Google has a large lead in search market share, much like Microsoft has a large lead in operating system market share. Both have competitive advantages in their field. The biggest difference? Microsoft has been sued, and lost, for anti-trust violations. Now Google is under the microscope.
Google has a large influence on the way people find and use information on the Internet. This control over web portals isn't forcibly applied, people are free to use another search engine, but the competitive advantage is all too real. Google can arrange website results anyway it sees fit, and can charge advertisers what ever it deems fit. This power over Internet search can build and destroy businesses.
Author Ken Auletta posits that Google is different from Microsoft in that Google doesn't actively seek out and destroy competition the way Microsoft did. He believes Google innovates for the love of innovating. Creating new products and services because they would be interesting and helpful for people.
I disagree. Everything Google does is an attempt to drive revenue. Google does these things in rather round about ways but it always comes down to one thing, connecting to the web and specifically through Google's web portals. Google develops products to get consumers online and in front of advertisement. Simple as that. It will drive other companies out of the way. Look at the drop in Garmin's stock the day Google announced a free turn by turn navigation system on its Android phone operating system. Garmin was down nearly 18% in one day. This is the power Google has and Google knows it.
Garmin Drops
P.S. I'll be looking into the anti-trust suit filed by Andrew Cuomo against Intel soon.
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