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Google Inc.

1. What were the key factors behind Google’s early success?
There are many key factors behind the Google’s early success. First, the sophisticated and innovative algorithm developed for Google search engine is obviously a key factors for its early success. The new algorithm offered the users with relevant search result and provided the advertisers with advertizing spots in industry related websites. The founders developed a search engine that weighed the search result relevance according to the number of website kinked to that page. More linked websites means more relevant results. Another important factor is the customer oriented strategy, instead of the content oriented, that provided users with a simple easy to use white search page with only the logo and the search box and giving the result lists in text format. This enabled Google’s page to open faster than major competitors, such as Yahoo and Bing, and to provide user friendly results free from advertizing. By delivering relevant search results and not imposing the advertizing but prosing search related products or services, Google succeeded in gaining the trust of internet users and the confidence of the advertisers as their ads were more precisely targeting customers. Moreover, the effectiveness of Google in monetizing the web search and generating huge revenues is also an important, if not the most important, key success factor. Using similar model to the cost per impression developed by Overture, Google succeeded in generating huge revenues making one of the most successful internet company.

2. Do you expect the search business to become more concentrated (i.e., dominated by fewer firms)? Is search a winner-take-all business? Why?
Yes. As Google well demonstrated, the company has quickly surpassed its competitors and is dominating the market with than 85% the market shares. The customer

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