Showing posts with label Corporate. Show all posts
Showing posts with label Corporate. Show all posts

Monday, December 13, 2010

Google Domination

Before, Google was a simple search engine, now it is much more than that. Other online companies are afraid because Google is merging with a diversity of online companies which has gotten the attention of Antitrust enforcement. They are questioning whether or not Google is acting legally with each merge and whether or not a boundary is being crossed.
Critics say Google will have too much control over searches for flights if it controls ITA. In recent months a number of companies have told regulators that Google - which says it wants to build its own flight-search offering - could manipulate the results from its search engine to give its travel service a higher ranking than its competitors'. They point to the fate of such companies as AOL's MapQuest, which shriveled in the face of Google Maps, which regularly lands at the top of Google searches.
Google makes a valid point that ITA is not the only technology that is being used, but at the same time, the technology can be manipulated and over-marketed so that the competition will be choked. This case can be directly compared with the economic dependencies of a single country. Let's say that Google does take over company after company. They control phone service, internet, travel sites, networking sites, technological manufacturing, and television. Having controlled all versions of media and most technological advances, what would happen if Google collapsed abruptly? The Antitrust Acts were put in so that things of this nature do not happen, but it seems the company is too complex to be put under the magnifying lens. Congratulations to Google stock holders, but I foresee a bad outcome if Google continues to merge out of control.

Sunday, December 12, 2010

Netflix Under Attack

So far in the entertainment world, Netflix was simply a small fish competing in a big pond, but as soon as the company incorporated internet access, it has been a major pain in the sides of the major corporations. Kids in high school, collegiate students, as well as older adults, are finding it easier to discontinue their cable or satellite programming if they can get all their favorite shows cheaper on the internet, rather than hauling out the big bucks every month. One flaw they overlooked, was that they believed the corporate giants would fail to notice their progress. Netflix has quadrupled in stock value since their advancements, but Time Warner will not have it.
Netflix has been a business partner to the movie and television studios through licensing deals, but increasingly it is seen as a partner with its hands far deeper in the pockets of the media companies than anyone thought. Through its success, the company has positioned itself at the center of the media universe — at the nexus of technology and content — and is now finding it a place increasingly under attack.
In this recession, of course customers will buy the same product if it is cheaper. The question is "How long will their reign last, if prices escalate from corporate pressure?". Owners of HBO are ready to create HBO GO which will only allow HBO customers to access the network. If the entertainment giants decide to make deals to squeeze Netflix out of business, then loyal customers lose out. This is a prime example of the cutthroat environment that big business has created in order to survive.