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Internet Information Provider Essay

813 words - 4 pages

Internet Information Provider industry is relatively new, since the Internet was invented in the late 20th century. It has become an essential part of modern world where efficient and timing access to the information plays a crucial role. It is a perfect medium of communication and collaboration, information distribution between individuals and organizations regardless of their locations. Therefore, the Internet Information Provider serves as gateway to information and other Internet activities.
With the Internet's expansion, expectations from Internet users have increased as they increasingly go online. Users now demand Web sites that not only offer credible information but are also updated frequently and are easy to navigate. The most successful companies understand the power these users have, and they take advantage of this to attract and motivate them by offering reliable and convenient products and services. There are different strategies used by the Information Internet providers: Broad market reach and broad product offerings (Yahoo!, AOL), broad market reach and focused product offerings (Google), focused market reach and broad product offerings (priceline, eCampus), and finally focused market reach and focused product offerings (Expedia). However, the separation lines among these types of strategies are quite blurry.
The search engine industry is highly competitive with a few large companies dominating the scene. The current leader in most regions of the world is Google, followed by Yahoo and Aol in Europe and the US and Baidu is even leading them in China. The main revenue source for this industry is advertisement and sponsored searching. If a company wants to appear when some keywords are searched, they should pay a fee to the respective search engine’s owners.
1.2 Semiconductors Industry Today (Problems, challenges and impacting factors).
There is a constantly growing strong competition in the industry. Threat of new entrants is significant. Entry costs are really low and there are feeble barriers which makes it easy to enter the market. The best example would be enormous success of Facebook. The industry will continue expanding both in breadth and depth of its services, and gradually shift its revenue made from advertisement to products and services. Another problem is arising here. Advertising market is very volatile. So there is a high risk to rely solely on the revenue from advertising. There is a recent trend among content providers toward charging users for content. The biggest challenge is to balance out the expansion of...

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