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Facebook vs Google

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Submitted By diploma4me
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1. Business model and strategic focus (discuss competitive advantage in this section)
Both Facebook and Google make the vast majority of their money through advertising. This is somewhat ironic because both companies were either outright hostile or uninterested in advertising when they were first formed. Google’s cofounders actually wrote a paper warning against the “evils of advertising” and Facebook was originally designed solely as a place for friends to stay connected. After failed attempts at raising revenues, both Google and Facebook turned to advertising as a way to generate revenue. While both make the majority of their money through advertisements, they go about it in two different ways. The result of each company’s competitive advantage is the access both Google and Facebook have with a worldwide consumer base. The interesting thing, is that while the results are the same, the sources of competitive advantage for both companies are different.
Facebook focus’s its business model on social media. As such, it relies on heavy volume and exposure to generate advertising revenue for its advertising base. Facebook’s Competitive Advantage is its massive base of potential consumers for advertisers. Facebook has approximately 1.4 billion user’s worldwide which is an excellent platform to sell advertising space.
Google is trying to enter the social media market with Google(+). The overall success of this venture remains to be seen. As a result, its current competitive advantage is found with its successful branding of the Google product as the premier internet search engine. Google has built upon its own success and has created a worldwide loyal following. This huge base of people around the world that use Google provide advertisers with billions of potential users. As a result, Google is a logical platform for advertisers as they attempt to generate

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