Lesson#4, - Read the'Business Problem-Solving Case on pages 225-227 of your text entitled"Is Google Becoming Too Powerful and address the case

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Read the 'Business Problem-Solving Case' on pages 225-227 of your text, entitled "Is Google Becoming Too Powerful?" and address the case questions in an essay of 500-600 total words: 1. Evaluate Google using the competitive forces and value chain models. What are Google’s sources of competitive advantage? How does Google provide value to the average user? Success brings with it competition. In this case that is exactly what has happened. Search technology was never considered a moneymaker until Google developed a very profitable target ad program to go along with its well-regarded search engine. Google’s revenue comes from two main sources: online advertising and online search services. Competitive forces it must be concerned with are: Substitute products: Yahoo! portal and Microsoft’s MSN search services and its new Live services provide users with substitutes for Google’s products. NBC’s decision to partner with other Web sites to provide video content is a serious threat to Google. New market entrants: other companies, smaller and more nimble are continually introducing products that can divert users. Sources of competitive advantage include: Online advertising: accounts for a large portion of Google’s revenue. Ad Words: no other search engine/service provides this kind of program. It’s a self- service advertising program in which vendors bid to have their ads placed alongside search results. Ad sense: scans Web pages for target words and displays appropriate advertisements, enabling Web site operators to generate revenue from their sites. YouTube: acquired the most popular video site in 2006. Double-click: purchased the online advertising company in 2007. Added strength in banner and video ads as well as strong relationships with Web publishers, advertisers, and ad agencies. Google provides value to the user by using an inexpensive, flexible infrastructure to speed up Web searches and provide its users with a vast array of Web-based services and software tools. Google only needs to spend $1 for every $3 its competitors spend to deliver a comparable amount of computing power. Google is continually introducing new, free services to users that threaten to erode traditional software platforms like Microsoft’s industry-leading Office suite. New services like its
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telephone voice search service threaten traditional telephone directory services but give users more flexibility. 2. What problems and challenges does Google face in this case? What people, organization, and
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This note was uploaded on 04/29/2011 for the course INFORMATIO MIS taught by Professor Daniel during the Spring '11 term at Antelope Valley College.

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Lesson#4, - Read the'Business Problem-Solving Case on pages 225-227 of your text entitled"Is Google Becoming Too Powerful and address the case

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