5, 22. 2006
Satellite image of your house can be viewed all over the globe. Google enables you to do such a thing.
Google’s attraction lies in its technical superiority. It towers above the rest for its speed in displaying the search results and the hit accuracy. Above all, it is simple and easy-to-use. In addition, it uses the state-of-the art technology in terms of services such as schedule control system and maps using satellite pictures. This makes it popular overseas.
Let us compare the number of users of both. According to Net Ratings, an internet viewing Survey Company, in March 2006, share of Google in the U.S. was 54.5% whereas that of Yahoo was 28.2%. In Europe, Google is in a dominant position having an overwhelming majority share in England (70.4%), in France (73.7%) and in Germany (66.3%). As against this, Yahoo is lagging much behind with its share being 15.6% in England, 11.7% in France and 10.1% in Germany (All figures are for internet users).
Yahoo domination is typical in Japan
However, the situation is just the reverse in Japan. Yahoo search stands at 64.5%, Google at 34.7%, MSN at 16.0% and Goo at 5.5%. Yahoo is overwhelmingly strong in Japan, in direct contrast to that in the West.
Mr. Soichiro Nishimura, PRO of Net Ratings says as under on Yahoo’s overwhelming share in search service.
“It is a phenomenon typical in Japan; Yahoo brand is well established here”.
Yahoo Japan was incepted in January 1996. Google began its services in Japan in August 2000. There is a clear gap of four and a half years and there are many IT professionals who view this as “pioneer’s advantage”. However, it is not that alone.
Mr. S Sasaki who is a prolific writer on IT matters such as “Google-destroying the existing business” (Bungei Shunju Publications) says that “Google’s entry got delayed because it could not tie up with a powerful portal site in Japan.
Google, which is called a researcher’s group, does not grudge any investment and human resource when it comes to technology but it has had less interest in news, chat, auction, and day-to-day life-related news. Superior search technology alone is not enough. It cannot hope to cater to total needs of users if it does not tie up with a portal site.
Google had tied up with a major Portal Site in the West
Google tied up with a major Portal Site in the West. Mr. Sasaki says “In the West, Google tied its search engine with a major portal site and enhanced its brand equity. It tied up with AOL in America”.
It is said that the users who visited that Portal were amazed at Google’s technical strength and the number of users multiplied by the word-of-mouth communication. That is for the current status in the West.
Google entered Japan in 2000 but not only Yahoo was already in a dominant position, its portal site was nearly perfect offering diverse services. Goo and MSN too, in hot-pursuit, aimed at creating a portal site that was not inferior to Yahoo to capture the users and they put up a challenge with indigenous technology. There was no powerful portal site left by then with whom Google could tie up and take on the challenge.
Yahoo Japan’s PRO explains that “Degree of perfection of various services on the site is the main reason behind Yahoo’s popularity. There are 118 services as on April 2006 concerning shopping, music and video/image delivery. Membership system issued ID is also spreading fast. 15.8 million ID holders logged in the site in March 2006. Since it leads to increase in search users, Yahoo intends to lay more emphasis on the login service in the future.
Mr. Sasaki predicts as under about Yahoo vs. Google in the future.
“In my opinion, if Google is technology oriented, and if Yahoo is humanities oriented, then both have their respective characteristics, there will be segregation of niche. However, in the West, Google’s dominance will perhaps expand further.
