Google could have made a site like YouTube at a much lower cost without spending 1.65 billion dollars, but why didn’t it?
It was a big business plan, to understand the program you need to understand some things.
First, you need to get an idea about the brand value
In Bangladesh, however, the term condensed milk or gar is rarely used. But everyone calls the dark milk by the Danish name. Although Danish is only a brand name, it has become so popular that the words Gar Dudh or Thick Milk have disappeared.
Another example of brand value
Everyone says Vaseline instead of pronouncing petroleum jelly. Although Vaseline is a brand name. Why! The reason is that it entered the market first and people have taken this brand name in mind.
To give another beautiful example, Google opened another site like Facebook without buying Facebook. The result? Google Plus is now gone.
Facebook has gone into people’s heads, precisely the same concept people will not eat the 2nd person, did not eat. So Google’s social media site Google Plus has been shut down last year.
Now come to why Google bought YouTube
In 2005, when YouTube started! Its popularity continues to grow rapidly. Marketing by capitalizing on the popularity of YouTube in the market will get more results. And if you want to open a new site and take it to YouTube by marketing it, you will have to spend a lot of money.
A new company needs a new team, and it will take time to become established and experienced in the market, but those who are working on YouTube, are ahead in terms of experience in the market.
Again YouTube was suffering from hosting problems due to a huge number of visitors and video uploads. If YouTube goes to another company, Google’s new website will be left behind in competition with YouTube.
If YouTube had not been bought, there would have been competitors in the market. Google doesn’t want them to have any competitors. Will buy it with more money if needed.
Considering all these aspects they have not created a new site.
Now think if you create a site like that, would it work at that time?
Everyone has heard the name of the app TikTok. TikTok is not the only app where you can share short videos, there are many such apps now but are they all as famous as TikTok?
At that time, YouTube grew well, so Google bought it instead of competing.