Write 5 pages thesis on the topic factors enabling google to gain a competitive advantage over yahoo. Any decreasing quality can result in brand shifts and loss of market shares. Google and Yahoo are two such global companies that are considered to be market giants in the field of web services like search engines, web email, etc. According to Olsen (2005). the global online search advertising business amounted to an approximate value of $8 billion in 2005 that was expected to hit $22 billion last year. Both companies compete for the same web visitors and potential advertising clients to generate revenues. However, Google has been able to sustain a stronger position and retain a greater number of web visitors due to the adoption of innovative strategies and effective decision making, as compared to Yahoo.
2. Google or Yahoo?
2.1 Degree of Diversification
According to official information from Yahoo! Media Relations (2005) and Google (n.d.), Yahoo was launched in 1994 and Google came two years later in 1996, respectively. Yahoo has always followed the approach of providing its clients with a diverse range of services and data. The strategy of over-diversification has even greatly harmed the services of Yahoo. Ong (2011) agreed with this factor by stating that Yahoo! portal portrays an amalgamated look of online media services, web directory, and search engines.
In the beginning, the abundant supply of information, images, and links was still being perfected by Yahoo when Google launched its search engine with simple features and layout. At the time of the launch of Google, Yahoo was relying on another company’s search technology and had not focused on the development of its search engine. The reason for this incapability was that they had diverted their attention to a wide range of services, whereas Google developed a consistent vision of developing the fastest and most efficient search engine. .
It can be seen from the above table that Gmail has accumulated twice the number of web users in the past 7 years due to their commendable search functions and speed. Currently, Yahoo mail offers 1GB of data storage that is still far lesser than what Gmail offers to its users. However, Yahoo continues to try to match the success of Gmail by changing their layouts, features and offering faster speed. Yahoo mail launched a new look of their webmail service in the current year that offers many new features and options as compared to their earlier versions.
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