Google’s Information Barriers
Company with best, current and most thorough information wins. That company can build better strategies, make better decisions and see farther into the future. Through having the largest number of users, largest network of advertisers, largest behavior database, and advertiser demand Google has a grip on essential marketplace information. On top of having valuable intelligence, Google itself operates as a closed system with no public disclosure of its competitive platform, algorithms and practices. Let’s review those points one by one:
- Algorithm secrecy – algorithms is what made Google number one search engines. Disclosure of algorithms will result in cluttered and spammy search results. Great examples are Excite, Altavista and older search engines, whose algorithms have been back engineered and abused. A search engine cannot disclose it’s algorithms, otherwise it will be spammed into exodus.
- Practices – Google does seem like a black box. There’s little we know about its departments and practices. This is however a choice which company is permitted to have.
- Information – by having a tight grip on information Google prevents competitors from having valuable insight on online marketplace. I do not agree with many of the things that Google does, but if a company has gained immense market knowledge as the result of natural market growth (look back, Google was a word of mouth wonder), why should a company share this information with anyone else, especially competitors who can take market share and profits? It makes complete sense to keep this information inside, for the sake of the company’s benefits and to the misfortune of competition.

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