11. Differentiation Strategy Google Microsoft Yahoo CTR model, assist marketer CTC model Lesser assistance CTC model Lesser assistance Owned by essentially 3 people Owned by many shareholders Owned by many shareholders Higher quality search results Poor search results High quality but not as good Focused on search engine business A portal, operating system with many business lines A portal, competed in many business lines
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13. Porter’s Five Forces Model of Industry Competition New entrants faced heavy investment & technological superiority to enter Users got better, faster, higher quality & speed of results Advertisers got higher revenue splits , better results , more guidance other media of communication , given the target market of e-advertisers, increase in online access & surfing time, these were no threat Diversified firms, not as competent as Google in search engines, fierce competition as low switching cost
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18. What we do is search. Yahoo is a portal with a myriad of specialized services. What Google does is sufficiently limited. It's not really targeted at what Yahoo or AOL is trying to do. Our business strategy is not to compete, because we want them as customers … Eric Schmidt, CEO Google
