ECOM320 Assign1

Posted by admin on December 26, 2017 in Articles

Part A:
1. Both Google and Yahoo are somewhat household names. They are, first and foremost, as tagged by most people, referred to as “Search Engines”. Indeed, this is their greatest commonality. Most users would describe these companies as providers of free online services. However, in terms of business, they are basically both advertising companies. Their business models revolve around placing advertisements on screen in exchange for money. As there market shares increased and their business models expanded and diversified, both companies began to offer more to their users. Email accounts, mapping utilities, news functions, and shopping sites were just a handful of areas both companies started to offer its users. With these new offerings came new and lucrative advertisement revenue streams that added to their business models. However, the approach taken to make their respective business models profitable was vastly different. Yahoo’s business model centered on becoming a one-stop page for all things to all users. The company’s focus was on the advertiser paying the bills. They wanted users to utilize their page for everything. If there was a reason for users to leave their page, they would strive to incorporate whatever service was required to keep them there. Google, on the other hand, focused on the end user and their experience while using Google, using the advertisers as a means to an end. They aimed to keep their page free from clutter and offered simplicity as a selling feature. Google’s business plan was to become the best online search engine on the web. Their model devoted themselves to transforming the way the worlds users find and store information. Google’s business model does not dictate fees for any of its online services and relies mostly on advertisement for revenue. Yahoo, in contrast, is constantly looking for ways to capitalize on user bells and whistles. This all being said, the approach to capture users money may be a…