Q1.Google was a late mover in the internet search industry, entering themarket later than firms such as AltaVista and Inktomi. Being a late mover,Google benefitted by learning well from the mistakes of its predecessors.AltaVista and Inktomi were the first movers in internet search, providingdirectory giant Yahoo! with algorithms which enabled automated search.However, as with all first movers, loopholes and errors are unavoidable.Both companies faced problems of “algorithm abuse” which resulted inspam that frustrated its users.Notably, both companies did not foresee this problem. This may be onedisadvantage of first movers - the potential problems are unknown.Furthermore, in an attempt to be the first mover (which has its benefits tobe mentioned below), companies may “rush” out their projects and henceoverlook important details such as system integrity, potential abuses anduser friendliness.Having said that, we cannot undermine the benefits of a first moveradvantage. Microsoft with operating systems and Creative with soundcards are two good examples. A first mover establishes standards inaccordance with their expertise and new companies looking to enter themarket need to compete against their expertise. This poses significantbarriers to entry for new firms. Also, by the time a competitor arises, thefirst mover would have secured a loyal consumer base. This makes it hardfor late movers to claw market share away from first movers.Google, conversely, is a company that arises after witnessing theinadequacies of its predecessors. As such, it has the advantage of understanding and preventing the pitfalls its predecessors faced. Also,being a late mover, Google can concentrate on improving currentlyestablished systems instead of starting from scratch. In the case of Google, the company improved search by creating an algorithm thatprevents abuse. By using algorithms instead of reinventing ways toautomate search, Google did not have to start from scratch (which isobviously harder).