Essay on The Impact Of Internet On The Internet Search Company

1105 Words Feb 6th, 2016 null Page
Q1 Network Effects
Google the largest internet search company, who took the major market share in the U.S. and numerous countries. People start to use Google as a verb rather than a company name, which indicates its leading position in the industry. When Google search becomes widely popular, it can generate more value from the popularity. As The Innovator 's Toolkit stated, “a phenomenon in which the value of a product increase as more products are sold and the network of users increases” is called the network effect.

Internet search is a network effect service. When more people use internet search, the search engine could provide more relevant results by collecting more data, which gets more traffic from users. More traffic also means more value for the business who put the advertisement on the search engine.

Google is not the first company to provide internet search service. Compared to Yahoo!, the earliest search engine, Google developed algorithmic search and click-through-rate (CTR), the more effective paid listings. The technology innovation plus investment, strategies and customer acquisition made Google be the dominant provider of internet search service. There are two kinds of customers for Google: individuals who use search engine services to find information and business who pay for the online advertisement. Individual users can use most of Google services for free, like Google Search, Gmail, YouTube and Maps. They are also the source for Google to…

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