According to the case study Amazon, Apple, Facebook, and Google by John Deighton and Leora Kornfeld from Harvard Business School, the four giants hold their own competitive advantage and shaped internet as a marketing platform and capitalized at nearly $1 trillion for internet marketing. Amazon leads on internet retailing and Facebook dominants on social engagements, while Google guides on online advertising and Apple sets standards on device interface. In order to keep on growing, the four giants need to be diverse and compete for the market share.
Google – plays a role in all four sectors: online advertising, retailing of digital content, digital television and payment system and banking. It launched in 1998 and began to sell text advertising since 2000. It introduced Adsense in 2003 and set out to scan and index in 2004. After that, it acquired YouTube and double click. 97% of its revenue came from advertising. Being in all four sectors is a good step to make the company bigger, and its focus and not miss the opportunity and advantage to be the first few companies in that sector market. Moreover, Google is very smart too and should keep maintaining its lead position in search engine sector by innovation and technology.
Amazon – radical departure from conventional online-retailing practice makes Amazon more and more profitable. Its collaborative filtering tool is Amazon’s most competitive advantage that made it more successful than ever. It only has entered two sectors, retailing of digital content and digital television and is competing with the other two, Goole and Apple.
Facebook – launched on 2005 and became popular in 2009. Most of its revenue also came from advertising and reached $15 billion revenue in 2012. From here, we can tell that marketing firms court the favors of social commerce platforms because social platform reaches most people online and easy to figure out the target customers using big data analysis. It still will be the trend in future to advertise on social media.
Apple – founded in 1976 and had a bomb in growth in 2009. As smartphone applications played an important role in people’s lives, Apple entered and occupied large market share in the smartphone and combined contend to assimilate into people’s lives and make it undivorceable.
From my point of view, people buy stuff because of the content. To compete on the Internet, online content providers should come up with unique technology and ideas to attract traffic in order to sell the hardware and advertisement places. This battle among the four giants is a battle for the best content provider. Even for me, for this blog and for my cosmetics website, content is the key access to drive traffic, influence, and revenue.
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______ Halo Venus