So, what's going to happen, exactly? "Influencers" who liked Google Reader, now jilted, are going to use their magic influence beam to halt the growth of Android, to erode the dominance of Google in search, and prevent the regulatory approval of self-driving cars? Google has quite a few heavy responsibilities on their hands. They have to manage growth and competition in hugely complex, emerging fields. The lesson the…
Search, which provides the majority of Google's revenue, is precarious because there are very low costs for someone to switch to another service. To combat this problem, Google started providing all these associated services -- Finance, Reader, Blogger, etc, etc -- so that people would begin to use their Google ID as a significant component of their online identity. These services were never supposed to be profitable…
Google's dominance in search has nothing to do with customer switching costs. They are dominant because, imperfections and privacy issues aside, they legitimately have the best performing search engine on the market. They are able to retain this position because search is an extremely difficult and resource intensive technical problem (like mapping), that nobody has been able to credibly challenge them on since they took over.
If someone builds a better search engine than google, then yes, their position will be precarious, regardless of the other ways they've roped people in. But none of the current crop of competitors give any reason to believe this is imminent.