Google: The Winner For Now

Is the Internet Search Engine industry a Winner-Take-All business?
Despite the market share that Google currently holds in the Internet Search Engine business, I do not believe it is accurate to say that the industry in which they are currently the dominant player is a Winner-Take-All (WTA) business. Currently, Google is crushing the competition in the Internet Search Engine business not solely due to their "algorithm-based" search capabilities, but also due to the fact they created a numerous other web-based products that allow Google users to access email via GMail, find places using Google Maps, and things of the sort all in a "one-stop shop".

Why has Google gone beyond simply maximizing the Internet user's web search experience? The reason is because even they must realize the barriers to entry to this network platform are not prohibitive and that competition will always be looming. Other players existing in this industry such as Yahoo!, MSN Live, etc. have not been able to capture the market share Google has been able to capture; however, this does not mean that a new search engine will not be introduced in the future that will be "smarter" or provide a better search experience. For this reason, Google must add value via other avenues to the user in addition to their search engine capabilities because when a "smarter" search engine does come along, web users will follow due to the neglible switching costs incurred.

NTT DoCoMo, Inc. & Mobile FeliCa Technology

Is NTT DoCoMo wise to offer its existing mobile phone rivals access to Mobile FeliCa?
I believe NTT DoCoMo's decision to offer mobile phone rivals access to Mobile FeliCa technology, its contactless integrated circuit (IC) offering, was a tough, but prudent decision. It should pay dividends as the decision moves NTT DoCoMo to the forefront of the industry by creating strong network effects as well as first-mover advantages. In this case, even though NTT DoCoMo's competition will also be using the Mobile FeliCa technology in their own products, FeliCa Networks will evolve into the standard platform on which wireless transactions are conducted. NTT DoCoMo will capitalize on their stakeholder position as a result.

Additionally, by continuing to establish relationships between different retailers, credit card companies, etc. that agree to use the Mobile FeliCa technology and by continuing to increase the number of individuals who own mobile phones that possess the Mobile FeliCa technology, the necessity of having a phone that includes Mobile FeliCa technology will increase. For instance, the agreement established with the grocery store chains that provide a 5% discount to customers for using the Mobile FeliCa technology instead of cash to pay at the checkout counter is a great example of NTT DoCoMo utilizing the Mobile FeliCa technology to capture new target audiences.

On the other hand, if NTT DoCoMo made the decision to keep Mobile FeliCa to themselves and not allow the competition to implement the IC technology into their own products, FeliCa Networks could either takeoff and become the accepted standard basically making NTT DoCoMo a stakeholder in a monopoly. On the other hand, there is the issue that if NTT DoCoMo only makes the Mobile FeliCa technology available on their own products, then they run the risk of losing a great number of customers who do not purchase NTT DoCoMo mobile phones, but would still use the Mobile FeliCa technology in their everyday lives.

Is Trouble Brewing?

It is being reported that there may be a hike in beer tax in the works as a result of the economy's downward spiral. It made me think of one of my favorite 311 songs, Homebrew.

EA Online: Are They in the Game?

Since the writing of the Electronic Arts Case, the Sony Playstation 3 and the Nintendo Wii have been released and both have online gaming capabilities. What’s your assessment of the current online gaming market?

I have to admit, I really have not played too many video games since the first Nintendo and Super Nintendo were introduced to the market and I would spend my spare time playing Spy Hunter, Metal Gear, Tecmo Bowl, or memorizing the code to get 30 lives in Contra (shown here on YouTube). Once the controllers had more buttons than I had fingers on my hands, I guess I just lost all interest.

With that said, after reading the case, I can see that a lot more has passed me by in the world of video gaming than I realized. From a novice perspective though, it appears pretty clear to me that anyone who wants to remain a relevant player in the gaming world today must make themselves viable from an online gaming perspective. Therefore, I believe Sony and Nintendo's strategy to incorporate online gaming functionality into their PS3 and Wii, respectively, was a mandatory move unless they completely wanted to be phased out of competition. The move allows end-users to be more connected to other gamers who are as enthusiastic about the world of gaming as they are, and also allows them to provide more value-added services directly to their target audience.

NetFlix: Is the Well Running Dry?

As a follow-up to my NetFlix Business Model post from earlier, I thought this commentary posted on CNN.com provided a rather insightful perspective:

NetFlix Defies The Naysayers

Plus, the writer incorporated the word "gratis".

Six Ways to Make Web 2.0 Work

Here is a link to an interesting article pubished recently in the McKinsey Quarterly:

Six Ways to Make Web 2.0 Work

You may need to create a user account to have access to the entire article.

Mint.com Highlighted on MSN Finance

One of the eCommerce websites mentioned in my MBA 734 class, Mint.com, was recently reviewed by Kiplinger's Personal Finance Magazine, along with other online financial management tools, and this is how they described the Mint.com experience on MSN Finance. I currently use Mint.com and find it to be tremendously useful.

NetFlix: Update Business Model with VOD?

Since the publishing of the HBS case, Netflix has entered the video on demand (VOD) market. What is your analysis of how Netflix has attempted to update their business model with VOD?

It is my belief that NetFlix's decision to pursue Video On Demand (VOD) and ultimately incorporate this new revenue-generator into their overall business model was not only a great idea, but a necessary action. Just as NetFlix was able to look ahead, act on future trends, and get off the ground by attracting those individuals who were early-movers toward the new DVD movie format back in the late '90s and early '00s, they are continuing to be proactive and forward-thinking as they are preparing themselves and their business model for the day when DVDs (and other hard-copy media) are rendered obsolete and meet the same fate as that of the VHS format. As the media and telecommunications industries continue to converge, I suspect it would be more challenging for NetFlix to differentiate themselves from other VOD providers in the future; therefore, it will be easier for them to start moving in this direction now, before the DVD format becomes completely passe, and provide additional value to their current customer base rather than remain stagnant and find themselves losing subscribers who are moving to the budding VOD trend. NetFlix has also recently introduced a settop box similar to the Vudu Box with which AppleTV users are familiar. While this is also another step in the right direction, they need to maintain their focus on convenience, value, and selection. NetFlix was able to succeed because they set themselves apart from the competition; however, it is paramount that they continually look for newer ways to reach their niche customers while remaining on the cutting edge of video delivery technology.

P2P File Sharing: Distribution Chain Evolution Panel

A panel discussion on the Evolution of the Distribution Chain with regards to P2P File Sharing moderated by a colleage of mine, Limor Schafman. Courtesy of TV Mainstream.