It’s tough to counter Network Effects unless you have a distinctive positioning (most of the times new innovation around gaps in incumbents products) and innovative marketing strategies.
Ask.com, the Internet search engine that media mogul Barry Diller acquired for $1.85 billion to compete with Google Inc., is cutting 130 engineering jobs and conceding much of its search business to competitors.
Leeds said that Google has become too powerful a competitor to justify Ask.com’s continued pursuit of those search users.
“It’s become this huge juggernaut of a company that we really thought we could compete against by innovating,” Leeds said in an interview. “We did a great job of holding our market share but it wasn’t enough to grow the way IAC had hoped we would grow when it bought us.”