Originally Posted by CoolMikey

"The Contestability of the market. If barriers to entry are low then the incumbent firm is unlikely to be dominant even with a high market share because new firms can enter if profits are high."

There are dozens of competitors in the search space showing that "barriers to entry are low", consumers can easily switch to another search engine, etc, so I wouldn't agree they have "dominant" position.

Facebook is a 100x better example of "dominant". "Network effect" prevents competitors from easily entering the market, users can't easily switch to another social network, because the whole point is that friends need to be on the same network, etc.