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Monday, April 04, 2005

Google On Expansion & On Competiton

(Via Washingtonpost) Google Inc. is planning to rapidly boost spending this year to expand operations and promote its brand name as the Internet giant braces for increased competition from rivals.Google,said it will encounter new challenges in maintaining the high standards that have made it so popular. Google plans to spend substantial amounts to purchase or lease data centers and equipment and to upgrade technology and network infrastructure,in 2005. Google is also planning to review its hiring practices in order to maintain the growth and the edge.

Google described its business model as akin to that of a newspaper, with clearly delineated separation between its free search results and paid advertising. But Google also characterized its evolution over the past year in more far-reaching terms, reflecting the breadth of expertise that it needs to continue to be a leader in the search-engine marketplace. "We began as a technology company and have evolved into a software, technology, Internet, advertising and media company all rolled into one," the company said. Google, however, warned that it may be at a competitive disadvantage with rivals such as Microsoft, which recently announced plans to test new search software. Microsoft,in the past, has obliterated some competitors by building new features into its dominant computer operating system. Yahoo,too,recently has made improvements to its search engine.
"Microsoft and Yahoo also may have a greater ability to attract and retain users than google does because they operate Internet portals with a broad range of content products and services and if Microsoft or Yahoo are successful in providing similar or better web search results compared to google, or leverage their platforms to make their web search services easier to access than ours, we could experience a significant decline in user traffic."Google anticipates that as our market becomes increasingly competitive, maintaining and enhancing the brand image may become increasingly difficult and expensive".

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