Google's Secret Weapon

"And the more data you have to train your algorithms on, the better your predicative capabilities will become."

The role of something as mundane as data often takes a backseat to Google's other high-profile attributes: the reputed brilliance of its workforce, the power of its brand (a recent survey indicated it was the most powerful in the world) and the vast supercomputer it has managed to cobble together.

A Monopoly on the Search Market

But Google's data advantage is what has some analysts forecasting that the company could eventually monopolize the lucrative search market, which eMarketer predicts will total $42 billion by 2011.

"Google employs various algorithms to match search queries to relevant page links, including both a ranking and text-matching technology. The larger the database of past queries performed by users, the more accurate and timely the delivered search results," Credit Suisse analyst Heath Terry wrote in a research note in November.

"This virtuous cycle of Google attracting more users due to better search results leads to even better responses and more users. We believe that Google will continue to grow their share of the online search market until they have virtually 100% share." Credit Suisse makes a market in Google shares.

Indeed, many investors wrongly believe that Google's search-market dominance derives exclusively from its well-known search technology, its powerful infrastructure and the force of consumer habit.