visit reuters.com, boston.com and guardian.com do not visit nytimes.com (i.e., one-way
traffic). BBC.co.uk is a tertiary competitor.
[Insert Figures 2a and 2b About Here.]
Case Study # 3- Google.com
Google Inc. is one of the dominant search engines in the world. At the time of writing, it
indexes over 8 billion web pages and offers services in 35 languages. The company has grown
its revenues from $19 million in 2000 to $3.2 billion in 2004 with a net profit of $399.1 million
(or $ 2.07 per share) in 2004. The company offers a wide array of services including Gmail
(web-based e-mail), Google News (news consolidation service), Google Groups (online
communities), Froogle (price comparison engine) and Google Local (information about local
merchants). The company’s revenue is mostly derived from its two advertising programs-
AdSense and AdWords. Given its high level of diversification, Google competes with multiple
companies in different domains- e.g. it may compete with hotmail in the e-mail arena and
Superpages.com in the local information space.
The B-COP model once again helps us identify the competitive picture. The results are
shown in Figures 3a and 3b. The key findings are these-
Google has two strong competitors (Yahoo, MSN) and eight weak competitors. Yahoo is
times stronger than Google in terms of traffic where as MSN is 1.41 times stronger.
Yahoo is 2.73 stronger in page views compared to Google. On the other hand, MSN is
times stronger than Google.
As shown in Figure 3a, Google’s weaker competitors all fall into the “weakest” category.