Google Vs Yahoo

Which one more important: profit or market share? For me, profit is more important because it is the real modal for company to developing more.

But still there’s some people belief that market share is the one that must been chase. It’s happen because formerly there’s a terminology called Profit Impact of Market Strategy (PIMS) that Profit Company will increase along with the company market share. But in the end, PIMS not entirely true.

In Japan, many companies have been smashed because they’re struggling to obtain a market share at any cost and wished that profit will come later at the end. Then, how’s with New Wave era right now?

Previously, there’s an explotion on dotcom bubbling that caused many company dotcom gone broke. And then, now internet business is better. Companies which survive are the one that have cleary model revenue. Like E-bay, Amazon.com, Yahoo!, and Google. So not just go in to internet, but the bottomline isn’t cleary yet.

Let’s check it out the two giants who controlled the internet right now:
Revenue that been covered by Google is 99% completely from ads. Ads applications like Adwords, Adsense, PPC (Pay per Click) make an income arround 10.492 Bilion Dollars US to Google at years 2006. And remnant income is from another service like Google Answer and another product for enterprise.

Meanwhile Yahoo! revenue’s about 88% came from marketing service that most of it came from search advertising. This Yahoo’s is kinda like Google service, and others income came from domain name, web hosting and online store.

Yahoo is a bit late to find their business model so Yahoo’s not success like Google’s did. Even Yahoo is come first and more populer than Google that time, Yahoo! Still experienced money troubled.

On January 2008, Yahoo! announced to dischange about 1.000 their employee or is about 7% from employee total. Because the stock prize has became weaker lately. Yahoo’s been targeted by big company like Microsoft and News Corp for merger.

This proved that in the new wave marketing era, profit still number one. Pointless if became a King in the Market but not able to produce a Profit, Right? =P