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Startups are ahead of Google in all directions, except search

Despite the unquestioning leadership in the Internet search market and multi-billion dollar revenues from search advertising, Google cannot counter anything to impudent startups. According to some experts, this is already becoming a problem .

Start-up companies, such as YouTube , Technorati and MySpace , by their example show that Google can be won if we act competently in new, fast-growing segments of the Internet business. The situation here is changing so quickly that even Google does not have time to react to market changes. So it was with its blogger platform Blogger , and with the social networking service Orkut . Small, innovative startups are in a better position.

According to analysts, the problem of Google is also that everyone around associates this brand only with a search engine, nothing else. On the one hand, this plays into the hands of a company that has established itself as the undisputed leader in the market, and the expression “google on the Internet” is even included in the English dictionaries. Google, on the one hand, seeks to protect its brand, and on the other, it seeks to diversify its business. She doesn’t really care that small startups win in their respective industries, because the revenues of these startups do not exceed a few percent of Google’s advertising revenues ($ 1 billion per quarter). But for the future security of business, it is imperative to expand the scope of its activities. Diversification of revenue sources is strategically important for the company's financial security.
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However, analysts are saying in one voice: Google has not succeeded in almost any business that is not related to searching on the Internet. Over the past five years, the company introduced dozens of new services. Among them are innovative, and there are those that are alternative options for similar services from competitors: free mail, a financial directory and a map service. In any case, the company is experiencing difficulties with branding, because users are accustomed to perceive Google as a search site only.

Despite the available resources (financial and intellectual), it is very difficult for Google to carry out effective research activities in all areas simultaneously. Here, small startups have the advantage, each of which focuses on a single product. Giant Internet search is very difficult to compete with niche leaders.

Now the YouTube audience is about four times the audience of the Google Video service, and by the number of downloaded files it is about ten times. YouTube startup has graphically demonstrated how to defeat Google from a technological point of view. Their site has implemented functions that Google does not have, for example, the integration of videos on any page on the Internet. According to experts, the video broadcasting on the Internet will grow to $ 2.6 billion by 2009, and Google is losing this market.

In the social networking market, the Orkut and Google Groups services, in fact, no longer exist, because MySpace reigns supreme here (almost 50 million registered users).

A similar situation with the blogosphere. Almost no one uses Google search blogs , because Technorati is a much more convenient tool. According to experts, this is generally the only service on the Internet that can index all 50 million blogs that exist on the Web. Technorati has recently restyled , adapting the site to a wider audience.

Thus, with a market value of $ 100 billion and several billion dollars in bank accounts, Google is still not able to compete with small startups that capture the market in the most promising areas.

Source: https://habr.com/ru/post/4234/


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