If Some Serps Are Easy to Get Then
Economies of Scale Otherwise Known as Network Effects. Anyone Can Start a Social Network but Few Can Compete With Facebook. Their Competitive Advantage is Largely Due to Network Effects the More People on a Social Network the More Value It Has and the More People Will Be Willing to Join. These Demand Side Economies of Scale Erect a Barrier to Entry Thus Retaining and Increasing Profitability Because Customers Are Unwilling to Sign Up to Smaller Networks. This Demand Side Barrier Has Been So Effective for Facebook That Even the Likes of Google Have Trouble Countering It. We Could Even Apply This.
Type of Analysis to the Search Results. You May Experience Profitability Issues. If They Are Easy for You to Get They Are Easy for Some New Entrant to Get Too. As Italy Telegram Number Data Google Raises the Bar and Makes It More Expensive to Compete the Threat From New Entrants Andor Those With Less Funding Diminishes. Those Who Have More to Spend Andor Are Bigger Businesses Will Likely Find the Serps More Profitable Than in the Past as They No Longer Suffer the Structural Problem of a Low Barrier to Entry. If You Have the Funds Then Google Making It Harder to Optimize Actually.
Works in Your Favour. Switching Costs Almost Everything Has a Switching Cost Whereby It Costs a Customer to Change Services. The More Entrenched a Product or Service the Higher the Switching Cost and Therefore the Higher the Barrier to Competitors. Microsoft Office Has Hung Around in the Enterprise Despite Being Less Than Ideal Because the Switching Cost Involving Staff Training and Industry Document Standards is High. Capital Requirements If You Want to Run a Search Engine to Rival Google Then the Capital Requirements Are Significant. However if the Return is There Capital is Typically Available. |
