Monday, May 30, 2011

Google


Google. If you Google “Google” you get 9,576,000,000 results in 0.07 seconds.  Wait, I just said  Google “Google”? Does that make any sense? Well, yes and no.
Google is now unanimous with the word search and might as well be published as a synonym on print and online dictionaries because we seldom use the word “search”.  The ubiquity of Google is a clear example of its relevance in the digital world. Google defines the concept of a “technology company” concentrating on all spheres of activity within the value chain (picture below) spreading itself within the digital world from software applications such as Gmail, Chrome & GoogleDocs to hardware products such as the Google Nexus phone. Their disruptive model has challenged not only the software industry, but the world.



Google is now at the forefront of the technological curve and has greatly enhanced the internet user experience by offering services that truly provide value to its customers. However, Google’s rapid growth over the past decade in different spheres of the digital world has led to sour relationships between them and various other megaliths within the ecosystem such as Apple, Facebook, Microsoft and most recently payment gateway corporations such as Paypal. The challenges that Google will confront with vary from how different players in the network compete fiercely to seize the attention, information and loyalty of users. 
Google’s challenge to dethrone Apple from OS market is underway, however with fragmented versions of the Android and compatibility issues with device manufacturers , iOS is leading the way and continues to dominate Android with its synchronized network amongst Apple devices as well as its placement amongst the consumers as outperforming the technological barriers with innovative products.  Google CEO Eric Shmidt resigned from Apple board depicts a clear example of conflict of interest after the introduction of their Nexus One.
Although Google is the dominant search engine on the planet, can they really ignore the Chinese market? Their decision to withdraw from China may not be their best decision considering the 400 million Chinese internet users (mostly mobile) and with Apple, Microsoft/Nokia continuing their penetration into the Chinese telecommunications market,  Google’s Android will have a tough time trying to convince China’s leaders to work with them considering their public departure from the world’s second largest economy.
Facebook is to social what Google is to search. But wait, there seems to be a conflict of interest here as well. Facebook is constantly developing mechanisms to keep their users online by offering search alternates via social connections (leveraging their 600 million user base) and threatening Google’s main revenue model. Facebook overtaking Google as the most used link in 2010 raised alarms at Mountain View (Google headquarters).
Google vs. the world – Google is now constantly at war, not only with other giants in the software industry but also with governments, who are watching them like hawks internationally. The FTC’s scrutiny of Google Buzz and their acquisition of Admob along with various other issues such as governments opposing Google Maps in “sensitive areas” (India) highlights how Google is pushing the boundaries to an open organized information database, much to the dismay of government’s who would like to keep access to “sensitive information” private. Can Google really defend itself by shelling billions on lawsuits? Perhaps, it’s a cost a doing business?
 It’s Economics vs. Politics and we all know that both have an equally dominant role to play when it comes to decision making.  Google will need to woo not only market competition, but non-market competition if it wants to remain vanguard in the technological value chain.

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