Tuesday, December 7, 2010
How Long Will Google's Magic Last?
In just 12 years, Google has grown from a start up to a business worth $180 billion. But Google faces some problems. First, Google faces charges of abusing market power by manipulating search results to give an unfair advantage to its own services. Second, Google is having trouble finding a new source of growth - beyond search-based advertising. Investors fear Google will become like Microsoft and fail to find a new source of funding for aging growth sources. Also, Facebook (which now has more online traffic in the US than Google) offers a new way to search for information. Will Google be able to adequately respond to its new competition and problems?
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5 comments:
Google is undergoing a different business model than Facebook in the past; but as Facebook becomes larger, it has been posing a major threat to Google. The problem with Google is that it has great corporate think-tank around the world, but it has not budget to advertise its invention.
Personally speaking, I think Google is pretty set when it comes to expanding services. It is not only a search engine but it includes Gmail, mapping services and its very own cellular phone to name a few. Google is expanding beyond just the internet realm by creating consumer products such as the new mobile phone. As long as they keep up what they are doing now, they might not be able to penetrate any new markets, but they will pretty much be able to feed off their "cash cows" for a relatively long period of time.
I think google will be easily be able to adapt to rising competition and technological trends. It sounds a little "si-fi" but currently google has been working on artificial intelligence in cars. They have two or three cars touring the country that are driverless and rely solely on computers to navigate traffic. With this being said, I think that we will see them in a whole new market in the future.
Google will be around for many years to come. They have the ability to make new technology a reality before any other companies, and they have done this for the last decade. So as to their problems, I'm sure they solve them quickly and profitably.
Google is one of the biggest search engines on the Internet. I do not think that they will fail anytime soon. They have the means and resources to competition and problems that will arise in the near future.
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