Why Googling Instead of Yahooing? - Google an Also Ran?
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With this kind of self-sufficient, economic attitude, Google has been able to save money and plow that savings into research and development. It’s no wonder that other companies see Google’s services as a threat. Take Google Checkout, for instance. Rumored for more than a year, it finally came out in late June, and was widely hailed as a PayPal-killer. Its power seemed to be confirmed when online auction leader eBay, who owns PayPal, stated its refusal to accept payments made from Google Checkout.
eBay claims its reason for not accepting the service has nothing to do with the rivalry between the two companies. eBay spokesperson Catherine England insisted that “One of those criteria for inclusion [as a payment option on eBay] is having a proven track record for service, and we just don’t have that information yet with Google Checkout.” Interestingly, the way Google Checkout is set up, PayPal could become a payment option of the service.
But should PayPal or eBay actually be worried? Google is a verb in the dictionary now, yes, but with a very specific meaning – and that meaning is tied to search, not auctions or ecommerce. Google products and services are not market leaders in any other field, but that doesn’t prevent analysts and competitors from shivering every time it delivers something new. Venture investor Paul S. Kedrosky notes that “People give Google the victory in the beginning and don’t show up later to notice that things didn’t go anywhere.”
Consider Google Talk, Gmail, and Google Finance. These Google services have all been out for months. But Google Talk ranks tenth among instant messaging services, well behind AIM and MSN Messenger. Gmail is used by only 25 percent as many people who use Yahoo and Microsoft’s email services. As for Google Finance, it isn’t even in the top 30 for finance sites, judged by the frequency of visits (according to Hitwise). The top spot there is still held by market leader Yahoo Finance.
The reasons for Google’s inability to dominate markets other than search could fill another article. They’re not really important for the purposes of this one. What is worth observing, though, is that the relatively few striking successes Google has had outside of search, by contrast, illustrate just how good Google is at its core business. They show, after all, that Google is not predominantly an IM service, or an email company, or a pick-your-product-or-service company; it’s a search engine, plain and simple.
Next: Where Else is Google Strong? >>
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