The competitive landscape has changed a lot in the last few years and the company needs to do all it can to maintain its lead in the advertising market. Its traditional competitor Yahoo ( YHOO ) is pulling up its socks and Microsoft ( MSFT ) should also not be discounted. But the most dangerous of all is likely to be Facebook ( FB ), which has crept up on the online advertising market. We also anticipate margin pressures as a result of the increasing competition and a growing hardware business.