Is Google over-extending itself?
Google is in the news quite a bit, lately, but not all of that publicity is good…
Contrary to popular opinion, Google is not made of Teflon®, and not everything they touch turns to gold. The fact is that no matter how many super geniuses you have developing products, code and ideas, a considerable amount of coordination and integration is necessary to successfully bring products to market, especially when you’re competing with other heavyweights who have been doing it longer, such as Apple with the iPhone and Microsoft in Operating Systems & Office Productivity Apps, just to name a few.
Some folks seem to be of the opinion that they can do no wrong, and that whatsoever they decide to put their hands to will prosper, just because they are Google and hire some very smart people. Newsflash: Success in business is more than just having access to smart, talented people. There are many other considerations to be made when attempting to build and maintain a powerful business that dominates in many different industries.
Google can ill afford to hit a rough patch now, as the tech industry seeks a major rebound. Businesses are looking to see which players to work with for the long haul, and any perceived weakness by a big partner will result in many more executives taking a pass on the potential risk.
Instead of trying to be all things to all people, Google should focus on what it does best (web services, search, advertising and automation) and choose a few other markets to enter into in a measured and controlled fashion. This will enable it to get a better handle on the various nuances of different industries. It should be especially careful not to enter so many consumer markets at one time. The folks at Google need to decide whether their focus is consumer or enterprise and stick to that focus until they have actually mastered it. Otherwise, the 2010-2019 decade may not be nearly as favorable to them as the 2000-2009 decade was.
The ball is still in their court – for now.