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Wednesday, December 20, 2006

How to capture the market

Recently i was thinking on how companies capture their relative market. For example microsoft captured desktop market by opening up and giving api's when none did . Also it encouraged 3rd party providers and worked symbiotically with them. Currently reliance communications in India captured market by offering phones as well as call rates at throw away prices, when mobile phone and call rates were high in india. In both these cases the market tilted to these companies because they reached the non users by offering services at lower cost which were thought to be premium in nature.

Now comes the google part. how did it did it ?

First search engine. no wonder it made the task easy because of faster results and clear UI
But the real stuff is not that. Then google ventured into everything and anything where they can get user information. Search is probably a best indicator of what people needs. They offered search as service when others offered it as add-on. They understood that people search more than any other action being done on web. They out thought the giants, since they are nimble and also they were also end users at that time.

Now comes the question of what domination of market brings in. Microsoft did dictates its own terms. So is reliance in telecom sector in india.

But the real difference in google is that it needs is sponsors to grow for it to grow. That is the reason for gmail, with context sensitive ads, blog, writely, froogle, and finally wi-fi. It eventually points out is that google is offering all these products free at the cost of getting information about each and every user. Google may not and i am sure will not sell this info. I believe in their ethics more than they do. But they can still target ads on me, create a nudge wink kinda situation where little pointers of ads by google tipping the favour for the respective brands due to google targetted advertising.

Long story and out of way by me,...

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