Tuesday, December 22, 2009

Oligopoly Characteristics

Few, Large big players

Google is the main player in the Search marketing Industry. Other dominating players and competitors of Bing are Yahoo (18%) and 'the others' include AOL and ASK.



















Brand Loyalty is a huge factor that hinders Bing's success. To overcome this barrier, Bing needs to differentiate itself and promote a sense of uniqueness that appeals to many. It also needs to 'hold on' to its users in some way. Therefore, like Google, Bing offers accounts such as the Bing Maps account. It tries to increase its presence on websites by bringing up aspects such as Bing Maps toolbar- These functions help keep users attached to Bing by making them form a sense of 'bonding' with the search engine. (Note: presence is great advertisement for search engines. Ex. on blogspot, you can add a search function on the side column. This function is powered by Google...this shows me that even if I don't use Google Search very often, it's hard to avoid using it because this company has expanded its influence out of it's homepage).



Product Differentiation

One of Bing's main focus' is providing relevant search results, well-organized visually and contextually, that help users accomplish tasks and save time.


Horizontal Merger

Microsft Bing has a 'coopetition' with Yahoo. The 'Cooperation/competition' in other words 'coopetition' will happen near the beginning of 2010. Basically, Microsoft thinks the best way to take on Google is by gaining more users- users from Yahoo. What Microsoft did was simple. They offered to power Yahoo searches so yahoo doesn't have to pay to give the search results. The real intentions may not seem obvious at first but the question that yahoo users will ask themselves is "if Yahoo is being powered by the Microsft bing, why not just use Bing?"


Interdependence


As Bing increasingly improves their search engine functions, we see their biggest competitor, Google, modify their search engine as well. One can now see there has been a 'role reversal'- Google is now having to play 'catch up' with Bing, rather the other way around. Bing's search similar features was recently 'copied' by Google who launched Similar Images.

No doubt, Bing has captured users because of its convenient search functions (such as Search Similar). In my opinion, if Bing continues this 'role reversal', Google might end up becoming an extension of Bing, a second, lower class search engine.


Bing's previous 'catch ups' to Google

  1. Launching the Bing iphone application

  2. Google's 'Google Goggles' is replicated by Bing's Visual Search

Something to point out is that 'catch up' isn't the only game played by both of these Search Engines. Rather these search engines are trying hard to find ways in which they can gain back/gain more users. An example would be the integration of 'Twitter results' by both Bing and Google- an attempt to increase the popularity of their search engines.

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