Google vs Yahoo Essay Example

interests at that time, making them useful rather than annoying. Additionally, Google's revenue model is not solely reliant on ad banners or advertisers, as they created a system where advertisers pay for sponsored links listed alongside search results. Cusumano (2004) notes that Google is paid for these sponsored listings regardless of user click-through rates.

Google operates an auction system where advertisers bid for spots. Additionally, Google generates more revenue by providing advertisers who pay for listings with some partners such as EarthLink and AOL, a strategy referred to as "network externalities with positive feedback looks as well as increasing returns" (Cusumano, 2004). As usage grows, more advertisers are attracted, thereby improving sponsored links and generating more revenue. Google then invests more in comprehensive searches (Cusumano, 2004).

According to Cusumano (2004), Google recognizes the significance of technological innovation to both investors and users. The founders of Google have developed page rank algorithms that assess the importance of links as votes towards web pages. They have also implemented advanced math algorithms to evaluate hypertext links to focal sites instead of solely relying on search terms, resulting in more accurate search results for users. Due to the vastness of the World Wide Web, automatic data gathering using advanced math is utilized rather than manual site entry.

According to a discussion about Google (2001), Google generates half of their revenue through their diverse range of products and services. This includes affiliated sites, like AOL, that use Google search technology. Their offerings also include email programs, mobile messaging services, online book searching, image indexing, chat groups, catalog translation, and price comparison capabilities through Froogle. Furthermore, Google has developed a desktop search for

Windows. Eric Schmidt was brought on board as a leader in strategic planning, management, and technology development (Olsen, 2005).

According to Olsen's (2005) report, Google employed him to manage their corporate infrastructure and maintain the company's rapid growth. Rather than spending large amounts on acquisitions, Google chooses to acquire surprising startups such as advertising agencies, search initiatives, and blogging tools. Additionally, Olsen notes that Google invests heavily in development and generates revenue through technology rather than personal connections.

According to Shankland (2009), Google has unveiled a Linux-powered operating system called Google Chrome OS, designed for netbooks. It is set to be released by certain manufacturers in the second half of 2010 and operates within the web browser. The target audience for this software are those who primarily use the internet.

In accordance with Shankland (2009), the potential of the operating system (OS) to be used on various platforms like Windows, Mac, and Linux enables it to gain a broad user base. This feature makes it possible for it to have the largest potential user community in comparison to other platforms. Furthermore, Google's competition comprises Microsoft Office, Yahoo Mail, and Microsoft Hotmail while Google Books aims at transforming the publishing industry through digitization. Additionally, Shankland argues that smartphones will become more affordable due to the OS. In 2001 discussions about Google demonstrated how despite entering later into the market than their rivals they were able to learn from others' successes and mistakes resulting in them developing algorithms and processes which facilitate over 100 million daily searches and index over 1.3 billion web pages annually.

Google's success can be attributed to certain factors. Meanwhile, Yahoo was founded in 1994 as a

hobby by David Filo and Jerry Yang, but blossomed into a prominent worldwide brand. With Yahoo, users gained more avenues for connectivity, commerce, and content creation. Despite slight differences, Yahoo and Google's innovative efforts are comparable.

Both Yahoo and Google continuously engage in collaborations, acquisitions, and product launches on annual basis. Yahoo is known for its creative and innovative solutions that have resulted in new text search options and successful partnerships. Additionally, Yahoo has forged ahead in the mobile platform arena, recognizing it as the future hub for gaming activities. Unlike Google, Yahoo strives to retain its user base by offering a diverse range of content, such as news updates, entertainment, and financial data to prevent users from switching to alternative pages.

Yahoo displays their advertisement content on their own website because they offer a wide range of services including web searches, email accounts, financial information, greeting cards, maps, driving directions, and stock quotes (Shafer, Smith ; Linder, 2005). Additionally, their search engine is now integrated into various applications as a vertical line of business (A conversation with Yahoo founder Jerry Yang, 2005). To provide a more personalized experience, Yahoo uses machine learning to understand user habits (A conversation with Yahoo founder Jerry Yang, 2005).

According to a conversation in 2005 with Yahoo founder Jerry Yang, foreign economies are increasing their own innovative efforts, resulting in intensified global competition. Yahoo is involved in the broadband search space and offers a mainstream internet medium. Additionally, they are currently working towards implementing voice recognition technology. Yahoo's revenue is generated through features such as mail plus and advertising paid per webpage visit, as well as being embedded into mobile devices (Olsen,

2005). The company has implemented the "Idea Factory" program to stimulate innovation directly from employees (Olsen, 2005).

According to Olsen (2005), employees at two companies have unique methods to improve their businesses and retain market share. At one company, workers can submit ideas to enhance either the campus or the business. At Google, engineers are encouraged to spend one day each week on a personal project. These methods resulted in the successful developments of Google News and Orkut social networking (Olsen, 2005). Both companies have unique strategies for achieving their market goals.

According to Olsen (2005), Yahoo appointed Semel as their Chief Executive due to his background in Hollywood. Semel then hired Dan Rosensweig from CNET, and they worked together to make each division accountable for their profitability. Despite these efforts, Yahoo still made acquisitions including Inktomi and hotjobs, as well as the commercial search leader overture services.

As part of its partnership with Sandbox Entertainment, Yahoo recently introduced a free fantasy football league on its Yahoo Sports channel in an effort to increase customer loyalty (Hu & Oeler, 1998). Unlike other services that charge fees for each team, Yahoo's service is free (Hu ; Oeler, 1998). Yahoo hopes that this move will not only enhance its branding but also attract more visitors to its site multiple times a day (Hu ; Oeler, 1998). Furthermore, Yahoo's early entry into the market gave it an advantage over Google and helped it to establish best practices in the industry.

With over 500 million users worldwide, Yahoo has become one of the largest integrated online networks in the world. Market capital and revenue in the internet and information providers industry seem

to depend on each company's e-business strategy, with Yahoo currently working on building brand loyalty to increase customer retention. Despite having a lower market capital than Google, Yahoo is not facing financial difficulties, and currently holds a market capital ranking of 12 after three years.

The significant difference in market capitalization between Google, standing at 3.58, and its competitor Microsoft, standing at 36, is noteworthy. This discrepancy can be attributed to Google's persistent pursuit of fresh innovations that foster financial growth. Despite being a recognized brand, the company intends to persist with pioneering efforts to acquire more of the market share. Both companies are employing distinct approaches aimed at maximizing their coverage while addressing any vulnerabilities. Please consult the table provided below for additional details.