I was recently reading an article from The Wall Street Journal about the competition between Google and Facebook. In my opinion, there does not appear to be true competition between the two companies. It seems as if they exist in harmony and actually complement each other.
The only major competition between the two seems to be user traffic. The two companies are “neck and neck” at the moment with the amount of traffic they generate per day. The amount of traffic these companies generate is extremely important considering that advertisers look at traffic as one of their main reasons for advertising on a certain network.
In the future, there will most likely be more competition between the two companies. As they continue to grow they will eventually find themselves competing in the same industry. For instance, when Facebook’s social media growth becomes stagnant, will they decide to create a search engine? Or, will Google create a true social networking sight? All this remains to be seen. Yet, at the moment I do not believe there is true competition between the two companies seeing that they concentrate in different segments of the Internet arena.
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