What is the value that Google creates for (a) customers and (b) advertiser? How does this value translate into higher revenues and profits?
Google creates value for customers by basically having the first real search engine that people could type in anything they were looking for and it gives you a list of things related to what you are looking for. They realized that what other search engines were doing wasn't working so they changed it by inventing this search engine which included "backrub". Also customers don't have to pay to use it so most people in the world searching use Google because it's easy and free.
Google also creates a value for it's advertisers. The advertisers don't have to pay Google until their advertisement is actually clicked on. Depending on how many times their advertisement is clicked on they determine then how much to charge the advertiser.
Since Google owns so much of the Internet so many companies want to put their advertisements on their website, which then makes them money because so many people use Google and click on the advertisements. So that is how they make so much more money than other search engines.
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Google Question #2- Karli Mae Ferris
What are the sources of Google's competitive advantage? How secure are these advantages from imitation by competitors? What must Google do to keep the competitors at bay?
The sources of Google's competitive advantage are that Google is a well-known search engine that people trust to find the best results. They also have the best search engine technology and have been around since the late 90's.
These advantages are in danger of being imitatied by competitors, however because companies such as Yahoo, Microsoft, and AOL are working to develop better search engine technology and are also advertising to get their name out there to customers.
Google must keep updating their technology and pleasing customers by giving them the best results. They might also want to patient their technology so that no other company can use it.
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