What Were the Key Factors Behind Google’s Early Success?

1. What were the key factors behind Google’s early success?

• Innovative search engine. Solve the spam problem and the founders created reliable searches through the number of websites link to a weighted result.

• Users-concentrated. Create a colorful logo and abandon the ads and editorial content on the page as their competitors.

• High search results quality. Create a trust-worthy search engine by providing the relevant results not only focus on the ads profits.

2. Do you expect the search business to become more concentrated (i.e., dominated by fewer firms)?

Yes.

Even though the barrier of entrance is relatively low, but the competition in the market is already high. For the new comers in the market, the competitive advantages are not enough to attract the users who already have the preference. We can also use the porter’s five forces model to analyze the situation, the power of customers is high and the threat of substitute products is relatively high. And the threat of new entrants is relatively high; the supplier’s power is low. So the competitive rivalry is high in the industry. With this intense competition in the market, the small search engine will disappear eventually, and only left the few big competitors in the market; the business will be more concentrated.

3. In addition to enhancing its core search business, should Google also branch out into new areas? Which of the following would you recommend: 1) building a full-fledged portal like Yahoo’s? 2) Targeting Microsoft’s desktop software hegemony; and/ or 3) becoming an e-commerce intermediary like eBay?

Yes, I recommend building a full-fledged portal.

Because Google could build an integrated platform with the development. For the users,

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