Wednesday 3 June 2015

Is Google’s Supremacy In Danger?

EU has accused Google of cheating consumers and competitors by manipulating the web search results to favor its own shopping services, if proved it will jeopardize the credibility of Google. It could also get slammed with severe fines from EU regulators. For the time being Google has rejected the charges against it.Vestager, a liberal former economy minister, says that the case might be settled with Google committing to change its business nuance, giving much gravity to the ‘principles’ underlying searches. She wants the market to flourish without anti-competitive constraints by any company, much needed for a fair business for all.

EU has also started an investigation against Google’s Android mobile operating system, a key element in Google’s strategy to earn revenue from online advertising as people switch to mobile apps. Interesting to mention that it gets a little revenue from Android operating system as users spend most of the time on apps rather than Google.
 
Google being one of the world’s most biggest companies with its dominance over search engine, the debate about the prediction that whether or not Google has saturated, has heated up. It has been compared with the companies like IBM -1980and Microsoft-2000, both of who were unbeatable but over the time lost their dominance and relevance.

The source of the debate goes back to the post “Peak Google”, a last year’s blog by technology analyst and consultant Ben Thompson, who argued that Google is losing its hold in the market.

Google’s shares have struggled after hitting an all-time high in 2014 and it has little to show for ventures in other areas: self-driving cars, Google Glass, Internet balloons, health care, Google TV mobile payments, home automation and its Google+ social network, among others. If we talk about online advertising then Facebook has a different approach for ads, e.g showing ads ‘ in ‘the stream’ and that’s where Google is losing its ground.

Mobiles are crucial for Google and its time it pay attention to it, ever if it really wants to keep its place safe as a tech giant, as it’s difficult for it to access user’s data and come out with strategy to deliver target relevant messages.

Some of these new firms such as Quixey, Swiftype, Wildcard and Vurb aim to help people search through the app world where Google lacks a presence with investors splashing more than $100 million into venture-backed mobile search start-ups over the past three years.

Over and above coming back to the point, any effort by EU to control Google’s business strategy can hamper its dominance, much similar to MicroSoft . Google has been here for a very long time and it needs to repair the holes in its business methodologies soon by come up with the alluring business models and reinvent itself to emerge a winner over the time.

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