Why is Google afraid of Facebook
July 31, 2010 Leave a comment
Premise: Google feeling increasingly threatened by Facebook which has just been claiming to have 500 million users
Why is , if at all Google afraid ?
Facebook has already moved in to the areas of
1. Advertisements – Directly hitting Google where it shall hurt most. Google still has over 90% of his revenue in the form of ads.
2. Docs – Though not a core business for Google but still infuriating, especially with open Microsoft backing to FB.
3. Facebook Credits – Hitting the Google checkout and PayPal.
4. Social Networking- Google is already loosing the grip orkut had in the few markets to Facebook.
Areas it is trying to establish itself
1.Marketplace – Directly hitting out at e-bay and amazon
2. Facebook Answers – Directly hitting yahoo answers and google answers.
It is here where there is bigger danger for Google lies. If people start getting answers to their problems from their networks then first casualty will be Google’s search business. Moreover being actively backed by Bing , Facebook can dent Google core business even harder.If search goes down so will advertisement revenue and maybe Google itself.
THE BIGGEST QUESTION IS CAN GOOGLE FIGHT BACK OR IT WILL BECOME VICTIM OF ITS OWN SUCCESS
About Varun Mittal
