Microsoft Poaches Yahoo's Top Search Engineer; "the end of Yahoo search."
alleyinsider.com
alleyinsider.com
What should Yahoo do? Stop shifting back and forth from strategies to strategies; they should cut back the cost of running the business, cut off projects that do not work and stay focused on the main thing: search. Yahoo should make provision to survive their grievance period and hope it does not last, remain preemptive in new innovations to remain in the race. There are still number two; it is not like they were Hakia, Chacha or some Powerset like company.
brand matters. in a test i recall, they took yahoo results and google results and swapped the company banners. people liked the results that had the google logo on them. google has the brand in search, its probably impossible to unseat them unless they do something drastically stupid
To me, that signals serious weakness.
Seems like a weakness to me.
Remember Microsoft at one time was one of the most respected brands around.
Either some third party could discover fantastic new search technology and steal the market, or internet search is solved and brand name is all that matters, so the company with the best PR will win. Either way, it shows that Google has lost its previously unassailable technological advantage.
I agree that a brand name advantage seems easier to tackle then a technological one. Especially when switching costs are so low. But then this is a pattern followed by many technological products. A technological advantage, followed by a few years lead followed by equivalence where their product demands a premium, outsell competition, etc.
Take Sony (portable radios, portable cassette players) or Canon (bubble jet). Innovation that was quickly equalised followed by a long period of leadership. You could even argue that a long period of technological superiority (say because of patents, trade secrets or even faster innovation) might result in an unbalanced company that cannot survive once superiority is lost.