Proof that Google is vulnerable

Proof that Google is vulnerable

Summary: From the day it went public, Wall Street's fascination with Google, which is trading near $200 today, continues to stymie me. Back in July, I opined:I've yet to see any proof that Google's dominant position in the [search find, and obtain]market is something it can protect.

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TOPICS: Google
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From the day it went public, Wall Street's fascination with Google, which is trading near $200 today, continues to stymie me. Back in July, I opined:


I've yet to see any proof that Google's dominant position in the [search find, and obtain] market is something it can protect. Netscape was trumped by Yahoo. Yahoo was trumped by Google. Is Google really that invincible? I think not. Especially with competitors like Microsoft turning their attention to the category.

It was an expansion on an earlier post made in my personal blog (which I don't update very often) where I said:


Google doesn't strike me as having a protectable business that will grow according to some other index. Google has a technology advantage that can be taken away. Other than the quality of the company's technology, what else "sticky" is there about Google. On the other hand, eBay is a company that's sticky.


Now comes the proof. News.com's Dinesh Sharma reports that Yahoo! and Microsoft are gaining ground on Google. Said Bonny Brown, director of the research outfit whose survey of 2,000 consumers revealed that Yahoo! and Microsoft were closing the gap:


"Google is the king of customer experience in the search engine industry, but Yahoo, MSN and Ask Jeeves are improving....Given the open nature of the Web, as these sites continue to improve the user experience, they will undoubtedly begin to attract more users and improve user loyalty. Obviously this will impact the advertising side of the business."

At least the folks on Wall Street are consistent in their assessments. Some of them are apparently discounting the blogging phenomenon as insignificant. Asked one ZDNet reader in response to that posting, "Since when are the financial analysts all that prescient to begin with?" I agree.

Topic: Google

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3 comments
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  • Bleh - I don't buy it

    I'm sorry, but these other searches are still miles away from Google. And its not just in terms of base functionality - it is that Google just gets it.

    Take the new MSN search - no Usenet. Now a lot of people don't know what Usenet is, don't care. But the nerds and geeks who first made the Internet popular DO know what it is, and find searching it invaluable.

    And let's face it - where nerds and geeks go (like onto Blogs) is where the rest follow. Google gets the nerds.

    The others don't.
    Mac_PC_FenceSitter
    • Google doesn't completely get nerds

      They would've left the usenet search as it was otherwise. It is extremely annoying to use now, and NANAS is now nigh worthless.
      rpmyers1
  • Why not furnish us with some numbers then?

    Its always fishy when they don't provide the numbers.
    chiwawa