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Consumer Market

Answer :

Introduction

Google has become the synonym for a research site which is preferred by almost 90% of users on internet. Google use top dominate the market in terms of its services provided by it in the information search area. It is evident that internet is a platform where entry barriers are very less because of which anyone can enter in this field at a lower cost. In this sense, Google dominates the market but due to few number of competitors it can be accepted as Oligopoly. The services provided by said company is of superior quality than its competitors due to which it has become the most preferable site for researches. While on other hand, many times Google has been interrogated for its data holding and search domination. Therefore, Oligopoly of Google in market has advantages which can be in following ways:

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Advantages

The analogue services provided by Google is omnipresent but it is an intangible service which provides much of the advantages to consumers as well as to company itself. The single click made by users, give the organisation opportunities to make money. While on other hand, Google is a easy and and user friendly which gives consumers easier way to search for required information.

The services provided by Google are innovative and attractive due to it controls a very high market share. It uses the information of consumers for making them available information according to their interests. This has made it more successful while it does not create entry barriers nor have any transaction cost on switching of consumers. Thus, it does not create monopoly.

Disadvantages

The data collected by Google is based on information and interests of consumers on their Gmail account and many other sources. This makes the personal information of customers more exposed to Google which cannot be considered right from privacy concerns.

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The Google has also distorted the online economy as it accelerates the prices of advertising on it where increased cost burden is shifted to consumers by the marketers. In return, Google collects data of customers from such advertising companies.

References

  • Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors(pp. 113-132). Springer New York.
  • Chaffey, D., Smith, P.R. and Smith, P.R., 2012. eMarketing eXcellence: Planning and optimizing your digital marketing. Routledge.

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