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Google Research Essay

757 words - 4 pages

Google's far-reaching social and economic impact has begun to affect some aspect of nearly everyone's life. The ability of Google to control the market share of numerous industries and facets of their corporation does not make the company a monopoly; it merely shows that quality business practices produce quality results.

Google Research Paper
The effects of monopolies within the economy can be potentially far reaching. The ability to dictate price, supply, and market share of a commodity with no close substitutes, in a market can be a recipe for preventing growth and innovation. Possessing market share in that of itself does not create a technically defined monopoly. ...view middle of the document...

The result of this merger was creating the sole provider of tickets to concerts and sporting events charging any service fee they found fit. The fees associated with purchasing tickets have risen because this monopoly was created. Google exhibits none of the above traits and by comparison is nowhere near a monopoly like the federal government allowed previously.
The prime source of contention regarding the monopolistic potential of Google is its advertising revenue and advertising market share. Ultimately, by providing superior services to consumers are increasing their revenue. The resulting prices charged by Google to advertise are truly set by the competitive market. Google cannot charge any price due to the fact there are direct substitutes that provide identical services. Google is not the sole provider of advertising space on the Internet and therefore cannot charge absorbent prices for the advertising. “Google as of 2010 had a 44% market share on online advertising dollars. In fact over the course of 2006 to 2010 Google market share increased only 130% in comparison to Facebook’s 1500% increase,” (Miller, 2011, para. 3). In fact Facebook is a truer monopoly than Google. As Facebook or any other company improves their market share, they will most likely face unfair scrutiny as well. Is the message if a company becomes dominant through sound marketing decisions and innovation and that...

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