Microsoft's Market Share Growth Looks Promising but will Yahoo! be Left Behind?

By Joanne Casey

With the recent revelation that Microsoft had offered $31 per share to Yahoo!’s board of directors (a deal estimated at around $45 billion), people began to wonder if this was the end of the road for Yahoo!  Microsoft has since increased the bid to $34 per share, in response to Yahoo! claiming the original bid undervalued the company.

So should Google begin to be fearful of the possible Microhoo that may threaten the share of market that Google has held onto?

Since the takeover bid from Microsoft, Yahoo! have introduced Yahoo! Live, Shine (a new site for 24-54 women) and launched Yahoo! Buzz among other developments- perhaps in an attempt to show defiance against Microsoft.

Meanwhile, despite the fact that Microsoft volume levels in Pay-Per-Click search may not be dazzling, one major asset is their excellent customer service. The UK MSN help centre is friendly, cooperative, always available and eager to follow up on your problems and ensure that they are closed. This is a definite competitive advantage in retaining clients in this competitive industry.
If Yahoo! could compete with this level of service, I believe that would be a major advantage in holding on to their existing client base and market share.

In addition to Microsoft’s first class service levels, a recent development that may reward people who don’t use Google could help them to gain some of Google’s market share. The “$1 Million Guarantee Program” may reward anyone within the US who agrees to have web surfing technology hooked up to their computer to monitor the use of Google and any other search engine that is not Microsoft. The benefits for people on the program are less privacy infringements and financial rewards – up to $1 million per year to exclusively use Microsoft’s search products.

Could this be the revelation that finally breaks Google major market share hold?