Google Faces Challenges in Expanding
Though many Web search engine users prefer Google Inc. over its rivals, the soon-to-be-public company faces challenges as it expands into new businesses, Standard & Poor’s Equity Research Services said Monday.
In a U.S. survey commissioned by Standard & Poor’s and conducted by InsightExpress, 48% of search engine users said they used Google most overall, compared with 20% for Yahoo Inc., 14% for Microsoft Corp.’s MSN and 7% for AOL.
Still, more than 6 of 10 Google users said they would switch if a better service was introduced.
On other fronts, fewer than 25% of search engine users would be either very likely or somewhat likely to regularly use a new personal e-mail service if it offered -- as is promised by Google’s Gmail -- unlimited storage, e-mail search and targeted advertising. Google also is testing a shopping service and is affiliated with a social networking service.
“We believe Google ... will also face risks relating to commoditization of the company’s offerings, difficulties related to its introduction of new products and services, and competition from the likes of Yahoo and Microsoft,” S&P; analyst Scott Kessler said.