cost and users can use the better search engine
There are many key factors behind Google’s early success.
1) An innovative search engine was one of the key factors for Google’s early success. PageRank algorithm is used to resolve the keyword spam problem on the web. In addition, Google founders also included the number of websites that link to a page or “vote” in their search algorithm; hence the search result will be more relevant to customers’ needs.
2) Google focuses on customer oriented strategy. Comparing Google with other search engines like Yahoo! and Bing, Google webpage only has a search bar with no advertisements and other information. Google emphasizes on simplicity of interface and speed of page loads. This provides users with an easy and fast searching platform.
3) Google gained users’ trust is through delivering useful and relevant search results which closer to what users are really looking for. For the sponsored links, Google will only display those relevant to the searched keyword; therefore users will not feel irritated by the irrelevant searched results.
4) The effectiveness of Google in monetizing paid search scheme. Google implemented the “cost per click (CPC)” model by doing a ratio of actual CPC and expected click through rate (CTR) to ensure users saw advertisements closer to what they were searching for. This is a successful scheme which helps Google to maximize their revenue. Question 2: Do you expect the search business to become more concentrated? Is search a winner-take-all business?
Yes I do expect the search business to become more concentrated. In year 2009, Google has 85% of US Search Engine Market Share (based on the case study); apparently Google has dominated this industry. Yahoo offers editorial content for their users, whereas the displayed content may not be what users really looking for. On the other hand, the search business has zero switching cost and users can use the better search engine