Monday, May 9, 2011

Facebook vs. Google

Over the past two years Facebook has grown a substantial amount over the Internet and threatens other Internet corporations such as Google, Yahoo, and Bing. Before Facebook became popular, individuals used to find out information on their browser using search engines such as Google, Yahoo, and Bing. However recently people have been using Facebook to find out all their information. This competitiveness over the Internet has recently hurt the search engine companies particularly Google, because Google is used to dominating and controlling the Internet market. Since Facebook is becoming more and more popular, Google’s success over the Internet is being endangered economically. Google feels people are starting to find out new information on Facebook thus the demand for search engines like Google, Yahoo, and Bing are decreased. Facebook is also making more of a profit than Google because it hires less workers and not having to pay as many people, while still putting out the same quality of information and work. Since Facebook is earning more of a profit they are able to explore and invent new ideas that they could benefit from in the future. Google and the other search engines are not hurt quite yet, but in the near future Facebook will catch up because of their profit margins. As long as Facebook’s demand is increasing and Google and the other search engines are decreasing, Facebook is looking to become a very successful company.

1 comment:

  1. I don't think the problem here is that the demand for search engines is going down, so much as the demand for Facebook is constantly rising, while the demand of companies such as Google and Yahoo remains stagnant. Even that statement though, doesn't have full validity. Rarely do I go more than an hour on the computer without needing the help of Google to find something that I couldn't find another way; and while I am on Facebook much more than Google, it doesn't mean that the demand for it is going down, in my life, or anyone's.

    Also, while you mentioned that Facebook has less marginal costs because it hires less workers, which I'm sure is true, does not mean that it produces the same quality or quantity of work as Google. Google is more or less a conglomerate of internet tools: Google is the most common email provider, the most oftentimes used search engine, and the most common large-business consultant firm when it comes technology.

    There's no doubt that Facebook is a growing business, but its scope, magnitude and demand are not on the same level as Google. At least not yet.