rzm61
September 12th, 2008, 06:20 PM
“Some say Google is God,” Sergey Brin once said. “Others say Google is Satan.”
The confusion about Google’s identity may not be quite that Manichean, but it does run deep. The company, which today celebrates the tenth anniversary of its incorporation, remains an enigma despite the Everest-sized pile of press coverage that has been mounded around it. People can’t even agree what industry it’s in. The many businesses that see the young company as an actual or potential competitor include software houses, advertising agencies, telephone companies, newspapers, TV networks, book publishers, movie studios, credit card processors, and Internet firms of all stripes. If your business involves information, you probably fear (and admire) Google.
The sheer breadth of Google’s influence and activity - just this past week it unveiled its own Web browser, introduced face-recognition software, and shot a satellite into orbit - can easily be interpreted as evidence that it is an entirely new kind of business, one that transcends and redefines all traditional categories. But while Google is an unusual company in many ways, when you boil down its business strategy, you find that it’s not quite as mysterious as it seems. The way Google makes money is straightforward: It brokers and publishes advertisements through digital media. More than 99 percent of its sales have come from the fees it charges advertisers for using its network to get their messages out on the Internet.
Google’s protean appearance is not a reflection of its core business. Rather, it stems from the vast number of complements to its core business. Complements are, to put it simply, any products or services that tend be consumed together. Think hot dogs and mustard, or houses and mortgages. For Google, literally everything that happens on the Internet is a complement to its main business. The more things that people and companies do online, the more ads they see and the more money Google makes. In addition, as Internet activity increases, Google collects more data on consumers’ needs and behavior and can tailor its ads more precisely, strengthening its competitive advantage and further increasing its income. As more and more products and services are delivered digitally over computer networks — entertainment, news, software programs, financial transactions — Google’s range of complements expands into ever more industry sectors. That's why cute little Google has morphed into The Omnigoogle.
Full article here:
http://www.roughtype.com/archives/2008/09/google_at_10.php
The confusion about Google’s identity may not be quite that Manichean, but it does run deep. The company, which today celebrates the tenth anniversary of its incorporation, remains an enigma despite the Everest-sized pile of press coverage that has been mounded around it. People can’t even agree what industry it’s in. The many businesses that see the young company as an actual or potential competitor include software houses, advertising agencies, telephone companies, newspapers, TV networks, book publishers, movie studios, credit card processors, and Internet firms of all stripes. If your business involves information, you probably fear (and admire) Google.
The sheer breadth of Google’s influence and activity - just this past week it unveiled its own Web browser, introduced face-recognition software, and shot a satellite into orbit - can easily be interpreted as evidence that it is an entirely new kind of business, one that transcends and redefines all traditional categories. But while Google is an unusual company in many ways, when you boil down its business strategy, you find that it’s not quite as mysterious as it seems. The way Google makes money is straightforward: It brokers and publishes advertisements through digital media. More than 99 percent of its sales have come from the fees it charges advertisers for using its network to get their messages out on the Internet.
Google’s protean appearance is not a reflection of its core business. Rather, it stems from the vast number of complements to its core business. Complements are, to put it simply, any products or services that tend be consumed together. Think hot dogs and mustard, or houses and mortgages. For Google, literally everything that happens on the Internet is a complement to its main business. The more things that people and companies do online, the more ads they see and the more money Google makes. In addition, as Internet activity increases, Google collects more data on consumers’ needs and behavior and can tailor its ads more precisely, strengthening its competitive advantage and further increasing its income. As more and more products and services are delivered digitally over computer networks — entertainment, news, software programs, financial transactions — Google’s range of complements expands into ever more industry sectors. That's why cute little Google has morphed into The Omnigoogle.
Full article here:
http://www.roughtype.com/archives/2008/09/google_at_10.php