Nimay Mehta is of the opinion that tech giants Google and Facebook eat out smaller companies and thus; leave no scope for them. While talking to the CNBC this Tuesday, the Lead Edge Capital partner further said “As a result, the smaller businesses are finding it harder and tougher to compete.”
Apparently, Mehta is absolutely right to claim that the dominance of larger companies can neither be overruled nor the same must be overlooked as they’re practically ‘sucking the oxygen up’ out of the room. Further, with the strongest market hold, these platform internet business giants actually leave it almost impossible for smaller internet companies to build both, the audiences and distribution.
Quoting the example of Snapchat, Mehta added “By taking off at the pace of a rocket ship, Instagram Stories have left the image messaging and multimedia mobile application way behind.” He added further that “In terms of business growth, doesn’t it leave question marks on the future of Snapchat?”
Mehta further conveyed that apart from the fact that Google and Facebook eat out smaller companies, there’s another factor that needs due attention and that is; even the investors have concerns over the dominance of Internet Giants’ strong hold on the market.
“It is also making things tougher, harder and difficult for investors and although lot of capital is there, sitting on the sidelines; the problem is whether how to find a space to put that money to implement (an array of) great ideas” he said.
The analysis gives us an understanding that yes, Big Fishes are prominently and evidently dominating the Internet World and therefore, to compete these tech-leaders; smaller Internet companies will have to look for newer, better and effective approach. No one can deny the fact that in the presence of Google, Facebook and likewise bigger companies; Internet is turning tougher everyday.