We live in an era in which information is sent and received at amazing speeds. However, one company has chosen to challenge today’s widely accepted internet speeds and has chosen to come up with a product that leaves other internet service providers in the dust. Google, has recently introduced their new form of internet called “Google Fiber”, and although it has not been introduced to a wide market it has had great success so far in their test location of Kansas City, MO. As with any other products that Google introduces, there has been quite a high demand for their new service. However, with a product like Google’s, how much exactly will their new product cost and will it be able to keep up with current market demand and current market prices? The answer however, is that Google’s new product will not only be just as costly as today’s Internet Service Providers, but they are also guaranteeing to be 100 times faster than current internet speeds. This currently means that loading and streaming time will suffer zero to no buffer time which is something that many Internet providers seem to frustrate their customers with. However, how exactly is Google setting up their prices in comparison to their internet speeds? As explained by Google:
- A one -time $300 Fiber install fee and receive a guaranteed Internet service for 7 years (No additional fees)
- Waive the $300 , and it’s $70 per month for the super-fast Internet service (one gigabit upload & download; no data caps)
- Top tier is $120 per month
As discussed in class, there are many different challenges for a company to break through barriers in a market. However, with Porter’s barriers to entry in mind, it seems that Google is the one raising the bar for all the other Internet Service Providers. With their new product being introduced and starting to become demanded by larger markets, it is not long before Google and their new internet service can take over and dominate the internet market. But what exactly is making Google’s new internet so special and so highly demanded? Is it simply because they are providing a brand new service that has higher quality fibers or simply because they are slow to release their product? It is without a doubt that Google’s new product may very well become the new standard, but how exactly will they be able to convince all the existing Internet Service Provider’s to change their entire system, for a higher quality data cable? Google is not only trying to raise the bar for all the other companies, but it seems that Google may very well be trying to drive out some of these companies as well.