Week 4 submission for blog

Dear Sir,

Please find below my Week 4 submission for blog:

Amazon, Apple, Facebook, Google- The battle of control!

·         Boundaries between major corporations blurring.

·         Internet is now evolving as a powerful marketing channel since the cost of marketing on internet is miniscule in comparison to marketing using other channels. Even then, marketers share of spending on online marketing is less compared to spending on other media

·         Even the incremental cost of listing an item is less. So it makes sense to list items even if they aren't selling.

·         Amazon which is traditionally a marketplace has now begun advertising as well!!

·         Google- the biggest search engine is now an advertising giant (monetized the search process and came up with a sustainable revenue model involving adsense and keywords). The acquisitions of YouTube and DoubleClick mean that anyone who wants to advertise online has to approach Google for the same.

·         Apple which revolutionized smartphones market came out with its iOS and iStore. Following this, Google too introduced android and playstore. Now one may question whether google is more like Amazon or more like Apple?

·         Facebook is the preferred social networking site for most people. But it too has become an advertiser and provides ad spaces. Thus, blurring the boundary between itself and google. Further, it provides options of online gifting and options. So in these respects Facebook resembles amazon. Thus, blurring the boundaries between two giants.

·         Despite the blurring of boundaries between these giants, they should be used on specific occasions depending upon the requirements of the customer. For ex-> for a brand building exercise Facebook is more relevant since it is a space where ideas are sold and not a place where the audience is interested in interacting with products and certainly not a space where the audience is ready to receive advertisements in their coveted personal spaces.  While Google is more useful for advertising and calling the customer to action since the user specifically searched for something and is in the frame of mind to act.

·         However a key question still arises that does the concept of core competency still applicable? Does the first mover's advantage still relevant?

·         Amazon was the first mover in commerce, Facebook in in social networks, and Apple in the smartphones category. In the industrial age, it always happened that first movers built scale and became hard to dislodge. However, in the information age control of information is more powerful than control of physical goods.

·         What started initially as battle between websites has now transformed into a war of platforms!!

Thanks and Regards

Samriddhee Khanna

12IB-069

Section B