Users, content creators and external developers are given tools to create new marketsand enrich services
Network EffectsThe utility of a good or service varies with the number of usersThe reach of a critical mass of users constitutes a significant barrier to the entry
OpennessThe traditional walled garden media strategy becomes irrelevantContent and services must be open and interoperable in favor audience circulation
CORE COMPETENCY
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What never lets Google down?
Leveraging the "Long Tail"
Go to almost any website today and you see a section for “Ads by Google”. A person can
earn revenue by enabling Google to place contextually targeted ads on their website. This iscalled leveraging the "long-tail" of the internet. The "long-
tail” refers to understanding andleveraging the fact that most of the web’s content is made up of small sites. Google AdSense
also enables companies to advertise to large numbers of internet users
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this is the “long
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tail”instead of a smaller subset of larger companies (the “head”), using a basic AdWords
campaign at an affordable price.
Control Data Sources
Google Maps is another example of a Web 2. 0 core competency: the ability to control datasources that get better as people use them. The Web 2.0 era is all about services, not software.So if there isn't money to be made by selling software, then the money is in the data that iscreated and stored by offering services. Google Maps gets their satellite data from Navteq,but enables users of its mapping functionality to add to it to store things like companyinformation or apartment rental information. Google stores all this data and thus becomes theprimary data source.
Rich Internet Applications
Google Maps, along with Gmail and Google's word processing, spreadsheet and calendaringapplications are great examples of Rich Internet Applications, another core competency of
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